The Federal Reserve will buy an additional US$600 billion ($771 billion) of Treasuries through June, expanding record stimulus and risking its credibility in a bid to reduce unemployment and avert deflation.
Policy makers, setting a pace of about US$75 billion of purchases a month, “will adjust the program as needed,” the Fed’s Open Market Committee said today in a statement in Washington. The central bank left unchanged its pledge to keep interest rates low for an “extended period” after Chairman Ben S. Bernanke said it could be modified in some way.