S&P Announced Greece in Default

Standard & Poor's ratings agency downgraded Greece's long-term credit rating to selective default from double-C. It is a result of a debt write-down deal with private creditors that is an integral part of the second bailout. S&P had said this month that it would consider Greece in default if it added "collective-action" clauses to its sovereign debt, effectively forcing all bondholders to accept a bond-swap offering.

Greece became the first Euro-zone member officially to be rated in default, 13 years after the single European currency was adopted to strengthen the European Union.

U.S. economy expanded at a 2.8 percent in the fourth quarter

Gross domestic product expanded at a 2.8 percent annual rate in the fourth quarter, the Commerce Department said on Friday, a sharp acceleration from the 1.8 percent in the prior three months.

Soft underlying demand and a sharp slowing in core inflation supported the Federal Reserve's decision this week to keep in place an ultra easy monetary policy to nurse the recovery.

The economy got a temporary boost from the rebuilding of inventories, which logged the biggest increase since the third quarter of 2010.

Excluding inventories, the economy grew at a tepid 0.8 percent rate, a sharp step-down from the prior period's 3.2 percent pace and a sign of weak domestic demand.

Fed is likely to keep low key interest rate until late 2014

The Federal Reserve says it is unlikely to raise interest rates before late 2014. It means a period of record-low rates would be extended by more than a year. The Fed has kept its key interest rate at a record low near zero for three years.The Fed's decision to keep rates low is to help lift a weak but modestly growing economy.

The new timeframe hints at details in the Fed's quarterly economic forecast, which will be released later. That will show in what year policy members expect the first increase in the Fed's benchmark interest rate.

IMF cuts global economic growth outlook

The International Monetary Fund (IMF) on Tuesday cut its forecast for global economic growth in 2012 and 2013, citing growing financial strains and rising downside risks as Europe's debt crisis entered a "perilous new phase."

The institution said it expects world economic output to grow by 3.3% in 2012, down from 3.8% in 2011 and from a September forecast of 4%. Global output is forecast to expand 3.9% in 2013, down from a previous
forecast of 4.5%.

The IMF expects the 17-nation euro-zone economy to shrink 0.5% in 2012, followed by growth of 0.8% in 2013. The IMF had previously projected growth of 2.1% in 2012 and 1.5% in 2013.

The IMF left its forecast for U.S. economic growth in 2012 unchanged at 1.8%, but pegged 2012 growth at 2.2%, down from an earlier projection of 2.5%.