CSBJ Daily

The Associated Press

The Federal Reserve announced today that it is ramping up efforts to provide more relief to cash-strapped financial institutions, a coordinated action with other central banks aimed at easing a global credit crisis that threatens to push the U.S. economy into its first recession since 2001.

The Fed said it will make up to $200 billion in cash available to cash-strapped financial institutions.

“Pressures in some of these markets have recently increased again,” the Fed said in a statement. “We all continue to work together and will take appropriate steps to address those liquidity pressures.” The other banks involved are the Bank of Canada, the Bank of England, the European Central Bank, the Federal Reserve, and the Swiss National Bank.

In addition, the Fed has authorized increases in existing programs called “swap lines” with the European Central Bank and the Swiss National Bank

“These arrangements will now provide dollars in amounts of up to $30 billion and $6 billion to the ECB and the SNB respectively,” the Fed said, extending the term of these swap lines through Sept. 30.