FED pumps another 75 billion USD into market
(VOVWORLD) - The US Federal Reserve on Thursday injected another 75 billion USD into the market, its 3rd intervention into financial markets in 3 days in an attempt to keep interest rates from moving higher by relieving funding pressure in money markets.
 US Federal Reserve Building (Photo: Wikipedia) |
On Monday, there seemed to be a perfect storm in the market, causing a cash shortage. The Fed on Tuesday accepted 75 billion of 80.5 billion in bids submitted to its overnight repo operation, after accepting 53 billion on Monday. The Fed also trimmed the interest rate on excess reserves at its meeting Wednesday, in an effort to better control its fed funds rate.