The Federal Reserve, together with central banks of the eurozone, England, Japan, Switzerland and Canada, took steps to make it easier for banks around the world to participate in dollar liquidity swaps. The temporary measure would make it easier to exchange foreign currencies should they be needed in the event of a financial crisis. With Europe’s current debt crisis, the measure helps ensure continued normal business transactions.
U.S. stocks surged Wednesday following the announcement. The Dow Jones industrial average rose by 400 points. Investor spirits were also high thanks to a higher-than-expected ADP jobs report, which could indicate an economic turnaround, according to global strategist Dan Greenhaus
