Fed Moves to Ease Strains in Credit Markets

WASHINGTON -- The Federal Reserve on Friday announced steps to help ease persistent strains in credit markets, increasing the size of some cash auctions for financial institutions and the amount of dollars it provides to the European Central Bank and Swiss National Bank, Reuters reported.

The Fed said it was stepping up the amounts offered in its Term Auction Facility auctions, which are held every two weeks, to $75 billion from $50 billion, beginning with an auction on May 5, Reuters reported.

It also said it was increasing an existing temporary currency swap line with the European Central Bank to $50 billion from $30 billion and increasing a swap line with the Swiss National Bank to $12 billion from $6 billion, Reuters reported.

-- NYSSCPA.org News Staff

Posted on 5/5/08