AP - The Federal Reserve reports that industrial production in September posted its biggest drop since late 1974, mostly reflecting disruptions from hurricanes Gustav and Ike.

AP - Consumer prices were flat in September as retreating costs for gasoline, clothes and new cars helped to offset rising prices for food, medical care and other things.

AP - The country has sunk deeper into an economic rut, the Federal Reserve reported Wednesday.

By JEANNINE AVERSA, AP Economics Writer 21 minutes ago WASHINGTON - The country hit fresh economic potholes Wednesday as President Bush sought to reassure anxious Americans that the government's latest rescue plan will eventually bring relief. A day after announcing a $250 billion cash infusion into the nation's banks in return for a stake in those institutions, Bush and his Treasury Secretary Henry Paulson said the plan should stabilize the system, induce banks to lend again, and — in time — help improve the economy.

AP - Businesses increased their inventories in August by the smallest amount in five months, a possible indication of concerns about the slowing economy.

29 minutes ago WASHINGTON - Retail sales fell off a cliff in September, plunging by the largest amount in three years as worried consumers shunned the malls and auto showrooms in the midst of the country's financial meltdown. In addition, the government says wholesale prices fell for the second straight month in September, driven by a sharp drop in energy costs.

AP - Government data show retail sales fell off a cliff in September, plunging by the largest amount in two years. Worried consumers shunned the malls and auto showrooms in the midst of the country's financial meltdown.

AP - The government says wholesale prices fell for the second straight month in September, driven by a sharp drop in energy costs.

19 minutes ago WASHINGTON - The government releases a raft of data today on the state of the economy — the Commerce Department reports on August business inventories and retail sales for September, while the Labor Department releases its Producer Price Index for September. The Commerce Department is expected to report that retail sales fell in September from the previous month by 0.

AP - Japan's current account surplus in August shrank 52.5 percent from a year earlier as the country's spending on oil imports soared, the Finance Ministry said Wednesday.

AP - New applications for unemployment benefits dropped last week from a seven-year high, the Labor Department said Thursday, though they remain at elevated levels that indicate recession.

AP - A key barometer of corporate capital spending in Japan plunged in August to its lowest level in more than five years, the government said Thursday, as business investment retreated sharply amid fears of a broader global slowdown.

AP - Americans' retirement plans have lost as much as $2 trillion in the past 15 months, Congress' top budget analyst estimated Tuesday.

AP - THE LATEST: Employers slashed 159,000 jobs in September, the most in more than five years and the ninth month in a row of nationwide job losses. So far this year, the economy has lost a staggering 760,000 jobs.

By JEANNINE AVERSA, AP Economics Writer 28 minutes ago WASHINGTON - Jobs are vanishing at the fastest pace in more than five years with pink slips likely to keep stacking higher in the months ahead, an urgent signal the country may be careening toward a deep and painful recession just as Americans prepare to elect a new president.

By JEANNINE AVERSA, AP Economics Writer 2 minutes ago WASHINGTON - Employers slashed payrolls by 159,000 in September, the most in more than five years, a worrisome sign that the economy is hurtling toward a deep recession. The Labor Department's fresh snapshot, released Friday, also showed that the nation's unemployment rate held steady at 6.

AP - There's no need to explain to Al Lubrano how deeply tight credit has wounded the economy.

AP - THE LATEST DATA: Signs emerged that tighter credit is harming the broader economy, as more people than expected sought unemployment benefits last week and factory orders plunged by the largest amount in two years.

AP - Government data show orders to U.S. factories plunged by the largest amount in nearly two years as the credit strains are hitting manufacturing with full force.

AP - Government data show new applications for unemployment benefits rose slightly last week to a seven-year high due to the impact of Hurricanes Ike and Gustav and a weakening economy.

AP - New applications for unemployment benefits rose slightly last week to a seven-year high due to a weakening economy and the impact of Hurricanes Ike and Gustav, the Labor Department said Thursday.

By MARTIN CRUTSINGER, AP Economics Writer 8 minutes ago WASHINGTON - Consumer spending in August turned in the weakest performance in six months, underscoring the threat the economy faces as the government's stimulus program fades into the past. The Commerce Department reported Monday that consumer spending was unchanged in August, even worse than the small 0.

By JEANNINE AVERSA, AP Economics Writer 4 minutes ago WASHINGTON - The economy's spring rebound turned out to be slightly less energetic than the government previously thought. And, the road ahead is likely to be rocky as the country gets pounded by the worst financial crisis in decades. The Commerce Department reported Friday that gross domestic product, or GDP, increased at a 2.

By MARTIN CRUTSINGER, AP Economics Writer 1 minute ago WASHINGTON - New home sales tumbled in August to the slowest pace in 17 years, while the average sales price fell by the largest amount on record, demonstrating the depth of the problem that Washington is trying to solve. The Commerce Department said Thursday that new homes sales fell by 11.

By MARTIN CRUTSINGER, AP Economics Writer 14 minutes ago WASHINGTON - Government data show sales of new homes dropped sharply in August, falling to the slowest pace in 17 years. The average sales price fell by the largest amount on record, too. The Commerce Department said Thursday that new homes sales fell by 11.

AP - Orders for big-ticket manufactured goods plunged in August by the largest amount in seven months as demand for both airplanes and autos fell sharply.

AP - New claims for unemployment benefits jumped last week to their highest level in seven years due to the impact of a slowing economy and Hurricanes Ike and Gustav, the Labor Department reported Thursday.

By JEANNINE AVERSA, AP Economics Writer 7 minutes ago WASHINGTON - Banks and Wall Street firms ramped up borrowing from the Federal Reserve's emergency lending facility over the past week, a fresh sign of the credit stresses plaguing the country. A Fed report released Thursday says commercial banks averaged $21.

AP - Government data show new applications for unemployment benefits rose unexpectedly last week due to the impact of Hurricane Gustav.

By MARTIN CRUTSINGER, AP Economics Writer 11 minutes ago WASHINGTON - Construction of new homes and apartments fell to the weakest pace in 17 years in August, far more than expected, but lower mortgage rates and tax credits have given builders some glimmers of hope of a possible rebound. Housing construction dropped a surprising 6.

AP - Construction of new homes and apartments fell to the lowest level in 17 years last month, showing the country is still gripped by a severe housing downturn that has triggered billions of dollars of losses and is reshaping the structure of U.S. finance.

AP - Government data show construction of new homes and apartments fell by a larger-than-expected amount in August, pushing activity to the lowest level in 17 years.

By MARTIN CRUTSINGER, AP Economics Writer 4 minutes ago WASHINGTON - The Federal Reserve kept a key interest rate unchanged Tuesday, saying that strains in financial markets have "increased significantly" but the inflation outlook remains uncertain. The Fed's action was a disappointment to investors who were hoping that severe stress in financial markets that surfaced in recent days would prompt the central bank to resume cutting interest rates.

By MARTIN CRUTSINGER, AP Economics Writer 1 minute ago WASHINGTON - Consumer prices in August posted the first monthly decline in nearly two years as Americans finally get a break from surging energy prices. The Labor Department reported Tuesday that consumer prices edged down 0. 1 percent last month, a significant improvement from a 1.

AP - Government data show the nation's industrial output plunged in August by nearly four times the amount that had been expected. It's the worst performance since Hurricane Katrina devastated the Gulf Coast in 2005.

By MARTIN CRUTSINGER, AP Economics Writer 9 minutes ago WASHINGTON - The largest drop in wholesale prices in nearly two years in August failed to spur consumers to spend more at the shopping malls, raising new worries about a possible recession as the temporary boost from tax rebate checks becomes a distant memory.

AP - The government reduces its forecast for this year's corn and soybean harvests due to dryer weather, potentially leading to higher prices.

AP - Wholesale inflation plunged in August by the largest amount in nearly two years, reflecting a steep drop in energy prices. But in less positive news, retail sales remained in the doldrums in August.

AP - Government data show wholesale inflation plunged in August by the largest amount in nearly two years, reflecting a steep drop in gasoline and other energy products.

AP - Japan's economy shrank at a 3 percent annual rate in the April-June quarter, the government said Friday in a lowered revision of an already pessimistic reading for the world's second biggest economy.

AP - Attorneys for a Louisiana pension fund have reached a $115 million settlement in a shareholder lawsuit against former executives of insurance giant American International Group Inc.

AP - Nearly one-third of the country's top executives expect to cut payrolls in the coming months as companies cope with a weakened economy dogged by housing, credit and financial problems.

By MARTIN CRUTSINGER, AP Economics Writer 14 minutes ago WASHINGTON - Rates on 30-year mortgages dropped sharply this week, falling to the lowest level in five months, as the government's dramatic takeover of mortgage giants Fannie Mae and Freddie Mac had the hoped-for impact of lowering mortgage rates.

By CHRISTOPHER S. RUGABER, AP Business Writer 13 minutes ago WASHINGTON - New applications for unemployment benefits fell less than expected last week, the U. S. government said Thursday, as the struggling economy continues to take a toll on workers. The trade deficit, meanwhile, surged to a 16-month high in July as oil prices hit record levels.

AP - America's trade deficit shot up in July to the highest level in 16 months as oil imports hit an all-time high, offsetting strong export growth. The deficit with China climbed to the second highest level on record.

AP - A key barometer of corporate capital spending in Japan fell for the second consecutive month in July, suggesting that manufacturers are bracing for slower demand in the months ahead.

AP - Japan's corporate goods prices rose 7.2 percent in August, driven up by the soaring costs of energy and raw materials, the Bank of Japan said Wednesday.

By JEANNINE AVERSA, AP Economics Writer 2 hours, 27 minutes ago WASHINGTON - The Federal Reserve has auctioned another $25 billion in loans to squeezed banks to help them overcome credit problems. The central bank on Tuesday released the results of its most recent auction. It's part of an ongoing program started in December that seeks to ease financial turmoil and credit stresses.

AP - Borrowing by consumers slipped in July to the weakest pace in seven months, reflecting a big slowdown in demand for car loans.

By MARTIN CRUTSINGER and ALAN ZIBEL, AP Business Writers 9 minutes ago WASHINGTON - Uncle Sam has just become the 800 pound gorilla in the U. S. mortgage market. The Bush administration's announced Sunday it was seizing troubled mortgage giants Fannie Mae and Freddie Mac in a bid to help reverse a prolonged housing and credit crisis.

AP - THE LATEST: The nation's unemployment rate zoomed to a five-year high of 6.1 percent August and employers slashed jobs for the eighth month in a row.

By JEANNINE AVERSA, AP Economics Writer 10 minutes ago WASHINGTON - The nation's unemployment rate bolted above the psychologically important 6 percent level last month for the first time in five years — and it's likely to go even higher in the months ahead, possibly throwing the economy into a tailspin as Americans pick a new president.

By JEANNINE AVERSA, AP Economics Writer 14 minutes ago WASHINGTON - The nation's unemployment rate zoomed to a five-year high of 6. 1 percent in August as employers slashed 84,000 jobs, dramatic proof of the mounting damage a deeply troubled economy is inflicting on workers and businesses alike.

AP - JOBLESS CLAIMS JUMP: The number of people filing new claims for unemployment benefits rose 15,000 to 444,000 last week. Economists expected that number to drop.

By CHRISTOPHER S. RUGABER, AP Business Writer 27 minutes ago WASHINGTON - Jobless claims rose unexpectedly last week, the government said Thursday, while companies responded to the slowing economy by producing more with fewer workers. It was not great news for American workers, who have seen jobs decline and wages erode, but it may signal less inflation worries for the Federal Reserve.

AP - Americans' productivity soared in the spring while labor costs declined, two welcome outcomes that should relieve concerns that inflation is getting out of hand.

AP - The number of newly-laid off workers seeking unemployment benefits jumped unexpectedly last week, the government said Thursday, reversing three weeks of declines.

AP - The European Central Bank and Bank of England will likely leave interest rates unchanged on Thursday as they face mounting inflation and slowing growth.

AP - The government says orders to U.S. factories rose by a larger-than-expected amount in July as demand for commercial aircraft, heavy machinery and iron and steel all posted solid gains.

By MARTIN CRUTSINGER, AP Economics Writer 4 minutes ago WASHINGTON - Construction spending took a bigger-than-expected tumble in July as housing activity dropped to the lowest level in seven years and nonresidential activity fell for the first time in seven months. The Commerce Department reported Tuesday that construction spending declined 0.

AP - Three years after being punished by Hurricane Katrina, utilities along the Gulf of Mexico were buffeted by 110 mph plus winds from Gustav with customer outages topping 500,000 and growing.

By JOHN PORRETTO, AP Business Writer 8 minutes ago HOUSTON - The punch of Hurricane Gustav appeared to fall softly Monday on the nation's vast energy complex along the U. S. Gulf Coast, and was overshadowed by growing anxiety over the state of the global economy. Even as 110 mph winds raked refineries that line the coast and rushed over the deep-water rigs off the shores of Texas and Louisiana, the price for a barrel of oil plummeted by more than $4 a barrel amid a broad sell-off in European and Asian markets.

By MARTIN CRUTSINGER, AP Economics Writer 4 minutes ago WASHINGTON - Consumer spending slowed to a crawl and personal incomes plunged in July, reflecting the waning impact of $93 billion in economic stimulus payments. The Commerce Department report Friday showed that consumer activity got off to a shaky start in the third quarter, raising new worries that the economy could falter in coming months due to rising unemployment, a continuing credit crisis and the deepest housing slump in decades.

By MARTIN CRUTSINGER, AP Economics Writer 9 minutes ago WASHINGTON - Personal incomes plunged in July while consumer spending slowed significantly as the impact of billions of dollars in government rebate checks began to wane. The Commerce Department reported Friday that personal incomes fell by 0.

By JEANNINE AVERSA, AP Economics Writer 45 minutes ago WASHINGTON - The economy shifted to a higher gear in the spring, growing at its fastest pace in nearly a year as foreign buyers snapped up U. S. exports and tax rebates spurred shoppers at home. The Commerce Department reported Thursday that gross domestic product, or GDP, increased at a 3.

AP - The government says the economy shifted to a higher gear in the spring, growing at its fastest pace in nearly a year. Foreign buyers snapped up U.S. exports and tax rebates spurred shoppers at home contributing to the rebound.

AP - The U.S. government says the number of people signing up for jobless benefits declined last week, the third straight drop from a six-year high reached earlier this month.

By MARTIN CRUTSINGER, AP Economics Writer 38 minutes ago WASHINGTON - U. S. factories saw a surprisingly hefty increase in their orders for big-ticket products in July, reflecting continued strength in export sales and a boost to business investment from the government's tax stimulus package.

By MARTIN CRUTSINGER, AP Economics Writer 1 minute ago WASHINGTON - Orders for big-ticket manufactured goods turned in a second consecutive strong monthly performance in July, a far bigger-than-expected gain led by a huge jump in demand for commercial aircraft. The Commerce Department said Wednesday that orders for durable goods rose 1.

AP - The Census Bureau reports that the number of people lacking health insurance dropped by more than 1 million in 2007, the first annual decline since the Bush administration took office.

By JEANNINE AVERSA, AP Economics Writer 28 minutes ago WASHINGTON - Sales of new homes posted an unexpected gain in July as heavily discounted properties enticed cautious house hunters to become home buyers. The Commerce Department reported that sales of new single-family homes rose by 2. 4 percent last month to a seasonally adjusted annual rate of 515,000 units, the most since April.

AP - U.S. home prices fell 4.8 percent in the second quarter compared with a year ago, a new record low, according to a government report.

By VICKI SMITH, Associated Press Writer 24 minutes ago REEDSVILLE, W. Va. - Mud is flying, smoke and steam are rising, and the deafening roar of V-8 engines all but drowns out 5-year-old Shelby Scott's screams. "Get out of there! Get out of there!" she yells at the driver of a battered blue Ford LTD spray-painted with the words "Hillbilly Beer Wagon.

AP - British economic growth ground to a halt between April and June, ending more than 15 years of continuous expansion, the government said Friday, as many fear the country is headed for recession.

AP - Mexico's economy expanded 2.8 percent in the second quarter, up slightly over 2.6 percent growth in the first three months of the year.

By CHRISTOPHER S. RUGABER, AP Business Writer 37 minutes ago WASHINGTON - The number of newly laid-off workers seeking unemployment benefits fell more than expected last week, the second straight drop from a six-year high, according to government data released Thursday. The Labor Department reported that applications for jobless benefits dropped to 432,000, down by 13,000 from the previous week.

AP - The government says the number of newly laid-off workers seeking unemployment benefits fell more than expected last week, the second straight weekly drop from a six-year high.

AP - Japan's trade surplus in July fell 86.6 percent from a year earlier as spending on imports grew because of higher prices for oil and other commodities, the government said Thursday.

AP - The number of U.S. workers killed on the job has dropped to a historic low.

AP - Construction of homes and apartments fell in July to the lowest level in more than 17 years, the government reported Tuesday.

By MARTIN CRUTSINGER, AP Economics Writer 5 minutes ago WASHINGTON - The government says wholesale inflation surged in July, leaving prices for the past year rising at the fastest pace in 27 years. The Labor Department reported that wholesale prices shot up 1. 2 percent in July, pushed higher by rising costs for energy, motor vehicles and other products.

AP - Industrial output rose in July at a slightly better pace than expected as a further rebound in the auto industry offset a big plunge in output at the nation's utilities.

By MARTIN CRUTSINGER, AP Economics Writer 34 minutes ago WASHINGTON - Inflation is running at the fastest pace in 17 years, the job market is under further strain and foreclosure filings are surging. A raft of gloomy economic data on Thursday represented a setback for those hoping to see signs of better times ahead and it may keep the Federal Reserve jammed between rising inflation and slowing growth.

AP - The job market showed continued strains on Thursday when government data said the number of newly laid-off workers filing applications for unemployment benefits fell less than expected last week.

1 minute ago WASHINGTON - Consumer prices shot up in July at twice the expected rate, pushed higher by surging energy and food costs. The latest surge left inflation running at the fastest pace in 17 years. The Labor Department reported Thursday that consumer prices rose by 0. 8 percent last month, twice the 0.

17 minutes ago WASHINGTON - The Labor Department is expected to report a rise in the consumer price index for July, but not as large as June's increase. The median estimate from economists surveyed by Thomson Financial/IFR was for a 0. 4 percent gain, and after food and energy prices are stripped out, a 0.

AP - Government data show businesses added to their inventories in June at the fastest pace in five months, a bigger gain than had been expected.

By MARTIN CRUTSINGER, AP Economics Writer 5 minutes ago WASHINGTON - Retail sales fell in July, the weakest performance in five months, as a variety of economic woes combined to blunt the impact of billions of dollars in government stimulus payments to U. S. households. The Commerce Department reported Wednesday that retail sales dipped 0.

AP - Japan's GDP contracted in the second quarter as the world's second largest economy succumbed to high oil prices and the prospects of a global slowdown.

AP - SURPRISING DROP: The June trade deficit declined by 4.1 percent to $56.8 billion, the lowest level in three months and a surprise to economists who were predicting the deficit would widen.

AP - Federal budget deficit soars in July, pushed higher by stimulus payments, failed banks

AP - The government says the federal budget deficit soared in July, pushed higher by economic stimulus payments and $15 billion in outlays to protect depositors at failed banks.

AP - Farmers are on pace to produce the second largest corn crop and fourth largest soybean crop in history, which may lead to lower prices for the key grains, the government said Tuesday.

AP - The U.S. trade deficit unexpectedly fell in June as exports advanced to an all-time high, offsetting another big surge in oil imports.

AP - The U.S. Department of Agriculture has raised its estimates of corn production and says improved weather has helped Midwestern farmers recover from June's devastating floods.

AP - U.S. trade deficit unexpectedly declines as exports hit all-time high, offsetting rise in oil.

AP - The Commerce Department releases its latest report today on the nation's trade deficit for June. While it had been narrowing, economists expect the trade deficit to jump in June because of the country's rising bill for foreign oil; crude didn't begin its pullback until mid-July.

AP - China's politically volatile consumer inflation rate eased in July, but prices rose by a still-high 6.3 percent over the same month last year, a government news agency reported Tuesday.

AP - The Federal Reserve is reporting that more banks are tightening lending standards on home mortgages, consumer and business loans as a deepening credit crisis exerts a heavier toll on the economy.

By JEANNINE AVERSA, AP Economics Writer 3 minutes ago WASHINGTON - The efficiency of America's workers grew at a slightly slower pace in the spring as companies sought to produce more with leaner work forces. Workers' compensation growth slowed, too. The Labor Department reported Friday that productivity — the amount an employee produces for every hour on the job — grew at an annual rate of 2.

AP - Venezuela's annual inflation climbed to 33.7 percent in July in metropolitan Caracas, but slowed its pace as price controls on food were eased and supply increased, the Central Bank said Thursday.

AP - Mexico's central bank says rising food and gasoline prices have pushed inflation to its highest level in three years.

AP - Consumers — fortified by the government's rebate checks — boosted their borrowing in June at the fastest pace in seven months.

AP - SIX-YEAR HIGH — New filings for unemployment benefits hit 455,000, the highest in more than six years.

By JEANNINE AVERSA, AP Economics Writer 22 minutes ago WASHINGTON - The nation's jobs market sent a fresh cry of distress as the number of newly laid off people unexpectedly hit the highest level in more than six years, a Labor Department report showed Thursday. The faltering economy and tight credit have forced companies to cut back, and as the job market shrinks, consumer spending may dwindle, too.

AP - Government data due out Thursday is expected to show that the number of newly laid off people filing claims for jobless benefits went down last week after spiking to a five-year high.

AP - The European Central Bank and the Bank of England both left their benchmark interest rates unchanged Thursday as they ponder how best to steer their economies between the shoals of mounting inflation and slowing growth.

AP - The European Central Bank and Bank of England will likely leave interest rates unchanged Thursday, as both banks consider how to steer their economies away from mounting inflation and slowing growth.

AP - South Korea's central bank said Thursday it raised its key interest rate by 0.25 percentage point to cope with spiraling inflation.

AP - A key barometer of corporate capital spending fell for the first time in three months in June indicating Japanese businesses are feeling the pinch of a sputtering global economy.

AP - Government finances

By MARTIN CRUTSINGER, AP Economics Writer 10 minutes ago WASHINGTON - For a second straight meeting, the Federal Reserve has decided to remain on the sidelines and leave interest rates alone. In the opinion of many economists, that stance may prevail not only for the rest of this year but well into 2009.

30 minutes ago NEW YORK (AFP) - The dollar received a boost Tuesday as the Federal Reserve kept its key interest rate on hold at 2. 0 percent citing lackluster economic growth and inflationary pressures. Some traders cautioned that the dollar could fall back in coming days on possible profit-taking, especially as eurozone rates are predicted to remain higher than US rates for the foreseeable future, offering a better potential return than funds invested in US markets.

31 minutes ago ATLANTA (Reuters) - Whole Foods Market (WFMI. O) posted a lower quarterly profit that missed Wall Street estimates on Tuesday, and suspended its dividend as the weak U. S. economy hurt sales, pushing down its shares 14 percent in extended trading. The natural foods grocery chain, which a year ago bought rival Wild Oats for $565 million, said annual sales growth would likely trail previous forecasts even though sales at established stores rose 1.

AP - Treasury bond prices showed little reaction Tuesday to the Federal Reserve's widely expected decision to leave short-term interest rates unchanged, but still closed down as investors moved money out of bonds to take part in a big rally on Wall Street.

by Justin Cole 20 minutes ago WASHINGTON (AFP) - The Federal Reserve, in a widely predicted move, kept its main interest rate unchanged at 2. 0 percent Tuesday citing concerns about sputtering economic growth and inflationary pressures. The Dow Jones Industrial Average rocketed 331 points to close at 11,615.

By MARTIN CRUTSINGER, AP Economics Writer 25 minutes ago WASHINGTON - Confronted by problems at every turn — rising unemployment, shaky growth, credit troubles and creeping inflation — the Federal Reserve left an important interest rate unchanged, taking a gamble that for now the best move was no move at all.

By MADLEN READ, AP Business Writer 11 minutes ago NEW YORK - Oil traders sent crude prices tumbling as low as $118 a barrel Tuesday on the growing belief that a U. S. economic slowdown and high energy costs are curbing consumer demand for gasoline and other petroleum products. Crude oil finished the day just above $119 a barrel — its lowest settlement price since early May.

16 minutes ago WASHINGTON (AFP) - The Federal Reserve opted to keep its key interest rate unchanged Tuesday at 2. 0 percent as the US economy throws off mixed signals. The Fed's decision to keep the federal funds rate on hold was widely expected by financial markets. "Tight credit conditions, the ongoing housing contraction, and elevated energy prices are likely to weigh on economic growth over the next few quarters," the central bank said in a statement.

By MARTIN CRUTSINGER, AP Economics Writer 10 minutes ago WASHINGTON - The Federal Reserve, confronted with the perils of a slumping economy and rising inflation, has decided for a second straight meeting to leave interest rates unchanged. The Fed announced Tuesday that it was keeping its target for the federal funds rate, the interest that banks charge each other, at 2 percent.

16 minutes ago LONDON (AFP) - The dollar held firm against the euro Tuesday, buoyed by a fall in oil prices and as investors awaited what was expected to be a Federal Reserve decision to leave US interest rates unchanged. The single European currency in late-day trade was at 1. 5469 dollars against 1.

by Justin Cole 27 minutes ago WASHINGTON (AFP) - Federal Reserve governors met Tuesday to mull interest rates and the health of the US economy with most economists predicting the Fed will keep rates on hold at 2. 0 percent for a second straight time. The central bank is due to announce its rate decision around 1815 GMT.

By ELLEN SIMON, AP Business Writer 5 minutes ago NEW YORK - The U. S. service sector contracted in July as new orders decreased and prices rose, stifling growth for truckers, retailers and insurers. Still, the reading was better than expected and stocks rose on the news. The Institute for Supply Management, a trade group of purchasing executives, said Tuesday its reading of the service sector was 49.

AP - Banker Elizabeth Duke was sworn in as a member of the Federal Reserve, which has been battling housing, credit and financial crises with a short staff.

Reuters - The service sector shrank slightly in July but by less than economists had expected, according to a report released on Tuesday, while inflation pressures moderated.

22 minutes ago LONDON (AFP) - The dollar rose against the euro but fell against the yen on Tuesday as dealers awaited the latest decision on American interest rates from the US Federal Reserve. In late morning London trading, the European single currency slid to 1. 5496 dollars from 1. 5580 late on Monday in New York.

By MARTIN CRUTSINGER, AP Economics Writer 6 minutes ago WASHINGTON - The Federal Reserve, caught between mounting job losses and rising inflation, is likely to sit tight and hope that the interest rate cuts it has already provided will be enough to heal a sick economy. Private economists believe that when the central bank concludes its one-day meeting on Tuesday, it will announce that its target for the federal funds rate, the interest that banks charge each other, will remain at 2 percent.

By Mark Felsenthal 10 minutes ago WASHINGTON (Reuters) - The U. S. Federal Reserve on Tuesday is expected to hold interest rates steady as dismal housing markets and tight credit weigh on the economy, while it signals lingering inflation concerns despite lower oil prices. A statement from the Fed's policy-setting Federal Open Market Committee outlining its decision and thinking on the economy is due around 2:15 p.

AP - The chairman of the Senate's investigations subcommittee said Monday he supports the Federal Reserve's proposed restrictions on credit card practices, but that the rules don't go far enough.

32 minutes ago LONDON (AFP) - Former US Federal Reserve chairman Alan Greenspan has warned that governments the world over may have to bail out more banks before the current financial crisis is over. Writing in the Financial Times on Tiesday, Greenspan also warned of the "awesome cost" of a move towards protectionism by governments, arguing that globalisation was "at the root" of economic growth around the world over the past decade.

FT.com - Cramer Day is upon us. This weekend marks the anniversary of former hedge fund manager Jim Cramer's outburst on CNBC that the Federal Reserve was "asleep" and that there was "Armageddon" in the fixed income markets.

by Veronique Dupont Sat Aug 2, 11:45 PM ET PARIS (AFP) - Any new attempt to grasp the grail of a world trade pact will probably have to wait until next year, after elections in the United States and India, despite some calls for more talks now, economists say. The head of the WTO, Pascal Lamy, who stressed after the collapse of the talks in Geneva last week that the gains made in nine days must remain on the table, revealed on Friday that talks at technical level were in fact continuing.

by Veronica Smith Fri Aug 1, 10:22 PM ET WASHINGTON (AFP) - US auto sales braked hard in July, automakers said Friday, as consumers avoided big-ticket spending in the face of rising unemployment, falling home prices and tight credit. New vehicle sales last month crawled at a seasonally-adjusted annual rate of 12.

1 hour, 40 minutes ago NEW YORK (AFP) - The dollar was mixed against other major currencies Monday one day ahead of a Federal Reserve meeting at which the US central bank is widely expected to keep its key interest rate unchanged. Analysts said the dollar lost some ground to the euro as a US government report showed that consumer spending moderated in June from the prior month, and as traders betted that US rates would remain below eurozone rates.

By TOM RAUM, Associated Press Writer 24 minutes ago LANSING, Mich. - Barack Obama put forward a broad energy plan Monday designed to end U. S. reliance on imported oil within 10 years and shore up his standing amid a tightening White House race and high-anxiety over gas prices. Obama's proposal, though, includes two significant reversals of positions he has taken in the past: He had steadfastly fought the idea of limited new offshore drilling and was against tapping the nation's emergency oil stockpile to relieve pump prices that have stubbornly hovered around $4 a gallon.

by Justin Cole Mon Aug 4, 10:55 AM ET WASHINGTON (AFP) - US consumer spending cooled in June and inflationary pressures accelerated strongly as higher food and energy costs stretched Americans' wallets, a government survey showed Monday. The monthly Commerce Department snapshot also showed that Americans' incomes moderated in June after both spending and income got a hefty boost in May from a vast emergency economic stimulus.

Mon Aug 4, 12:55 PM ET LONDON (AFP) - The dollar wilted against the euro Monday ahead of an expected Federal Reserve decision to leave US interest rates on hold and on news that US consumer spending cooled in June. The single European currency in late European trade was at 1. 5570 dollars against 1.

By Tamawa Kadoya Mon Aug 4, 11:58 AM ET NEW YORK (Reuters) - Wall Street widely expects the U. S. Federal Reserve to keep short-term benchmark interest rates unchanged on Tuesday as the central bank grapples with a faltering economy, shaky financial system and higher prices. While the federal funds rate will likely stay at 2 percent, more than one voting member of the rate-setting Federal Open Market Committee policy-makers may dissent and call for higher rates.

By STEVENSON JACOBS, AP Business Writer 2 hours, 17 minutes ago NEW YORK - Oil prices plunged to a three-month low Monday, briefly tumbling below $120 a barrel in another huge sell-off after Tropical Storm Edouard seemed less likely to disrupt oil and natural gas output in the Gulf of Mexico. Crude's steep drop — prices fell more than $5 at one point during the day — dragged down other commodities from corn to copper and mimicked the big nosedives of the past three weeks, adding to growing beliefs that the oil bubble is at least temporarily deflating.

By Ron Scherer and Alexandra Marks Mon Aug 4, 4:00 AM ET New York - It's likely to be a bumpy ride for the US economy between now and Election Day. With only three months to go before the Nov. 4 contest, many economists expect a dreary backdrop at the ballot box: a rising unemployment rate, falling home prices, and stressed consumer bank accounts.

AP - Treasury bond prices weakened Monday as investors prepared for this week's issuance of $27 billion worth of new government debt and the Federal Reserve's meeting on interest rates.

by Justin Cole Sun Aug 3, 2:43 PM ET WASHINGTON (AFP) - A powerful US central bank panel, led by Federal Reserve chairman Ben Bernanke, is widely expected to keep its key interest rate unchanged in the coming week amid growing economic uncertainty. Most economists are betting that the Federal Open Market Committee (FOMC) will keep the federal funds rate firmly anchored at 2.

10 minutes ago LONDON (Reuters) - More banks and financial institutions are likely to face insolvency and need bailouts before the global financial crisis is over, according to former Federal Reserve chairman Alan Greenspan. Writing in the Financial Times, Greenspan called the current crisis -- which started a year ago -- a once or twice in a century event and said insolvency would only end once U.

By JEANNINE AVERSA, AP Economics Writer Mon Aug 4, 6:35 AM ET WASHINGTON - An ugly brew of rising unemployment, spiking foreclosures and gyrating energy prices is plaguing the country and making life difficult for Federal Reserve Chairman Ben Bernanke as he tries to right the economy. Bernanke and his central bank colleagues are faced with dueling problems: weak economic growth and advancing inflation.

Sat Aug 2, 10:09 PM ET TOKYO (AFP) - The pre-tax profit of major Japanese companies fell 15 percent year on year in the April-June quarter, weighed down by the US economic slowdown and price hikes, a survey showed on Sunday. The survey was conducted by the Nikkei business daily, covering 685 companies that had reported their quarterly earnings by Friday, or about 40 percent of all listed firms in Japan, excluding financial entities and those listed on the markets for start-ups.

By Caren Bohan 27 minutes ago LANSING, Michigan (Reuters) - Barack Obama proposed on Monday tapping the strategic oil reserve to help lower gas prices, a reversal of an earlier stance, and called rival John McCain a tool of big oil companies as rising energy costs took center stage in the U. S. presidential campaign.

By DAVE CARPENTER, AP Business Writer 19 minutes ago CHICAGO - Just when motorists were starting to adjust to exorbitant gas prices, they face the prospect of much higher costs, fewer choices and a dearth of financing options if they want to lease their next car. A shakeout in the auto leasing industry that revved up with Chrysler's exit from the leasing business last week is expected to be felt quickly by consumers who enjoy switching vehicles every two or three years without down payments or other ownership obligations.

AP - The decision-making process on whether to lease or buy a car has been altered by automakers' scaling back their leasing operations under pressure from high gas prices, making leases less available and much more expensive in many cases.

By TIM PARADIS, AP Business Writer 23 minutes ago NEW YORK - Stocks pulled off their lows Monday after a big drop in oil prices offset some concerns about a government report on inflation. Light, sweet crude fell $4. 15 to $120. 95 a barrel on the New York Mercantile Exchange. The Commerce Department said an inflation gauge tied to consumer spending rose by a sharp 0.

Reuters - The specter of stagflation will likely keep the U.S. Federal Reserve, the European Central Bank, and the Bank of England from changing short term interest rates this week, and their hands may be tied for some time as economic growth slows but inflation remains high.

1 hour, 15 minutes ago NEW YORK (Reuters) - Planned layoffs at U. S. companies jumped 26 percent in July from June, depicting further deterioration in the labor market, a report showed on Monday. Planned layoffs at U. S. companies totaled 103,312 in July, compared with June's 81,755, employment consulting firm Challenger, Gray & Christmas Inc said.

AP - Orders to U.S. factories shot up at the fastest pace in six months in June, reflecting big increases in petroleum prices and heavy demand for military equipment.

By IVAN MORENO, Associated Press Writer 14 minutes ago DENVER - High gas prices almost killed the lifeline to the city for a group of mountain commuters. Park County bus riders recently had to plead with city officials to keep their route running, arguing that a daily 80-mile car trip would hurt riders financially.

by Karin Zeitvogel 26 minutes ago WASHINGTON (AFP) - Some Americans are finding that while high oil prices leave them with a slimmer wallet, it could also leave them with slimmer waists as they forsake their cars and take to their bikes, public transportation or feet to get around. In the United States, some experts and ordinary citizens are focusing on the benefits of high energy costs to forget about the money pinch they feel every time they fill up their cars or hop on a plane.

Reuters - Analysts at Standard & Poor's Rating Services warned against mortgage-related debt products in internal e-mails that, in one case, called the complex financial deals "ridiculous," the Wall Street Journal reported in its weekend edition.

Investor's Business Daily - The jobless rate hit a four-year high in July as employers shed jobs for a seventh straight month, the Labor Department said Friday, as the economy teeters on the edge of a recession.

By Poornima Gupta 38 minutes ago DETROIT (Reuters) - U. S. auto sales plunged to a 16-year-low in July, led by a 27 percent drop at General Motors Corp (GM. N), as high gas prices and tight credit sent the industry into a tailspin. The sales decline was steeper than analysts had expected and showed an accelerating downturn in the world's largest vehicle market as Americans abandoned the SUVs and trucks they had favored for more than a decade.

By Jim Christie 11 minutes ago SAN FRANCISCO (Reuters) - California's battered homes market may be hitting bottom, suggesting a national housing recovery may follow, veteran banking analyst Charles Peabody said on Friday, citing a rebound in home sales as renters become owners. In many parts of California, buying a house, especially at auction, makes more financial sense than paying rent so home sales have been on the rise recently.

By JEANNINE AVERSA, AP Economics Writer 3 minutes ago WASHINGTON - Stores, factories and other businesses large and small showed workers the door last month, sending unemployment to its highest rate in four years and adding to the evidence an economic recovery remains far off. Employers clamped down on hiring and cut 51,000 jobs in July, the Labor Department said Friday.

By Glenn Somerville 9 minutes ago WASHINGTON (Reuters) - The U. S. unemployment rate hit its highest in four years during July as employers cut jobs for a seventh straight month, though less severely than predicted, a Labor Department report showed on Friday. The rising toll of job losses and plunging new-car sales in July fueled worry that a recession may be unavoidable and helped drive stock prices lower again.

By Poornima Gupta 19 minutes ago DETROIT (Reuters) - U. S. auto sales tumbled in July, reflecting a deepening downturn in the industry, with tight credit and weak consumer confidence driving General Motors Corp (GM. N), Ford Motor Co (F. N) and Toyota Motor Corp (7203. T) to post double-digit declines.

Reuters - Among U.S. households receiving a federal tax rebate, about one-in-four planned to spend the money sometime in the next year or so, with most planning to pay debts or add to their savings and reserves, according to a Reuters/University of Michigan poll released on Friday.

By Alister Bull 5 minutes ago WASHINGTON (Reuters) - It really is the economy, stupid! Economic models that have correctly predicted the winner of almost all post-war U. S. presidential elections say recession fears will secure a victory for Barack Obama in November. Three separate studies showed the Democratic presidential hopeful winning between 52 and 55 percent of the popular vote on November 4, based on current gloomy economic estimates.

AP - Construction spending fell for the 11th time in the past 13 months in June as continued steep declines in housing activity offset strength in nonresidential building activity.

Reuters - Factory activity was unchanged in July from June while inflation pressures moderated, according to a report released on Friday.

AP - U.S. manufacturers' business was flat in July, as higher prices and tight credit kept them from expanding, but exports propped them up.

By Glenn Somerville 3 minutes ago WASHINGTON (Reuters) - The U. S. unemployment rate hit its highest level in four years during July as employers cut non-farm jobs for a seventh straight month, though less severely than predicted, a Labor Department report on Friday showed. The jobless rate climbed to 5.

Reuters - Factories across the developed world and emerging markets are rapidly gearing down production responding to fading demand but are raising prices aggressively, spelling more trouble for the world's central banks.

By Rhys Jones 6 minutes ago LONDON (Reuters) - British Airways' (BAY. L) profit collapsed in the first quarter as high oil prices, an economic slowdown and weak consumer confidence combined in what the airline called the worst trading conditions it had ever experienced. The British carrier reduced its annual revenue target to 3 percent from 4 percent previously and said it was focused on "achieving a small profit in the current financial year" and sustainable profitability in the medium and long-term.

Reuters - British Airways posted an 88 percent fall in first quarter pretax profit on Friday due to spiraling oil prices, the economic slowdown and weaker consumer confidence.

Investor's Business Daily - The economy grew less than forecast in the spring as slumping inventories and home building tempered gains in exports and consumer spending, the Commerce Department said on Thursday.

Reuters - As high gas prices force U.S. drivers to share city streets with a growing legion of cyclists, tensions are mounting between the two groups who blame each other for failing to find a peaceful balance.

By JEANNINE AVERSA, AP Economics Writer 5 minutes ago WASHINGTON - The prospects for a quick economic recovery dimmed Thursday, with new data showing the economy grew at a slower-than-expected rate this spring despite some oomph from tax rebate checks — and actually shrank late last year. Democrats called for a second economic stimulus package, while the Bush administration said the growth was proof the checks helped.

By JEANNINE AVERSA, AP Economics Writer 10 minutes ago WASHINGTON - The Federal Reserve says banks and Wall Street firms stepped up their borrowing over the past week from its emergency lending program. A Fed report released Thursday said commercial banks averaged $17. 5 billion in daily borrowing over the past week.

By TIM PARADIS, AP Business Writer 7 minutes ago NEW YORK - Wall Street is finishing the day with a sharp loss, after weak readings on the economy and the job market touched off renewed concerns about the financial health of businesses and consumers. The Dow Jones industrial average is closing down more than 200 points at the 11,379 level.

4 minutes ago NEW YORK (Reuters) - Stocks fell on Thursday, led by Exxon Mobil after its earnings fell short of Wall Street's expectations and as disappointing economic data revived fears of a U. S. recession. According to the latest available data, the Dow Jones industrial average (. DJI) was down 205.

Reuters - Standard & Poor's on Thursday cut ratings on all three major U.S. automakers deeper into junk status, citing expected losses due to higher gas prices and a weakening U.S. economy.

By TIM PARADIS, AP Business Writer 6 minutes ago NEW YORK - Stocks mostly declined Thursday after a weaker-than-expected reading on the nation's economy and troubling news on jobs touched off renewed concerns about businesses and consumers. But a $4. 5 billion cash offer from Bristol-Myers Squibb Co.

AP - Treasury Secretary Henry Paulson says the $168 billon government stimulus effort has proven to be a timely support for the economy and will continue to assist growth in the second half of this year.

By TIM PARADIS, AP Business Writer 23 minutes ago NEW YORK - Stocks mostly retreated Thursday after a weaker-than-expected reading on the nation's economic output and a surprise jump in weekly unemployment claims stirred concern about the health of businesses and consumers. But a $4. 5 billion cash offer from Bristol-Myers Squibb Co.

By TIM PARADIS, AP Business Writer 20 minutes ago NEW YORK - Stocks are opening lower after a weaker-than-expected reading on the nation's economic output and an unexpected jump in weekly unemployment claims stirred concern about the health of businesses and consumers. The Commerce Department's report Thursday that gross domestic product grew at a 1.

12 minutes ago WASHINGTON (Reuters) - Expansion accelerated modestly in the second quarter as government stimulus payments helped consumers add more buying punch to the economy, a Commerce Department report on Thursday showed. Gross Domestic Product or GDP grew at a 1. 9 percent annual rate, up from a revised 0.

AP - The number of people filing claims for unemployment benefits jumped last week to the highest level in five years, reflecting in large part a new government outreach effort to locate people eligible for benefits.

By Walter Brandimarte 7 minutes ago NEW YORK (Reuters) - Stock index futures were higher on Thursday after positive quarterly earnings from Motorola and on expectations for an improvement in a key second-quarter reading of U. S. gross domestic product. A decline of about 80 cents in U. S. crude oil prices also supported investor sentiment, as well as news that Starbucks Corp stuck by its 2009 profit target.

Reuters - Finance company GMAC posted a $2.48 billion second-quarter loss on Thursday, as rising gas prices forced write-downs of truck and sport-utility vehicle leases, and losses in its mortgage lending unit soared.

Reuters - From Britain to Japan, the world's wealthiest economies produced yet more evidence on Thursday that their fortunes are fading fast, and in parts furiously.

Reuters - A gauge of online labor demand in the U.S. fell in July as a seasonal decline met shrinking online job availability in a majority of industries, occupations, regions and local markets, a private research group said on Thursday.

By TIM PARADIS, AP Business Writer 8 minutes ago NEW YORK - U. S. stocks are heading for a lower open after a weaker-than-expected reading on the nation's economic output. The Commerce Department's report Thursday that the economy grew at a 1. 9 percent pace in second quarter has disappointed investors who had been expecting growth would be more than 2 percent.

AP - Wages and benefits paid to U.S. workers rose by a moderate amount in the spring that should not set off any inflation concerns at the Federal Reserve.

AP - Economic growth picked up in the second quarter as tax rebates energized consumers. The rebound followed a treacherous patch where the economy jolted into reverse at the end of 2007.

Reuters - The number of U.S. workers filing new claims for jobless benefits leapt 44,000 last week, government data on Thursday showed, but a Labor Department official said the increase was at least partly due to special factors.

40 minutes ago (Reuters) Dow Jones futures were down 0. 3 percent on Thursday at 5:25 a. m. EDT and S&P 500 futures were also lower by 0. 2 while Nasdaq futures were down by 0. 1 percent. Close to 40 S&P 500 (. SPX) companies were due to report on Thursday; among them oil major Exxon Mobil (XOM. N), online travel agency Expedia (EXPE.

By TIM PARADIS, AP Business Writer 2 minutes ago NEW YORK - U. S. stocks headed for a moderately lower open Thursday as investors await a key reading on the nation's economic output to determine whether a two-day rally will continue. Wall Street expects the Commerce Department to report that gross domestic product advanced in the second quarter as consumers cashed tax rebate checks.

Time.com - The Treasury Secretary made his reputation as a Wall St. dealmaker, but heading off a recession will be a tougher job

By Steven C. Johnson 13 minutes ago NEW YORK (Reuters) - The Dow industrials and S&P 500 rose on Wednesday as a surprising increase in private-sector employment and central bank efforts to boost liquidity in stormy financial markets offset a surge in oil prices. Bank stocks rose after the Federal Reserve and other central banks said they would boost measures to stabilize financial companies struggling with credit losses.

By MICHAEL GORMLEY, Associated Press Writer 58 minutes ago ALBANY, N. Y. - Gov. David Paterson said Wednesday he wants to freeze hiring and cut state spending by an additional 7 percent to shore up a state economy that his budget director said is officially in recession. Paterson said a budget deficit will hit $26.

By JEANNINE AVERSA, AP Economics Writer 59 minutes ago WASHINGTON - Focused on getting the nation's credit gears smoothly working again, the Federal Reserve is letting Wall Street firms draw emergency loans into next year and giving financial companies more options to help them overcome credit problems.

AP - The Federal Reserve said Wednesday it is extending its emergency borrowing program to Wall Street firms and is taking other steps to ease a severe credit crunch that has hobbled the national economy.

BusinessWeek Online - Treasury Secretary Henry Paulson announced a plan on Monday to encourage banks to issue a new form of debt known as a covered bond. Paulson said that if investors buy enough of these bonds, which are generally considered safer than many of the risky mortgage-backed securities that proliferated during the housing boom, banks will feel more comfortable financing mortgages again. That, along with various other measures, could restart the stalled housing market, Paulson said. ...

Reuters - Applications for U.S. home mortgages dropped to their slowest pace since December 2000 as loan rates hovering near one-year highs compounded the housing market's woes, according to data from an industry group on Wednesday.