The Federal Reserve is going to take decision on interest rates in its forthcoming monthly meeting that falls on Wednesday this week. By an earlier move by the Fed, the key rate has already been reduced by 0.25 points.
One option before the Federal Reserve is to take decision on buying long-term Treasury notes to push mortgage rates further down. Increasing the amount of debt guaranteed by the government-backed institutions Fannie Mae and Freddie Mac is the other option that might be considered to help the economy of the country. However, there is a concern as either of the above action is not without the likelihood of stimulating the inflation.