Expected To Mostly Tread

(Reuters) - Federal Reserve Chairman Ben Bernanke on Tuesday warned Congress that putting off a decision on the fate of expiring Bush administration tax cuts could unsettle businesses and households, undercutting the U.S. economic recovery. With presidential and congressional elections looming in November, many analysts think Congress is unlikely to act until the final months of the year. The tax cuts expire on January 1. Bernanke told the Senate Budget Committee that lawmakers might not have the luxury of waiting. "I don't know exactly when the uncertainty would become a factor, but surely as we get closer to January 1 and Congress has not given a clear road map for how it plans to proceed, that would certainly affect planning, business decisions, household decisions, as they look ...

(Reuters) - The Federal Reserve could take the historic step this week of announcing an explicit target for inflation, a move that would fulfill a multi-year quest of the central bank's chairman, Ben Bernanke. An inflation target would be the capstone of Bernanke's crusade to improve the Fed's communications, an initiative aimed at making the central bank more effective at controlling growth and inflation. It would, at long last, bring the Fed into line with a policy framework used by most other major central banks. Bernanke has made clearer communications a hallmark of his leadership, and bit by bit, he has worked to cast light on what for years had been purposefully opaque and secretive deliberations. He has even given the campaign a personal stamp, contrasting his plainspoken and ...

Brent crude fell below $101 a barrel on Tuesday, pressured by growing fears that a Greek debt default could spread and ignite a global recession. The global economic woes coincide with faster-than-expected Libyan efforts to restore its oil output, causing some investors to tread more carefully amid possible weaker fundamentals. But as of now, Qatar did not see a need for OPEC to meet before its next scheduled gathering in December, although it is watching the impact on oil demand of slowing economic growth and the debt crisis in Europe closely, its Energy Minister Mohammed al-Sada told reporters in Tokyo. Brent crude for November delivery fell 49 cents to $101.22 at 0537 GMT, after hitting an intraday low of around $100.50 a barrel, which was within striking distance of an eight-week ...

Brent crude fell below $101 a barrel on Tuesday, pressured by growing fears that a Greek debt default could spread and ignite a global recession. The global economic woes coincide with faster-than-expected Libyan efforts to restore its oil output, causing some investors to tread more carefully amid possible weaker fundamentals. But as of now, Qatar did not see a need for OPEC to meet before its next scheduled gathering in December, although it is watching the impact on oil demand of slowing economic growth and the debt crisis in Europe closely, its Energy Minister Mohammed al-Sada told reporters in Tokyo. Brent crude for November delivery fell 49 cents to $101.22 at 0537 GMT, after hitting an intraday low of around $100.50 a barrel, which was within striking distance of an eight-week ...

Fundamental market overview EUR "I'm not convinced that this bailout package is going to be remotely enough for the euro zone itself" - Wilbur Ross, chairman of WL Ross & Co. USD "The larger-than-expected decline in initial claims appears too good to be true" - Ryan Sweet, a senior economist at Moody's Analytics GBP "Sentiment towards major purchases is depressed" - Robert Gardner, chief economist at Nationwide CHF "The most pressing problem at the moment is Greece" - Benno Galliker, a trader at Luzerner Kantonalbank JPY "Consumer spending was recovering after the quake, but that rebound is pretty much over" - Yoshiki Shinke, a senior economist at Dai-Ichi Life Research Institute Read more: FULL REPORT - Market expectations Market expectations EUR/USD In the short-term the ...

Weekly Economic and Financial Commentary U.S. Review The Economy Continues to Lose Momentum In July, industrial production rose a solid 0.9 percent, but reports from the New York and Philadelphia Federal Reserve banks showed activity falling off in early August. Home sales and new home construction also appear to be losing momentum. Sales of existing homes fell 3.5 percent in July, while housing starts fell 1.5 percent. Mortgage applications for home purchases also declined, despite the recent drop in mortgage rates. Inflation is still running a little hotter than the Fed would like, with the CPI rising 0.5 percent in August and the “core” CPI rising 0.2 percent (1.8 percent y-o-y). Timing Is Everything Most of the hard data we received this week, including reports on ...

Weekly Economic and Financial Commentary U.S. Review Second Quarter Ends Poorly - Better Times Ahead Weaker-than-expected consumer spending and income growth for May are causing many economists to further scale back their consumer spending and GDP growth forecasts for the second quarter. Expectations for a second-half growth rebound remain intact, however, although the evidence to date remains scant. U.S. manufacturing gains remained modest in June if the ISM manufacturing and regional manufacturing surveys are to be believed. On the bright side, capital and durable goods orders rebounded strongly in May increasing the odds of a manufacturing rebound in Q3. More Disappointment in the Third Quarter? Economists are counting on a solid third quarter bounce in GDP growth in part ...