For the first time ever, the Federal Reserve announced it will offer to swap up to $200 Billion in U.S. Treasury securities in exchange for other debts including mortgage-backed securities. The program is being coordinated with central banks in Europe and Canada, which plan to inject up to $45 billion into their banking systems. The move is being done in an effort to show the world's lenders it has faith in the highest quality debt. The plan has received a positive reception from many analysts, and the stock market responded with its best day in five years.
Wednesday, March 12, 2008
Federal Reserve To Infuse $200 Billion Into Credit Markets
For the first time ever, the Federal Reserve announced it will offer to swap up to $200 Billion in U.S. Treasury securities in exchange for other debts including mortgage-backed securities. The program is being coordinated with central banks in Europe and Canada, which plan to inject up to $45 billion into their banking systems. The move is being done in an effort to show the world's lenders it has faith in the highest quality debt. The plan has received a positive reception from many analysts, and the stock market responded with its best day in five years.
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