Federal Reserve Tries To Get Credit Moving Again

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The government announced Tuesday that it plans to buy huge amounts of short-term debt from companies. The Fed will buy "commercial paper," a short-term financing mechanism that many companies use to finance their day-to-day operations, like meeting payroll or purchasing supplies. NPR's Adam Davidson tells Steve Inskeep why the Fed thought it needed to step in again.

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Adam Davidson is a contributor to Planet Money, a co-production of NPR and This American Life. He also writes the weekly "It's the Economy" column for the New York Times Magazine.
Steve Inskeep is a host of NPR's Morning Edition, as well as NPR's morning news podcast Up First.
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