Fed extends actions to ease global credit squeeze

0 Comments | AFP, July, 2008

WASHINGTON (AFP) — The Federal Reserve took further steps Wednesday to battle a global credit crunch, including an extension of an emergency lending program for investment firms facing a liquidity squeeze.

The Fed said it took the actions "in light of continued fragile circumstances in financial markets."

In addition to the extension of credit to investment banks, the Fed said it would lengthen the terms of another program to help retail banks meet funding needs, and extend reciprocal credit arrangements with the European Central Bank (ECB) and Swiss National Bank to help European banks get dollar funding.

"The programs are designed to combat systemic risks to the financial system related to short-term funding pressures -- pressures that can be significantly...