San Francisco Federal Reserve President Janet Yellen's nomination to the No. 2 post at the U.S. central bank opens the door to a potential shift at the Fed's westernmost outpost.

Yellen, whose nomination must be confirmed by the U.S. Senate, is known as a monetary policy dove more concerned with the impact of high unemployment than the threat of inflation.

And though the most important role of regional Fed bank chiefs is arguably their input into national monetary policy, the San Francisco Fed's board of directors may not view a particular policy bent as an over-riding factor in their choice for a new chief. [Read the full article]

The U.S. Treasury Department confirmed on Friday that China was still the largest single holder of U.S. government debt as of February, though its holdings had declined for four months running.

Friday's data was a more complete revision of numbers released in recent months. They showed China held $894.8 billion worth of Treasuries through December 2009. As of February 2010, China held $877.5 billion of Treasury securities, more than Japan's $768.5 billion.

NEW YORK/CHICAGO (Reuters) - United Airlines parent UAL Corp will buy Continental Airlines Inc for $3.17 billion to form the world's largest carrier, moving to better withstand the hazards that have battered airlines in recent years. [Read the full article]

The U.S. Federal Reserve took steps on Friday toward creating tools that could help it eventually withdraw the billions of dollars it pumped into the economy to support economic recovery.

The Fed's Board of Governors said it authorized a term deposit facility, similar to certificates of deposits banks offer their customers, that could be used by the Fed to lock up excess cash. The New York Federal Reserve moved closer to testing reverse repurchase agreements with money market funds by posting a master agreement on its website.

Both the term deposit facility and large-scale reverse repos are ways the Fed could reduce the supply of funds banks can lend to each other, steps aimed at ensuring inflation does not take hold once the economic recovery gathers steam.

The U.S. [Read the full article]

Vice President Joe Biden and Colorado Democrats are trying to sell a sunny economic future.

Biden talked up the federal stimulus package in a visit to a new factory at a Longmont electronics company that received a $45 million stimulus award. The expanded factory could eventually employ 2,700.

Biden said the stimulus passed last year is improving the economy and said, "I would argue it's working."

Colorado Democrats joined the ceremony. Sen. Mark Udall said the economy is "on the verge of a major turnaround" because of the stimulus package. Rep. Betsy Markey and Gov. Bill Ritter also praised the stimulus.

After the factory visit, Biden was to headline a Denver fundraiser for Markey, who faces a tough re-election bid. [Read the full article]