November 22, 2008 1:34:43 CST
(Newser) – The Fed will inject huge quantities of cash into financial markets as part of a coordinated global attack on the credit crisis, Ben Bernanke announced today. The central bank will loan out another $200 billion, this time on a 28-day basis rather than overnight, the AP reports. The effort will coordinate with the European Central Bank and the central banks of Canada, England, and Switzerland.
The Fed said it acted "to promote liquidity in the financing markets for Treasury and other collateral and thus to foster the functioning of financial markets more generally." The new loans are a new tool, a Term Securities Lending Facility, and will be available by auction once a week starting March 27. The Fed has also bolstered the dollars that can flow to the ECB through “swap lines.”
Source Associated Press
Nov 7, 08 12:25 PM CST Interest rates around the world are falling, with no end in sight as central banks hack away at obstacles to lending and try to jump-start their economies, Bloomberg reports. With the US rate at 1%, the Bank of England yesterday cut its key figure to 3%, the lowest since 1955, and the European Central Bank cut its rate by half a point, to 3.25%. More »
Sep 26, 08 7:00 CDT The world's central banks are frantically spraying money into the economy to prevent it from seizing up as the US bailout package stalls and confidence plummets, Reuters reports. The holdup in Washington has made edgy commercial banks even more inclined to hoard cash and not lend to each other—leaving central banks with little choice but to step in. More »
Sep 23, 08 6:58 CDT Congress and the Bush administration are edging closer to an agreement on a bailout for financial firms—but several major sticking points remain, the New York Times reports. Progress has been made on oversight for the $700-billion fund, but lawmakers are pushing for taxpayers to get an equity stake in firms they bail out, and the White House wants flexibility. Some are demanding a cap on the pay of top executives whose firms are rescued. More »
Feb 14, 08 9:20 CST Federal Reserve Chairman Ben Bernanke signaled today that further interest rate cuts might be necessary, citing continuing fallout from the credit and housing market collapses, reports the Wall Street Journal. Bernanke told the Senate Banking Committee he expected "a period of sluggish growth, followed by a somewhat stronger pace of growth starting later this year as the effects of monetary and fiscal stimulus begin to be felt." More »
Financial Crisis • credit crisis • Federal Reserve • US economy • Ben Bernanke • interest rate • European Central Bank • liquidity • Bank of England • Swiss National Bank • Royal Bank of Canada
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