Fed auctions $75 billion to ease credit stress

updated 10:30 a.m. ET June 17, 2008

WASHINGTON - The Federal Reserve has auctioned another $75 billion in loans to squeezed banks to help them overcome credit problems.

The central bank on Tuesday announced the results of its most recent auction — the 14th since the program began in December. It's part of an ongoing effort to ease financial turmoil and credit stresses.

In the latest auction, commercial banks paid an interest rate of 2.360 percent for the short-term loans. There were 76 bidders for the slice of $75 billion in 28-day loans. The Fed received bids for $89.38 billion worth of the loans. The auction was conducted Monday with the results released on Tuesday.

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