Fed makes soothing noises
[A day late, but hey. It’s odd they cite the exact fed funds target,
as if underscoring their intention of keeping it there.]
http://www.federalreserve.gov/boarddocs/press/monetary/2007/20070810/default.htm
For immediate release
The Federal Reserve is providing liquidity to facilitate the orderly
functioning of financial markets.
The Federal Reserve will provide reserves as necessary through open
market operations to promote trading in the federal funds market at
rates close to the Federal Open Market Committee’s target rate of
5-1/4 percent. In current circumstances, depository institutions may
experience unusual funding needs because of dislocations in money and
credit markets. As always, the discount window is available as a
source of funding.