Experts are calling for the Federal Reserve and U.S. Treasury to implement additional measures to loosen up paralyzed credit markets, saying passage of the $700 billion bank rescue is not enough to get the economy moving again. The Fed is expected to respond with a bigger and broader program to enhance liquidity among financial institutions. Some experts said the Fed could take a radical step of offering unsecured term loans to regulated banks at a fixed spread of more than its benchmark interest rate, effectively capping the interbank rate.

Related Summaries