Federal Reserve

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.

Marina Akopian, fund manager at HEXAM Capital Partners, outlines the drivers that could aid a turnaround in fortunes for emerging markets.

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.

PIMCO's Bill Gross has told investors they will find it difficult to repeat the performance of the past 30 years, comparing Wall Street to a food chain and Europe to a "tumour".

FINANCIAL MARKET

A move out of safe-haven assets has seen government bond yields spike, but Tim Gardner, co-manager of Legal & General's Multi-manager fund range, says they should not be dismissed just yet.

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.

ON NORTH AMERICA

The US economy risks being in a state of gridlock for the crucial last few weeks of the year, irrespective of who wins the November election, according to a leading independent American political analyst.