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Fed Floods Bank System with Cash to Avoid Crisis

Economy

Fed Floods Bank System with Cash to Avoid Crisis

Hear NPR's Jim Zarroli

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  • <iframe src="https://www.npr.org/player/embed/12692597/12692598" width="100%" height="290" frameborder="0" scrolling="no" title="NPR embedded audio player">
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The Federal Reserve has moved to calm market jitters by pumping additional cash into the banking system.

In a statement, the Fed said it is "providing liquidity to facilitate the orderly functioning of financial markets."

Altogether, the Fed made some $35 billion available at low interest rates in order to ease the strain of a growing credit crisis.