Ben Bernanke revealed Wednesday that the Federal Reserve was ready to lower interest rates next month to fight the sluggish economy.

The former World Bank vice-president yesterday said the war had, so far, cost the US something like $US3trillion ($3.3 trillion) compared with the $US50-$US60-billion predicted in 2003.

Australia also faced a real bill much greater than the $2.2billion in military spending reported last week by Australian Defence Force chief Angus Houston, Professor Stiglitz said, pointing to higher oil prices and other indirect costs of the wars.

“The dollar fell to a three-week low against the euro as US home prices tumbled and consumer confidence sank to a five-year low,” reports Bloomberg.

According to the report, the greenback dropped to $1.4882 per euro at 11 a.m. in New York, from $1.4830 yesterday.

The euro was supported by a boost in German business confidence, reports the Financial Times.

February’s Ifo business climate index, which measures industry and trade confidence, rose to 104.1 from 103.4.