The Federal Reserve says it plans on purchasing $40 billion a month of mortgage debt to boost the economic recovery.
The timing coincides with the runup to the 2012 presidential election, where the economy is a concern to many voters.
“If the outlook for the labor market does not improve substantially, the Committee will continue its purchases of agency mortgage-backed securities, undertake additional asset purchases, and employ its other policy tools as appropriate until such improvement is achieved in a context of price stability,” the Fed said in a statement.
Wall Street investors apparently cheered after the Fed’s announcement.
Unemployment remains elevated since 2008, and many voters are blaming President Obama for not doing enough to slow the economic downturn.