Ben Bernanke, chairman of the Federal Reserve, described signs of only modest improvement in the credit markets, warning that "overall, credit conditions are still far from normal, with risk spreads remaining very elevated."

Alan Greenspan, the former Federal Reserve chairman, told a House panel that he "made a mistake" in trusting that free markets could regulate themselves.

The chairman of the Federal Reserve, Ben Bernanke, said Monday that he supported a second round of spending measures to help stimulate the U.S. economy.

The world's major central banks, including the Federal Reserve, moved together to stanch the financial crisis.

The world's major central banks — including the Federal Reserve, the Bank of England and the European Central Bank — moved together to stanch the financial crisis.

The Federal Reserve's radical new plan is an effort to stimulate the credit markets, which have all but dried up.

The Federal Reserve will buy vast amounts of commercial paper, the unsecured short-term debt that companies rely on to finance their day-to-day activities

As stocks spiraled lower around the world, the Federal Reserve considered a radical plan to jump-start the ailing financial system.

The government, led by the Federal Reserve and Treasury Department, has been involved in the talks as well.

The EU says its financial system is robust and there is no need to come up with a US-style bailout as Federal Reserve Chairman Bernanke offered his bleakest outlook since a credit crisis set in last year.