NEW YORK (AP) -- The credit markets saw some slight easing Tuesday after the Federal Reserve said it would buy commercial paper, the unsecured short-term debt that companies sell for their short-term cash needs.In the eyes of many market participants, the move to grease the commercial paper market could do more to get people lending again than the $700 billion bailout plan passed by Congress.
"It's the most effective move the Fed has done to date," said Axel Merk, portfolio manager at Merk Funds. "When that market seizes up, the economy stops working."
Still, the let-up in the credit markets -- where companies go to borrow and lend -- was tentative. Some investors were skeptical that the central bank's decision still might take a while to restore confidence among potential lenders.
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