Gothamist
A non-profit newsroom, powered by WNYC.
Gothamist
Listen Live
News
Federal Reserve Tries to Ease Credit Markets
By
Jen Chung
Published Oct 7, 2008
Modified Oct 7, 2008
Share
FacebookTwitterRedditEmail
Never miss a story
Email address
By submitting your information, you're agreeing to receive communications from New York Public Radio in accordance with our Terms .
By
Jen Chung
Published Oct 7, 2008
Modified Oct 7, 2008
Share
FacebookTwitterRedditEmail
We rely on your support to make local news available to all
Make your contribution now and help Gothamist thrive in 2026. Donate today
Gothamist is funded by sponsors and member donations
Photograph of the NASDAQ building--with a news ticker reflected on a window--yesterday by Mary Altaffer/AP
After global stock markets fell--and the U.S.'s Dow Jones Industrial Average fell below 10,000 points for the first time since 2004-- the Federal Reserve announced it would create a new facility to buy the short-term debt (aka commercial paper) various companies hold. The "Commercial Paper Funding Facility" will "purchase three-month unsecured and asset-backed commercial paper" and "this facility should encourage investors to once again engage in term lending in the commercial paper market"--which is worth $1.6 trillion. Of course, it's unclear how much the Fed will ultimately buy.
The Dow opened up, but is, right now, basically unchanged (up 8 points; Nasdaq down 0.65%, S&P 500 down 0.08%). Still, this was good news to investors. Rosenblatt Securities' Gordon Charlop told CNBC, "Terrific news. Frees up money markets. If you just look around at some of the valuations ... book value versus earnings, there seems like there's some opportunities here." The NY Times points out this "move will put more taxpayer dollars at risk," but "it underscore the growing sense of urgency felt by policy makers in a climate where lending has virtually dried up."
Today, Fed Chairman Ben Bernanke will discuss the economic outlook at 1:15 p.m. (EST). And while the $700 billion bailout package President Bush signed into law may help companies in the U.S., many think economics around the world will fall into recession. Also: USA Today on the growing crisis of the economy.
Tagged
business
commercial paper
credit market
economy
federal reserve
wall street
Jen Chung
Jen Chung is a former WNYC and Gothamist editor.
Read more
Gothamist is funded by sponsors and member donations
Gothamist is funded by sponsors and member donations
MORE news
Person shot during encounter with federal agents in NYC's Marble Hill, NYPD says
Police say the person is conscious and receiving treatment at a hospital. The NYPD says its officers were not involved.
By
Giulia Heyward
and
Arya Sundaram
Published Oct 8, 2026 at 5:33 p.m. ET
Modified Oct 8, 2026 at 6:15 p.m. ET
Lazy drivers in Prospect Heights lose chance for 1 less day of alternate-side parking
A pilot found that drivers actually complied with alternate-side less when fewer days were in effect.
By
Liam Quigley
News
Lazy drivers in Prospect Heights lose chance for 1 less day of alternate-side parking
A pilot found that drivers actually complied with alternate-side less when fewer days were in effect.
By
Liam Quigley
Jersey City mayor shakes up staff amid $255M budget gap
By
Michael Sol Warren
Bronx residents will be exempt from new Medicaid work rule, state officials say
By
Caroline Lewis
MTA chair accuses Andy Byford, who's leading Penn Station rebuild, of going 'full MAGA'
By
Stephen Nessen
and
Carol Chen
Never miss a story
Catch up on the most important headlines with a roundup of essential NYC stories, delivered to your inbox daily.
Sign upEmail address
By submitting your information, you're agreeing to receive communications from New York Public Radio in accordance with our Terms .