Federal Reserve to buy more bonds

The Federal Reserve has decided to extend its programme of swapping short-term bonds for long-term ones.

The programme, known as Operation Twist, will be extended until the end of the year, allowing an extra $267bn (£170bn) of bonds to be bought.

The idea of the programme is to cut the long-term cost of borrowing for businesses and households.

The decision by the Federal Reserve's Monetary Policy Committee was not unanimous.

Source & Image : BBC