Help us end the fiscal year strong. Donate by June 30. Give Now

How QE3 could help the economy

Stacey Vanek Smith Sep 14, 2012
HTML EMBED:
COPY
U.S. President Barack Obama (3rd R) shakes hands with Federal Reserve Bank Chairman Ben Bernanke (C) as FDIC Chair Sheila Bair (2nd L) looks on. Chip Somodevilla/Getty Images

How QE3 could help the economy

Stacey Vanek Smith Sep 14, 2012
U.S. President Barack Obama (3rd R) shakes hands with Federal Reserve Bank Chairman Ben Bernanke (C) as FDIC Chair Sheila Bair (2nd L) looks on. Chip Somodevilla/Getty Images
HTML EMBED:
COPY

Yesterday Federal Reserve Chief Ben Bernanke laid out the Fed’s new economic stimulus plan. It’s round 3 of so-called quantitative easing. The Fed will buy $40 billion worth of mortgage-backed securities every month, until it decides the economy has improved.

The focus is primarily on housing, says Chris Low, chief economist for FTN Financial in New York, and that has roots in a number speeches given in the past year with the theme that a housing recovery is central to a broader economic recovery.

“They seem determined to deliver on housing,” he says.

 

 

There’s a lot happening in the world.  Through it all, Marketplace is here for you. 

You rely on Marketplace to break down the world’s events and tell you how it affects you in a fact-based, approachable way. We rely on your financial support to keep making that possible. 

Your donation today powers the independent journalism that you rely on. For just $5/month, you can help sustain Marketplace so we can keep reporting on the things that matter to you.