Fed Announces March Auctions

WASHINGTON -- The Federal Reserve announced Friday that it will auction another $60 billion in March as it continues to combat the effects of a severe credit crisis. It repeated a pledge to keep holding the auctions "for as long as necessary," The Associated Press reported.

The central bank said it will make $30 billion available to cash-strapped banks at each of two auctions, on March 10 and 24, the AP reported.

The Fed began the new auctions in December in hopes that the increased supply of cash would prompt banks to keep lending and prevent a severe credit squeeze from making the current economic slowdown even worse, the AP reported.

-- NYSSCPA.org News Staff

Posted on 2/29/08