Ben Bernanke, the Federal Reserve chairman, said Thursday that the Fed’s new stimulus was meant to help Main Street.
One way to gauge the extent to which Main Street might benefit is to look at the interest rates ordinary people pay on their mortgages, credit cards and car loans. Those rates, however, don’t make the strongest case for Mr. Bernanke being a man of the people.
Since 2008, the Federal Reserve has purchased some $2.75 trillion of bonds. On Thursday, it promised to keep buying bonds until it felt comfortable that the jobs market was properly back on its feet.
The Fed’s purchases aim to drive down borrowing costs for companies and consumers. In theory, this will make them more likely to take out loans to buy goods and services, stimulating the wider economy in the process.
Keep reading: How Much Does the Fed's Plan Really Help Main Street? – NYTimes.com.
