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Fed Funnels Cash to Banks, Eases Lending

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Fed Funnels Cash to Banks, Eases Lending

Fed Funnels Cash to Banks, Eases Lending

Fed Funnels Cash to Banks, Eases Lending

  • Download
  • <iframe src="https://www.npr.org/player/embed/88116160/88116087" width="100%" height="290" frameborder="0" scrolling="no" title="NPR embedded audio player">
  • Transcript

The Federal Reserve announced Tuesday that it will make an additional $200 billion available to the banking system in order to address an ongoing credit crunch. The move was coordinated with central banks in Europe and Canada — which plan capital infusions of their own. The Fed also is easing lending rules, and for the first time will accept mortgage-backed securities as collateral.