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. 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. 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. 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. It comes despite Intel having recently settled similar
complaints brought by rival Advanced Micro Devices Inc., whose lobbying of
regulators led to their charges. Microsoft, EU close chapter of antitrust battle BRUSSELS (AP) -- After a decade of complaints leading to 1.7 billion
euros in fines against Microsoft Corp., European regulators have ended their
last pending antitrust case against the U.S. software maker as the company
agreed to let European computer users choose from a menu of Web browsers that
compete with its Internet Explorer. Microsoft said it will start sending updates in March to Windows
computers in Europe so that when PC users log on, they will see a pop-up screen
asking them to pick one or more of 12 Web browsers to download and install.
People who buy new PCs will see the screen when they start up for the first
time. Credit Suisse Group to pay $536M in Iran case WASHINGTON (AP) -- Credit Suisse Group has agreed to pay $536
million to settle a Justice Department probe and admit to violating U.S.
economic sanctions by hiding the booming illegal business it was doing for
Iranian banks. The Justice Department announced the settlement Wednesday,
saying it was the biggest forfeiture ever against a company for violations of
that type. The $536 million that Credit Suisse is forfeiting will go to the
U.S. government and the district attorney's office in Manhattan, which also
participated in the settlement talks with the bank along with the Federal
Reserve and the Treasury Department. The bank, one of Switzerland's largest, has been under criminal
investigation for years over business it did with countries subject to U.S.
economic sanctions. SEC backs broader disclosure on executive pay WASHINGTON (AP) -- Federal regulators voted Wednesday to require
companies to reveal more information about how they pay their executives amid a
public outcry over compensation. The Securities and Exchange Commission voted 4-to-1 to expand
the disclosure requirements for public companies. Company policies that encouraged excessive risk-taking and
rewarded executives for delivering short-term profits were blamed for fueling
the financial crisis. The SEC also changed a formula that critics say allowed
companies to understate how much their senior executives are paid. At issue is
how public companies report stock options and stock awards in regulatory
filings. Such awards often make up most of top executives' pay. Former Lazard banker accused of insider trading SAN FRANCISCO(AP) -- A former Lazard Freres banker has been
charged with insider trading. Federal prosecutors in San Francisco accused Adnan Zaman
Wednesday with passing along confidential information about clients' merger
plans to friends. The Securities and Exchange Commission also filed a lawsuit
against Zaman and three others authorities say were involved in the insider
trading scheme that began in 2006 and continued into 2007. The SEC says Zaman and former TPG Capital associate Vinayak
Gowrish received kickbacks from their friends, Pascal Vaghar and Sameer Khoury,
in exchange for the merger information. FDA panel votes down new use for OSI cancer drug WASHINGTON (AP) -- Federal health advisers on Wednesday
recommended against expanding approval of an OSI Pharmaceuticals lung cancer
drug to patients who are already responding to chemotherapy. The drugmaker's shares fell almost 7 percent in afternoon
trading. A spokeswoman for the Food and Drug Administration said the
agency's panel of cancer experts voted 12-1 against using Tarceva as a
follow-up therapy in patients who have already undergone successful
chemotherapy. The drug is already approved as a treatment for patients whose
cancer has spread despite chemotherapy treatment. By The Associated Press The Dow Jones industrial average fell 10.88, or 0.1 percent, to
10,441.12, after rising as much as 58 points. The broader Standard & Poor's 500 index rose 1.25, or 0.1
percent, 1,109.18. It is up 22.8 percent for the year. The Nasdaq composite
index rose 5.86, or 0.3 percent, to 2,206.91. 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. In other Nymex trading in January contracts, heating oil climbed
6.25 cents to settle at $1.9658 a gallon while gasoline gained 2.88 cents to
settle at $1.8739 a gallon. Natural gas lost 6.1 cents to settle at $5.462 per
1,000 cubic feet.