Economy, Federal Reserve | featured news

The Federal Reserve will begin later this month to publish a forecast of its own actions, inaugurating a policy that is intended to magnify the power of those actions by shaping the expectations of investors.

The Federal Reserve said Tuesday that the U.S. economy has improved modestly as hiring and consumer spending have risen, and it's holding off on any new steps to boost the economy. Fed officials cautioned in their statement that unemployment remains high. And it noted that global economic growth has slowed — a reference to Europe's debt crisis. They left open the possibility of taking new steps next year if the economy worsens.

US Federal Reserve Chairman Ben Bernanke tells Congress that the US economy is "close to faltering" and more action may be needed.

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.

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.