Fed pumps $800bn into US economy

The US Federal Reserve will provide another $800bn (€614bn) in a bid to unfreeze the credit market and stabilise the financial system, officials said today.

The stimulus package is a fresh lifeline to consumers and is in addition to the $700bn (€537bn) rescue plan enacted by the US Congress last month – the largest US government bail-out in history.

The Federal Reserve, the US central bank, said up to $600bn (€460.9bn) would be used to buy up mortgage-backed securities while up to $200bn (€153.6bn) would be aimed at unfreezing the consumer credit market.