Fed pumps extra $30bn into money markets
US Federal Reserve pumps extra $30 billion into money markets
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Wednesday, 24, Sep 2008 11:41
The US Federal Reserve has injected another $30 billion into the money markets on top of the $247 billion announced last week.
The money will be available to the central banks of Australia, Norway, Sweden and Denmark.
"These facilities, like those already in place with other central banks, are designed to improve liquidity conditions in global financial markets," the Fed said in a statement.
The 'swap-lines' are a temporary fix, providing loans on a short-term basis to commercial banks.
The US treasury has come up with a more permanent solution to the toxic debts choking the financial markets but it has come under fire from lawmakers.
Congress is reluctant to land taxpayers with a $700 billion bill to bail out the industry and the wrangling has sent stocks in global markets spiralling downwards.
The banks involved are the Reserve Bank of Australia, the Danmarks Nationalbank, the Norges Bank, and the Sveriges Riksbank.