As promised, the New York Fed plans to begin buying U.S. mortgage and student debt effective immediately, in a move geared at thawing frozen credit markets in the country and restore confidence of the economy.

"This program, first announced on November 25, 2008, is intended to support the mortgage and housing markets and foster improved conditions in financial markets more generally," said the New York Fed in a press release on its website, promising to publish weekly updates every Thursday on how the program is progressing.

The operation is the first of a $500 billion project and part of a broader monetary policy initiative geared at stimulating an economy whose interest rates are already near zero.

By Erik Kevin Franco and edited by Nancy Girgis
©CEP News Ltd. 2009