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I'm -- killed the Federal Reserve and other banks from around the world today slashed interest rates.
It is the latest move to try to stem the global financial turmoil of the International Monetary Fund predicts will become.
A major downturn and while the US Treasury Secretary applauded the coordinated effort he laid out some hard reality is well.
Chief white White House correspondent Brett Baier reports.
Treasury Secretary Henry Paulson painted a stark picture of the global financial markets saying they are still severely strained.
He asked for patience as his department starts at the largest financial rescue in US history.
We are moving as quickly as possible to organize and implement the most effective process possible.
We expect it will be several weeks before our first purchase getting get right is as important as getting it done quickly.
In the next few weeks Paulson warned some American banks will fail.
Because the 700 billion dollar package passed by congress does not exist he said to save every financial institution.
There for a second prong strategy.
Is designed to mitigate financial market disruption when the bank fails Paulson said uncertainty and a lack of confidence have clogged the basic financial plumbing in the US and the pipes through which money normally -- worldwide are equally blocked progress we see evidence that the freezing of credit markets having a tangible impact and every -- lives.
The citizens all around the world.
Paulson insisted that requires dramatic steps and strong international partnerships.
To that ended a coordinated move with other major banks around the world.
The Federal Reserve cut its key lending rate by half a percentage point today.
Dropping the US rate to one point 5%.
The half point drop was matched by the bank of England and the European Central Bank.
The central banks of China Canada Sweden and Switzerland.
Also cut rates.
The Fed's move will reduce borrowing costs between banks and will cut costs for bank customers whose home equity or other floating rate loans are tied to the prime interest rate.
White House officials said over the past two days President Bush has had extensive phone conversations.
With the Italian Prime Minister Silvio Berlusconi.
British Prime Minister Gordon Brown French president Nicholas Sarkozy.
German chancellor Angela Merkel and Brazilian president Lula da Silva.
About the financial crisis and what each country is doing.
After an open down day on Wall Street the Dow finished down almost 200 points.
That makes a drop of more than 1000.
This week so fall.
At a campaign event in Colorado House Speaker Nancy Pelosi praised the Fed rate cut but said it's not enough.
What we need.
What must hand.
What we cannot wait for isn't as stimulus package.
The speaker now wants congress to pass a second 150 billion dollar stimulus package almost exactly the size of the first stimulus package passed in February.
And ninety billion more than a second democratic plan the president threatened to veto when they have to go back in the session.
For the next comments to get some of -- conference.
It's hearsay President Bush remains skeptical that the second stimulus package put forward by the Democrats would actually stimulate the economy.
That said they said he is open to talking about possibilities meantime secretary Paulson will be here in Washington Friday with G seven finance ministers today he said he welcomes international coordination but doesn't think different countries with different -- economies should really have the same solutions to this crisis.
-- thank you -- at about mention.
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