The Federal Reserve’s recent policy moves will help end the recession, says billionaire investor Wilbur Ross.

Last week, the Fed made two major announcements. First, it will buy $1.2 trillion of mortgage securities and Treasuries.

Second, it will expand the types of collateral it will accept in exchange for loans from its Term Asset-Backed Securities Loan Facility (TALF).

“The broadening of TALF and other Fed moves: I think they will help the bad things come to an end more quickly than they otherwise would have,” Ross tells Bloomberg TV.

“The fact that they’re making such gigantic increments to stimulus suggests they understand that things are getting worse.”

Restoring consumer credit is the big issue, he says. “This goes a long way toward doing that.”

Ross also lauds the Obama administration’s plan to aid auto parts companies. “GM and Chrysler will be given $5 billion that they will allocate to suppliers,” he explains.

“Here’s a program that’s being administered and allocated by the private sector. The government isn’t picking winners and losers. That’s a big breakthrough.”

Ross has harsh words for GM bondholders who are fighting its reorganization. “I think they are being very piggish about the whole thing,” he says.

As for the Fed, it is seeking to address exactly the issues Ross raises, Chairman Ben Bernanke said in a speech Friday.

“Widening credit spreads, more-restrictive lending standards and credit market dysfunction are leading to… tighter financial conditions,” he says.