San Francisco Federal Reserve Bank President Janet Yellen said Tuesday the current level of U.S. interest rates should boost the economy in the second half of 2008.

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.

Retail sales weakened modestly in April, but outside the hard-pressed auto sector they showed more resiliency than anticipated.

U.S. Federal Reserve Chairman Ben Bernanke said the credit crisis is not over, even as his colleagues revealed growing concerns about inflation that could signal a pause in interest rate cuts.

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.

UK housing sentiment slumped to record lows in April, underscoring continued weakness in the sector and piling pressure on the Bank of England at a time when snowballing inflation could force it to keep interest rates on hold.  

JPMorgan Chase Chairman and Chief Executive Jamie Dimon Monday told bank investors that while the current credit market crunch may soon be over, the U.S. economy could still face a deep and extended recession

Chicago Federal Reserve Bank President Charles Evans said that U.S. interest rates are "accommodative" and at the right level given a weak growth outlook, but then indicated that the Fed could still be open to cutting rates further.

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.

The yuan breached the closely watched 7.0 mark versus the dollar on Monday after the central bank fixed its reference rate at a post-revaluation high and the government reported higher-than-expected consumer price inflation for April.

The White House Friday set out terms for a possible deal on a housing market rescue plan, as a sweeping package backed by the House was on its way to an uncertain greeting in the Senate

General Electric's decision this week to no longer lend consumers money to buy motorhomes and boats was more bad news for the recreational vehicle and boat industry.

The U.S. trade deficit narrowed more than expected in March on a record plunge in the value of imports, even as average oil prices surged to a new record, a Commerce Department report on Friday showed.

China intends to strengthen its supervision and control of cross-border capital flows in order to protect stability in the financial system, Vice Premier Wang Qishan said on Friday.