The Federal Reserve is prepared to increase the size of its new liquidity support operations beyond the $40bn (€27bn, £19.5bn) in credit auctions and $24bn in currency swaps if necessary to contain pressures in the interbank money markets.

Top Fed officials believe that once they have the new mechanisms in place, they will be able to ramp up the volume of funds distributed through them as required. The US central bank is also prepared to increase the term of future credit auctions, for instance to two or three months, if needed.