Your customized headlines for Wed, Aug 1, 2012

With much of Europe in recession and the United States at risk of falling back into one, the world's most powerful central banks face enormous expectations this week as they meet to consider new steps to bolster economic growth.

The federal regulator for government-backed mortgage giants Fannie Mae and Freddie Mac said Tuesday that he will not allow the firms to reduce loan balances of struggling homeowners, frustrating the Obama administration as it looks for ways to boost a floundering economy.

The Securities and Exchange Commission said Tuesday that Congress should grant the agency more authority to protect investors in the "opaque" municipal bonds market, which enables local governments to finance roads, schools and other projects.

Congressional leaders reached a short-term spending deal Tuesday that would remove the possibility of a government shutdown from the fall campaign season, as fiscal conservatives who swept into office after the 2010 midterm elections on promises to battle for lower spending at every turn showed a new willingness to pick their fights as they seek a big win in November.

The biggest U.S. drought in half a century is devastating farms across the Midwest. Crops are wilting. Food prices are set to rise. Under the circumstances, does it still make sense for the government to divert a hefty portion of the nation's corn output into making fuel?

With much of Europe in recession and the United States at risk of falling back into one, the world's most powerful central banks face enormous expectations this week as they meet to consider new steps to bolster economic growth.

The federal regulator for government-backed mortgage giants Fannie Mae and Freddie Mac said Tuesday that he will not allow the firms to reduce loan balances of struggling homeowners, frustrating the Obama administration as it looks for ways to boost a floundering economy.

Onetime long shot Ted Cruz won the Republican nomination in a U.S. Senate race in Texas on Tuesday, providing tea party activists with renewed momentum in what they said was their biggest victory of the year.

WARSAW — Mitt Romney had just delivered a policy speech here Tuesday — hailing Poland for its fiscal austerity — when ABC's "Good Morning America" came on air back home with a live report from the speech venue.

Even before Mitt Romney was wheels-up for London, the presidential challenger's overseas trip was drawing comparisons to the one taken by Barack Obama in 2008.

Both were candidates looking to appear presidential and polish up their foreign policy credentials.