The Federal Reserve looks for methods to help the economy

Helping the economy may be hard although the Federal Reserve is trying to discover a way to do so. They might maintain course or even go as drastic as making stimulus moves that are risky. Late Tuesday is when the decision could be made, although trading has been slow.

Possible first option for Fed

The first option for the Federal Reserve is to drop or maintain interest rates. The Federal Reserve determines all of the interest made on online cash advances. Because the rates are so low, more would want to get some credit going. The risk, however, is that deflation could stifle no matter what gains can be made.

Fed’s second option

The second option the Fed has in trying to stimulate the economy is purchasing government debt. A personel loans could be given to the government. There were mortgage investments that made this income which might make long term interest rates go down a bit. No borrowing would be stimulated with this plan.

3rd Fed option

It’s also possible the Fed could purchase securities once again. In 2009, the Fed bought more than $1 trillion in securities from Fannie Mae and Freddie Mac. Although lending was encouraged, Fannie and Freddie still aren’t doing well. The amount of money lent out would be more while debt would be guaranteed. The risk, though, is that this move would be seen as a verification that the economy is in very bad shape, driving investors out of even the best payday loan opportunities.