US Fed auctions USD75bn to banks.
Global Banking News - 08 May 2008(c)2005 - Electronic News Publishing - http://www.enpublishing.co.uk
The US Federal Reserve has auctioned USD75bn in short-term loans to cash-strapped banks on Monday to combat the continuing credit crunch.
The auction was the central bank's eleventh in the series of such auctions under the Term Auction Facility launched in December 2007, which saw the Fed injecting a total of USD4.350tn into the banking system so far.
The latest auction generated an interest rate of 2.220 percent, lower than the rate of 2.870 percent produced in the previous sale, which took place on April 21 providing USD50bn to banks.
The next auction is scheduled for May 19 when the Fed would offer another USD75bn, in line with its announcement on May 2, that it was increasing the amount of loans auctioned to commercial banks to USD150bn in May, from the USD100bn in April.
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