Fed auctions another $50 billion to banks
WASHINGTON (AP) - March 25, 2008 The central bank on Tuesday announced the results of its most
recent auction - the eighth since the program started in December -
where commercial banks bid to get a slice of $50 billion in
short-term loans.
It's part of an ongoing effort by the central bank to provide
relief to a spreading credit crunch that has unnerved financial
markets. The situation threatens to push the country into a deep
recession. Counting the latest auction results announced Tuesday,
the Fed has provided a total of $260 billion in short-term loans to
banks since December.
In the most recent auction - which marked the eighth -
commercial banks' paid an interest rate of 2.615 percent, the
lowest rate for any of the auctions of this kind conducted so far.
There were 88 bidders for the latest slice of the $50 billion in
loans. Demand was high. The Fed received bids for $88.9 billion
worth of loans.