Ben Bernanke

Two rate hikes now expected in 2023

Japan's Nikkei has dropped another 2.5% overnight as equity markets move further into the red following a fresh tapering announcement from the US Federal Reserve.

US President Barack Obama will nominate Federal Reserve vice-chair Janet Yellen to be the next head of the US central bank on Wednesday, according to a White House official.

The FTSE 100 has jumped almost 1% after former US Treasury secretary Larry Summers withdrew his candidacy to replace Federal Reserve chair Ben Bernanke next year.

Federal Reserve chairman Ben Bernanke last night moved to quell fears there will be a quick exit from its quantitative easing (QE) programme in the coming months, arguing the US economy is not yet in a strong enough position to halt stimulus measures....

Bill Gross, the manager of the world's largest bond fund, has told investors selling treasuries they could be left disappointed if they overestimate the speed with which the Fed will wrap up QE.

US markets followed shares across Europe higher overnight, while the dollar also surged, ahead of the latest Federal Reserve meeting in the States which may map out a QE exit strategy.

Manufacturing has begun to contract in the US and China for the first time since the Lehman crisis, raising fears of a synchronized downturn in the world's two largest economies.

The FTSE continued to make huge gains in afternoon trading, reaching its highest level since late March after the Federal Reserve unveiled its third round of quantitative easing.