The world's major central banks, including the US Federal Reserve and the European Central Bank, decided Wednesday to work together to lower borrowing costs for foreign banks, in a bid to temper the eurozone's deepening debt crisis.
Markets in Asia saw a second day of losses after a mix of disappointing economic data and a slump in stocks Thursday in the US and Europe. The sell-off in Asia fuelled growing fears of another recession.
European stocks plunged to a new low Thursday, with leading markets taking a hit of 4 to 5 percent as weak data from China and Europe worried investors. A new US stimulus plan unveiled by the Fed failed to stem the losses.
Stocks were down Wednesday as the US Federal Reserve announced a radical plan to shift $400 billion in short-term bonds to longer-term Treasury bonds, in a bid to lower interest rates and jumpstart the country's flagging economy.
Big Ben has spoken... Federal Reserve Chairman Ben Bernanke says the US economy is still bleeding after the financial crisis. He spoke at Jackson Hole in Wyoming during a forum that brings together the world's top central bankers. Markets were looking for clues Bernanke's willing to take action to prop up the American economy. To help us decipher what was said, Markus Karlsson talks to Valérie Plagnol, Chief Economist France at Crédit Suisse Private Banking.
Global markets had been waiting with baited breath for the speech Friday by Fed Chairman Ben Bernanke. However, markets moved lower after the speech as the Fed chief failed to offer any new measures to boost the US’s floundering economy.
The US market closed up on Tuesday, ending a volatile session in which it reversed direction several times on the back of a statement by the Federal Reserve pledging two more years of near-zero interest rates.
Federal Reserve chairman Ben Bernake urged Congress to vote in favour of raising the US debt ceiling Tuesday, echoing Barrack Obama’s warning that the current $14.3 trillion cap will be reached in August, leaving the state unable to pay its bills.
US stocks took a tumble after peaking in volatile trading Wednesday after the Federal Reserve unveiled plans to buy 600 billion dollars of government bonds in an effort to breath life into the floundering US recovery.
The US Federal Reserve is expected to announce on Wednesday plans to pump up to 500 millions dollars into the economy in order to push down borrowing costs for consumers and businesses and back up the fragile recovery.
