Ben Bernanke

Imminent plans for another round of US quantitative easing were ruled out yesterday following the publication of the US Federal Reserve minutes, disappointing markets.

The Bush era tax cuts due to expire at the end of the year could send the US economy back into recession unless Congress intervenes, according to leading commentators.

The Federal Reserve may have held back from unleashing a third round of quantitative easing as a joint central bank effort from around the globe may be around the corner, according to North Investment Partners' John Husselbee.

The Federal Reserve announced plans to extend Operation Twist by $267bn as it cut its growth forecast for the US economy from 2.9% to 2.4% in 2012.

Spanish 10-year bond yields have dipped back below 7% today, as investors eye an expected stimulus package from the US Federal Reserve, and with sentiment lifted after Greece managed to form a new government.

The financial crisis and collapse in US house prices has left the average household in the States 40% less well-off, a Federal Reserve study has said.

London's FTSE 100 slipped into the red in early trading this morning after Fitch Ratings cut Spain's long-term credit rating and predicted a slump through 2013.

The positive impact of China's rate cut was dampened overnight in Asian and US markets as Ben Bernanke failed to clarify the Fed's policy approach in a speech yesterday.

FINANCIAL MARKET

Federal Reserve chairman Ben Bernanke has signalled the end of QE in the US, saying it would be "reckless" to pump further stimulus into the economy unless it sees a sharp deterioration.