The Ottumwa Courier

AP National

January 29, 2014

Fed is expected to further trim bond purchases

WASHINGTON (AP) — The Federal Reserve is expected Wednesday to further reduce its stimulus for the U.S. economy even though that prospect has unsettled global financial markets.

The Fed announced last month that it would pare its monthly bond purchases from $85 billion to $75 billion. And it said that if the economy kept improving, it would likely further slow its bond buying at future meetings. The Fed's bond purchases have been intended to keep long-term loan rates low to spur spending and economic growth.

Most economists expect a string of $10 billion monthly reductions in bond purchases to be announced at each Fed meeting this year, concluding with a final $15 billion cut in December.

The two-day Fed meeting that ends Wednesday will be the last to be presided over by Ben Bernanke, who is stepping down after eight years as chairman and will be succeeded next week by Vice Chair Janet Yellen. She is expected to stick closely with Bernanke's policies.

Last month, along with the modest trim in its bond purchases, the Fed made clear it plans to keep short-term rates historically low "well past" the time the unemployment rate dips below 6.5 percent. The rate is now 6.7 percent.

Managing a slowdown in the Fed's bond purchases without roiling markets will pose a tough early test for Yellen. Investors have been nervous in part because a pullback in Fed bond buying will likely mean higher rates. Borrowing could weaken as a result.

Many also fear that higher U.S. rates will lead some bond investors to move cash out of emerging markets and into the United States to seek higher returns. That fear has depressed currency values and roiled stock markets in a number of developing countries.

The Turkish central bank held an emergency meeting Tuesday and announced it was raising a key rate from 7.75 percent to 12 percent to try to reduce inflation and boost its currency, the lira, which had fallen to a record low.

Text Only
AP National
  • Social Security's $300M IT project doesn't work WASHINGTON (AP) — The Social Security Administration has spent nearly $300 million on a new computer system to handle disability claims, but the agency can't get it to work. And officials can't say when it will. Six years ago, Social Security embarke

    July 24, 2014

  • JFK returns to old look in new collectors' coins WEST POINT, N.Y. (AP) — President John F. Kennedy is getting his old look back on new collectors' coins. The slain president's profile debuted on the half dollar 50 years ago, and the image was subtly tweaked and sharpened in the 1990s. Now the U.S.

    July 24, 2014

  • FAA lifts ban on US flights to Tel Aviv airport WASHINGTON (AP) — The Federal Aviation Administration has lifted its ban on U.S. flights in and out of Israel. The end of the ban, which the agency had imposed out of concern for the risk of planes being hit by Hamas rockets, was effective at 11:45 p

    July 24, 2014

  • Man run over by own truck during road rage GAINESVILLE, Fla. (AP) — A man in Florida apparently got a dose of road rage karma when police say he was run over by his own pickup truck after getting out to bang on another driver's window. It happened Tuesday evening in Gainesville, Florida. The

    July 24, 2014

  • New Jersey sues over Florida pizza shop logo TRENTON, N.J. (AP) — The New Jersey Turnpike Authority wants a Florida pizza shop to pay a big toll for using a logo similar to the Garden State Parkway's green and yellow signs. The agency sued Jersey Boardwalk Pizza Tuesday in federal court over th

    July 24, 2014

  • US economy, though sluggish, may now be sturdier WASHINGTON (AP) — Out of a seemingly hollow recovery from the Great Recession, a more durable if still slow-growing U.S. economy has emerged. That conclusion, one held by a growing number of economists, might surprise many people. After all, in the f

    July 23, 2014

  • Judges in health care rulings vote party line WASHINGTON (AP) — In rapid succession, six federal judges on two appeals courts weighed in on a key component of President Barack Obama's health care law. Their votes lined up precisely with the party of the president who appointed them. It was the l

    July 23, 2014

  • House, Senate chart separate courses on border WASHINGTON (AP) — Senate Democrats and House Republicans are moving separately to slash President Barack Obama's $3.7 billion emergency spending request for the southern border, but they're unlikely to end up with a deal that could pass both chambers

    July 23, 2014

  • 10 Things to Know for Today Your daily look at late-breaking news, upcoming events and the stories that will be talked about today: 1. THE FINAL DAYS AND HOURS OF FLIGHT 17'S PASSENGERS The Boeing 777 traveling from Amsterdam to Malaysia held the promise of beginnings and endin

    July 23, 2014

  • Agents get subsidized 'Obamacare' using fake IDs WASHINGTON (AP) — Congress will hear testimony Wednesday detailing how undercover investigators used fake identities to get taxpayer-subsidized health insurance under President Barack Obama's law. The nonpartisan Government Accountability Office says

    July 23, 2014

Obituaries
Record
Facebook
AP National