Fed pumps $3.75 bn into financial system
The US Federal Reserve on Tuesday injected $3.75 billion into the distressed financial system, seeking to unblock a credit crunch that has upset markets around the world.
By Agencies |
WASHINGTON: The US Federal Reserve on Tuesday injected $3.75 billion into the distressed financial system, seeking to unblock a credit crunch that has upset markets around the world.
The Federal Reserve Bank of New York, which handles such operations for the Fed, announced the infusion on its website.
The latest injection brought the total to $101.25 billion added to money markets in repurchase agreements since August 9, when central banks began a series of major cash infusions to ease tightening credit due to a crisis in the US high-risk subprime mortgage sector.
The Fed on Friday unexpectedly slashed its discount rate to commercial banks to 5.75 per cent from 6.25 per cent to also boost liquidity in the banking system.
The Federal Reserve Bank of New York, which handles such operations for the Fed, announced the infusion on its website.
The latest injection brought the total to $101.25 billion added to money markets in repurchase agreements since August 9, when central banks began a series of major cash infusions to ease tightening credit due to a crisis in the US high-risk subprime mortgage sector.
The Fed on Friday unexpectedly slashed its discount rate to commercial banks to 5.75 per cent from 6.25 per cent to also boost liquidity in the banking system.
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