Is the Fed prepared to drop cash from a helicopter?
*Associated Press, August 10, 2007:
"Fed Pumps 35 Bln Dlrs Into US banking System, Ready To Do More
The Federal Reserve pumped a total 35 billion dollars into the US
banking system Friday and said it was ready to inject more money if
necessary amid sharp downtowns on US and global stock markets.
The Fed injected an initial tranche of 19 billion dollars, followed
rapidly by a second hefty infusion of 16 billion dollars, into the
financial system in a bid to calm widespread market turmoil.
"The Federal Reserve is providing liquidity to facilitate the orderly
functioning of financial markets," the US central bank said in a rare
statement.
It said it would also "provide reserves as necessary through open
market operations" to keep its short-term federal funds interest rate
close to its 5.25 percent target and to boost liquidity in America's
vast banking system.
The central bank acted amid fears on Wall Street that a widening credit
crunch could stoke interest rates on bank loans and slow US economic
growth."
*This information is solely a highlight of the opinion of a third-party publication and is incomplete. Please subscribe to this publication for the full and timely opinion of the author and call a Monex Account Representative for any additional up-to-date information. This is not an offer to buy or sell precious metals. Investors should obtain advice based on their own individual circumstances and understand the risk before making any investment decision.
Call Now
Let us help you:
Personal Advisors
available now at
1-800-444-8317