Federal Reserve | featured news

Stocks tumbled on Thursday, extending losses for a fourth straight session, as the Federal Reserve's weak outlook for the U.S. economy and disappointing data from China heightened fears about a global recession.

Bernanke launched a new package of measures to support a limping economy and once again took the kind of unconventional approach that has become a trademark of his tumultuous tenure.

Despite the limping economy, Republican Congressional leadership urged the Federal Reserve chairman not to engage in further stimulus.

Bottom Line: Stocks rose in mid-morning trade on Wall Street Tuesday as investors grew more optimistic that the Federal Reserve would announce new moves to stimulate the economy.

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.

Ben Bernanke has become a favorite target of criticism, but many of the missives about him are without substance.

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.

“If this guy prints more money between now and the election, I dunno what y’all would do to him in Iowa, but we would treat him pretty ugly down in Texas.” Thus spoke Republican Gov. Rick Perry on Monday, referring to Ben Bernanke, chairman of the Federal Reserve Board. You might chalk the remark up to a weak attempt at humor — if you watch the video, you’ll hear a few nervous laughs from the small crowd — but then Mr. Perry went on in an even nastier vein.

Stocks resumed their downward slide in early trading Wednesday as investors retreated from the initial optimism that greeted the Federal Reserve's decision the day before to keep interest rates low.