Fed pumps $50B into U.S. financial system
WASHINGTON–Urgently trying to keep cash flowing amid a Wall Street meltdown, the U.S. Federal Reserve on Tuesday pumped $50 billion into the nation's financial system to help ease credit stresses.
The Federal Reserve Bank of New York's action comes in addition to its regular market operations to inject $20 billion into the system slated for the day.
The maneuvre takes place as Federal Reserve Chairman Ben Bernanke and his central bank colleagues prepare to meet to decide their next move on interest rates and conduct a fresh assessment of the country's financial and economic troubles.
Some believe the financial system turmoil raises the odds the Fed will cut rates $1500 payday loan. Others still predict the Fed will hold its key rate steady at 2 per cent.