Fed fires an even bigger bazooka, expands its shopping list to include junk bonds

The Federal Reserve dramatically expanded its efforts to save the economy, even adding junk bonds to the list of assets it can buy, as a wave of businesses are expected to have trouble surviving the recession. 

Stocks jumped, Treasury yields rose, and the dollar sagged after the Fed said it would would provide $2.3 trillion in  programs that expand its operations to reach small and mid-sized businesses and U.S. cities and states. Gold futures surged $50, a 3% gain to $1734 per ounce on the view that the Fed initiatives could be inflationary.

via www.cnbc.com