The New York Federal Reserve Bank said Friday it will inject billions into the US financial plumbing daily for the next three weeks in an effort to prevent a spike in short-term interest rates.
The Fed will offer up to USD 75 billion daily in repurchase agreements -- exchanging secure assets for cash for very short periods -- through October 10, it said in a statement.
In addition, it will offer three 14-day "repo" operations of at least USD 30 billion each.
Banks have struggled in recent days to find the cash needed to meet reserve requirements which has pushed up short-term borrowing rates.
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