Frantic Fed Buying More Debt

Summary


WASHINGTON -- The Federal Reserve reached deeper into its bag of tricks Tuesday to slow the financial crisis. Wall Street was not amused.

Frantically trying to thaw frozen lending and get the economy moving again, the Fed for the first time said it would lend directly to businesses that aren't banks and hinted that it could slash interest rates soon.

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Frantic Fed Buying More Debt

Stocks continued their free fall anyway. The Dow Jones industrial average plunged more than 500 points, to its lowest level in more than five years, and the Standard & Poor's 500 fell below 1,000 for the first time since 2003.

Investors remain wo...

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