US Faces Severe Recession

former National Bureau of Economic Research President Martin Feldstein:

I'm afraid, because of a lack of liquidity in the credit markets," he said.

The Fed's new credit facility, announced on Tuesday, "can help in a rather small way ... but the underlying risks will remain with the institutions that borrow from the Fed, and this does nothing to change their capital," Feldstein noted.

Feldstein noted "powerful forces (that) will continue to drive inflation higher."

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