Ben Bernanke signals phase out of aggressive easing program - Nirmal Bang

Fed Reserve Chairman Bernanke is putting investors on notice that the central bank is prepared to begin phasing out one of the most aggressive easing programs in its century-long history later this year. The Fed will probably taper its $85 bn in monthly bond buying later in 2013 and halt purchases around mid-2014 as long as the world's largest economy performs in line with Fed projections, Bernanke said.

China's manufacturing is shrinking at a faster pace this month, adding to stresses in the economy and financial system after interbank borrowing costs surged to the highest in seven years. The preliminary reading of 48.3 for a PMI compares with the 49.1 median estimates by Bloomberg.

China's Cabinet said the nation's financial system must better support economic growth and restructuring, after a surge in credit failed to ignite growth and interbank borrowing costs jumped to the highest since 2006. Authorities will boost credit support for industries the government has defined as strategic and those that are labor-intensive, the State Council said.

Source : Equity Bulls

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