Economics
Stocks Rocket on the Fed's $200B Plan
The major indexes rise after the Federal Reserve announced plans to ease the credit crunch
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Wall Street cheered news that Federal Reserve will pour $200 billion into the troubled financial system. Stocks surged in the last half hour of trading, sending major indexes up 3.5% to 4%.
Working with the central banks in Europe, Canada and elsewhere, the Fed will offer loans to financial institutions and will accept as collateral various securities, including the mortgage-backed debt that has caused so much trouble since July.