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FXNEWS-Fed's CP measures will boost confidence

Tue, Oct 7 2008, 14:03 GMT
http://www.afxnews.com

- "You have got markets which are basically frozen and no private buyer is buying so (the Fed) are doing what they should be doing, which is stepping in as market maker of last resort," says David Watt, senior currency strategist at RBC Capital Markets. "To some extent it does help to restore that confidence and that will certainly help to boost the market. This at least is one of the key elements that might get us through the worst of the crisis ... to the extent that was a systemic risk that was unresolved, it is now a systemic risk that has some resolution." Reuters Messaging: lucia.mutikani.reuters.com@reuters.net

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