Fed auctions another $50 billion to banks
Fighting to ease a dangerous credit crisis, the Federal Reserve has provided a total of $260 billion in short-term loans to squeezed banks since December to help them overcome credit problems.
By Agencies |
WASHINGTON: Fighting to ease a dangerous credit crisis, the Federal Reserve has provided a total of $260 billion in short-term loans to squeezed banks since December to help them overcome credit problems.
The central bank today announced the results of its most recent auction -- the eighth since the programme started in December -- where commercial banks bid to get a slice of $50 billion in short-term loans.
It's part of an ongoing effort by the central bank to provide relief to a spreading credit crunch that has unnerved financial markets. The situation threatens to push the country into a deep recession.
Counting the latest auction results announced today, the Fed has provided a total of $260 billion in short-term loans to banks since December.
In the most recent auction -- which marked the eighth -- commercial banks paid an interest rate of 2.615 per cent, the lowest rate for any of the auctions of this kind conducted so far.
There were 88 bidders for the latest slice of the $50 billion in 28-day loans. Demand was high.
The Fed received bids for USD 88.9 billion worth of loans.
The central bank today announced the results of its most recent auction -- the eighth since the programme started in December -- where commercial banks bid to get a slice of $50 billion in short-term loans.
It's part of an ongoing effort by the central bank to provide relief to a spreading credit crunch that has unnerved financial markets. The situation threatens to push the country into a deep recession.
Counting the latest auction results announced today, the Fed has provided a total of $260 billion in short-term loans to banks since December.
In the most recent auction -- which marked the eighth -- commercial banks paid an interest rate of 2.615 per cent, the lowest rate for any of the auctions of this kind conducted so far.
There were 88 bidders for the latest slice of the $50 billion in 28-day loans. Demand was high.
ADVERTISEMENT
The Fed received bids for USD 88.9 billion worth of loans.
Download
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
Download
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
ADVERTISEMENT
