Feb 23, 2010Treasury announces expansion of emergency borrowing program designed to help Federal Reserve
(AP) The Treasury Department says now that the government's debt ceiling has been increased, it will once again expand an emergency program created at the height of the financial crisis to help the Federal Reserve manage its books.
The Treasury said it will expand borrowing in the Supplementary Financing Program from $5 billion to $200 billion. During the financial crisis, the borrowing program hit a peak of $560 billion in 2008 but it was trimmed last fall to keep the government from breaching the debt limit.
The increase planned over the next two months will be accomplished by selling $25 billion in 56-day bills at weekly auctions which will be held every Wednesday.
Source: AP News
