Fed auctions $75 bln to banks to ease credit crunch

MNB

The US Federal Reserve said it auctioned another $75 billion in short-term loans to cash-strapped banks to help ease credit stresses.

This was the central bank's 12th auction aimed at injecting more money into the US banking system since mid-December 2007, when the Fed established its Term Auction Facility to deliver short-term funds to banks that are in need of liquidity.

The series of auctions so far have pumped $510 billion into the banking system.

The latest auction produced an interest rate of 2.100%, lower than the rate of 2.220% generated in the previous one, which was held on May 6 and provided $75 billion to banks.

On May 2, the Fed announced it was boosting the amount of loans auctioned to commercial banks to $150 billion in May, up from the $100 billion in April, continuing its efforts to deal with the effects of a credit crisis.

The US central bank is expected to focus more on loan auctions and other efforts to help banks and investment firms overcome any credit problems after having cut interest rates aggressively since last September. (Xinhua)

ADVERTISEMENT

More Romanians at poverty risk since the COVID pandemic Analysis

More Romanians at poverty risk since the COVID pandemic

Meeting called to address Pegasus spyware lacks quorum  Parliament

Meeting called to address Pegasus spyware lacks quorum 

Skanska commercial dev unit names new EVP of operations Hung... Appointments

Skanska commercial dev unit names new EVP of operations Hung...

Zsa Zsa Gabor's ashes buried in Budapest City

Zsa Zsa Gabor's ashes buried in Budapest

SUPPORT THE BUDAPEST BUSINESS JOURNAL

Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.