Fed pledges to extend aid measures into 2009

The Federal Reserve moved to soothe financial market tensions on Wednesday with a fresh batch of liquidity measures, including confirmation that it will allow investment banks to borrow from its discount window into next year.

The Fed said that it will allow investment banks to borrow from the New York Federal Reserve's Primary Dealer Credit Facility (PDCF) until 30 January next year "in light of continued fragile circumstances in financial markets."

It will also extend its Term Securities Le