Bond purchase of 40 billion dollar a month

The Fed, sets in motion a large-scale purchases of mortgage bonds and ratchets up the printing press. Moreover Operation Twist continues.

After its two-day monetary policy meeting the Fed reports they are ready to buy 40 billion U.S. dollar mortgage every month, hoping to speed up the economy and reduce unemployment.

At the same time The Central Bank declares they are ready to do even more, if not the job market in the United States improved.

Should push yields down
The previous purchase program, Operation Twist, will continue, says the central bank. The Twist is to switch to 667 billion U.S. dollar short-term bonds from long-term bonds to push yields down.

Overall, the new measures are close to expectations, but the tone was even softer than expected.

The new purchase program will along with Operation Twist increase the Fed's holdings of long-term bonds with approx. 85 billion. U.S. dollars every month a year, according to the central bank.

"These actions should put downward pressure on long term interest rates, support the mortgage market and help make financial conditions more accommodative," the Fed says in its press release.