Federal Reserve in new economic rescue bid

The US Federal Reserve has announced a USD1.2 trillion (GBP829 billion) quantitative easing package to help bolster the economy.

Federal Reserve chairman Ben Bernanke unveiled the package - which will be assembled by buying up government debt - as a means of increasing consumer spending and lowering borrowing rates.

Cheaper mortgages as a result of the move could help bolster the US property market, which may be of interest to those considering an investment in the country.

Mr Bernanke has expressed optimism about the US economy as a whole this week, telling CBS that he expects the end of the recession before 2010.

One positive sign to have emerged recently is that the number of new housing starts jumped by 22 per cent in February, according to Department of Commerce figures.

These numbered 583,000 last month, compared with 477,000 in January.

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