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November 30, 2007
Fed to Inject $8 Billion to Lubricate Economy
The Federal Reserve on Nov. 28 will issue an $8 billion, low-interest loan to the nation's banks, which must be repaid on Jan. 10. Although the infusion of cash is larger than normal and comes earlier in the fourth quarter than usual, economists say the move is justified because concerns about the credit market has banks even more reluctant to provide peer institutions with overnight loans at this time of year. Market pressure to lower the federal funds rate next month could also ease as a result of the central bank's decision to pump up liquidity in the financial system.
Posted by S. Germain at November 30, 2007 09:00 AM