World economy staggers

Lower rates are supposed to coax consumers and businesses into borrowing and spending. The Fed as well plans to invest proceeds from maturing U.S. Treasury debt into mortgage bonds in an effort to support the housing market.

Rates on mortgages and other loans are already the lowest in decades. Frightened Americans would to put it more exactly cut their debts than borrow, and businesses aren't seeing enough sales to justify hiring and expanding in spite of rock-bottom borrowing costs.