Ben Bernanke, the chairman of the Federal Reserve, said the recovery in the US economy remains "uneven" and growth has been slower than expected.
However, he said that it should pick up in the second half of 2011 despite recent signs of weakness, writes the Telegrpah.
In a relatively downbeat assessment of the economy, Mr Bernanke said: "US economic growth so far this year looks to have been somewhat slower than expected."
His comments sent US stocks falling. The Dow Jones Industrial Average closed down 12.15 points at 12,070.81, having been up until he started his speech.
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Europe backs Britain's 'Plan A' for the economy
Brussels has told the Government to stick to its strategy to shrink the budget deficit, warning against any "slippage" from the planned cuts.
The Government should "proceed as planned" with its "ambitious measures to reduce the deficit", the European Commission said, writes the Telegraph.
The instruction is a second endorsement of the Coalition's "Plan A", after the International Monetary Fund on Monday said the UK should plough on with its austerity efforts despite growth turning out weaker than expected.
Lagarde takes IMF campaign to emerging economies
The French Finance Minister Christine Lagarde dashed to India yesterday as she sought to secure the backing of the Asian country for her candidacy to head the International Monetary Fund (IMF).
Ms Lagarde held meetings with India's Prime Minister Manmohan Singh and the Finance Minister, Pranab Mukherjee, along with Montek Singh Ahluwalia, the head of the country's planning commission and the man who would have been India's pick for the job were he not three years past the mandatory-retirement age of 65, writes the Independent.
Ms Lagarde said if she were elected, part of her would become Indian.
HSBC pays £38m to settle Madoff lawsuit
HSBC has agreed to pay $62.5m (£38m) to settle a lawsuit brought against it in New York by a Dublin-based fund that lost money as a result of Bernard Madoff's fraud.
In a settlement announced on Tuesday, HSBC said it would pay the money to investors in Thema International Fund, ending one of several legal cases brought against the bank for its role in failing to spot Madoff's $65bn Ponzi scheme, writes the Telegraph.
Two global vehicles
'Further plug advice gap'
Must appoint separate CEOs and boards
Advisers do come out well
Will report to Mark Till