The worst of the housing slump and the credit crunch might come to an end this year, economists say, but the economy will weaken further and unemployment will rise.
The U.S. economy is weak but does not appear to be in a recession, according to a key forecasting gauge, the Conference Board reported.
The fallout from the global credit crisis is not over yet, billionaire investor Warren Buffett said Monday.
European Central Bank President Jean Claude Trichet warned on Monday that the end of the credit crunch was not yet in sight and the world was experiencing an "ongoing and very significant market correction."
The credit crunch is far from over and is likely to hit sectors other than housing, Marc Faber, Editor and Publisher of “The Gloom, Boom & Doom Report”, told "Squawk Box Europe."
China's inflation might spill over from food to other sectors as strong domestic consumption convinces producers that they will not lose market share if they raise prices to increase profits, a senior official said in remarks published on Monday.
China began three days of national mourning on Monday for more than 30,000 victims of an earthquake that struck a week ago.
The dollar extended losses against the euro and gave up gains versus the yen Friday, hurt by a report showing that U.S. consumer confidence tumbled to its lowest in 28 years in May.
The US economy and financial markets will improve by year-end but housing still poses the biggest threat to the economy, Treasury Secretary Paulson predicted.
- Notes from an ECB groupie's travelog -
The head of the Federal Deposit Insurance Corp said on Friday that another wave of U.S. credit stress was coming, involving non-mortgage loans.
Construction starts on new homes rose by a surprisingly strong 8.2 percent in April and applications for new building permits turned up for the first time in five months.
The U.S. economy may avoid recession but it is likely to remain weak at least until the end of the year, Atlanta Federal Reserve President Dennis Lockhart told "Squawk Box" on Friday.
China struggled on Friday to bury the dead and offer relief to those left injured, homeless and without food and water by the earthquake that may have killed more than 50,000 people.
The dollar fell in Europe Thursday as new data showed a drop in U.S. industrial production and unexpectedly strong first-quarter economic growth in Germany.
Investors struggled to figure out where the economy is headed after reports showing a modest increase in jobless claims and weakness in the manufacturing sector.
Financial market turmoil underscores the need for "generous" capital cushions, and banks need to actively raise money as needed, Federal Reserve Chairman Ben Bernanke said Thursday.
The economy is continuing to slow, particularly in manufacturing, though some areas are not quite as bad as expected, according to the latest reports out Thursday.
The United States and China both need to fend off a troubling rise in economic nationalism in order to keep their economies strong, U.S. Commerce Secretary Carlos Gutierrez said on Thursday.
China ordered fresh waves of helicopters and aid into earthquake-devastated areas as severed roads, aftershocks and the sheer magnitude of 15,000 or more dead defied increasingly desperate rescue efforts.