Fed Announces $60B March Auctions

This is not good. Just printing money causes inflation, inflation will make the poor and the middle class even poorer, and they promised they will keep on doing it until there is nothing left.

(WASHINGTON) – The Federal Reserve announced Friday that it will auction another $60 billion in March as it continues to combat the effects of a severe credit crisis. It repeated a pledge to keep holding the auctions “for as long as necessary.”

The central bank said it will make $30 billion available to cash-strapped banks at each of two auctions, on March 10 and 24.

The Fed began the new auctions in December in hopes that the increased supply of cash would prompt banks to keep lending and prevent a severe credit squeeze from making the current economic slowdown even worse.

Federal Reserve Chairman Ben Bernanke told members of Congress this week that the Fed has been pleased with the results of the new procedure.

In its announcement Friday, the central bank said that it intended to keep holding the auctions every two weeks “for as long as necessary to address elevated pressures” in the credit markets.

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