MW: Fed says ready to expand consumer loan program to $1 trln
The Federal Reserve said Tuesday that it is prepared to buy as much as $1 trillion in mortgage-backed securities to assist the Obama administration's new bank rescue plan. At the moment, the Fed's consumer loan program was capped at $200 billion. The plan has yet to get off the ground, but Fed officials say it will commence later this month. The new plan, to be outlined by Treasury Secretary Timothy Geithner, is going to lean heavily on this $800 billion expansion of the Fed's balance sheet. The Fed said it may buy newly-issued AAA mortgaged-backed securities.
