Fed helps to US economy to revive by Beata Novomeska

There are big problems in the US ecomomic situation. There is the worst state from the year 2003. Fed started to buy up short-term debts to help some companies. The situation is not good but there is belie fit will be better. The Federal Reserve Bank of New York started to lend Money to non-financial companies and buys up mounds of commercial paper. Before, the Fed loaned Money only to banks, but now i tis neccessary to lend to other companies because as said Federal Reserve Chairman Ben Bernanke “the outlook for economic growth worsened.”
He thinks that period of weak economic performance will lengthen because of the heightened financial turmoil. The Fed will convene Oct. 28 again. The manifestations of the economic crises we can see at Wall Street, too. The Dow Jones industrials lost 508 points, more than 5 per cent, the lowest since Sept. 30, 2003. On this situation, the President Bush reacted, too. He said that it is necessary to have a faith and economy will recover over time. He would want something to do but it didn’t function because he doesn’t have an influence on it. People have to wait and there are some arrangements which function.
The contagion has spread overseas. British government has the problems, too. British government was poised to announce a rescue package for the banking system there.
The Treasury Department will provide money to the Federal Reserve Bank of New York to support new program, the Fed said. The Fed said it stopped buying the short-term debt on April 30 but it is possible that the program will be extended.
So we can hope that it will help the US economic and it will be better over time.


related story: http://www.washingtontimes.com/news/2008/sep/30/us-economy-heads-toward-recession-reality/

by Beata Novomeska for PocketNews (http://pocketnews.tv)

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edited by beata Biskova