If the stock market is the thermometer of the economy, then the credit market is the life blood. And lately there are signs that the U.S. economy's circulatory system is improving.

Sales of commercial paper have increased considerably since the U.S. Federal Reserve launched its Commercial Paper Funding Facility (CPFF) to jump-start the corporate, short-term lending market, Bloomberg News reported Wednesday. Commercial paper sales totaled $67.1 billion on Monday, October 27, the first day of CPFF operation, and $41.6 billion Tuesday, compared with last week's daily average of $6.7 billion.

CPFF is working, so far

Economist David H. Wang told BloggingStocks Wednesday he likes what he's seeing regarding commercial paper flows this week.

"This is very encouraging, maybe our most important credit data point since the financial crisis started. The Fed's commercial paper facility is having its intended effect. If the trend continues, it points to a near-normalization of this critical market. Interest rates will be higher, but the fact that money is flowing is another positive step."

Short-term rates, including rates for commercial paper, are key sources of cash for corporations and other large institutions, which use the cash to pay suppliers, make payroll, roll over debt, etc.