Fed to add funds as liquidity pressures re-emerge

The Federal Reserve is set to pledge up to $140 billion in extra funds in a bid to soothe the third wave of rising money market tensions since August.

The Fed said on Friday 7 March that it would increase the amount paid out through this month's two Term Auction Facility operations from $60 billion to $100 billion. It said the size of the auctions could increase further "if conditions warrant."

"The expansion is a recognition that financial market functioning has deteriorated," Vincent Reinha