Fed chairman Bernanke says a big rise in US government debt is unwelcome but that the alternative to not acting is prolonged stagnation. Labor markets may have worsened in recent weeks, the Chairman says, setting the stage for a very week NFP report on Friday.
EUR/USD is stabilizing in the 1.2580s after a sharp slide on selling from a European bank. Stocks are maintaining about 1% of their gains despite the poor home sales data and the gloomy outlook from Bernanke.
