Fed Extends Emergency Lending Amid Continued Credit-Market Stress
By Sudeep Reddy
Word Count: 535
Facing continued troubles in credit markets, the Federal Reserve said Wednesday it is extending its emergency lending to investment banks through January and expanding several other direct-loan programs created over the past year.
The moves are a recognition of the fragile conditions in financial markets that are threatening to worsen the credit crisis and restrain the overall economy despite a series of deep interest-rate cuts and other aggressive moves since last September.
The central bank said in a statement that the steps are designed "to enhance the effectiveness of its existing liquidity facilities."