NEW YORK (AP) — Stocks are climbing after an announcement of more help for the economy from the Federal Reserve.
The Fed says it will spend $40 billion a month to purchase mortgage securities because the economy is too weak to reduce high unemployment. It also says it will keep buying more bonds until the job market shows substantial improvement.
The Dow Jones industrial average is up about 90 points at 13,423. It was up 15 points just before the Fed announcement at 12:30 p.m. Stocks are already sitting at their highest levels since the start of the Great Recession in December 2007.
The dollar is falling slightly against major currencies, and the price of gold is up to its highest level since February. Money is moving out of bonds, sending the yields on U.S. Treasurys higher.