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Fed pumps MORE money into markets…

“The effort, begun in mid-September, is aimed at preventing a spike in short-term interest rates, the New York Fed said in a statement” reports Banks borrow regularly in markets for very short periods, usually overnight, to make sure their daily cash reserves do not fall below the required level.Rates spiked last month as banks struggled to find the cash needed to meet reserve requirements, prompting the Fed to pump billions into US money markets.But interest rates increase with demand.

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