Fed holds rates low as weak economy caps inflation
WASHINGTON (AP) _ The economy is growing, but only weakly. Layoffs have slowed, yet jobs remain scarce. And interest rates will need to rise _ but not anytime soon.
That was the mixed picture sketched Wednesday by the Federal Reserve, which pledged to hold rates at a record low to reduce unemployment and sustain the recovery. And the assessment was reinforced by government data on inflation, home building and U.S. trade.
Fed Chairman Ben Bernanke and his colleagues did sound a more optimistic note by pointing to the slowdown in job losses. But they made clear the recovery is far from strong: Consumer spending remains sluggish, the job market weak, wage growth slight and credit tight. Companies are still wary of hiring, they said.
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Stocks stall as Fed prepares to remove aid
NEW YORK (AP) _ An early advance in stocks stalled Wednesday as the Federal Reserve reminded investors that it would start to wean the economy from an array of emergency supports next year.
Investors knew several of the programs would be dismantled in 2010, but the added detail about the Fed's plans as well as lingering concerns about inflation tugged at the market. Stocks finished little changed.
Most stocks rose for the day, though the Dow Jones industrials slipped 11 points to 10,441.12, after rising as much as 58 points. Broader indexes gained but ended off of their highs.
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Oil jumps above $72 as US crude supplies fall
NEW YORK (AP) _ Oil prices rose sharply Wednesday, wiping out a week's worth of declines after the government said supplies of oil and petroleum products dropped much more than expected.
Benchmark crude for January delivery surged by $1.97, nearly 3 percent, to settle at $72.66 a barrel on the New York Mercantile Exchange. In London, Brent crude for January delivery added $1.50 to settle at $73.55 a barrel on the ICE Futures exchange.
The Energy Information Administration said that crude supplies fell by 3.7 million barrels last week and distillate fuels including heating oil dropped by 2.9 million barrels.
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Intel hit with more antitrust charges in FTC suit
SAN FRANCISCO (AP) _ The Federal Trade Commission piled on new antitrust charges against Intel Corp. on Wednesday, seeking to end what it described as a decade of illegal sales tactics that have crippled rivals and kept prices for computer chips artificially high.
The FTC's lawsuit contains the most wide-ranging allegations yet against the world's largest chip maker, which is also fighting a record $1.45 billion antitrust fine in Europe and separate cases in South Korea and New York state.