 |
|
 |
|
Announcement:
|
Fed help with $200 billion. |
|
|
 |
| The Fed has injected some 200 billion dollars into the financial system since August 9, 2007 to boost credit flow. |
The Fed has injected some 200 billion dollars into the financial system since August 9 in a bid to boost credit flows which have seized up due to problems linked to the distressed US mortgage market.
The US central bank typically buys billions of dollars worth of securities from major banks, pumping extra cash into the banking system, which the banks are obliged to repurchase at a later date. This gives banks the opportunity to lend more money to consumers and hopefully - stimulate the economy.
|
| |
 |
| |
|
|
