Fed injecting Billions in liquidity (buying T-bills)...
biz.yahoo.com
The Fed added $19 billion in liquidity to the market Friday morning, then another $16 billion and, finally, $3 billion.
Federal Reserve policy makers "are trying to do everything they can short of cutting the federal funds rate" to try to calm the markets, said Ed Yardeni, president of Yardeni Research in Great Neck, N.Y.
But, he said, "I think they probably have to cut rates, and probably before their scheduled September meeting."
He noted that it was Fed rate cuts that calmed the market after the 1998 Russian debt crisis and the implosion of the hedge fund Long-Term Capital Management.
The Dow closed down 31.14, or 0.23 percent, at 13,239.54. On Thursday, the Dow fell 387 points and extended a series of triple-digit moves that began in late July.
Friday's moves were typical of the zigzag trading in the Dow since the index closed at a record 14,000.41 on July 19. The Dow is down about 761 points, or 5.4 percent, from its record close.
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