Markets rebound after Fed action

NEW YORK: Wall Street rebounded yesterday after the Federal Reserve and other central banks said they would pump $200 billion into the financial markets to help ease the strain from the credit crisis.

The Dow Jones industrials surged more than 150 points in morning trading, or 1.3 percent; and European shares rose by more than 2 percent by midday yesterday.

The bailout program is part of a worldwide effort to help struggling banks and mortgage providers. The Fed - acting in concert with the European Central Bank, the Bank of Canada and the Swiss National Bank - agreed to loan banks money in exchange for debt that includes slumping mortgage-backed securities.