Federal Reserve officials on Thursday downplayed the consequences of the falling U.S. dollar, underscoring that deflation is still a threat, especially with commercial real estate prices falling.
A senior Federal Reserve official said on Wednesday the U.S. central bank may start tightening financial conditions by adjusting its extensive asset purchase programs rather than raising interest rates.
The dollar weakened broadly on Wednesday as dealers took profit on the currency's biggest rise in three weeks the previous session and pushed the euro back to the middle of its range of the last fortnight.
The dollar eased back on Wednesday from its biggest rise in three weeks the previous session, as traders awaited U.S. inflation data and minutes from the Bank of England's November meeting for further direction.
Gold hit another all-time high on Wednesday on worries about future inflation and economic uncertainties, while Asian stocks rebounded as the generally bearish dollar kept riskier assets in demand.
Top Federal Reserve officials on Tuesday struck differing notes on the likely pace of the U.S. economic recovery and one warned that pockets of weakness must not deter the central bank from withdrawing its extraordinary economic support.
U.S. industrial output barely rose last month and wholesale inflation was tame, suggesting the economy's recovery from a severe recession was losing some steam as government stimulus faded.
A senior Federal Reserve official said on Tuesday that the U.S. central bank must remain vigilant about keeping inflation in check and not let patchy economic weakness deter it from beginning to withdraw extraordinary levels of support.
U.S. stocks fell on Tuesday after discount retailer Target gave a cautious holiday season outlook, but positive brokerage comments on tech bellwether Microsoft helped limit losses.
U.S. producer prices rose more slowly than forecast in October and unexpectedly fell excluding food and energy, a government report showed on Tuesday, pointing to tame inflation pressures.
Bank-to-bank dollar funding costs fell on Tuesday with the benchmark rate hitting yet another record low as central banks signalled they were in no hurry to unwind extraordinary stimulus measures
Britain's top share index was 0.5 percent lower in mid-session trade on Tuesday as investors paused for breath after a four-day winning streak, with falls in banks and miners offsetting gains in some defensive issues.
The dollar rebounded on Tuesday from Monday's 15-month lows after Federal Reserve Chairman Ben Bernanke made rare comments about the dollar, encouraging traders to trim longer-term bets against the currency.
World stocks slipped on Tuesday from the previous day's 2009 high and oil and gold fell as investors locked in gains from a strong rally, while the dollar edged higher from its 15-month lows.
Asian shares, gold and oil eased on Tuesday as investors locked in recent gains while keeping an eye on the ailing dollar, which was pinned near 15-month lows on expectations that U.S. interest rates will stay extremely low for some time.
Asian stocks surrendered early gains on Tuesday as investors took profits from recent gains, while the dollar was pinned near 15-month lows after Federal Reserve Chairman Ben Bernanke repeated the central bank was likely to keep interest rates at very low levels for some time.
Asian stocks surrendered early gains on Tuesday as investors took profits from recent gains, while the dollar was pinned near 15-month lows after Federal Reserve Chairman Ben Bernanke repeated the central bank was likely to keep interest rates at very low levels for some time.
Asian stocks rose to more than 15-month highs on Tuesday after Federal Reserve Chairman Ben Bernanke repeated the central bank was likely to keep interest rates at very low levels for some time, keeping the dollar pinned near 15-month lows and gold close to record highs.
Federal Reserve Chairman Ben Bernanke, in a rare comment on the U.S. dollar's value, on Monday acknowledged the currency's slump was causing some prices to rise, but said other factors restraining inflation were winning the day.
The Federal Reserve's low interest rate policy is meant to encourage investors to move into riskier assets in order to promote economic recovery, and there are no signs currently the policy is resulting in the build-up of a U.S. asset bubble, the central bank's number-two official said on Monday.
U.S. stocks rose broadly on Monday, sending indexes to fresh 13-month closing highs, after Federal Reserve Chairman Ben Bernanke reinforced expectations that interest rates would stay low to spur growth.
The U.S. central bank is monitoring the declining value of the dollar closely as part of its commitment to both jobs growth and price stability, Federal Reserve Chairman Ben Bernanke said on Monday.
