Pumped 400 billion U.S. rescue ailing economy

Despite having the internal divisions within the Committee Federal Open Market said it will invest $ 400 billion amounts to the kind of long-term treasury bonds until April 6 / 2012.

U.S. Federal Reserve (Fed) has decided to inject $ 400 billion to stimulate the recovery of the largest economies globally.

This amount will be due to sale of short-term bond investors are looking to buy on the market.

Bank of the U.S. Federal Reserve in New York.

This measure is to reduce long-term interest rates across the economy, helping to cut borrowing costs of the country and the struggling company. It will also contribute to coordination bond markets which are out of balance for long-term bonds.

According to the committee, these measures are necessary because "significant risk reduction for the prospects of the economy including the stress in global financial markets."

Fed has also pumped money USD 2 trillion in new money into the economy by buying U.S. Treasuries and other bonds with the aim to increase demand for bonds thus cooling rate.

In another effort to help the U.S. housing market which are very stagnant, Ben Bernanke - Fed chairman said the current bond amounts due, it will be reinvested in new mortgages.

Notification of the Fed chairman came after the IMF warned the world financial system is "back to the danger zone" during the recent annual meeting. Not only the United States, other countries have also instantly moves to stabilize the economy.