U.S., European Central Banks Join to Ease Market Unrest

Washington, D.C.–The U.S. and European central banks announced a new plan to battle global dollar money market issues, the Financial Times reported Friday.The Federal Reserve plans a 50-percent increase for its credit auction facility–the Term Auction Facility, which gives one-month loans to banks. As a result, the facility will increase to $150 billion.To increase the dollar supply in Europe, the Fed, the European Central Bank and the Swiss National Bank also plan to increase the scope of dollar currency swaps by nearly 50 percent to $50 billion and $20 billion.The plan was created to affect the interbank money market’s high spreads.