Fed is expected to take new action to lift economy

WASHINGTON (AP) – The Federal Reserve is running out of options to try to boost a slumping economy and lower unemployment. So policymakers are expected to reach 50 years back into their playbook for their next move. Most economists expect the Fed to announce a plan Wednesday to shift money in its $ 1.7 trillion portfolio out of short-term securities and into longer-term holdings. The plan could lower Treasury yields further. Ultimately, it could reduce rates on mortgages and other consumer and business loans, too. Fed Chairman Ben Bernanke is expected to advocate the move despite criticism from within the Fed and from Republican lawmakers and presidential candidates. (Excerpt) Read more at finance.yahoo.com …