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Federal Reserve pumps US$2 billion into financial market
14/8/2007 10:12

The Federal Reserve said yesterday that it has pumped US$2 billion into the financial system to help beat back a widening credit crisis.

The US central bank, which injected US$62 billion into the market last week, has said it stands ready to release more money if necessary.

"The Federal Reserve is providing liquidity to facilitate the orderly functioning of financial markets," said the Fed in a statement released Friday.

"The Federal Reserve 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 5-1/4 percent," the statement said.

Over the last week, central banks in Europe, Asia and North America have forked out more than US$300 billion in an effort to ward off the widening credit crisis.



Xinhua