The chances of the US entering a recession are receding, thanks to the Fed’s slashing of interest rates and injection of capital into the markets, according to San Francisco Fed President Janet Yellen. This from MarketWatch:

Although not so clearly explained by the central bank, Fed officials undertook these unprecedented steps in some measure to ward off what they like to call an “adverse feedback loop.” 

In the currency market, the dollar firmed against the euro. Late Tuesday, the euro was trading at $1.5482 vs. $1.5541 on Monday.

From Bloomberg:

Federal Reserve policy makers, sensing both renewed inflation dangers and a possible economic boost from government rebate checks, may be nearing a pause in interest-rate cuts after the fastest reductions in two decades.In remarks this week, Fed Governor Kevin Warsh, San Francisco Fed President Janet Yellen and three other district- bank presidents voiced concerns about rising prices.