The US Federal Reserve, along with central banks in Europe, Canada, and Asia, have pumped as much as 180 billion US dollars into money markets.
The inflow of cash on Thursday aims to combat shock waves from the worst financial upheaval since the Great Depression of the 1930s. US President George W. Bush also made a speech on Thursday to promote market confidence.
The actions are aimed at boosting waning confidence that governments can step in and stop the crisis from spinning out of control. And also at getting banks around the world to open their ever-tightening purse strings.
180 billion dollars has been allocated through reciprocal currency arrangements, with central banks in Europe, Japan, Britain, Switzerland, and Canada to increase liquidity in the financial market. This brings the total amount of capital the Fed has injected into the world financial market to 247 billion.
The Fed has called on major central banks to continue their cooperation and take appropriate steps to address the ongoing pressures.
Meanwhile, George W. Bush has tried to shore up investor confidence in the government's ability to prevent the financial crisis from further deterioration.
George W. Bush said, "Our financial markets continue to deal with serious challenges. As our recent actions demonstrate, my administration is focused on meeting these challenges. The American people can be sure we will continue to act to strengthen and stabilize our financial markets and improve investor confidence."
But the US president did not announce any new policy measures.
Instead, he plans to meet with US Treasury Secretary Henry Paulson to discuss further measures to deal with the crisis.
(CCTV September 20, 2008)
