The New York Federal Reserve Bank said
Friday it will inject billions into the US financial plumbing daily for the
next three weeks in an effort to prevent a spike in short-term interest
rates.

The Fed will offer up to $75 billion daily in repurchase agreements —
exchanging secure assets for cash for very short periods — through October
10, it said in a statement.

In addition, it will offer three 14-day “repo” operations of at least $30
billion each.

Banks have struggled in recent days to find the cash needed to meet reserve
requirements which has pushed up short-term borrowing rates.