Fed to shine light on policy path

    THE global economy is moving into a slowdown with the developed world’s policy options limited and investors nervous, putting the spotlight firmly on U.S. Federal Reserve Chairman Ben Bernanke in the coming week to point the way ahead.

    Bernanke delivers his twice yearly update to lawmakers tomorrow and Wednesday, beginning a day after the International Monetary Fund is expected to cut its global growth forecast when it releases the latest World Economic Outlook.

    U.K. unveils ‘funding for lending’

    BRITAIN gave details Friday of its new scheme to get banks to lend, with some 80 billion pounds (US$124.61 bilion) of cheap loans available provided they go to households and businesses.

    Part of efforts to lift the economy out of recession, the “funding for lending” plan was jointly announced by finance minister George Osborne and the Bank Governor Mervyn King last month.

    However, the challenges facing the scheme became clear just hours after it was announced, when one of Britain’s biggest banks, HSBC, said it did not want to take part and preferred to fund lending from its customers’ deposits.