US Fed unveils new steps to boost liquidity, manage rates

A man walks past the Federal Reserve Bank in Washington, December 16, 2015. — Reuters pic
A man walks past the Federal Reserve Bank in Washington, December 16, 2015. — Reuters pic

WASHINGTON, Oct 11 — The Federal Reserve today announced a new programme to boost liquidity in the US financial plumbing and allow the central bank to better manage interest rates, but without changing monetary policy.

In the new programme, the New York Fed will buy about US$60 billion (RM251 billion) a month in short term US Treasury debt through the second quarter of next year to ensure “the supply of reserves remains ample,” according to a statement.

However, the changes are “purely technical” and “do not represent a change in the stance of monetary policy.”

It also will continue through at least January the recently implemented steps to inject funds into the US markets on a daily basis. — AFP

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