Fed pumps $70B into nation's financial system

WASHINGTON (AP) -- Urgently trying to keep cash flowing amid a financial meltdown, the Federal Reserve has pumped another 70 billion dollars into the nation's financial system.

The Federal Reserve Bank of New York's action came in two operations in which 50 billion dollars and then another regularly scheduled 20 billion were injected in temporary reserves.

The maneuver takes place as Federal Reserve Chairman Ben Bernanke and his central bank colleagues meet today to decide their next move on interest rates and conduct a fresh assessment of the country's financial and economic troubles.

Some believe the financial system turmoil raises the odds the Fed will cut rates. Others still predict the Fed will hold its key rate steady at 2 percent.

(Copyright 2008 by The Associated Press. All Rights Reserved.)

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