The housing sector remains a drag on economic growth is a major risk to global markets. The credit crunch caused by mortgage rates lower and tighter credit standards has increased the dangers of economic health, affecting such borrowers. Borrowers who are made to pray for the lower interest rates. The Fed lowered the key rate in four years, now at 5.25%.

There are plenty of rumors about the Federal Reserve reduce the main rate at its next meeting deadlines, to be held on 18 September, the collection will focus on housing markets, which is in deep crisis. Some economists predict the Fed will be forced lower interest rates this year to calm the housing market. If the Fed does not choose to cut rates interest, the conditions of the entire global economy could deteriorate further and this would make the overall costs of the investment market and collapse.

The Federal Reserve is not responsible to protect lenders and investors from the consequences of their financial decisions. But developments in financial markets can stabilize the global market downturn. The FOMC noted that the deteriorating financial markets and the tightening of credit since August 7 has increased. And if this continues, the risk would have profound consequences or prolonged weakness of the current housing markets than anticipated.

Lyle Gramley, a former official Fed now an economic adviser at Stanford Washington Research Group, said "very likely" that the Fed cut its federal funds rate. This reduction would a quarter of a percentage point to 5%. He also predicted there would be a further reduction of a quarter point each in October and the Fed meeting in December.

Bernanke, the Federal Reserve chairman, a highly anticipated speech on Friday, told the conference the Fed would "act as needed" to protect the health of the economy adverse effects of the credit crisis.

Book Government hopes to promote the overall goals to help stabilize financial market conditions and ensure financial markets to function consistently. In response, after the Federal Open Market Committee (FOMC) meeting on August 7, the Fed provided reserves to address unusual strains in money markets.

Therefore, the Federal Reserve Board announced a reduction in the discount rate of 50 points basic and practical adjustments to the usual supply, window Reserve Banks to facilitate the provision of term financing for as long as 30 days, renewable by the borrower. The Fed also reduced the fee charged for lending Treasury securities. The purpose of these operations is to assure depositories of the availability of the source money to save the market.

To save the global market Federal Reserve will continue to monitor the situation and act as necessary to limit adverse effects on the overall economy, which is likely to pass the disruption of financial markets.