In a surprise announcement Wednesday morning, a day after cutting interest rates to stimulate the U.S. economy, the Fed said it would make $40 billion and perhaps more available to banks through new short-term loans, and would also provide at least $24 billion to European central banks coping with a dollar shortage.

In a surprise announcement this morning, a day after cutting interest rates to stimulate the U.S. economy, the Fed said it would make $40 billion and perhaps more available to banks through new short-term loans, and would also provide at least $24 billion to European central banks coping with a dollar shortage.

The announcement sent U.S. markets higher, with the Dow Jones industrial average up 124 points just before noon.