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The Fed also said it would continue purchasing $85 billion in mortgage and Treasury bonds each month. The purchases are intended to lower long-term rates and encourage more borrowing and spending. Chairman Ben Bernanke is scheduled to deliver the Fed's mid-year report to Congress on Wednesday and Thursday this week. Investors will pay particularly close attention as Bernanke's comments over the past month have caused markets to gyrate wildly. After the June meeting, Bernanke said the Fed could slow the bond buying later this year and end it next year if the economy continued to strengthen. Stocks plunged. The Dow Jones industrial average lost 560 points in two days. But since then, the chairman and other Fed officials have sought to calm investors. They have stressed that any pullback in the bond purchases depends on clear evidence of improvement the economy and job market -- not a target date. And last week Bernanke told a conference in Boston that the economy still needs help from the Fed's low interest rate policies. Stocks surged. The Dow Jones industrial average and the Standard & Poor's 500 stock index reached all-time highs. Most analysts expect Bernanke to stick with last week's message.
[Associated
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