Fed hopes $200B infusion into banks will spur lending
The $200 billion being lent by the Federal Reserve to Wall Street investment firms could loosen the credit clampdown facing Long Island residents seeking loans.
The lending is aimed at stimulating consumer lending for cars, education, credit cards and business expansion. LIA chief economist Pearl Kamer has her doubts the move will motivate consumers to spend on big money items.
?There is a very good chance consumers will say, ?I really don?t need that car right now.??
The new consumer credit program is expected to last through next December, but the Fed says there is a chance it could be expanded.