A day after a dramatic move in interest rates, the Federal Reserve on Monday increased the amount of liquidity it's offering in short-term lending to the financial industry.

In a mid-day announcement, the New York Fed said it will conduct a $500 billion repo operation this afternoon, another move targeted at keeping money flowing through the system. Repo involves banks putting up high-quality collateral like Treasurys in exchange for the liquidity they need to conduct operations.

Monday's move comes after the Fed stepped up the operations last week, offering up to $1.5 trillion to an industry hungry for the Fed's offerings.

The operation will have a same-day settlement, running from 1:30 to 1.:45 p.m. The minimum bid rate is 0.1%.

The move comes a day after the Fed cut its benchmark interest rate by 1 percentage point to a range of 0%-0.25%, where it was during the financial crisis. In addition, the central bank offered a number of other measures aimed at providing necessary funding to banks and the free-flow of currency swaps between the Fed and other global central banks.

The Fed also announced a round of asset purchases totaling $700 billion along the lines of its quantitative easing measures taken during the crisis. In Monday morning operations, the New York Fed trading desk bought $27 billion of Treasurys.

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