Fed in bond-buying binge to spur growth

Plan to purchase $300bn in Treasurys causes biggest drop in interest rates since '87

The Federal Reserve ramped up its effort to revive the economy, declaring it would buy as much as $300bn (€220bn) of long-term US Treasury securities in the next few months and hundreds of billions of dollars more in mortgage-backed securities.

The Fed had already cut its benchmark interest-rate target to near zero.

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