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US Fed and Treasury to pump $200 billion into consumer credit

03 March 2009 15:58 (UTC +04:00)

Baku - APA-Economics. The US Treasury and the Federal Reserve on Tuesday formally launched a program designed to pump 200 billion dollars into consumer credit through the purchase of securities linked to various loans.
The program, which could rise up to one trillion dollars, aims to break a credit crunch by buying up asset-backed securities linked to credit cards, auto loans and other types of consumer credit.
Called the Term Asset-Backed Securities Loan Facility (TALF), the program is designed "to catalyze" credit markets that have been "virtually shuttered since the worsening of the financial crisis in October," according to a joint Treasury and Fed statement.
"By reopening these markets, the TALF will assist lenders in meeting the borrowing needs of consumers and small businesses, helping to stimulate the broader economy," the statement said, AFP reported.