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Fed holds first auction for 84-day loans
Tuesday August 12, 10:02 am ET
By Martin Crutsinger, AP Economics Writer
Fed auctions another $25 billion in loans in an effort to combat a serious credit squeeze


WASHINGTON (AP) -- The Federal Reserve has auctioned another $25 billion in loans to the nation's banks in an effort to combat a serious credit squeeze.
The Fed announced Tuesday that the money would be loaned at a rate of 2.754 percent. In the latest auction, the Fed says it offered the loans for an extended period of 84 days, rather than the 28-day period for the previous loans.

It marks the Fed's latest attempt to be innovative in providing the nation's banking system with the cash it needs to combat a serious credit crisis stemming from mounting mortgage loan losses which hit a year ago.