Fed Mulls New Bond Approach

The Fed is in two minds on whether to restart the process of buying treasury bonds and securities. Economists at the Fed are not very pleased about the growth rate of the country and so are debating the continuation of quantitative easy.

"A decision on whether to buy more bonds depends on incoming data about economic growth and inflation; if the economy picks up steam, officials might decide no action is needed."

The Fed under normal conditions would lower or increase interest rates, however, since interest rates in this case have been lowered to almost zero, this is the only other option left.

Many economists are against this plan saying that it is too far fetched; however, many others are for it.

The Fed is also contemplating the quantity of treasury bonds to buy and at each meeting will decide whether to continue the process (if started).