"I think the Fed will move to ease rates very soon, probably within the next month."

"Then in January he said he'd ease rates enough to let the economy recover."

Additional credit could ease interest rates but would risk making inflation worse.

But many analysts expect the Fed to ease rates again later this year.

"There is a continued belief the Fed will ease interest rates again," he added.

He noted that all worked out well when the Fed eased rates after the 1987 crash.

The Bank of Canada is expected to ease interest rates next month.

But sooner or later the Fed will have to really ease rates.

Over the past year the central bank has been easing interest rates to avoid too sharp a slowdown in the economy.

But earlier this year, after evidence emerged that the economy was slowing, the central bank began easing interest rates slightly.