The United States Federal Reserve, European Central Bank and central banks from the UK, Canada and Switzerland are to jointly help banks deal with the credit crunch. Each has announced that they will provide billions in loans to banks in order to lower interest rates and ease the availability of credit.
The U.S. subprime mortgage crisis was an accident waiting to happen as a period of unprecedented global growth seduced investors into under-pricing risk, former Federal Reserve Chairman Alan Greenspan argued in an article published by The Wall Street Journal on Wednesday.
As anticipated by markets and concerned with slower economic growth and softer business and consumer spending the United States Federal Reserve cut on Tuesday the basic interest rate 25 points to 4.25%.
United States President George W Bush outlined plans on Thursday to freeze rates on sub-prime mortgages for five years to help people hit by the US housing market crisis.
The United States/Peru free trade agreement on Tuesday cleared Congress and was ready for President George W. Bush signature, a victory for the US and Peruvian embattled leaders.
United States mortgage lenders and regulators are close to finalizing an aid plan for homeowners hit by the credit crunch, US Treasury Secretary Henry Paulson said on Monday during a housing conference in Washington.
A long-awaited world trade deal will remain out of reach until developing countries agree to open their markets to more United States farm goods, the head of the largest US farm organization said yesterday.
United States Treasury secretary Henry Paulson said mortgage defaults will worsen in 2008 and lenders should act aggressively to offer new loan terms to avert an economic calamity, the Wall Street Journal online said.
Global markets slumped Monday amid fears over the fallout of the credit crisis, after Goldman Sachs downgraded Citibank and forecast 15 billion US dollars in losses from the US subprime market.
United States Trade Representative Susan Schwab said Monday in Singapore that the Doha round of global trade negotiations is not dead and an agreement could be reached in the next 14 months.