NEW YORK — The Federal Reserve kept Wall Street's big rally alive — and gave the Treasury market a huge boost as well.

Both markets surged yesterday after the Fed said it would pump more than $1 trillion into the economy to help revive the housing market. The plan includes buying up to $300 billion of long-term government bonds during the next six months.

Investors expect the move to drive down borrowing costs for everything from mortgages to credit cards.

The sheer magnitude of the Fed's proposal "indicates they have a lot of weapons still in the arsenal," said Bruce McCain, chief investment strategist at Key Private Bank in Cleveland.