Federal reserve cash injection alleviates crisis, says chairman
The U.S. Federal Reserve announced Wednesday that it will no longer provide liquidity for banks facing funding ??? ?? ??shortfalls, a move aimed at creating a buffer against potential economic shocks such as a financial crisis.
“We have made a choice to not invest funds or credit,” Federal Reserve Chairman Ben Bernanke told CNBC’s “Squawk Box” after the statement. “We can’t do that right now.”
Bankers are now expected to apply for federal funds through the U.S. Treasury, Bernanke said.