Federal Reserve pushes stocks up

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Federal Reserve pushes stocks up

3News NZ

The Federal Reserve in the US has inspired stock markets overnight after announcing how it hopes to stimulate the US economy.

As well as keeping interest rates near zero, chairman Ben Bernanke says the Fed will buy billions of dollars worth of mortgage-backed securities each month for as long as it needs to, in a bid to warm up the real estate market.

Firstline's Rachel Smalley talks to CNBC reporter Brian Shackman in New York.

Watch the video.

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14/09/2012 6:17:45 p.m.

Inevitable Inflation wrote:

Liquidity for the rich debt for the poor, Yeah that will work.

14/09/2012 9:59:59 a.m.

Mike wrote:

It was the Clinton using Fed funds to finance people into homes that got the US property market in the mess it is?

That artifically raised prices, and when the subsidies timeframe ended, it crashed the market losing US Fed funds in the billions, plus wiping billions off home owners values.