Fed Auctions $30 Billion
Feb. 26
WASHINGTON (AP) The Federal Reserve, seeking to combat effects of the credit crisis, said Tuesday it had auctioned another $30 billion in funds to commercial banks, at an interest rate of 3.080 percent. The central bank cut its target for the federal funds rate, the interest that banks charge each other, by 1.25 percentage points, the biggest one-month move in a quarter century, as it stepped up efforts to keep the weakening economy from falling into a recession. The Fed adopted its new auction process in December after it had only limited success in encouraging banks to use its "discount window" where the Fed makes direct loans to commercial banks.
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Posted Under: Auctions