Policy experts say more must be done to stimulate US economy

Seattle News.Net
Monday 6th October, 2008

The Federal Reserve and US Treasury have been asked to take further measures to stimulate the ailing credit markets.

Policymakers have been asked to consider additional liquidity operations and an emergency rate cut.

Some experts think the Fed should take the radical step of offering term loans on an unsecured basis to regulated banks at a fixed spread to cap the interbank rate, which just keeps rising.

Mounting expectations of another intervention to shore up the credit markets has highlighted the possible inadequacy of the $700bn bailout package.

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