U.S. lenders would have to determine that a borrower can afford a mortgage before making the loan under a Federal Reserve staff proposal on new regulations released on Tuesday.
The Federal Open Market Committee decided today to lower its target for the federal funds rate 25 basis points to 4-1/4 percent.
The U.S. Federal Reserve is widely expected to cut interest rates on Tuesday by at least a quarter-percentage point to fortify the economy against a credit crunch and housing slump that some economists fear could bring a recession. Economic signs show the economy has not gone into a precipitous slide. Deteriorating financial markets, however, led the Fed to say it saw risks rising.
Another U.S. Federal Reserve interest rate cut this week is a foregone conclusion as far as financial markets are concerned, but a heaping helping of global inflation data may leave a sour aftertaste. foregone conclusion as far as financial markets are concerned, but a heaping helping of global inflation data may leave a sour aftertaste. The Fed is widely expected to follow the central banks of Canada and England with a quarter-percentage-point reduction in the benchmark federal funds rate on Tuesday.
Copper rose on Thursday on investor speculation that the U.S. Federal Reserve will decrease borrowing costs next week to give a boost to the economy and in turn, raise demand for the metal.
Wall Street's rebound from its first full-fledged correction in more than four years could continue this week if investors believe a plan to keep millions of Americans from losing their homes can work.
Oil bounced back above $89 a barrel on Monday as traders bet last week's nearly $10 selloff was overdone, and might turn the tides against an expected increase in OPEC output when the cartel meets later this week.
The Dow and S&P 500 rose on Friday, capping a dismal November with a four-day rally, as financial stocks rallied on optimism over a proposed rescue for struggling homeowners and on heightened expectations for more interest-rate cuts.
Consumer spending inched up by an unexpectedly small 0.2 percent last month and construction spending tumbled, according to reports on Friday that heightened concerns on the health of the economy.
US Stocks rose as markets opened on Friday, heading towards their biggest weekly gain since March, following comments made by Federal Reserve Chairman Ben Bernanke late yesterday that boosted expectations for another interest-rate cut in the near future.
Stocks rose on Friday on a report the U.S. Treasury will soon unveil a plan to help stem the subprime mortgage crisis and on comments by Fed chief Ben Bernanke that added to expectations of an interest-rate cut.
European stocks opened at a two-week high on Friday while the yen slipped, as expectations grew of U.S. interest rate cuts that could stem the slowdown in the world's largest economy.
The yen fell broadly on Friday and high-yielders gained after comments by Federal Reserve Chairman Ben Bernanke cemented expectations of easier monetary policy, which may help the U.S. economy to avoid a recession.
Federal Reserve Chairman Ben Bernanke said on Thursday a resurgence in financial strains in recent weeks had dimmed the outlook for the U.S. economy, signaling an openness to lowering interest rates again. He said the Fed will have to remain exceptionally alert and flexible.
The dollar rose against the euro on Thursday after Goldman Sachs analysts said the dollar’s drop may be at an end and a new report indicated weaker consumer confidence in France, one of Europe’s key economies.
U.S. stocks were lower on Thursday, after fluctuating during the day, with a rise in energy sector stocks but disappointment in quarterly earnings at retailers.
U.S. officials' effort to talk up the dollar comes amid lower expectations in financial markets
U.S. industrial production -- which includes output at factories, mines and utilities -- plunged in October by the largest amount in nine months, revealing another troubling sign for an economy already dipping under the continued troubles in housing and auto-related industries.
Unsold goods are piling up in warehouses as the housing meltdown and soaring oil prices strain consumers, raising fears that already glum fourth-quarter growth prospects may tip toward recession. Federal Reserve Chairman Ben Bernanke warned last week that economic growth would slow from the third quarter's surprisingly strong 3.9 percent annual rate. But recent data on inventories suggests the slowdown may be even more severe than the central bank has anticipated.
Gold gained on Friday, with investors keen to drive the metal to a record high of $850 an ounce as the dollar tumbled to an all-time low and oil rallied.
Oil rose above $96 on Friday, supported by a weak dollar, but gains were limited by concerns over the U.S. economy after another bank warned of large credit losses.
Japanese stocks ended at a nearly three-month closing low on Friday after a wave of late selling on a report that Mizuho Securities, the unlisted brokerage arm of Mizuho Financial Group, may post a subprime-related loss of over 100 billion yen and delay a merger.
