The Fed Acts: Will Provide "Reserves As Necessary"
The Federal Reserve, trying to calm turmoil on Wall Street, announced Friday that it will pump as much money as needed into the U.S. financial system to help overcome the ill effects of a spreading credit crunch.
The Fed, in a short statement, said it will provide "reserves as necessary" to help the markets safely make their way. The central bank did not provide details but said it would do all it can to "facilitate the orderly functioning of financial markets."
The Fed pushed $35 billion in temporary reserves into the system Friday morning, on top of a similar move the day before.
AP | JEANNINE AVERSA | August 10, 2007 12:49 PM