Global Financial Crisis, Global Economy | featured news

The Federal Reserve, facing rising global financial strains and recession fears, is poised to increase downward pressure on longer-term interest rates next week in a bid to accelerate a sputtering U.S. recovery.

The country’s economy, which crashed in 1994 and 2001 and was set back by the global financial crisis, is showing signs of overheating, fueled by consumer spending.

Debt-crippled Ireland formally applied Sunday for a massive EU-IMF loan to stem the flight of capital from its banks, joining Greece in a step unthinkable only a few years ago when Ireland was a booming Celtic Tiger and the economic envy of Europe.

China's economy slowed in the second quarter as the government steered monetary and fiscal policy back to normal after a record credit surge last year to counter the global crisis.

Hundreds of thousands of people joined May Day rallies across Europe on Saturday, many protesting against government austerity policies in the wake of the global financial crisis.