INFLATION

World shares regained some ground Wednesday after investors were comforted by the Fed's pledge to keep interest rates near zero for two more years. Despite this, losses on Wall Street ran rampant.

Goldman Sachs said on Wednesday a third round of quantitative easing from the Federal Reserve is likely after the U.S. Federal Reserve promised to keep rates at extraordinarily low levels for at least two more years.

China's exports were surprisingly buoyant in July as shipments to top trade partner Europe jumped by the most in at least a year, allaying concerns that debt problems abroad may hold back the world's No. 2 economy.

The United States could launch a new round of quantitative monetary easing, China's top economic planner said on Wednesday in a statement addressing the country's future inflation risks.

Wall Street economists see odds of around one-in-three the United States will slip back into recession, heightening expectations the Federal Reserve will launch another round of unconventional credit easing.

"We view the FOMC statement as aggressively dovish, even beyond our expectations," said Dan Dorrow of Connecticut-based Faros Trading.

U.S. stocks soared as the Federal Reserve promised low interest rates until 2012 and stated that it expects inflation to remain low.

U.S. stocks surged after the market digested the Federal Open Market Committee statement, which is now judged as dovish.

The global central bank community is uniting to put a halt to the current bout of financial volatility.

The magic words, in Fedspeak, to signal further quantitative easing (QE) is something about the underlying inflation being below what the Fed judges to be appropriate with its dual mandate of maximum employment and price stability.

Now that Uncle Sam has dug itself into a $14 trillion hole, it?s the American taxpayer who should be warning Ben Bernanke and his government cronies about the irrationalities of their exuberant paper printing.

The United States faces one-in-four odds of slipping back into recession, and a weaker economic outlook is raising the likelihood the Federal Reserve will soon do more to boost growth, a Reuters poll shows.

Read Tuesday's full statement from the Fed.

U.S. stocks pared gains after the Federal Reserve released its August Federal Open Markets Committee statement at 2:15 ET.

Gold extended its gains on Tuesday after the Federal Reserve said it would keep interest rates low for at least another two years to help a U.S. economy that is growing considerably weaker than expected.

In response to a slowing economy, the U.S. Federal Reserve, despite some internal dissent, announced Tuesday that it plans to keep monetary policy stimulus in place, noting that it will keep short-term interests rates exceptionally low through at least mid-2013. The Fed will also continue to reinvest bond proceeds maturing in its portfolio.

China's industrial output grew at a slower pace in July while inflation unexpectedly quickened, putting the central bank in a bind as it tries to keep prices in check without dragging down an economy facing increasing threats from abroad.

China's annual inflation rose to a higher-than-expected 6.5 percent in July, putting the central bank in a bind as it tries to keep prices in check without dragging down an economy facing increasing threats from abroad.

The U.S. Federal Reserve will announce its monetary policy Tuesday following an unprecedented downgrade of the U.S.Government's credit rating by Standard & Poor's and the markets will likely look to Fed Chairman Ben Bernanke to provide appropriate comments on the state of the nation's banking system and its fiscal condition.

Britain and several euro zone countries are likely to have their credit ratings cut in coming months as debt problems worsen, and Western policymakers are bound to embark on more quantitative easing to get their economies moving, American investor Jim Rogers said on Monday.

More than 250,000 Israelis have staged protests in Tel Aviv and Jerusalem cities over the rising cost of living, reflecting the middle-class discontent over the country's inability to address the long-pending housing needs.