Fed pumps funds into ailing US economy
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The US Federal Reserve is to pump $215 billion into the cash-strapped banking system amid tightening credit from the worst housing slump in decades.
The central bank says it has coordinated closely with foreign central banks to take action to address heightened liquidity pressures in term funding markets.
The announcement came just minutes before the US Labor Department reported the economy lost 63,000 jobs last month.
It is the second consecutive month of job losses and has triggered alarms that the world's largest economy is heading for a steeper slowdown.
It is the biggest drop in job numbers since March 2003.
The manufacturing, construction and retail sectors were hardest hit.
US President George W Bush has once again tried to reassure the American people, saying losing a job is "painful" and like many Americans he is concerned about the economy.
"I know this is a difficult time for our economy, but we recognised the problem early and provided the economy with a booster shot," he said.
"It's clear our economy has slowed but the good news is we anticipated this and took decisive action to bolster the economy."
That boost in the form of tax rebate cheques will start reaching 130 million American households in May.
Neither Mr Bush nor his economic advisers will comment about whether the US economy has already slipped into a recession.
