That was fast. The hope and optimism that washed over the country in the opening months of Barack Obama’s presidency are giving way to harsh realities.

Investors are making only modest moves following a weeklong rally as they question how quickly the economy can recover. Stocks zigzagged in a tight range Tuesday afternoon. Weakness in regional banks tugged at the market after Regions Financial Corp. and Comerica Inc. posted second-quarter losses.

President Barack Obama has irked close allies in Congress by declaring he has the right to ignore legislation on constitutional grounds after having criticized George W. Bush for doing the same.

Federal Reserve Chairman Ben Bernanke ran into skepticism Tuesday from lawmakers wary of expanding the Fed’s duties to police big financial companies. They argued that the Fed failed to spot problems that led to the financial crisis in the first place.

Gold prices inched lower Tuesday after Federal Reserve Chairman Ben Bernanke discounted the threat of inflation. Speaking before in his semiannual address to Congress, Bernanke laid out specific steps the central bank plans to take to ease its stimulus efforts as the economy improves.

PETALUMA, Calif.—-The following is a statement by the American Small Business League:

Treasurys reversed early losses and moved higher for a second day in a row Tuesday as investors took comfort in remarks from Federal Reserve Chairman Ben Bernanke that inflation will remain low.

Three Democratic governors told a Senate panel Tuesday that efforts to curb global warming and spur the development of cleaner sources of energy have created jobs and new businesses in their states, a trend that could expand throughout the U.S. if Congress passes federal legislation.

U.S. Labor Secretary Hilda Solis said Tuesday that $220 million in federal stimulus funds will be disbursed to programs across the country to train workers in health care and other high-growth industries.

The owner of Roll Call is buying Congressional Quarterly in a deal that will bring two well-known publications covering Capitol Hill and Washington politics under the same corporate umbrella.