The following appeared on page 2C of the Wednesday May 7, 2008 issue of the St. Paul Pioneer Press.
Battling to relieve stressed credit markets, the Federal Reserver said Tuesday it has provided a total of $435 billion in short-term loans to squeezed banks since December to help them overcome credit problems. The central bank announced the results of its most recent auction - $75 billion in short-term loans - the 11th such auction since the program started in December.
It's part of an ongoing effort by the Fed to help ease the credit crunch, which erupted last August, intensified in December and January and took another turn for the worst in March. The housing, credit and financial crises have weakened the economy and threaten to push it into recession. In the latest auction, commercial banks paid an interest rate of 2.220 percent for the loans.
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