Fed’s Duke: Economy stabilizing but recovery slow

Nothing earth-shattering from Fed Governor Duke. She says the US economy is stabilizing but the recovery will be slow. She urges banks to up lending and to hold on to TARP capital in reserve a little longer (perhaps an oblique warning that more tough times are ahead?). The Fed is among those who underestimated the complexity of the TARP program, she said. That’s not comforting…

EUR/USD has pulled back to the 1.3985 area after pushing EUR/USD up to 1.4009 where central banks willingly sold.