AP
Fed pumps $50B into nation’s financial system
Tuesday September 16, 8:57 am ET
By Jeannine Aversa, AP Economics Writer 
Fed pumps $50 billion into financial system to ease stresses as markets tumble

WASHINGTON (AP) — Urgently trying to keep cash flowing amid a Wall Street meltdown, the Federal Reserve on Tuesday pumped $50 billion into the nation’s financial system to help ease credit stresses.
The Federal Reserve Bank of New York’s action comes in addition to its regular market operations to inject $20 billion into the system slated for the day.

The maneuver takes place as Federal Reserve Chairman Ben Bernanke and his central bank colleagues prepare to meet to decide their next move on interest rates and conduct a fresh assessment of the country’s financial and economic troubles.

Some believe the financial system turmoil raises the odds the Fed will cut rates. Others still predict the Fed will hold its key rate steady at 2 percent.

In the last few days, the American financial system has been badly shaken as bad bets on dodgy mortgage-backed securities claimed more Wall Street giants.

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