Fed Pumps Billions More Into System
The Federal Reserve today expanded its efforts to try to pump cash into the nation's banking system. For the past week, banks have been hoarding cash, driving the rates that they lend to each other up sharply. That has the effect of making it more expensive for ordinary consumers and businesses to borrow.
The Fed said today it will triple the size of its 84-day "term auction facility," which essentially pushes money into the financial system, to $75 billion. It will also add two new funding auctions totaling $150 billion, to be conducted in November.
And the Fed expanded its lines of credit to foreign central banks, which is intended to get dollars into banks in Britain, continental Europe, Canada, Japan, and elsewhere, to $620 billion, from $290 billion.
Posted by: Anonymous | September 29, 1908 10:47 AM | Report abuse
Posted by: Jim | September 29, 1908 11:18 AM | Report abuse
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