National

Fed Floods Bank System with Cash to Avoid Crisis

By Jim Zarroli

Published August 10, 2007 at 1:00 PM PDT

This story was published more than 16 years ago.

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.