U.S. Treasury Secretary Henry Paulson said the number of potential U.S. home-loan defaults "will be significantly bigger" in 2008 than in 2007, the Wall Street Journal's online edition reported.
The mood among consumers hit the skids in November as gasoline prices soared and the housing slump worsened.
Standard & Poor's expects the U.S. Federal Reserve to cut interest rates to 3.5 percent in 2008 to deal with the fallout from the housing market, S&P's chief European economist said on Wednesday at a banking conference in London.
China will clamp down on new investment projects to help keep growth in the world's fourth-largest economy on an even keel, the government said on Wednesday.
Japan's exports hit a record high in October and the trade surplus jumped by two-thirds from a year earlier, though the increase was slightly less than forecast, raising concerns that a slowing U.S. economy will hurt Japan's export-led growth.
The Federal Reserve is expecting slower growth and lower inflation next year. But minutes from the Fed's October meeting show policymarkers were reluctant to cut interest rates further.
The dollar slid to a record low versus the euro after minutes of the Federal Reserve's October meeting failed to give a clear indication on the central bank's next move on rates.
Groundbreaking for U.S. housing rebounded in October but permits for future building hit a 14-year low, indicating the grim market for home construction will likely continue to worsen.
The Fed and financial markets remain at odds over where the economy and interest rates are heading, and fresh Fed forecasts to be released Tuesday are unlikely to bridge that gap.
The dollar fell against the yen but held steady versus the euro Monday as global stock losses and high oil prices stoked uncertainty about the health of the U.S. economy and left investors wary of risky trades.
The painful collapse of the housing market along with the credit crunch will weigh down economic growth in the final three months of this year and cause economic activity to lag in 2008.
Time is running out for U.S. lawmakers to prevent millions of unsuspecting middle-income taxpayers from being hit with a tax meant for the very rich.
The dollar slipped on Friday, but was still on track for its biggest weekly gain in a month, with dealers wary of adding much to extended bets against the greenback with so much uncertainty surrounding the credit market.
Two top Federal Reserve officials on Friday suggested the U.S. economy is unlikely to need lower borrowing costs even as it navigates a possibly rocky stretch in the economy.
Chinese lunchtime television on Friday gave ordinary people a basic tip on how to play the currency markets: sell the dollar!
A top Federal Reserve official said it would take sharper than expected slowdown in growth to change the Fed's monetary policy stance in a Dow Jones interview released on Friday, casting doubt on market expectations for more interest rate cuts.
The mortgage crisis could have a "dramatic" impact on the economy by forcing banks and other financial firms to cut lending up to $2 trillion, a Goldman economist said.
U.S. Treasury Secretary Henry Paulson said on Friday Washington was following a strong dollar policy and indicated he expected it to rebound, emphasising the U.S. economy's long-term strength should help the currency.
U.S. industrial production unexpectedly fell in October, logging a 0.5 percent decrease, as output shrank at factories, mines and utilities, a Federal Reserve report on Friday showed.
The Federal Reserve's current policy stance should be just right to help the U.S. economy weather a rough patch in months ahead without triggering inflation, Fed Governor Randall Kroszner said on Friday.