The United States economy contracted at a stunning pace of 6.3% in the fourth quarter of 2008, the most in 26 years, as consumers cut down on spending and exports weakened.
United States Treasury Secretary Timothy Geithner has outlined far-reaching plans to strengthen government authority over the US financial system. The measures are designed to prevent the kind of systemic risk-taking among banks that has contributed to the current financial crisis.
Calls from China and other emerging economies for the creation of a new global currency to replace the US dollar are unnecessary because confidence in the dollar is extraordinarily strong said US president Barack Obama.
Unites States Treasury Secretary Timothy Geithner and Federal Reserve Chairman Ben Bernanke dismissed on Tuesday suggestions by leading emerging economies that the global economy move away from using the dollar as the main reserve currency.
United States announced Monday details of a plan to buy up to one trillion US dollars worth of toxic assets to help repair banks' balance sheets. The Public-Private Investment Programme will purchase the troubled mortgages and securities that have been at the root of the credit crunch.
A key adviser within US President Barack Obama's administration says she is incredibly confident the US economy will recover within 12 months. Christina Romer, head of the White House's economic advice council, told Fox TV we will be seeing signs the economy is turning around.
United States banks lost 32.1 billion US dollars in the last quarter of 2008 - even worse than the 26.2 billion originally reported, US federal regulators say.
The US budget deficit will hit 1.8 trillion US dollars this year, a record amount, according to US Congress estimates. The White House said the prediction by the Congressional Budget Office (CBO) would not alter President Barack Obama's policy agenda, nor would it affect its goal to cut the deficit in half by 2013, it added.
US lawmakers in the House of Representatives have voted in favour of a bill to levy a 90% tax on big bonuses from firms bailed out by taxpayers.
US President Barack Obama has announced he will travel to Mexico next month, making his first trip to that country as president. Mexico's government says President Obama will visit the country on April 16 and 17.