FEDERAL RESERVE

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.

Ron Paul has the fewest votes of any of the current Republican presidential primary candidates, but his campaign and super PAC, or political action committee, spending levels are on par with most of his GOP rivals.

American International Group said on Thursday it has repaid the Treasury its remaining $1.5 billion preferred equity investment, but the insurer still owes the government and Federal Reserve $45 billion for the bailout it received during the financial crisis.

The economy is in much better shape and does not need further help from the central bank, a top Federal Reserve official known for his hawkish policy views said on Thursday.

Interest rates on the 30-year, fixed-rate mortgage rose above 4 percent for the first time since October 2011, following increases in bond yields, Freddie Mac reported.

Former Federal Reserve Chairman Paul Volcker backed a controversial proposal to impose term-limits for audit firms on Wednesday, saying it would serve as a powerful incentive to maintain professional discipline.

Gold hit its lowest level since mid-January on Thursday, influenced by dollar strength, with the market having unwound all of the premium built up on expectations for further U.S. quantitative easing.

Asia shares continued to fall amid lingering worries about China growth. In Japan, shares declined for the first time in six sessions.

Gold fell on Tuesday, hurt by strength in the dollar which profited from the growing view in the market that the U.S. economy is on a firmer footing, ending a three-day rally in the bullion price.

The Federal Reserve plans to fine eight more bank holding companies for improper home mortgage foreclosures, the latest fallout from the so-called robo-signing scandal in which banks filed foreclosure documents without verifying their accuracy.

In Sweden, monetary transactions made with physical cash are down to three percent of the national economy... and the rest of the world may be closer to cashless than you think.

The conclusion is that the equity market is cheap relative to earnings. Hence, the market is priced to absorb a potential softening in earnings rather than being priced to perfection.

The Federal Reserve has not yet decided whether to embark on a third round of quantitative easing, or QE3, though it remains an option, an influential Fed official said on Monday.

The U.S. Federal Reserve has not yet decided whether to embark on a third round of quantitative easing, or QE3, though it remains an option, an influential Fed official said on Monday.

The fall in gold prices has prompted one or more central banks to buy as much as four tonnes of bullion in recent weeks, according to an industry source and a Financial Times report on Friday.