Federal Reserve moves to stabilise global markets

Source: Exec Digital USA

Date :9/18/2008 4:12:06 AM

The US Federal Reserve has injected billions into the world’s financial system.

The Bank of England today, September 18, joined forces with five of the world's most powerful central banks to inject US$180 billion into the world’s financial system.

The US Federal Reserve is lending the Bank of England, the European Central Bank, the Swiss National Bank and the central banks of Canada and Japan billions of dollars to bolster their financial systems.

It is part of a concerted effort to ease the funding pressure on international markets and comes just days after the Lehman Brothers collapse.

The move is an attempt to open up the short-term money markets. Problems accessing capital on the money markets have increased problems for numerous financial institutions.

Already this week, the Federal Reserve has risen to the rescue of AIG, America's biggest insurance company, with an US$85 billion bail-out.