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.