AFP - The US economy is growing a bit faster than expected and could avert recession, Federal Reserve chairman Ben Bernanke indicated Tuesday, while citing a "critical" need to keep inflation expectations in check.

Reuters - The Dow and S&P fell on Tuesday in turbulent trading after the Federal Reserve chairman said financial markets were under considerable stress, outweighing optimism that a dramatic drop in oil prices could help corporate profits and consumer spending.

AP - The economy showed the depth of its twin problems on Tuesday, slow growth and rising inflation, as the nation wrestled with a teetering financial system, a slumping dollar and rising prices for food and fuel.

Reuters - Even as companies in the auto, airline and financial sectors slash jobs in the face of a slowing economy, most U.S. and Canadian workers who escape the cost-cutting ax can expect their paychecks to get a little fatter next year.

Reuters - A weakening housing market, strained banking system and rising oil prices threaten the U.S. economy, and restoring financial market stability is a top priority, Federal Reserve Chairman Ben Bernanke said on Tuesday.

AFP - The Federal Reserve cautiously lifted its outlook for the US economy in 2008 but sees numerous risks including a potentially troublesome rise in inflation and stressed financial markets, chairman Ben Bernanke said Tuesday.

AFP - US retail sales slowed more than expected in June as American consumers cut back spending in the face of economic concerns and worries about the health of major banks, a government survey showed Tuesday.

Reuters - Weak retail sales and a rise in producer prices at their highest annual rate in 27 years provided further evidence of "stagflation" in the U.S. economy on Tuesday.

AP - Federal Reserve Chairman Ben Bernanke told Congress Tuesday the fragile economy is facing "numerous difficulties" despite the Fed's aggressive interest rate reductions and other fortifying steps.