Fed to Inject $64B Into Global Money Markets

Will lend $24B to European and other central banks, $40B in four auctions, to ease credit crisis

By Jonas Oransky, Newser Staff

Posted Dec 12, 2007 10:02 AM CST

(Newser) – The Federal Reserve will inject some $64 billion into the global economy, fearing that the ongoing credit crunch could spark recession. In the most significant international economic cooperation since 9/11, the Fed will supply up to $24 billion to the ECB and other central banks to ease the money supply in Europe; meanwhile four auctions stateside will make available at least $40 billion to US markets, Bloomberg reports.

The action comes after the latest interest rate reductions failed to ease concern about rising borrowing costs. Officials are discouraged also that banks aren’t taking loans from the Fed despite low discount rates; thus the auctions, in which the rates could fall further to achieve the desired liquidity. Stocks climbed in the US and in Europe on the infusion news. "This is shock and awe,'' one strategist told Bloomberg.

Federal Reserve Board Chairman Ben Bernanke speaks at the CATO Institute's annual Monetary Conference, Wednesday, Nov. 14, 2007 in Washington. (AP Photo/Caleb Jones) (Associated Press)

Federal Reserve Board Chairman, Ben Bernanke, speaks at the CATO Institute's annual Monetary Conference in Washington in this Nov. 14, 2007 file photo. Twice the Fed has cut rates this year and officials... (Associated Press)

Federal Reserve Chairman Ben Bernanke speaks at the 2007 Charlotte Chamber annual meeting Thursday, Nov. 29, 2007, in Charlotte, N.C. (AP Photo/Nell Redmond) (Associated Press)

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Fed to Inject $64B Into Global Money Markets

Will lend $24B to European and other central banks, $40B in four auctions, to ease credit crisis

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Central Banks Move to Ease Market Strains

Stock futures surge on the news

Euro Bank Chief Slams US on Stimulus

Central bank chief says nations must get the last effort right

Central Banks Scramble to Feed Cash Into Markets

Biz slows as bailout talks stall

Fed Pours $200B Into Global Credit Relief Push

Central banks around the world try to ease liquidity problem

Fed Sees High Unemployment All Next Year

Forecast sees it at 8.6% at end of 2012

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Fed to Inject $64B Into Global Money Markets

Will lend $24B to European and other central banks, $40B in four auctions, to ease credit crisis

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OTHER STORIES ON OUR RADAR

Federal Reserve • auction • recession • European Central Bank • liquidity

MOST POPULAR STORIES

[ By Views ]

[ By Comments ]

More Newser Stories

Central Banks Move to Ease Market Strains

Stock futures surge on the news

Euro Bank Chief Slams US on Stimulus

Central bank chief says nations must get the last effort right

Central Banks Scramble to Feed Cash Into Markets

Biz slows as bailout talks stall

Fed Pours $200B Into Global Credit Relief Push

Central banks around the world try to ease liquidity problem

Fed Sees High Unemployment All Next Year

Forecast sees it at 8.6% at end of 2012

About Us

Site

Newser By Users

Community

Site Maps

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More News

What is Newser?