WASHINGTON : The US Federal Reserve on Friday injected six billion dollars into the distressed financial system, the Federal Reserve Bank of New York said. The New York Fed, which handles such operations for the Fed, made the cash infusion, the bank said on its website.
The central bank earlier Friday cut its discount rate to commercial banks to 5.75 percent from 6.25 percent in a surprise move marking its most decisive action since fears of a global credit crunch swept global markets.
"Financial market conditions have deteriorated, and tighter credit conditions and increased uncertainty have the potential to restrain economic growth going forward," the Fed cautioned in a statement.
The central bank has pumped a total 94 billion dollars into the financial markets since August 9 to ease tightening credit stemming from the troubles roiling the US housing market. - AFP /ls
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