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.