The U.S. Federal Reserve, the European Central Bank, and the central banks of Canada, England, Japan, and Switerzland Wednesday announced plans to coordinate their actions to boost liquidity in the global financial system.
The move is designed to ease strains in financial markets and and free up credit to households and businesses, the banks said in a joint statement.
These central banks will lower the pricing on the existing temporary U.S. dollar liquidity swap arrangements by half a percentage point so that the new rate will be the U.S. dollar overnight index swap, plus a half a percentage point. The new pricing will begin Dec. 5, 2011, and the swap arrangements will last until Feb. 1, 2013, the banks said.
In addition, China has cut its bank reserve requirement in an effort to stimulate its economy.
Finally, ADP reports private hiring up by 206,000 in November.
The report showed that private sector employment jumped by 206,000 jobs in November following an upwardly revised increase of 130,000 jobs in October. Economists had expected employment to increase by 125,000 jobs compared to the addition of 110,000 jobs originally reported for the previous month.
ADP noted that the increase was the largest monthly gain since last December and nearly twice the average monthly gain since May.
This could indicate a positive unemployment report on Friday.