Fed X

In response to questions about where I get the $400bn+$600bn liquidity boosts coming, the answer is that the Fed will:
- boost 84-day cash loans available to U.S. banks to $75bn (up from current $25bn) starting on Oct. 6. Banks bid at auction for slices of the loans (tripling outstanding supply of 84-day loans to $225bn from $75bn).
- continue to make $75bn of shorter, 28-day loans available.
- make a total of $620bn available to other central banks (expanding currency "swaps" where dollars are exchanged for foreign currency (up from $290bn previously).
Bank of Canada, Bank of England, Bank of Japan, European Central Bank, Swiss National Bank and central banks of Denmark, Norway, Australia and Sweden are in the swap arrangements.