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The transfer, a record sum, was the result of the central bank’s actions to support the fragile housing market.

The stock market continued its advance of the past month after the Fed said it would keep interest rates low to revive the economy.

Policymakers keep the rate at zero to 0.25% and vow to hold it low for an 'extended period.

Federal Reserve Vice Chairman Donald Kohn's decision to step down at the end of June gives President Barack Obama a chance to put a bigger imprint on the central bank.

Federal Reserve Chairman Ben Bernanke told Congress on Wednesday that a weak job market and low inflation would likely allow the central bank to keep interest rates at very low levels for a long time.

Central bank bumps up cost for emergency loans to banks, but says move on benchmark rate is not imminent.

The increase in the discount rate is seen as a first step by the Fed to normalize lending after more than two years of extraordinary actions to prop up the economy.

The Federal Reserve expects unemployment will stay high over the next two years because recession-scarred Americans are likely to stay cautious, making for only a moderate-paced economic recovery.

Bernanke detailed the Fed's strategy to tighten credit, indicating the rate paid to banks on excess reserves may for a time replace the fed funds rate as the main policy tool.

In a hard-won victory for President Obama, the Senate votes 70 to 30 to keep the head of the central bank for four more years. Senators put market stability ahead of populist anger at Wall Street.

The Senate, putting market stability ahead of populist anger at Wall Street, voted Thursday to give Federal Reserve Chairman Ben S.