IMF Official Examines Cut

John Lipsky,First Deputy Director of the International Monetary Fund,has been taking stock of the Federal Reserve's recent interest rate cut to 0-0.25%.By itself,Mr.Lipsky said,the Fed cut will not do everything necessary to help this economy.In order to restore credit growth,there are three elements that are always necessary:1.liquidity;2.recapitalization;and 3.transparency.Unfortunately,it looks like there's worse ahead of us in the next few quarters.There is a need for aggressive action to put money back into the financial system,but that alone is not enough to restore functionality to it,Mr.Lipsky explained.All the advanced economies are in recession now.They need to take the action necessary to lead the world out of the recession.The U.S. Treasury needs to recapitalize and cleanse the financial system,the IMF official advised.