Fed Takes New Steps To Ease Crisis

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Washington (AP) The Federal Reserve is taking steps to help provide relief to a spreading credit crisis.

The Central Bank has approved a cut to its lending rate to financial institutions from 3.50 percent to 3.25 percent effective immediately. The fed is also creating another lending facility for big investment banks to secure short-term loans.

The new lending facility will be available to financial institutions today. The fed says it will be in place for at least six months and “may be extended as conditions warrant.”