Dow Jumps 206 Points Following Fed Chairman's Bond-Buying Announcement
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The Federal Reserve is pumping up efforts to boost the economy and cut down unemployment.
The Dow Jones Industrial Average jumped 206 points Thursday after the Fed announced it will start spending $40 billion a month to buy back bonds until it sees the economy improve.
Speaking in Washington, D.C., Federal Reserve Chairman Ben Bernanke said the purchases will lower interest rates, spurring borrowing and spending.
Bernanke said job-starved Americans cannot afford to wait for the economy to improve on its own.
"Fewer than half of the eight million jobs lost in the recession have been restored. And at 8.1 percent, the unemployment rate is nearly unchanged since the beginning of the year," said Bernanke.
Critics say the Fed's efforts are setting the country up for high inflation.
The Fed has already bought back $2 trillion worth of bonds since the 2008 economic crisis.