U.S. Fed Says March TAF Auctions to Expand to $50 Billion Each

The Federal Reserve said it will expand two short-term auctions this month to $100 billion, from $60 billion, to address ``heightened liquidity pressures in term funding markets.''

The Fed said it will increase the amount of its March 10 and March 24 term auction facility sales to $50 billion each from $30 billion each. The Fed also said it will initiate a series of 28-day term repurchase agreements.

The Fed has loaned $160 billion in funds since mid-December in six auctions through the Term Auction Facility, known as TAF, in an effort to increase the supply of funds available for lending.

The auctions began as part of a coordinated effort with central banks in the U.K., Canada, Switzerland and the euro region to increase temporary funds after losses on subprime mortgages made banks reluctant to lend. The European Central Bank and Swiss National Bank have halted their auctions