Economy, Central Bank | featured news

Brazil's central bank lowers its forecast for economic growth to less than half of last year's, partly blaming the slowing global economy.

Fed chairman Ben Bernanke said Friday the central bank has done all it can to get the U.S. economy back on track. Now it's time to simply wait for it to heal.

The Federal Reserve Board has promised to keep interest rates at zero until 2013-- an admission that the economy is not expected to rebound for two years-- until the next President is in the White House. This policy step indicates the Fed does not believe the economy will recover either this year or next year. Never before has the central bank made such a policy declaration for as long a period as two years.

Federal Reserve Chairman Ben Bernanke renewed his promise on Thursday that the central bank could put more monetary stimulus into play if the economic recovery stumbles.

European Central Bank Governing Council member Ewald Nowotny does not expect the U.S. economy to enter a double-dip recession and is more concerned about fast-growing developing markets, he told a newspaper.

The European Central Bank is poised to raise interest rates from a record low 1.0 percent on Thursday and more is likely to follow but, fearful of heaping more pain on the euro zone's stragglers, it will give few clues about when the next move will come.

China's central bank increased interest rates on Tuesday for the fourth time since October, raising suspicions that data next week may show inflation rose more than expected in March.

The Federal Reserve looks set to embark on a hotly debated second round of monetary easing next week, but much uncertainty surrounds the scope and pace of bond purchases by the U.S. central bank.

Federal Reserve Chairman Ben S. Bernanke on Friday laid out a case for the central bank to take further action to bolster growth, citing the risks of prolonged high unemployment and a U.S. economy slipping into a deflationary spiral.

Ben S. Bernanke argued that information gleaned from the banking oversight process helps the central bank guide the economy.