A deep-seated anxiety about how soon the Federal Reserve will raise rates has caused the widest chasm between short- and long-dated Treasury yields in 20 years.

The global economy is heading toward a sustained recovery but given the risks of another downturn it is too soon to withdraw stimulus, International Monetary Fund Deputy Managing Director John Lipsky said on Friday.

It is "not quite time yet" to raise interest rates in the U.S., Charles Plosser, president of the Federal Reserve Bank of Philadelphia, told CNBC Thursday.

The dollar rose for a second straight session Friday as risk tolerance declined, with investors cutting exposure to assets and currencies perceived as higher risk ahead of a holiday-shortened week in the United States.

US reliance on a growing Chinese economy to continue to spur growth of the American economy could be an ill-fated notion, Bill Gross, Pimco's founder and CEO, told CNBC.

As experts debate the potential speed of the US recovery, one figure looms large but is often overlooked: nearly 1 in 5 Americans is out of work or under-employed.

Additional economic stimulus such as a payroll tax cut would boost hiring, Mike Jackson, the CEO of AutoNation, told CNBC on Thursday.

Factory activity in the U.S. Mid-Atlantic region grew in November for a fourth straight month, and faster than expected, a survey showed Thursday.

Federal Reserve officials on Thursday downplayed the consequences of the falling U.S. dollar, underscoring that deflation is still a threat, especially with commercial real estate prices falling.

U.S. crude futures fell more than 2 percent Thursday as a stronger dollar weighed and weaker equities raised concern about the economy and a potential rebound in energy demand.

The dollar and yen rose Thursday as a pullback in risk appetite amid declines in equity and commodity markets revived safe-haven demand for the U.S. and Japanese currencies.

"Until you get the small business sector back on its feet and get it vibrant, you are basically knocking out about 20 percent of the GDP," said Camden Fine, president & CEO of Independent Community Bankers of America. "And it's hard to have a robust recovery if you have 20 percent of the GDP lagging."

Sometimes stating the obvious and repeating it frequently can be a very effective policy, especially in managing inflation expectations.

The Baltic Exchange's main sea freight index, which tracks rates to ship dry commodities, hit another 2009 high on Wednesday helped by strong cargo demand.

The Bank of England's Monetary Policy Committee was split three ways in November, with seven members backing the 25 billion pound boost to the economy, one wanting more and another calling for no increase at all.