World shares bounced back strongly from recent losses on Wednesday as investors took comfort from the Federal Reserve's pledge to keep interest rates near zero for two more years.
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.
The rupee snapped a 6-day weakening streak on Wednesday as global equities rebounded and the dollar fell after the U.S. Federal Reserve promised to keep rates low for at least two years.
Extreme market volatility has sparked comparisons to the 2008 global credit crisis, but Washington's ability to help out weak financial firms is dramatically different.
U.S. stocks clawed back most of Monday's losses as a U.S. Federal Reserve promise of at least two more years of near-zero interest rates overshadowed its warning about slowing economic growth. The Fed's statement gave markets a glimmer of hope, with stocks' gains accelerating into Tuesday's close.
The Federal Reserve on Tuesday took the unprecedented step of promising to keep interest rates near zero for at least two more years and said it would consider further steps to help growth, sparking a rebound in stocks.
U.S. stocks rebounded sharply on Tuesday after a major sell-off, but markets remained vulnerable to selling if the Federal Reserve fails to ease fears of a double-dip recession.
U.S. stocks soared in turbulent trading Tuesday, coming off the worst three day selloff since the financial crisis, as investors took in stride the Federal Reserve's pledge to keep interest rates near zero at least through mid-2013.
"We view the FOMC statement as aggressively dovish, even beyond our expectations," said Dan Dorrow of Connecticut-based Faros Trading.
The Federal Reserve on Tuesday took the unprecedented step of promising to keep interest rates near zero for at least two more years, adding it was considering further action, sparking a rebound in stocks.
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.
U.S. Sen. John McCain, R-Ari., isn't backing down from remarks he made earlier about the Tea Party during the U.S. debt deal debate.
Tech stocks gained nearly 5 percent in Tuesday's market rally
The Dow Jones Industrial Average and Bank of America both bounced back from disastrous Mondays to steady gains during Tuesday trading.
The global central bank community is uniting to put a halt to the current bout of financial volatility.
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.
The Dow advanced slightly Tuesday after the Fed pledged to keep its benchmark interest rate at a record low through at least mid-2013.
Federal Reserve policymakers began meeting on Tuesday under growing pressure to take some type of action to stem a financial market meltdown linked to fears of a new U.S. recession.
The U.S. stock market soared ahead of the Federal Open Market Committee (FOMC) statement after a brutal session on Monday.
