The U.S. economy will barely expand in the second quarter and the chances of it shrinking have risen, following sluggish growth early in the year, said a Philadelphia Federal Reserve survey released Tuesday.

Federal Reserve Chairman Ben Bernanke said Tuesday that emergency Fed liquidity measures have helped relieve strain in financial markets, but the recovery process remains incomplete.

Cleveland Federal Reserve Bank President Sandra Pianalto said on Tuesday that although core U.S. price measures were climbing faster than she wanted, Fed monetary policy was compatible with low inflation.

It's a busy week on the economic calendar, with the consumer price index, data on housing starts and the Philly Fed index all expected.

“We're of the opinion that the market has likely seen the worst,” says Standard & Poor’s Chief Investment Strategist Sam Stovall. He's not alone.

Oil prices have soared nearly 10 percent in the past four sessions alone, and CNBC asked the experts for insights and answers.

The U.S. credit crisis is easing and the risk in housing is dramatically lower now, but economic growth will remain under pressure , the CEO of Merrill Lynch said.

U.S. Treasury Secretary Henry Paulson said U.S. financial markets are emerging from the credit crunch that many economists believe has pushed the country to the brink of recession, according to The Wall Street Journal.

Federal Reserve Chairman Ben Bernanke on Monday said conditions in mortgage markets remain strained, posing a threat to the economy, and urged steps be taken to prevent home foreclosure where possible

President Bush sought to assure Americans Saturday that federal checks en route to them as part of a stimulus plan will help spur the ailing economy and pay for soaring gas and food prices.

Europe's central banks should serve as an example to the Federal Reserve of how to manage an economy suffering through stagnation and liquidity issues, Pimco's Bill Gross told CNBC/Europe.

There are a lot of ways to describe what the Fed did today: it took the rate-cut punch bowl off the dining room table, but didn't pour out the punch. It took a baby-step towards neutral, not a grown-up step. That means it preserved the ability to cut if it needs to.

The full statement released by the Federal Open Market Committee after its meetings held from April 29-30 on interest rate policy.

The Federal Reserve trimmed interest rates to 2% but  left markets guessing about whether further cuts would be needed.

“The news on the economy is going to be pretty much unrelentingly bad in the next few months,” says one economist, who thinks the Fed may keep cutting after today.