The New York Fed is Spending Billions to Prop Up Wall Street - "New York (CNN Business)For the second straight day, the New York Federal Reserve injected a huge sum of money into the financial system in a bid to calm stress in the overnight lending market. The Fed on Wednesday poured another $75 billion into the market following a $53 billion rescue by the NY Fed on Tuesday. Overnight lending rates have suddenly spiked, and the Fed is acting to bring them back down to keep markets functioning smoothly. Until this week, the Fed hadn't launched an operation like this since 2008."

Federal Reserve Chairman Jerome Powell said during a press conference on Wednesday that these steps were "effective in relieving funding pressures."

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