The Federal Reserve announced Tuesday a radical plan to buy massive amounts of short-term debt in a dramatic effort to break through a credit clog that is imperiling the economy.

Markets are hoping that the Fed will cut interest rates either at or before its next scheduled meeting on Oct. 28-29.

The Fed invoked Depression-era emergency powers to begin buying commercial paper -- short-term funding that many companies rely on to pay their workers and buy supplies.

The move comes against a backdrop of increasing concern that the global economy could be headed for a recession. .