A JP Morgan Chase flag flies near the headquarters for Bear Stearns in New York March 14, 2008.(Xinhua/Reuters Photo)
The US Federal Reserve's announcement Sunday to lower its emergency lending rate was the latest in a series of moves aimed at stabilizing the financial market, analysts said.
To boost liquidity, the central bank approved a cut in its emergency lending rate to financial institutions to 3.25 percent from 3.50 percent in a rare weekend move. Also on Sunday, the Fed, the Treasury Department and other government agencies gave the green-light for JP Morgan Chase to acquire Bear Sterns, which was on the brink of collapse. Since the outbreak of the subprime crisis last year, the Fed has come up with many measures to stabilize the financial market, including cutting fund interest rates and discount rates, capital infusion into the financial market, and easing restrictions on collaterals.
