US Federal Reserve moves to boost recovery

The US Federal Reserve has taken a step towards boosting economic recovery, saying it will use proceeds from its investments in mortgage securities to buy longer-term government debt.

There had been speculation that it might choose to revive the quantitative easing (QE) scheme, pumping in more money to prop up a softening recovery. The chosen option has been dubbed 'QE lite' by some commentators.

Interest rates remain unchanged at between zero and 0.25%.

Michelle Fleury reports from New York.

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