"WASHINGTON (AP) - The Federal Reserve pumped $41 billion into the U.S. financial system Thursday, the largest cash infusion since September 2001, to help companies get through a credit crunch...
The Federal Reserve Bank of New York, which carries out the central bank's open market operations, moved Thursday to inject $41 billion in temporary reserves into the U.S financial system. It came as part of ongoing efforts designed to ensure that the markets -- which have suffered through a period of turbulence over the last few months -- function smoothly. The cash infusion came in three separate operations.
A New York Fed spokesman said it was the largest single day of operations since $50.35 billion was pumped into the system on Sept. 19, 2001, following the terror strikes on New York and Washington. He declined further comment."
A New York Fed spokesman said it was the largest single day of operations since $50.35 billion was pumped into the system on Sept. 19, 2001, following the terror strikes on New York and Washington. He declined further comment."
Now you can understand magnitude of financial disaster and melt down in Sub prime market. New supply of dollars with less demand will lead to further depreciation of the US dollar. It will bounce time from time, but general direction is down. Indication by the Market with yesterday's sell off after FED Rate Cut show us that Bull liquidity story has ended and in order to keep thing just from falling apart in financial sector further rates will follow and Gold, Silver and Commodities will fly.
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