To help boost the economy, the Federal Reserve Board last week unlimbered an old fiscal weapon that President Kennedy and many liberal economists have long wanted restored to the nation's antirecession arsenal. The Fed announced it would begin buying U.S. notes and bonds of longer maturity.* By entering the long-term market, the Fed can shorten the supply of bonds, push prices up—and thus help nudge yields lower. Since Government bond yields tend to set the tone of all interest rates, this policy would be expected to push long-term rates down, make money...
To continue reading:
or
Log-In
