Economy, Federal Reserve | featured news

The Federal Reserve expects unemployment will stay high over the next two years because recession-scarred Americans are likely to stay cautious, making for only a moderate-paced economic recovery.

Central bank will return the money to the Treasury; bank's unconventional efforts to prop up the economy created windfall for the government.

Focused on keeping the recovery going and driving down double-digit unemployment, the Federal Reserve is poised to leave interest rates at a record low.

Gold futures barrel to a new record high above $1,100 an ounce, as news that the U.S. unemployment rate topped 10.2% in October boost expectations the Federal Reserve will keep interest rates near zero well into next year, pressuring the dollar.

The Federal Reserve signaled on Wednesday that it isn’t close to raising interest rates, saying the economy remains weak.

Federal Reserve Chairman Ben Bernanke said Friday a government program intended to spark lending to consumers and businesses is still necessary even with other emergency lending programs winding down as the economy recovers.

The U.S. Federal Reserve is expected to take note of an improving economy at the close of a meeting on Wednesday, while cautioning that high unemployment puts the recovery at risk.

The Fed dramatically increased the amount of money it will create out of thin air to thaw frozen credit markets.