Fed Offers $40 Billion to Bolster Global Economy

NPR | By Adam Davidson,

Published December 12, 2007 at 4:00 PM EST

The Federal Reserve Bank moved Wednesday morning to ease a global credit crisis.

The Fed announced in a statement that it plans to offer $40 billion in emergency funds to banks through an auction process. The move was coordinated with four other major central banks and is designed to increase liquidity around the globe.

Many banks are feeling the housing and mortgage industry problems in the U.S. and have curtailed their lending. The Fed hopes a big and coordinated infusion of cash will keep the global economy humming.

Adam Davidson

Adam Davidson is a contributor to Planet Money, a co-production of NPR and This American Life. He also writes the weekly "It's the Economy" column for the New York Times Magazine.

See stories by Adam Davidson

Robert Siegel

Prior to his retirement, Robert Siegel was the senior host of NPR's award-winning evening newsmagazine All Things Considered. With 40 years of experience working in radio news, Siegel hosted the country's most-listened-to, afternoon-drive-time news radio program and reported on stories and happenings all over the globe, and reported from a variety of locations across Europe, the Middle East, North Africa, and Asia. He signed off in his final broadcast of All Things Considered on January 5, 2018.

See stories by Robert Siegel