Federal Reserve poised to pump more money into markets
The US Federal Reserve said Wednesday it may pump more money into the jittery financial system when the stock markets open for trading to meet increased liquidity demands.
The Federal Reserve Bank of New York said that market conditions suggest that an injection will be needed in the federal funds market "to accommodate heightened reserve needs."
The operation would be conducted at the bank's desk opening at 9:30 am (1330 GMT), it said in a statement. The Wall Street markets open at that time.
The New York Fed, which is responsible for such operations for the central bank, said it "stands ready to conduct further operations later in the day if needed."
The Fed pumped a total 64 billion dollars into the financial markets in operations on Thursday, Friday and Monday to soothe investors' fears over a credit crunch tied to the troubled US housing sector.
AFP
