The bond purchases are intended to keep long-term borrowing costs down and encourage borrowing and spending.
The recent spike in Spanish long-term borrowing costs suggests that global investors are starting to agree with them.
As part of the program, the central bank sells short-term Treasurys and buys longer-dated ones in an effort to keep long-term borrowing costs down.
If the detailed information suggests rates could stay lower for longer than currently expected it could help reduce long-term borrowing costs for homes and businesses.
BBC: US Federal Reserve to publish interest rate projections
The gap between Spanish and German long-term borrowing rates also reached a record high, as did the cost of insuring against a Spanish sovereign default.
The Fed instead extended its Operation Twist program aimed at keeping long-term borrowing costs low by selling short-term Treasurys and putting the money into long-term bonds.
In a world where Rwanda debuts in long-term market borrowing and pays 6.8% for a 10-year bond, as happened a few days ago, Portugal borrowing at 5.7% seems a smaller victory than one might originally have thought.
But they think higher growth is worth the long-term cost of higher borrowing - that if the government is going to be forced to borrow more anyway, it might as well choose upfront what it is going to spend that money on.
On the bond markets, the Spanish government's long-term cost of borrowing fell slightly, to an implied interest rate of just under 6% for 10-year debt.
Under the asset purchasing programme the central bank buys bonds in order to keep the long-term cost of borrowing down.
But the cost may be largely a political one, for the coalition, rather than an economic one: there has already in recent weeks been a smallish rise in the long-term costs of borrowing for the Treasury, which may be markets discounting the ratings downgrade.
Too much public borrowing may raise long-term interest rates, offsetting the stimulus in a milder way.
But that will make economic growth a bit slower, especially if extra federal borrowing again raises long-term rates.
Len, do you really believe that the government bond market will regain confidence when the politicians agree to resume borrowing without closing the long-term gap by even 10%?
Its salaries, benefits and borrowing were based on anticipated long-term developer fees and increasing property tax revenue.
Moreover, as noted below, the precise level of long-term interest rates is not the main constraint on borrowing here.
What was supposed to be a deal that brings in more jobs in the short term could potentially harm long-term job growth in Rhode Island if the cost of borrowing for schools, roads and improving infrastructure goes up.
But long-term growth is central to generating the tax receipts to bring borrowing down.
The main reason to worry about government borrowing is that it could push up long-term interest rates, crowd out private-sector investment and hamper growth.
The Italian government, which currently holds the EU's rotating presidency, is proposing that the Europe's long-term investment agency, the European Investment Bank, increase its borrowing so that it can pump an additional euro11 billion a year into roads, railways and other infrastructure projects across the continent, with private investors putting up several times as much money.
Under the new approach, the Fed would print new money to buy long-term mortgage or Treasury bonds but effectively tie up the money by borrowing it back for short periods at low rates.
Government spending rose, and so too did government borrowing, on a scale that was clearly unsustainable in the long-term.
Instead of a grand bargain, in late July the White House and Republicans agreed to raise the debt ceiling enough for about eighteen more months of government borrowing, and they created yet another bipartisan group to address the long-term fiscal issues.
If the borrowing taxpayer has met the requirement, he or she would have a long-term loan to be paid back at a competitive interest rate.
The recent increase in government borrowing may not be cause to panic in the short term so long as private-sector demand is weak.
The leaders are hoping for progress on issues like increased Internet access, "welfare to work" incentives for the long-term unemployed, cutting red tape, and progress towards a single EU financial market, which would mean cheaper borrowing for firms, better returns for savers and cheaper insurance policies.
Refinance any long-term debt now (without increasing the amount borrowed or adding to the term) and lower your overall cost of borrowing.
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But there has been limited progress towards the kind of political union - or central control of budget-making, borrowing and supervision of banks - that many would see as necessary to the eurozone's long-term survival.
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