US Treasury Secretary Henry Paulson said today the financial market turbulence could continue for some time yet.
During a visit to Paris, Mr Paulson cautioned: "It will take a while to work through the turbulence in capital markets."
However he added: "We're doing so against a backdrop of a strong global economy."
Today is a crucial day for financial markets as they discover how far borrowers have succeeded in meeting deadlines for refinancing tens of billions of dollars in commercial paper - short-term debt used to fund longer term investments.
But even if this hurdle is overcome the crisis could roll on for months as US mortgage borrowers become due to refinance low early payments on their loans at higher interest rates.
Overnight sterling lending rates briefly hit levels not seen in over six years on Monday as the Northern Rock crisis sent banks scrambling for immediate access to cash. Rates jumped as high as 6.50 per cent, according to Reuters data, well above the Bank of England's 5.75 per cent benchmark rate.
Mr Paulson acknowledged that bad lending practices were at fault in the crisis triggered by defaults on US mortgage debt, but defended innovative lending practices.
"The whole world including the US has benefited from innovative financing techniques - innovations like securitisation and credit availability," he told a joint news conference with French Economy Minister Christine Lagarde.
Mr Lagarde wants quick introduction of new rules to prevent a repeat of the credit turmoil. But Mr Paulson said: "We want to make sure we don't rush to judgements."
Mr Paulson is also due to meet British finance minister Alistair Darling in London later today.
Mr Darling told the BBC earlier today the pair agreed on the need for more discipline in the financial system. Mr Paulson said that any differences between him and Darling were only a matter of "style".