Reuters - The U.S. Treasury Department should consider expanding programs to cleanse troubled assets from bank balance sheets if current efforts fail to restart markets or if economic conditions worsen, a U.S. bailout watchdog panel said on Tuesday.

Reuters - U.S. output per worker rose at its fastest pace in six years during the second quarter as businesses wrung more productivity from fewer staff in a sign that a recovery from recession will be slow and unlikely to create a surge in hiring.

AFP - The dollar sputtered Tuesday on the eve of a US decision on monetary policy, while the yen rose sharply on risk aversion after weaker-than-expected economic data from China.

AP - Employers who have cut jobs over the past year are in no hurry to start hiring again just because the recession is tapering off.

AFP - The Federal Reserve opened a two-day policy meeting Tuesday expected to maintain aggressive efforts to jolt the US economy from recession, while mulling an "exit strategy" for when recovery takes root.

Reuters - White House economic adviser Larry Summers said on Tuesday the foundations for a return to growth had been laid and there were many signs economic life was getting back to normal.

Reuters - The U.S. economy has hit bottom and the current quarter will see positive growth due to the government's stimulus spending, billionaire financier George Soros said on Tuesday.

AP - Productivity surged in the spring by the largest amount in almost six years while labor costs plunged at the fastest pace in nine years. The results point to a recession losing steam, but they do not bode well for the unemployed or those forced to work shorter weeks who were hoping for more hours.

AFP - The dollar gained narrowly against the euro but slid heavily against the yen on Tuesday, the eve of a US interest rate decision, as the Japanese currency gained support from Chinese economic data.

AP - Cars and light trucks sold in July got more miles per gallon than those sold in previous months, say researchers, who credit the Cash for Clunkers program.