Economics

Fed Faces Fresh Pressure to Act, Boosts Repo Operations

  • Gauge of banking risk at highest since 2011 signals alarm
  • Increase meant to ‘boost confidence,’ Barclays strategists say

An American flag flies outside the Marriner S. Eccles Federal Reserve building in Washington, D.C.

Photographer: Andrew Harrer/Bloomberg
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The Federal Reserve lifted the amount of temporary cash it’s willing to provide markets as pressure intensifies for the U.S. central bank to tackle the risk of a worldwide credit crunch.