The following was written by Peter Morici, professor at the University of Maryland School of Business and former Chief Economist at the U.S. International Trade Commission.

What’s Next for the Fed:  The People’s National Bank?

The Federal Reserve has cut the federal funds rate and its short-term lending rate to banks to near zero, but those moves have done little to unlock credit markets. Conventional mortgage money and business loans remain too scarce, as regional banks, which are the arteries and capillaries of our credit system, remain short of loanable funds.