U.S. fed expects that new impulses known

The Fed was Wednesday widely expected to unveil a stimulus package, that investors come to nickname "Rotate operation."

The plan would have the Fed shift, the part of the money in their $1.7 trillion US portfolio, sales of government bonds, which matures in the next few years, and use it with longer dated to buy US TSYS.

The announcement was made at 2: 15 pm ET expected.

Economists have named 1961 movement a similar action by the Kennedy Government long-term rate cuts without short-term interest rates.

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The intention is, long-term bond prices lower and encourage people and businesses to spend and invest more.

Whether it has great influence on the long-term Treasury rates that are already low, is questionable.

Monday's letter, one the four highest ranking Republican in Congress Bernanke warns the Fed against further steps to lower interest rates. Your letter proposed that lower prices could escalate the risk of high inflation.

And some economists argue that there is little point out that lower long-term interest rates do much good.

But it can help, share, if only for a time. If the US Central Bank bonds drives, it makes a more attractive investment than shares.

The move is the Fed third program Treasury bond purchases in recent history and came across his unprecedented promises on 9 August to interest rates low until 2013.

The announcement came a day after the International Monetary Fund raised its forecast for US growth this year lowered.

The IMF expects that the US economy only 1.5 percent this year and 1.8 percent in 2012 to grow. In June, it had forecast 2.5 percent growth in the year 2011 and 2.7 percent in 2012.

The IMF lowered the Outlook for the 17 countries to use the euro, because it feared that Greece will default on its debt.

If Greece or Italy have borrowed standard, European banks, the money the countries could lose billions of dollars.

This could damage the European banking system and have impact on US banks, which received billions to their European counterparts.

Investors fear that a standard in Europe lead a credit crunch, which similar to after the collapse of Lehman Brothers in 2008 available.

With files from the associated press accessibility links

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