Federal Reserve

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.

Former US Treasury Secretary Larry Summers has withdrawn his candidacy to succeed Ben Bernanke as head of the US central bank, the Federal Reserve.

A senior European Central Bank(ECB) policymaker has issued a fresh warning that the impact of the US Federal Reserve reducing its massive stimulus programme might exceed that of 1994.

Fears over US monetary tightening, rate hikes, and recession triggered the 1987 stock market crash, and there are parallels with today's market environment, according to Société Générale's Albert Edwards.

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The increasing likelihood of former US treasury secretary Larry Summers becoming Fed chairman next year has prompted a further spike in bond yields, analysts suggest.

Shares in the US closed sharply lower on Thursday - with some indices hit by the worst one-day percentage falls since late June - as positive jobs data sparked fears the Federal Reserve will move earlier than expected to taper its quantitative easing...

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The Federal Reserve last night indicated it has no plans to tone down its quantitative easing programme in the near future, arguing the US economy is not in a strong enough position to turn off the liquidity taps.

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