U.S. Federal Reserve 'Ready to Act' If Euro Zone Boils
The U.S. Federal Reservem, meanwhile, has pledged to take action on the economy if the risks coming from Europe spiral out of control.
In his testimony to the U.S. Congress on Thursday, Fed Chairman Ben Bernanke said the situation in Europe was posing significant risks to the American financial system and that he was monitoring the economy closely to plan the action as needed.
He refused to promise new stimulus, instead pressing Congress to deal with the so-called "fiscal cliff" of spending cuts and tax increases, looming just months away.
Financial markets had been waiting to see if Bernanke would promise a third round of quantitative easing, or bond purchases, to boost the economy.
Stock markets in the United States and Europe soared on Thursday, after China's surprise rate cut, but gains were somewhat dented after Bernanke snapped hopes for new stimulus.
Asian markets also fell dissapointed on the US Fed's failure to commit to further easing.
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