The U.S. Federal Reserve Board said today that it is providing liquidity to facilitate the orderly functioning of financial markets.
In a statement, the Federal Reserve said it will, “provide reserves as necessary through open market operations to promote trading in the federal funds market at rates close to the Federal Open Market Committee’s target rate of 5.25%.”
“In current circumstances, depository institutions may experience unusual funding needs because of dislocations in money and credit markets,” it adds. “As always, the discount window is available as a source of funding.”
This follows the European Central Bank’s efforts to inject liquidity yesterday. Several central banks in Asia added liquidity overnight, and the Bank of Canada said it will do so, too.
Fed to provide liquidity for financial markets
- By: James Langton
- August 10, 2007 August 10, 2007
- 08:55