UNDATED (CBS) -- It's what Wall Street calls "Fed Day", the day the Federal Reserve announces its latest policy decisions. The central bank just announced what steps it will take to revive the slumping economy.
The Federal Reserve is taking new steps to try to jumpstart the stalled economy.
Wrapping up their two day meeting in Washington, policy makers announced an aggressive stimulus program. The fed will spend $40 billion a month on bond purchases. It's a way of lowering interest rates, so money keeps flowing through the economy.
The stock market jumped on the news, but investors are asking whether the fed's action will help where it matters. Alan Valdes with DME Securities says, "That's the problem. It's just printing money. It doesn't help unemployment, it hasn't helped. Unemployment's still 8.1 percent. It doesn't create jobs."
The fed also announced it will keep interest rates near zero for at least the next three years. The latest decision from the Fed comes as Wall Street has been on a slow but steady winning streak. The stock market has been trading near its highest level in four years
Valdes says, "It's definitely trading up. It's like eggshells though. Everyone's a little worried, especially with events around the world and such that people are watching this very closely."
Investors are also digesting the latest news on unemployment. The number of Americans filing for jobless benefits jumped to the highest level in two months. Struggles on the labor front remain the fed's biggest concern adding pressure on chairman Bernanke to take action.
Later this afternoon Chairman Bernanke will hold a news conference to explain the Fed's policy decisions.