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It may prevent a recession from turning into a rout.
But will the Fed's action prevent a recession?
Americans hope that Alan Greenspan, the Fed's chairman, is doing enough to prevent a recession.
It won't prevent a recession; but without it, the recession is guaranteed to be far worse.
He added that Germany's economic recovery appeared strong enough to prevent a recession.
Whether the stimulus package will prevent a recession is anyone's guess.
Similar(15)
On Monday, the South Korean government unveiled a 14 trillion won ($10.8 billion) stimulus plan aimed at preventing a recession.
"How are these loopholes more important than preventing a recession caused not by the ups and downs of the economic cycle or by the reckless behavior of financial speculators, but by sequestration?" Senate Democratic leaders also dropped plans to include provisions ending tax breaks for oil and gas companies.
"We have to do something to prevent a deeper recession," Mr. Frank said.
To prevent a steep recession becoming a depression, governments must step in to forestall financial collapse and counter the slump in private demand.
Neither Bernanke nor Mervyn King wanted to be known as the central banker who failed to prevent a deep recession becoming a second Great Depression.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com