By Kristina Cooke Fri Aug 22, 5:12 PM ET NEW YORK (Reuters) - What should be a holiday lull of a week looks set to be anything but, with Wall Street on high alert for the latest twists and turns in the credit crisis, more volatility in commodity prices and key developments in the race for the White House.Fallout from the credit crisis continues to plague markets, with investors increasingly believing in the likelihood of a federal bailout of home-funding giants Fannie Mae (FNM.N) and Freddie Mac (FRE.N). Some market watchers expect the Federal Reserve and U.S. Treasury Secretary Henry Paulson to take action as early as this weekend.
"Look for the Fed and Paulson to take steps on Fannie and Freddie -- the time is ripe. The market wants resolution here," said John Schloegel, vice president of investment strategies for Capital Cities Asset Management in Austin, Texas.
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