A Reuters report expected the US Federal Reserve tapering to be cautious. According to a Reuters report, expectations were rife that the US Federal Reserve would be cautious about the tapering of its stimulus package.

Nikkei, a Japanese newspaper, reported last Friday that US President Barack Obama was close to picking ex-Treasury Secretary Lawrence Summers as the new head of the Federal Reserve Board.

After the US Federal Reserve announced thw cutting back its bond buying program, investors who had entered Asia last four years ago were set in fears and had started exiting financial markets.

A Reuters report said that investors had started to take out their capital from emerging markets as Fed tapering loomed.

Two top US Federal Reserve officials said last Wednesday that they were open-minded in implementing the proposed stimulus reduction this month.

The Head of the Central Bank of China said the country had measures to cope with the expected pullback of the US monetary stimulus.

Agustin Carstens, Governor of the Mexican central bank, asked the US Federal Reserve to clarify its plans for the reduction of its monthly bond purchases.

A number of Americans filing jobless claims fell to a near six-year low last week following the increase in consumer prices last July.

Zachary Karabell asked if it really matters who the next chairman of the Federal Reserve will be. Zachary Karabell of Reuters posed the question, "Does it really matter who the next chair of the Federal Reserve is?" The query came as President Obama looks for Chairman Ben Bernanke's successor.

President Barack Obama remains undecided on Federal Reserve chairman pick and will most likely extend consideration of the matter until the fall.