Washington  - A key gauge of US economic performance rose higher than expected in January despite the country's ongoing recession, according to a private research group Thursday.

The New York-based Conference Board's index of leading economic indicators was up 0.4 per cent, after climbing a revised 0.2 per cent in December of last year.

The index, which is designed to measure the economy's performance over the coming three to six months, has fallen 1.9 per cent since July.

Washington - The US Federal Reserve on Wednesday forecast strong growth for the US economy in 2010 and 2011, and central bank head Ben Bernanke said the country's recovery from a deep recession could begin this year with the right combination of government policies.

Fed members dramatically lowered their growth forecasts from October, which came at the early stages of a massive financial crisis that has derailed the world's largest economy. But the figures were nonetheless relatively positive about the prospects in coming years.

Warsaw  - Poland has begun talks with the European Central Bank (ECB) on entering the first stage of adopting the euro currency, the head of the ruling Civic Platform party said on Wednesday.

"Official talks with the ECB on entering ERM-2 (Exchange Rate Mechanism) have been ongoing since several days ago," Zbigniew Chlebowski told the Polish Press Agency PAP.

The ECB and Poland's Ministry of Finance did not comment.

Frankfurt  - Volkswagen's banking unit said it was cleared Wednesday to receive 2 billion euros (2.6 billion dollars) in guarantees from Germany's bank bailout fund, Soffin.

The finance unit, which lends to people who buy Volkswagen Group cars, but also operates as an online bank, is the first car company bank to receive backing from the fund. No immediate comment could be obtained from Soffin in Frankfurt.

Prague - Czech Prime Minister Mirek Topolanek said Wednesday that his government's stimulus plan is to give the Czech economy a boost amounting to 4.7 per cent of gross domestic product (GDP), or nearly 180 billion koruny (7.8 billion dollars).

The stimulus is to cost taxpayers some 73.5 billion koruny, or 1.9 per cent of GDP, and expand country's budget gap accordingly, Finance Minister Miroslav Kalousek said.

The budget deficit is expected this year to exceed 3 per cent, a limit the European Union requires for adopting the euro.

Washington  - US President Barack Obama said Wednesday he hopes to keep between 7 and 9 million homeowners out of foreclosure, using 75 billion dollars to stabilize a housing crisis that is at the heart of the country's deepening recession.

Obama unveiled plans offering aid to homeowners struggling to pay their mortgages, to relax rules on mortgage refinancing and to help neighbourhoods raise property values by renovating already foreclosed properties.