Ben Bernanke

Dollar slumps as fears grow Fed will print more money

Evidence of further weakness in the US economy and renewed speculation that the Federal Reserve is about to restart its policy of "quantitative easing", the direct injection of electronic money into the economy, sent the dollar crashing though a range of benchmarks and records yesterday.

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The Big Question: How successful has Ben Bernanke's first term as Fed

President Obama interrupted his family summer holiday at Martha's Vineyard yesterday to announce the renomination of Ben Bernanke to the post of chairman of the Federal Reserve. Mr Bernanke's four-year term was due to expire in January. The re-nomination will require the approval of the Senate, but the President's declaration of intent, which amounts to a powerful endorsement of Mr Bernanke's proactive approach to policy-making, makes it likely that Mr Bernanke will get the nod. In any case, a majority of economists, central bankers, and investors support the reappointment.

Wall Street humiliated by nationalisation of banks

The US government is set to become the largest shareholder in its national banks, pumping in $250bn (£143bn) to prop up its financial system and marking one of the most startling moments in a credit crisis that has broughtquasi-nationalisation to the home of free-market capitalism.