Fed, top central banks to flood markets with cash
New loan facility will push as much as $64 billion into credit markets
The Federal Reserve and other top central banks will flood the financial system with as much as $64 billion in extra cash in the next few weeks in an effort to unblock the jammed credit markets, the Fed announced Wednesday. The Fed will offer tens of billions of dollars in short-term loans to banks through a new program called a “term-auction facility,” in an effort to ease the credit crunch and lower key interbank-lending rates. The Canadian and European central banks also will lend banks tens of billions of dollars through expanded programs.
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