Fed has no plans to help Europe, Dudley says (Reuters)

DAVOS, Switzerland — Is the euro crisis over? A leading U.S. economist says not by a long shot. Even as the head of the European Central Bank talked Friday of “positive contagion” in the markets and predicted an economic recovery for the recession-hit eurozone later this year, economist Barry Eichengreen warned that the debt crisis that has shaken Europe to its core could easily erupt again this year unless European leaders move faster to solve their problems.

SINCE fairly early last year, it has been clear that a number of European countries would need to embark on serious austerity plans. What didn't necessary need to follow, but what has in fact materialised, is a sweeping tide of austerity across the continent. Tightening has found its way to places like Britain and Germany, despite a healthy market appetite for British and German debt.

WASHINGTON (Reuters) - The central bank's decision t

Reuters - The U.S.

Steen Jakobsen, chief economist of Saxo Bank in Denmark, asks via email: "Is Merkel Misinterpreted? Will the FOMC Move Decisively?"  The misunderstood Chancellor. The market clearly believes Ms. Merkel will, ultimately, not withstand the pressure - and she will end up collateralizing rising debt. I remain extremely skeptical. I even dusted off my school German to read Der Spiegel and Focus, two major German weeklies, which give you a very different perspective.

Reuters - U.S. economic growth in the first half of the year has been "quite a bit slower" than expected, a top U.S. central bank official said on Thursday, causing him to temper his expectations about the pace of economic recovery.