The Federal Reserve comes to the rescue
-->Uncategorized August 10th, 2007
The Federal Reserve is trying to calm the panic and is providing liquidity into the market. In it’s statement, the Fed said:
Release Date: August 10, 2007
For immediate release
The Federal Reserve is providing liquidity to facilitate the orderly functioning of financial markets.
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. In current circumstances, depository institutions may experience unusual funding needs because of dislocations in money and credit markets. As always, the discount window is available as a source of funding.
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