Fed officials divided on Treasury purchase program

02/9/2009 | Bloomberg

A divide within the Federal Reserve centers on whether the central bank should purchase long-term Treasuries. The debate comes as rising yields on the securities counteract the Fed's efforts to cut borrowing costs. "We were kind of a little surprised when the Fed wanted to go down this route," said John Ryding, founder and chief economist of RDQ Economics. Analysts say federal borrowing costs may increase if Treasuries aren't purchased, due to the large amount of debt that needs to be financed.

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