The U.S. Federal Reserve today announced two new steps to add cash to the U.S. banking system.

In a statement, the Fed said that the measures were needed to address “heightened liquidity pressures in term funding markets.”

The liquidity injections are designed to give banks more capital and confidence to lend money to their customers and to each other.

In the first measure, the Fed said it would increase the size of the two Term Auction Facility, or TAF, auctions to US$50 billion each, or a total of US$100 billion.

Secondly, the Fed said it will initiate a series of term repurchase transactions that are expected to cumulate to US$100 billion.

These transactions will be conducted as 28-day term repos in which primary dealers may elect to deliver as collateral agency mortgage-backed securities if they so choose.

The Fed said it would consider increasing both the repos and the TAF if conditions warrant.

The Fed has already provided US$160 billion in short-term loans since mid-December in six auctions.