The Federal Reserve Board of Governors "Friday announced two initiatives to address heightened liquidity pressures in term funding markets." The Fed's release says, "First, the amounts outstanding in the Term Auction Facility (TAF) will be increased to $100 billion.... Second, beginning today, the Federal Reserve will initiate a series of term repurchase transactions that are expected to cumulate to $100 billion." Bloomberg writes "Fed Boosts Lending to Banks as Credit Rout Continues". The article quotes Joe Tully of $2 billion money fund manager Prudential Investment Management, "What the Fed's saying with the TAF changes is, 'We hear you and we want to ensure everybody has financing for good collateral,'".
