Japan slipped to the brink of deflation and inflation in Europe slid closer to zero, underlining a threat to the world economy before next week's G20 summit which is supposed to produce a cure for the crisis.
Japan slipped to the brink of deflation and inflation in Europe slid closer to zero, underlining a threat to the world economy before next week's G20 summit which is supposed to produce a cure for the crisis.
Top Federal Reserve officials hinted on Thursday that the long U.S. economic downturn could be in its final stages, although the early stages of recovery will likely be far from stellar.
The Federal Reserve failed to spot the global financial crisis ahead of time, but its aggressive rescue efforts should soon stem the decline in growth, Dallas Fed President Richard Fisher said on Thursday.
Federal Reserve buying of longer-dated Treasury securities ought to lower interest rates, but this potentially inflationary stimulus may prove tough to unwind, a top Fed policy-maker said on Thursday.
The world has more than enough reserves to help restore financial stability, British Prime Minister Gordon Brown said on Wednesday, but a way needs to be found of unlocking the funds.
The U.S. recession will drag on for some months before a recovery starts in late 2009 or early 2010, but the future is still clouded by risks, top Federal Reserve officials said on Wednesday.
The Federal Reserve must continue to boldly use all available tools to fight a deepening recession, a top Federal Reserve policy-maker said on Wednesday, adding that expectations for the economy to begin to grow by the end of 2009 are far from assured.
U.S. Federal Reserve policy-makers fanned out across Europe on Tuesday to express confidence that current policies can restore economic growth over time.
Federal Reserve Chairman Ben Bernanke on Friday said the Fed's buying of longer-dated U.S. Treasuries would taper off when the economy no longer needed help, allowing the Fed to cease its emergency support.
Stocks rose on Friday as a further rebound in shares of natural resources companies offset bleak corporate outlooks and fears of inflation.
By Ellis Mnyandu
By Ellis Mnyandu
The U.S. dollar edged higher on Friday but still headed for its biggest weekly fall in 24 years on investor fears that it will lose its status as the world's reserve currency, while oil prices ceded ground after a recent rally.
By Rafael Nam
By Fayen Wong
The Federal Reserve on Wednesday flashed back almost 50 years to a campaign code-named Operation Twist, as it announced the purchase of longer-dated Treasury securities to help end a deepening U.S. recession.
The U.S. dollar nursed big losses on Thursday and Asian government bonds rallied after the Federal Reserve vowed to buy long-dated U.S. Treasuries, reviving a practice not used in decades to revive an ailing economy.
U.S. inflation rose in February on higher gasoline and apparel prices, government data showed on Wednesday, indicating some pricing power in the recession-hit economy and easing fears of deflation for now.
The U.S. Federal Reserve on Wednesday, in a surprise move, said it will buy up to $300 billion worth of longer-term U.S. government debt over the next six months and expand purchases of mortgage-related debt to help ease credit market conditions.
The U.S. Federal Reserve on Wednesday, in a surprise move, said it will buy up to $300 billion worth of longer-term U.S. government debt over the next six months and expand purchases of mortgage-related debt to help ease credit market conditions.
U.S. inflation rose in February on higher gasoline and apparel prices, government data showed on Wednesday, pointing to some pricing power in the recession-hit economy and easing fears of deflation for now.
