Money markets seized up once more yesterday amid deepening uncertainty about whether Congress will approve the Bush administration's $700bn financial rescue plan and whether revised proposals would succeed in restoring confidence.
The rates that banks charge each other soared as investors sought the safety of short-dated US government debt – and US officials struggled to address mounting objections to the rescue plan in Congress and beyond.
Ben Bernanke, Federal Reserve chairman, argued against suggestions that the scheme would pay too much for distressed assets, and the head of the Congressional Budget Office warned lawmakers of possible “chaos” if Congress does nothing.
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