The US Federal Reserve injected longer-term cash worth $30 billion into the country’s banking system a week after turmoil in money markets when overnight borrowing costs reached a peak of 10%, a level not seen since the 2008 global financial crisis. However, analysts expect demand for funding to remain elevated near the end of the quarter.
The Fed injected the cash through 14-day loans to primary Wall Street firms which use their Treasuries and other bonds as collateral. The Fed will conduct another two 14-day term operations to inject $30 billion each.
