TIMELINE: Fed actions to boost liquidity

CHICAGO (Reuters) - The U.S. Federal Reserve on Friday announced measures to support stressed financial markets, including a step to bolster money market funds, ultra-safe investments that have been hit by a wave of redemptions from panicked investors.

The step was the latest in a series of extraordinary actions by the Fed to try to thaw frozen credit markets.

Following is a chronology of the Fed's actions since the market crisis erupted in August 2007:

August 10, 2007: In a rare statement, the Fed notes banks are experiencing unusual funding needs because of dislocations in money and credit markets and says it would provide funds as needed.

August 17: The Fed cuts the discount rate by a half percentage point and says it will act as needed to offset adverse effects on the economy arising from disruptions in financial markets.

November 26: The Fed promises more than the usual year-end liquidity and says it will lift limits on how much can be lent to any one bank.

December 12: As part of a global coordinated central bank effort, the Fed establishes the Term Auction Facility (TAF) to provide funds over a longer period to a wider range of banks to meet temporary shortages of funds. It also establishes foreign exchange swap lines with the European Central Bank and the Swiss National Bank. The arrangements provide up to $20 billion for the ECB and $4 billion for the SNB.

January 3, 2008: The Fed raises TAF auction amounts to $30 billion from $20 billion for each of the two auctions in January. The ECB and the SNB also offer dollar funds in conjunction with the Fed auctions.

February 1: Fed announces it will continue biweekly TAF auctions in February, holding the amount in each auction steady at $30 billion.

February 29: Fed announces two TAF auctions of $30 billion each in March. It says it intends to conduct auctions for as long as necessary to ease pressures in short-term funding markets.

March 7: The Fed says it will inject $100 billion into the banking system by increasing the size of its two term auctions of short-term funding and start a series of term repurchase transactions with primary dealers expected to be worth another $100 billion.

March 11: The Fed says it will accept a broader range of collateral, including home mortgages, in a new Treasury securities lending program, the Term Securities Lending Facility (TSLF). It says it would lend up to $200 billion to primary dealers, secured for 28 days, and accept federal agency home mortgage-backed securities and highly rated private mortgage-backed securities as collateral.

The action was coordinated with steps by the Bank of Canada, Bank of England, European Central Bank and Swiss National Bank. The Fed also says it increased existing currency swap lines with the ECB and SNB to up to $30 billion and $6 billion, respectively, and extended the term of those lines through September to help those central banks provide dollar liquidity in their markets.

March 14: The Fed says it authorized JPMorgan Chase to borrow at the discount window on behalf of Bear Stearns, an emergency move last used in the Great Depression.

March 16: The Fed in a surprise move cuts the discount rate it charges on direct loans to banks and announces new lending program to provide credit to other big Wall Street firms, the Primary Dealer Credit Facility (PDCF). In addition, it increases the maximum maturity of discount rate loans to 90 days from 30 days. The actions are taken in concert with a decision to approve special financing to facilitate the purchase of Bear Stearns by JPMorgan Chase.

March 24: Fed details its role in amended JPMorgan planned purchase of ailing investment bank Bear Stearns. It says it will assume control of a portfolio of Bear Stearns assets valued at $30 billion, pledged as security. Any profit from the assets will accrue to the Fed, while JPMorgan will bear the first $1 billion of any losses. The Fed will finance the remaining $29 billion on a non-recourse basis to JPMorgan.