According to the US Treasury Secretary Henry Paulson, the package has been announced for the availability of more lending to consumers.

The new package will be used to buy mortgage-backed securities and thaw out the freezing consumer credit market.

US President-elect Barack Obama says: “Budget reform is essential because of the current economic crisis. And it’s not an option, but a necessity.”

Meanwhile Mr. Paulson said, “It would take some time to get out of these difficulties in US market and economy and we will have to face new challenges.”

“We are determined to handle these situations efficiently and use all the available tools to strengthen our financial institutions and stabilize financial markets.”

The new announcement of injecting another $800bn came after Commerce Department figures which revealed that between July and September, US economic output shrank faster than expected and it was “troubling” as White House described it.

During the third-quarter, US GDP dropped at an annual rate of 0.5 percent, while it was estimated as 0.3% a month back.

According to a White House spokeswoman, “This bold action is being taken for this very reason.”