Federal Reserve Extends Low Interest Rates, Will It Help Jobs?

Ben Bernanke announced dramatic new moves to pump up the economy.
3:00 | 09/14/12

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Transcript for Federal Reserve Extends Low Interest Rates, Will It Help Jobs?
We're going to turn to the big economic news here at home. Ben bernanke announcing dramatic new moves to shore up the economy. Bianna golodryga with more on that. Start out by explaining what the fed is doing. Reporter: The fed announced an aggressive program to buy back about $40 billion of mortgage-backed securities every, single month. What does that mean? You saw huge response in the stock market. YOUR 401(k) IS GOING TO BOUNCE Because of that. Interest rates remain low, near zero, through 2015. That will inspire people to go out and buy homes. Anything to retrigger the economy of growth. And investing, as well. When I spoke to mitt romney, he's been critical of ben bernanke. He won't reappoint him if he is elected president. He says this won't work. And the fed has tried stimulus before. Reporter: They tried this twice before. This is an open-ended project right now. They're determined to bring the unemployment rate down. He's been sober about this, ben bernanke. He said it's going to be above 7.5% by 2014. There are risks, too. A lot of people are saving money right now. They're not being rewarded for that, especially the elderly who rely on their savings accounts. Some people warn of the risk of inflation. They don't see inflation over the next few years. In my interview with mitt

This transcript has been automatically generated and may not be 100% accurate.

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