Bush Remarks on the Global Economy

First, key markets are not functioning because there is a lack of liquidity, the grease necessary to keep the gears of our financial system turning.

BUSH: So the Federal Reserve has injected hundreds of billions of dollars into the system.

The Fed has joined with central banks around the world to coordinate a cut in interest rates. This rate cut will allow banks to borrow more affordably, and it should help free up additional credit necessary to create jobs and finance college educations and help America's families meet their daily needs.

The Fed has also announced a new program to provide support for the commercial paper market, which is freezing up. As the new program kicks in over the next week or so, it will help revive a key source of short-term financing for American businesses and financial institutions.

Second, some Americans are concerned about whether their money is safe. So the Federal Deposit Insurance Corporation and the National Credit Union Administration have significantly expanded the amount of money insured in savings and checking accounts and certificates of deposit. That means that if you have up to $250,000 in one of these assured accounts, every penny of that money is safe.

The Treasury Department has also acted to restore confidence in a key element of America's financial system by offering government insurance for money market mutual funds.