The Federal Reserve has been intervening more aggressively in money markets as it attempts to keep interest rates from rising around the end of the year.
On Monday, the central bank again increased the amount of short-term cash loans it plans to offer banks to ensure US interest rates remain stable later this month. It now plans to offer $25bn in cash loans for the 28-day period ended January 6, up from $15bn previously. Last week, it increased the size of a 42-day facility for the period ended January 13 by $10bn as well.
