Fed confirms third round of asset purchases

<p>The US Federal Reserve has confirmed it is implementing a third round of quantitative easing.</p>

The US Federal Reserve (Fed) has confirmed it is embarking upon a third round of quantitative easing, while it is also keeping the benchmark interest rate at its historic 0.25 per cent low.

This has confirmed analyst suspicions that the central bank would implement more asset purchases in order to kick-start the world's largest economy.

Chairman Ben Bernanke said last night (September 13th), "additional agency mortgage-backed securities at a pace of $40bn (£25bn) per month".

For some analysts, the latest measures were less than anticipated, but this latest round of bond-buying will be an open-ended move continuing until the employment market improves.

Two previous rounds of stimulus have been completed already, with both seeing $2.3 trillion in asset purchases in two rounds.

At close of play last night, the Dow Jones was 1.5 per cent higher at 13539.8 points and the Nasdaq was 1.3 per cent higher at 3155.8 points.

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