Dollar index hits 3-month low

Source: Press TV
http://www.presstv.ir/detail.aspx?id=137125§ionid=3510203


The value of the dollar has fallen to its lowest level against a basket of six major currencies since late April over concerns about sluggish recovery of the US economy.

The greenback's DXY index on Monday plunged as low as 81.433 to mark a three-month low against the currencies.

The falling came after the markets were worried by a series of US economic data that have not met expectations.

Market traders also predicted a further drop in the value of the American currency.

"For now, I think the overall trend of Dollar weakness still remains in place," a trader for a European bank told Reuters.

The US Commerce Department released data showing the growth of the world's biggest economy slowed between April and June.

The new figures found that the country's gross domestic product (GDP) grew by a disappointing 2.4 percent in the second quarter, compared with an annual rate of 3.7 percent in the previous three months.

The country's high unemployment rate of 9.5 percent also fueled concern about US economy's slowing recovery

US regulators shut 8 more banks

Source: Press TV
http://www.presstv.ir/detail.aspx?id=135115§ionid=3510203



The number of bank failures in the US continues to climb as regulators have shut down eight more banks in the states of Florida, South Carolina and Michigan.

The closed banks were holding $2 billion in combined assets. The latest closures bring the number of US bank closures so far this year to 96.

US regulators closed a total of 140 banks in 2009. Now, experts say that figure will be surpassed this year.

The Federal Deposit Insurance Corporation (FDIC) predicts that bank closures through 2014 will cost it 60 billion dollars.

FDIC Chairman Sheila Bair told Bloomberg in a recent interview that 2010 is going to be the peak year for bank failures in the US.

Georgia, Illinois and Florida are among the states hit hardest by the banking crisis.

Restoring US balance to be 'painful'

Erskine Bowles, the co-chairman of US administration's deficit commission

Source: Press TV
http://www.presstv.ir/detail.aspx?id=134888§ionid=3510203


Leaders of US administration's deficit commission say restoring US fiscal balance will be a painful process that requires not only spending cuts but also some tax increases.

Erskine Bowles and Alan Simpson said at a U.S. Chamber of Commerce event on Thursday that the bipartisan panel is eying tax breaks which include the deduction of popular mortgage interest and cutting government spending in its effort to recommend ways to cut the estimated $1.4 trillion federal deficit.

"It is all going to be very painful," Reuters quoted Bowles as saying.

He also made it clear that he believed about 75 percent of the deficit reduction effort should come from spending cuts and 25 percent from revenue increases.

"I just want to see the vast majority of it come out of spending," added Bowles.

He warned that the US federal debt would probably hit more than 14 trillion dollars in 2011.

Bowles earlier said the deficit was like a cancer that would destroy the country from within unless tough action was taken by Washington.

His comments come as the US Federal Reserve says US unemployment will reach 9.2 to 9.5 percent by the end of this year. It has also noted that the economic recovery continues but with a moderate pace.

US Federal Reserve released a report Wednesday that depicted a gloomier picture of US growth outlook than what was expected.

According to the report the retail numbers are lower, mortgage applications fell and the country is not growing as fast as expected.

US Fed sees more tough times ahead

Source: Press TV
http://www.presstv.ir/detail.aspx?id=134839§ionid=3510203


The US Federal Reserve says the American economy is facing an outlook worse than expected because of faltering growth and rising unemployment.

The US central bank has warned that growth will slow to 3.0 to 3.5 percent this year, down from the 3.2 to 3.7 predicted just months ago, AFP reported on Wednesday.

It has also noted that the economic recovery continues, but at a moderate pace.

Meanwhile, the forecast for unemployment at the end of this year is 9.2 to 9.5 percent, meaning that the troubled labor market will recover more slowly than expected.

The US jobless figure is not expected to go below seven percent before 2013, leaving millions of Americans out of work. The Fed might consider whether further policy stimulus is necessary as it gauges growth.

But with interest rates at all-time lows, analysts say the central bank has few tools to help fix the US economy.

In US, four more banks collapse

Source: Press TV
http://www.presstv.ir/detail.aspx?id=134176§ionid=3510203


Four more banks in the United States have been shut down, bringing the number of banks fallen prey to an economic downturn to 90 so far this year.

The Federal Deposit Insurance Corporation (FDIC) on Friday seized Bay National Bank and Ideal Federal Savings Bank, both based in Baltimore, Maryland.

The FDIC regulators also closed USA Bank in Port Chester, New York and Home National Bank in Blackwell, Oklahoma.

The closed banks were holding USD 1.13 billion in combined assets. The closures cost the FDIC deposit-insurance fund USD 159.9 million.

FDIC Chairman Sheila Bair told Bloomberg in an interview that 2010 is going to be the peak year for bank failures in the US.

Since 2009, the US has seen the fall of 230 banks.

“The remaining shakeout will be geographically concentrated and much more restricted to smaller institutions,” said Steve Reider, president of Bancography, a consulting firm based in Birmingham, Alabama, according to Bloomberg.

“I continue to think that geography is destiny.”

Georgia, Illinois and Florida are among the states hit hardest by the banking crisis

US consumer spending drops again

Source: Press TV
http://www.presstv.ir/detail.aspx?id=134030§ionid=3510203



The Federal Reserve says US consumer credit has plunged in May, suggesting that Americans are still doubtful over taking on new debt.

The US Federal Reserve said on Thursday that the consumer credit fell by USD 9.15 billion in May, for the fourth consecutive month, much sharper than forecasts of a 2-billion-dollar decrease, AFP reported.

Revolving credit, mainly credit card accounts, was down USD 7.32 billion, while non-revolving loans for things like cars, boats and college education fell by USD 1.82 billion.

The financial crisis of 2007 contributed to the failure of key businesses, substantial financial commitments incurred by governments, and a significant decline in economic activity.

Although, the US economy is recovering from a severe recession that struck in December 2007-- which is considered by many economists to be the worst financial crisis since the Great Depression of the 1930s -- a full economic recovery still seems far ahead.

The recovery however, seems to be slowing based on a number of recent economic data release by the Federal Reserve and the Treasury Department.