WASHINGTON — Big Wall Street investment companies are reducing their borrowing from the Federal Reserve’s emergency lending program, a sign that credit problems may be easing.
A Federal Reserve report Thursday said those firms averaged $24.8 billion in daily borrowing over the past week. That compares with $32.6 billion in the previous week. It marked the second straight week where investment firms borrowed less from the central bank.
The program, which began March 17, is one of several extraordinary actions the Fed has taken recently to limit damage from a trio of crises — housing, credit and financial.
After the sudden crash of Bear Stearns, the nation’s fifth-largest investment bank, fears grew that others might be in jeopardy, given major stresses in credit and financial markets.
Some analysts viewed the reduced borrowing from investment firms and banks as a positive sign that credit stresses may have let up somewhat.
