Fed loans $75bn more to aid banks

The Fed has been auctioning loans to banks since mid-December

The US central bank has auctioned a further $75bn (£38bn) of short-term loans to help the financial sector.

Offers for $90.88bn-worth of loans from 77 bidders were tabled during the auction, the Federal Reserve said.

The auction, the 15th since December, is part of the Fed's attempts to help banks through the credit crunch.

Banks have been reluctant to lend to each other since the crisis, sparked by a collapse of the US sub-prime mortgage market, took hold of the market.

Monday's auction came days after the Fed decided to leave US interest rates on hold at 2% despite signs of falling consumer confidence and continuing problems in the housing market.

But further figures released on Tuesday did little to stem fears for the property market.

According to the Commerce Department construction spending fell 0.4% in May - its 11th consecutive monthly fall.