It's serious, Fed cuts rate on Sunday!
posted on
Mar 16, 2008 05:24PM
Market will go down Monday
Fed Takes New Steps to Ease Crisis
Sunday March 16, 8:33 pm ET
By Jeannine Aversa, AP Economics Writer
Fed Takes Steps to Ease Crisis, Cuts Lending Rate to Financial Institutions to 3.25 Percent WASHINGTON (AP) -- Federal Reserve Chairman Ben Bernanke said new steps announced by the central bank Sunday should help squeezed financial institutions get cash infusions-- a fresh effort to provide relief to a spreading credit crisis that threatens to plunge the economy into recession.
The central bank approved a cut in its lending rate to financial institutions to 3.25 percent from 3.50 percent, effective immediately, and created another lending facility for big investment banks to secure short-term loans.
"These steps will provide financial institutions with greater assurance of access to funds," Bernanke told reporters in a brief conference call Sunday evening.
The new lending facility will be available to financial institutions on Monday.
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