CSBJ Daily

The Federal Reserve Bank announced this morning that it would take “further coordinated actions” to expand U.S. dollar liquidity worldwide.

The actions include increasing currency swaps with foreign central banks from $330 billion to $450 billion and expanding the Fed’s emergency loan program by $150 billion.

The action was taken in concert with other central banks, including the European Central Bank, the Bank of England, and the Bank of Japan.

A Federal Reserve Bank statement said the moves are intended to maintain a stable flow of credit to the economy during this period of significant strain in global markets.

The Fed’s expansion of liquidity, the biggest since credit markets seized up last year, comes as Congress prepares to vote on a $700 billion bailout for the financial industry.

The crisis is reverberating through the global economy, causing stocks to plunge and forcing European governments to rescue four banks during the past two days.