US Fed unveils new steps to boost liquidity, manage rates

A screen displays the US Federal Reserve interest rates announcement as traders work on the floor of the NYSE in New York. (Reuters)

The Federal Reserve on Friday announced a new program 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 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.

Last Update: Wednesday, 20 May 2020 KSA 10:00 - GMT 07:00