US Fed unveils new steps to boost liquidity, manage rates

The Federal Reserve on Friday 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.

 
• Subscribe to Fin24’s newsletter here

In the new program, the New York Fed will buy about $60 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.