Fed's New Consumer Rescue Plan Weakens Dollar

By James A. Hyerczyk
25 November 2008 @ 07:23 pm EDT

On Tuesday the U.S. Federal Reserve issued a new $800 billion plan to provide help for homeowners, consumers and small businesses. This move is an attempt to unfreeze the consumer credit markets which have been locked up since the latest financial crisis began in mid-September. Fed officials are hoping that this relief will bring confidence to an economy that has been destroyed by home foreclosures and the lack of consumer spending.

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