U.S. Fed auctions another $30 bln in funds to banks
Published February 14th, 2008
The U.S. Federal Reserve said Tuesday it had auctioned 30 billion U.S. dollars in funds to commercial banks Monday in an effort to deal with the persistent credit crunch.
This was the central bank’s fifth auction aimed at injecting more money into the banking system since mid-December, when the Fed established its Term Auction Facility to deliver short-term funds to banks that are in need of liquidity.
The fifth auction produced an interest rate of 3.010 percent, lower than the rate of 3.123 percent generated in the previous one, which was held on Jan. 28 and provided 30 billion dollars to banks.
The first two auctions, which were held on Dec. 17 and Dec. 20 and each provided 20 billion dollars to banks, saw rates of 4.65 percent and 4.67 percent.
The third auction was held on Jan. 14, providing 30 billion dollars to banks, and generated an interest rate of 3.950 percent.
Related Articles
