RENEE MONTAGNE, host:
And as we heard a few moments ago, the Federal Reserve has announced a $600 billion program this week, that's intended to stimulate the economy. Like most all said announcements, it was written largely in the Fed's own special jargon. So NPR's Planet Money team, in collaboration with the online magazine Slate, translated this statement into plain English. Here's an excerpt. Playing the role of the Fed is Jack Davidson. And NPR's Jacob Goldstein, plays the role of the translator.
JACK DAVIDSON: Information received since the Federal Open Market Committee met in September, confirms that the pace of recovery in output and employment continues to be slow.
JACOB GOLDSTEIN: The economy still sucks.
DAVIDSON: Although the Committee anticipates a gradual return to higher levels of resource utilization, progress toward its objectives has been disappointingly slow.
GOLDSTEIN: We keep saying that unemployment's going to fall, but unemployment keeps not falling.
DAVIDSON: To promote a stronger pace of economic recovery and to help ensure that inflation is at levels consistent with its mandate, the Committee decided today to expand its holdings of securities.
GOLDSTEIN: We need to juice the economy, so we're going to go on a spending spree.
DAVIDSON: The Committee intends to purchase a further $600 billion of longer term treasury securities by the end of the second quarter of 2011.
GOLDSTEIN: Over the next eight months, we're going to create $600 billion out of thin air and we're going to use that money to buy bonds. We hope this will make interest rates go so low that people will borrow and spend more money and companies will finally start hiring again.
DAVIDSON: The Committee will regularly review the pace of its securities purchases and the overall size of the asset-purchase program, in light of incoming information, and will adjust the program as needed.
GOLDSTEIN: By the way, this is basically an experiment. We don't really know how it's going to work out and we may totally change our plans.
MONTAGNE: OK. You can read the full translation of the Fed's statement at by visiting Planet Money Blog at npr.org/money.
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