Global Markets Retreat Ahead of Fed Move

Soaring unemployment an 'unacceptable outcome,' says Ben Bernanke

(NEWSER) - Ben Bernanke offered a full-throated defense of the Fed’s recent actions in a speech in Frankfurt today, saying the $600 billion quantitative easing plan was essential to reducing joblessness. “On its current economic trajectory, the United States runs the risk of seeing millions of workers unemployed or underemployed for years,” he said. “As a society, we should find that outcome unacceptable.” Keeping the US economy chugging, he argued, is vital for the global economy. More»

World markets down as investors predict interest rate hikes

(NEWSER) - The dollar climbed to a three-month high today on rosier-than-expected Fed economic predictions while markets fell on expectations that central banks will soon begin to raise interest rates. The greenback gained against 15 of 16 of its most commonly traded currencies, while major European and Asian stock indices were down 1% or less. The Fed said yesterday the US economy is gathering steam and detailed plans to start winding down its extraordinary lending measure next year, AP reports. More»

(NEWSER) - Ben Bernanke patted himself on the back today for helping to save the world from a complete economic meltdown, MarketWatch reports. Facing public outrage and the prospect of President Obama dumping him in 6 months, the Fed chair said at a retreat in Wyoming that the world’s central banks “responded with speed and force" to "a rapidly deteriorating and dangerous situation." More»

German chancellor says central banks have made economy worse

(NEWSER) - World leaders rarely criticize central banks in public, but yesterday Angela Merkel laid into the Fed, the European Central Bank, and other institutions for deepening the global economic crisis. In a tough speech, the German chancellor claimed that the banks were too powerful, had acted too aggressively, and, in the case of the relatively prudent ECB, had "bowed somewhat to international pressure." Their actions "must be reversed," Merkel said. More»

Bank support plans boost Japan's index to biggest gain in its history

(NEWSER) - The Nikkei surged over 14% on the news that the US and Europe will buy up stakes in troubled banks, Bloomberg reports. The index's biggest gain in history follows its biggest loss in its history last week. Japan's markets were closed for a holiday yesterday when global indexes soared. Hong Kong's Hang Seng index rose 4.2% for a two-day gain of 15%. More»