​ Following Quarter-​Point Cut, Federal Reserve Attempts to Lower LIBOR. After a lackluster reaction to yesterday'​s reduction of the Fed funds target rate from 4.​5 to 4.​25%, the Federal Reserve has announced additional measures to attempt to resolve lingering liquidity issues in the money markets. In a release entitled, "​Federal Reserve and other central banks announce measures designed to address elevated pressures in short-​term funding", the Fed has introduced "measures designed to address elevated pressures in short-​term funding markets" in coordination with the Bank of Canada, the Bank of England, and the European Central Bank. Actions taken include the "​establishment of a temporary Term Auction Facility ... and the establishment of foreign exchange swap lines with the European Central Bank and the Swiss National Bank". This plan will evidently allow the Fed to accept new and different forms of collateral at its discount window. See additional coverage: Greg Ip from Wall Street Journal, Reuters, and Bloomberg.

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