WASHINGTON - The Federal Reserve on Tuesday injected 50 billion US dollars of liquidity to help stressed financial markets, a move coming on the heels of similar actions by other central banks.
The Federal Reserve Bank of New York made the announcement a day after the US central bank injected 70 billion US dollars into financial markets amid turmoil following the bankruptcy of Wall Street giant Lehman Brothers.
The Fed "stands ready to arrange further operations later in the day, as needed," the statement said.
The move came ahead of policy meeting of the US central bank. Many analysts expect a cut in the federal funds rate, currently at 2.0 per cent, in a further effort to keep credit flowing in the strained financial system.
Earlier, the European Central Bank, Bank of England and central banks of Switzerland and Japan pumped pumped billions into the markets for a second day Tuesday as it joined other central banks in trying to contain the fallout from the collapse of Lehman Brothers.
The operations came after Lehman Brothers filed for bankruptcy protection on Monday and after fellow Wall Street giant Merrill Lynch was bought by Bank of America to prevent it suffering a similar fate.
US insurance giant AIG was also reported to have sought a massive emergency loan to head off its own crisis.
The events sent shockwaves through markets and prompted central banks to provide the extra liquidity to keep banks lending to each other and avert a wider freeze-up of the entire financial system
The Federal Reserve Bank of New York made the announcement a day after the US central bank injected 70 billion US dollars into financial markets amid turmoil following the bankruptcy of Wall Street giant Lehman Brothers.
The Fed "stands ready to arrange further operations later in the day, as needed," the statement said.
The move came ahead of policy meeting of the US central bank. Many analysts expect a cut in the federal funds rate, currently at 2.0 per cent, in a further effort to keep credit flowing in the strained financial system.
Earlier, the European Central Bank, Bank of England and central banks of Switzerland and Japan pumped pumped billions into the markets for a second day Tuesday as it joined other central banks in trying to contain the fallout from the collapse of Lehman Brothers.
The operations came after Lehman Brothers filed for bankruptcy protection on Monday and after fellow Wall Street giant Merrill Lynch was bought by Bank of America to prevent it suffering a similar fate.
US insurance giant AIG was also reported to have sought a massive emergency loan to head off its own crisis.
The events sent shockwaves through markets and prompted central banks to provide the extra liquidity to keep banks lending to each other and avert a wider freeze-up of the entire financial system
