Fed, ECB prepare to tackle deflation head-on (Reuters)

The Federal Reserve Building in Washington while the Fed is inside meeting, October 29, 2008. (Larry Downing/Reuters)Reuters – Officials from the Federal Reserve and the European Central Bank on Sunday vowed to fight the damaging effects of deflation as the global economy suffers a deep and lengthy recession.

Obama to propose huge tax cut: Democratic aide (Reuters)

Reuters – President-elect Barack Obama’s economic stimulus plan will propose business and middle class tax cuts of about $310 billion dollars, or 40 percent of the package, a senior Democratic aide said on Sunday.

Yellen says Fed can expand unconventional policies (Reuters)

Reuters – The Federal Reserve is prepared to expand its unconventional policy measures, to support the U.S. economy, Janet Yellen, president of the San Francisco Federal Reserve Bank, said on Sunday.

World should avoid repeat of ‘Great Depression’: top economist (AFP)

The world is facing a serious recession but should avoid a repeat of the Great Depression it experienced in the 1930s, a top US economist said Sunday in an interview published in Spain. This recession would be more serious than others, but not as hard as the Great Depression, Jeffrey Sachs, pictured in 2008, a special advisor to the United Nations secretary general, told the daily El Pais.(AFP/File/John Thys)AFP – The world is facing a serious recession but should avoid a repeat of the Great Depression it experienced in the 1930s, a top US economist said Sunday in an interview published in Spain.

Travolta "heartbroken" over son’s death

NASSAU (Reuters) – Actor John Travolta broke a two-day silence over the death of his 16-year-old son Jett on Sunday, saying he and his wife, actress Kelly Preston, were “heartbroken” by their sudden loss.

Wizards edge Cavs despite 30-point haul for James

WASHINGTON (Reuters) – The injury-depleted Cleveland Cavaliers suffered a 80-77 setback to the woeful Washington Wizards on Sunday and lost some ground in their bid to claim the best record in the Eastern Conference.

Reid cites "legal authority" to bar Illinois pick

WASHINGTON (Reuters) – Senate Majority Leader Harry Reid said on Sunday that “legal authority” exists under the Constitution to bar embattled Illinois Gov. Rod Blagojevich’s pick to fill President-elect Barack Obama’s vacant Senate seat, but added there is also room to negotiate.