Economics Report.The Federal Reserve callsAmerica's economic recovery"disappointingly slow."So the Federal Reserve decidedWednesday to add six hundredbillion dollarsto the financial systemby the middle of next year.To do this, the central bankwill buy Treasury securitiesfrom dealers.The action is knownas quantitative easing.The goal is to reducelong-term interest rates.The hope is to create conditionswhere businesses will investmore and people will spend more.Buying longer-term Treasurysecurities will make less governmentdebt available to investors.This will raise the price.As bond prices rise,their rates fall.Long-term securities affect rateson home mortgages and other loans.Lower rates on corporate bondscould lead businesses to investin more equipment and jobs.Lowering short-term interest ratesis the Federal Reserve's main wayto get banks to increase lending.But those ratesare already near zero.The Fed earlier bought one trillionseven hundred fifty billion dollarsof Treasuries and other securities.That program ended in March.Fed Chairman Ben Bernanke,writing in The Washington Post,said "Easier financial conditionswill promote economic growth."But interest rates are already low.And critics say further cutsare unlikely to create much growth.Inflation also is low-- so low that some economistsworry more about the riskof falling prices and wages.But others say pumping more moneyinto the economy will weakenthe value of the dollar.They say it could raise inflationto dangerous levels-- and not just in America.Interest rates in the United Statesand Europe are lower thanin Asia and Latin America.As a result, Asian and Latin Americaneconomies are already strugglingwith an overflow of investments.Large flows of capital can raisecurrency values and make export-basedeconomies less competitive.Several nations are consideringlimits on capital.The Fed's action this weekhad been expected.But it comes as the headsof twenty leading economies preparefor talks in South Korea next week.And it came a dayafter the Republican Partyretook control of the Houseof Representatives from the Democrats.President Obama has invitedleaders of both parties to meeton November eighteenth.One immediate issue:what to do with tax cutsthat are set to end next month.And that's the VOA Special EnglishEconomics Report.