Fed chairman Ben Bernanke
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Ben Bernanke: Fed action to strengthen US economy

The US central bank has moved to kick-start economic recovery by restarting its policy of pumping money into the economy via quantitative easing.

The Federal Reserve said it will buy "additional agency mortgage-backed securities at a pace of $40bn (£25bn) per month".

Fed chairman Ben Bernanke said he hoped the move would create more jobs and strengthen the economy.

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