FEDERAL RESERVE

Factory output in the central Atlantic region of the U.S. expanded in March for the fourth straight month, but at a more temperate pace than a month ago, the Federal Reserve Bank of Richmond reported Tuesday.

Stock index futures were flat on Monday as investors found little reason to keep pushing shares higher after a 1 percent rally in the previous session.

Futures on major US stock indices point to a flat opening on Tuesday ahead of reports on home prices and consumer confidence.

Stock index futures pointed to a higher open on Wall Street on Tuesday, with futures for the S&P 500 up 0.25 percent, Dow Jones futures up 0.29 percent and Nasdaq 100 futures up 0.36 percent at 0920 GMT.

Asian stock markets surged Tuesday, following gains in the Wall Street overnight as market-friendly comments by Federal Reserve Chairman Ben Bernanke boosted sentiment.

Asian stocks rebounded Tuesday and the dollar eased after Federal Reserve Chairman Ben Bernanke said ultra-loose monetary policy was still needed to reduce unemployment even though the U.S. economy has shown signs of improvement.

Stocks surged Monday after Federal Reserve Chairman Ben Bernanke suggested the U.S. central bank would continue its present monetary policies and keep interest rates low, offsetting soft readings on the domestic economy.

Gold prices rose 1 percent on Monday after comments from U.S. Federal Reserve Chairman Ben Bernanke that faster growth will be needed to boost employment supported expectations that further quantitative easing measures may be necessary.

The federal regulator of Fannie Mae and Freddie Mac is arguing that principal reductions for home loans would benefit the banks that hold secondary debt while weakening the mortgage giants' finances.

The Fed chairman said U.S. job market conditions remain weak despite three months of strong hiring and that the improved employment data seem to be out of sync with the overall pace of economic growth.

The U.S. economy needs to grow more quickly if it is to produce enough jobs to bring down the unemployment rate, Federal Reserve Chairman Ben Bernanke said on Monday.

The world's central banks should not have unfettered ability to purchase assets because that violates the traditional separation of monetary and fiscal policymaking and can allow governments to inflate away debts, a top Federal Reserve official said on Monday.

Futures on major U.S. stock indices point to a higher opening Monday ahead of pending home sales data and a speech by Federal Reserve Chairman Ben Bernanke.

The Federal Reserve is still working out how best to supervise large financial institutions whose failure could cause domino effects across the financial system, Federal Reserve Chairman Ben Bernanke said on Friday.

Yields on 10-year inflation-linked Treasury bonds fell into negative territory Thursday -- only the second time that has happened -- ona flight to quality in U.S. notes, a belief that inflation will begin rising and the seemingly heady effect of the Federal Reserve's Operation Twist.

This week - March 26 to 30 - will highlight Wednesday's durable goods report and a busy policy calendar, including the core of the Federal Open Market Committee: Chairman Ben Bernanke and New York Fed President William Dudley. Wall Street will be closely monitoring the Fed officials' speeches, hoping to find clues of their latest views on the economic, inflation and policy outlooks.

Analysts, economists, and market participants were concerned with three things this week, and three things only: inflation, inflation, and inflation.

The economic recovery is gaining momentum, though there are risks to the outlook including a weak job market and soft consumption, Atlanta Federal Reserve Bank President Dennis Lockhart said on Friday.

The Federal Reserve should be wary about over-committing to an ultra-easy monetary policy that has served the economy well in recent years but could be detrimental eventually, a top Fed official said on Friday.

The gap between the Federal Reserve's dovish core and its hawkish wing was on display on Thursday as a top Fed official said the economy is in better shape even as Fed Chairman Ben Bernanke focused on a source of weakness.

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