The Federal Reserve followed up yesterday’s quarter-percent interest rate cut with a $41 billion cash injection into the US financial system today—one the biggest infusions of money yet, aimed directly at easing the credit crunch. The money was pumped into temporary reserves, where it's meant to lubricate turbulent markets and stave off a recession, the AP reports.
Already-jittery investors were shocked by the liquidity infusion, the Wall Street Journal reports, which came in three separate operations. The move only confirms the sense the Fed is preparing for tough times ahead. The central bank has been dumping cash into the market since August, and yesterday's rate cut was its second in that time.