The Federal Reserve is cutting to $100 billion the amount of funds it will loan to banks through each of its two Term Auction Facility offerings in August.

It is the second time in as many months that the Fed has cut offerings through the facility, which last fall peaked at $150 billion per auction.

"This reduction is consistent with the expectation … that TAF auction amounts would be reduced gradually further in coming months if market conditions continue to improve," the Fed said in its announcement.

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