The annual inflation rate in the 16 countries that use the euro rose to a ten-month high in December but still remains way below the European Central Bank's ceiling, official figures showed Tuesday.
The European Central Bank left its main interest rate unchanged at a historic low of 1 percent on Thursday and took the first steps to withdraw some of its extraordinary liquidity support now that recovery is under way.
The dollar rose Monday to its highest level since the first week of November as last week's U.S. jobs report fed traders' expectations of higher U.S. interest rates.
European and U.S. stock markets pared gains Thursday after a downbeat U.S. services sector survey stoked concerns about the recovery in the world's largest economy just a day before a key jobs report.
Although it is too early to say the crisis is over, it is time to withdraw some of the policy measures that supported the financial system through the credit crunch, the European Central Bank President Jean-Claude Trichet said Friday.
World stock markets tumbled further Friday amid fears about the fallout from Dubai's debt problems.
Asia's stock markets mostly retreated Friday following a glum session on Wall Street as evidence of a weak economic recovery continued to pile up. European shares rose.
The dollar mostly declined Wednesday, with the euro bumping up near $1.50 as a Federal Reserve official said in a speech that interest rates could possibly not rise until 2012 from their current record low near zero — if the Fed acts as it has before.
The head of the European Central Bank on Thursday hinted it could begin withdrawing some of its crisis measures soon, while the Bank of England pumped more money into the economy in an attempt to get Britain out of recession.
The dollar dropped to a new 15-month low as the the euro rose above $1.50 Wednesday morning, even as Treasury Secretary Timothy Geithner reiterated the administration's stance that a strong dollar is good for the U.S. economy.
The European Central Bank on Thursday left its key interest rate unchanged at a record low of 1 percent and indicated it wouldn't raise it in the near future — even as bank president Jean-Claude Trichet said the worst of the recession has passed.
The dollar was mixed Monday as investors looked ahead to third-quarter earnings reports for more clues on the state of the global economy.
The head of the European Central Bank said Thursday that the 16 countries that use the euro should withdraw stimulus programs and start repaying mounting public debt by 2011 at the latest.
European Central Bank president Jean-Claude Trichet warned EU governments Wednesday that the public will be unforgiving if authorities don't provide a stronger financial system.
The dollar continued its slide to fresh annual lows against the euro Thursday as investors felt confident to leave the safety of the American currency.
Improving consumer and business sentiment are signs of an economic rebound in the countries using the euro, European Central Bank president Jean-Claude Trichet said Thursday — though he warned any recovery was bound to be uneven.
European stocks rose Thursday ahead of expected gains on Wall Street after the European Central Bank left interest rates unchanged and was widely expected to revise up its economic outlook.
World stock markets shot higher Thursday after the U.S. Federal Reserve said the world's largest economy appeared to be "leveling out" from its worst recession in decades.
The Bank of England surprised markets on Thursday with a significant expansion of its program to boost the money supply and support growth, even as it and the European Central Bank kept official interest rates steady at record lows.
The European Central Bank left its benchmark interest rate unchanged at 1 percent Thursday, preferring to wait and see if its "spectacular" infusion of credit into the banking system will loosen lending to consumers and businesses in the euro zone's struggling economy.
The dollar rose slightly Tuesday after a private research group said consumer confidence unexpectedly fell in June.
The European Central Bank and the Bank of England both kept official interest rates at record lows on Thursday, adopting a cautious holding stance amid fledgling signs of an economic recovery across Europe.
Asian stock markets advanced Thursday, with Japan's benchmark Nikkei index rising above 10,000 for the first time in eight months amid cautious optimism that the region is slowly moving toward recovery.
The dollar leapt against the major currencies Friday, regaining some of its losses from this week as jobs data from the U.S. showed a jump in the unemployment rate but indicated a deceleration in layoffs.
The 16 countries that use the euro saw zero inflation in the year to May, official figures showed Friday, stoking expectations prices may fall for several months — and increasing concern about whether policymakers are doing enough to ward off a debilitating downward spiral.
N.B: The discussion of the problems facing central bankers appears in the last section of the article under the heading No Exit:.The author observes that the old demons Fannie Mae and Freddie Mac are alive and well.
Tucked away inside the small print of the latest Federal Reserve report on its balance sheet is a jaw-dropping nugget of information. A year ago, American banks had $1.8 billion on deposit with the Fed above and beyond the regulatory requirements.
The Treasury secretary, Timothy F. Geithner, will outline the broad revamping of the regulatory system, which goes further than expected, in a hearing on Thursday.
The US has announced details of a plan to buy up to $1 trillion (£686bn) worth of toxic assets to help repair banks' balance sheets. More Articles
"European Central Bank chief Jean-Claude Trichet said in an interview with The Wall Street Journal that Europe doesn't need more stimulus spending, but that the ECB could lower its interest rate further to free up credit.
Gordon Brown yesterday invoked the spirit of American optimism as he challenged Congress to let Barack Obama lead the world away from self-defeating protectionism and the perils of irreversible climate change.
As ordinary citizens with no power over the levers of policy, we watch from the sidelines, and weep. The whole global economy has tipped into a downward spiral. Trade and output are contracting at rates that outstrip the leisurely depression of the 1930s.
The British central bank cut the rate by half a percentage point to its lowest level since the bank's creation in 1694.
BRUSSELS — Trying to shore up their economies in the face of a worsening economic crisis, three central banks in Europe sharply cut their benchmark rates on Thursday.
The Federal Reserve, European Central Bank and four other central banks lowered interest rates in an unprecedented coordinated effort to ease the economic effects of the worst financial crisis since the Great Depression.
The Federal Reserve and a consortium of European central banks today announced a half a percentage point reduction in a key interest rate, a coordinated effort to stave off an economic slump even as they continue struggling to tackle a crisis in global financial markets.
European nations scrambled on Sunday night to prevent a growing credit crisis from bringing down major banks and alarming savers as troubles in financial markets spread around the world, accelerating economic downturns on three continents.
"The Federal Reserve will pump an additional $630 billion into the global financial system, flooding banks with cash to alleviate the worst banking crisis since the Great Depression.
Europe's ruling elite has reacted with shock and disbelief to what they fear will be the most serious crisis for world capitalism since the Wall Street Crash of 1929. ***
The Federal Reserve, the European Central Bank and other central banks massively escalated the assistance offered to global money markets on Thursday, coordinating efforts to ease funding constraints stemming from the financial turmoil emanating from Wall Street.
"Otmar Issing, the former chief economist of the European Central Bank, has warned that confidence in the world's financial system is draining away, leaving authorities facing the gravest challenge in living memory.
Reuters reports: The global economy is threatened by continuing weaknesses in the U.S. economy and rising energy and raw materials prices, European Central Bank Governing Council member Mario Draghi said on Saturday.
The dollar hit another record low against the euro on Friday, as data continued to support the view that the European Central Bank will keep interest rates on hold for the foreseeable future.
As central banks continue to splash their cash over the system, so far to little effect, Ambrose Evans-Pritchard argues things are rapidly spiralling out of their control.
The credit demon moves through the globe........stand by for more
As Washington officials react with almost contented silence to a weak dollar, European officials are grumbling because it makes American exports cheaper in world markets.
Up until this report, Goldman Sachs was bullish on the global economy, with the few voices of dissent within their ranks treated like one would treat a deranged relative.
European Central Bank chief Jean-Claude Trichet has attacked France for being Europe's "number one spender". Mr Trichet warned that in comparison to its GDP, the country was well on the way to spending much more than its European neighbours during 2007.
French President Nicolas Sarkozy questions the ECB's monetary policy and its actions to stem off the recent financial turmoil.