A weakening housing market, a strained banking system, and rising oil prices threaten the U.S. economy, and restoring financial market stability is a top priority, Fed Chairman Ben Bernanke said.
Dismal data on inflation and retail sales released on Tuesday flashed fresh signs of stagflation in the U.S. economy.
Soaring food and fuel prices pushed Britain's inflation rate to nearly double the central bank's 2 percent target in June, official data showed on Tuesday, boosting talk of interest rate hikes ahead.
Discussion of persistent financial market turmoil is seen as likely to overshadow the Federal Reserve's semi-annual monetary policy outlook when Fed Chairman Ben Bernanke testifies before Congress on Tuesday.
The Bank of Japan left interest rates on hold at 0.5% on Tuesday as expected but downgraded its growth forecasts, warning high energy costs are slowing the world's second largest economy.
Australia's central bank was growing more confident that interest rates were high enough to retrain future inflation when it left rates unchanged at a 12-year high earlier this month, minutes of its July meeting showed on Tuesday.
Fed Chairman Ben Bernanke's testimony before a Senate committee takes on even greater importance for Tuesday's markets, now that the Fed and Treasury have promised to backstop mortgage giants Fannie Mae and Freddie Mac.
The dollar clambered back from a near-record low against the euro Monday after the United States announced an emergency plan to restore investor confidence in mortgage finance companies Fannie Mae and Freddie Mac.
An intervention to prop up the U.S. dollar is very likely if the greenback's slide continues, as U.S. policymakers' attitude towards a weak currency has shifted dramatically over the past year, a forex strategist tells CNBC Europe.
Analysts say hurdles for the stock market in the coming week include continued uncertainty about financial sector—specifically mortgage giants Fannie Mae and Freddie Mac—as well as the unrelenting pressure of rising oil prices.
This week's problems at Fannie Mae and Freddie Mac are more evidence of a painful fact for the economy: the extent to which mortgage-related debt is exacerbating the current slide, and how it will prolong what more and more analysts are calling a recession.
The dollar slumped Friday, battered by heightened worries about the U.S. financial sector after a report said the U.S. government is considering taking over mortgage agencies Fannie Mae and Freddie Mac if their situation worsens.
San Francisco Federal Reserve Bank President Janet Yellen said on Thursday that Fed interest rate policy is near a "crossroads," with inflation on the rise and the economy poised to pick up in 2009.
The U.S. dollar fell against a basket of currencies on Thursday, weighed down by renewed credit worries after shares in major mortgage finance sources Fannie Mae and Freddie Mac tumbled on capital concerns.
The United States is heading for recession despite modest growth in the first half of the year, but strength in Germany is keeping European growth prospects a bit brighter, Fitch Ratings said on Thursday.
The number of U.S. workers filing new claims for jobless benefits dropped by a much bigger-than-expected 58,000 last week to 346,000.
South Korea's central bank kept rates on hold on Thursday as expected, with its battle against inflation now playing out in the currency market where the won jumped as much 1 percent on dollar-selling fears.
Japanese wholesale prices rose slightly more than expected in June from a year earlier to hit a fresh 27-year high on surging oil and commodity prices, adding gloom to firms facing dwindling profit margins.
Wall Street's bears roared back Wednesday, and stocks will have to face down tepid chain store sales and testimony from Fed Chairman Ben Bernanke in Thursday's session.
The Dow fell more than 2 percent Wednesday, followed by similar declines in the S&P and Nasdaq. Here are the day's top five videos.