Fed Auctions to Continue

The Federal Reserve said Friday it will pump $60 billion in cash to commercial banks in two auctions to be held this month as part of its ongoing efforts to stem a persistent credit crunch that has stalled the nation's financial system.

The new auctions will be held Feb. 11 and Feb. 25 through the Fed's term auction facility, continuing a new auction process it announced in December to bolster bank reserves and raise confidence levels.

The central bank said it will keep holding such auctions "for as long as necessary to address elevated pressures in short-term funding markets."

The announcement comes after the Fed slashed its key interest rate target by 125 basis points this month -- its largest monthly move in over two decades.