Fed injects $47.25 billion in temporary reserves

Discussion in 'Wall St. News' started by makloda, Nov 15, 2007.

  1. NEW YORK (Reuters) - The Federal Reserve on Thursday pumped its biggest temporary daily infusion into the U.S. banking system since just after the September 11, 2001 attacks as short-term lending rates rose on both sides of the Atlantic.

    Even though some news about bank write-downs from riskier investments was not as dismal as some investors had feared, underlying strains pushed overnight lending rates up in both the United States and Europe.

    "There was a bit more focus on the Fed operations today in context of the rise in Libor (London Interbank Offered Rates)," said Tony Crescenzi, chief bond market strategist at Miller, Tabak & Co. in New York.

    Two-month sterling rates hit a two-month high, which also put upward pressure on the U.S. money market.

    In addition, U.S. commercial paper outstanding shrank for the second consecutive week, indicating dislocations from the summer's credit market turmoil continue to dog that sector.

    The Fed injected $47.25 billion in temporary reserves, its biggest combined daily infusion since September 19, 2001, to calm a rise in overnight interbank lending rates.

    "We are seeing tightness in fed funds with concerns about financial institutions' exposure to subprime," said Kenneth Kim, economist with Stone & McCarthy Research Associates, in Princeton, New Jersey.

    More: http://investing.reuters.co.uk/news...8347_RTRIDST_0_BUSINESS-ECONOMY-CREDIT-DC.XML
  2. What a crock of shit. None of these BS "infusions" of cash are new. They're all rollovers/renewals of previous borrowings.
    But somebody uses this as an opportunity to pretend as though the FED is on the ball and going to rescue the market if not propell it higher. What a fucking joke.
  3. Do not undermine the golden printing press. it costs them nothing. They really do not give a shit. The Fed was a startup that printed its own startup capital. :eek:
  4. bgp


    i hope the fed is injecting $$ into the market, maybe the dow will drop harder.


  5. So, ya see this here global market may be a little bigger than the US fed, dumb ass keep trashing their currency.
  6. No joke, maybe another rate cut will wack off another 500 on the dow.
  7. Ultimately, the FED needs to do a freaking BILL PASS to aggressively inject reserves into the system.

    This Repo-Beepo stuff is a joke.