Economists have suggested that the defeat of the government's financial rescue package could prompt the Federal Reserve to cut interest rates once again.

According to USA Today, experts believe the news of the bailout delay could cause consumer confidence to plummet and business to take a nose dive.

The Fed may bring lending rates down in a bid to boost the economy, which may be good news for those facing debt.

But economists are in doubt as to whether this would have the desired impact.

Donald Straszheim, vice-chairman of Roth Capital Partners, said a rate cut would be "another signal that the Fed sees the danger here and is pushing wherever they can".

However, he added: "I don't believe it would have much effect."

Meanwhile, George Bush has warned that the US economy has reached a critical point and has expressed his determination to get his rescue package through Congress.

He said there will be painful consequences if the deal is not passed.

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