Fed to Spend $1T on Mortgage, Treasury Securities

The Fed plans buy up to $300 billion in long-term Treasury securities in an attempt to make lending more affordable, the Wall Street Journal reports. The massive buy is intended to push down interest rates on consumer loans and corporate bonds, which are linked to yields T-bills. The Fed will also buy $750 billion of mortgage-backed securities—above $500 billion it is currently buying—in order to raise the assets’ prices. (More Federal Reserve stories.)