Fed to Spend $1T on Mortgage, Treasury Securities
Latest intervention hopes to lower lending costs
By Nick McMaster,  Newser Staff
Posted Mar 18, 2009 3:01 PM CDT
Federal Reserve Chairman Ben Bernanke speaks about reforming the US bank regulatory system in light of the global financial crisis last week.   (AP Photo)

(Newser) – The Fed plans buy up to $300 billion in long-term Treasury securities in an attempt to make lending more affordable, the Wall Street Journal reports. The massive buy is intended to push down interest rates on consumer loans and corporate bonds, which are linked to yields T-bills. The Fed will also buy $750 billion of mortgage-backed securities—above $500 billion it is currently buying—in order to raise the assets’ prices.