WASHINGTON (FWN) - The US economy was weak through mid-October, as some industries rebounded from Sept 11 but others did not, according to the Federal Reserve's Beige Book survey of current economic conditions. The tragedy of Sept 11 was followed by "a short period of sharply reduced activity," the Fed said.
"Business activity recovered quickly from some aspects of the shock, such as reduced air cargo capacity, but longer-term effects are more difficult to assess," the beige book said.
Retail sales softened in September and early October, the survey found. In addition, both shipments and orders for a broad spectrum of manufactured goods - ranging from steel to semiconductors - were weak in most of the country. Construction generally slowed during September and October.
WASHINGTON - The House of Representatives approved a series of measures expanding police and federal surveillance powers aimed at boosting the country's fight against terrorism.
The bill was passed by 357-66 votes. The Senate could vote on the measure as early as Wednesday, after which it will be sent to President George Bush for his signature.
WASHINGTON - The House of Representatives passed legislation by a vote of 216-214 that aims to stimulate the beleaguered US economy with a variety of tax cuts slated to cost 100 bln usd next year.
"This is the right package and the right time," said California Republican William Thomas, chairman of the House Ways and Means Committee and the bill's author.
The Senate has yet to take up the measure, and Senate Finance Committee Chairman Max Baucus of Montana yesterday announced his own 70 bln usd stimulus package that is evenly split between 35 bln usd in tax cuts and 35 bln usd in spending on health and unemployment insurance.
TOKYO - Bank of Japan governor Masaru Hayami said the bank has exhausted the possibilities of easing monetary conditions further.
"The BoJ has exhausted the room for further easing; monetary easing alone is not enough to overcome economic difficulties," Hayami told the government's Economic and Fiscal Policy Committee.
"The BoJ will release the forecasts for the economy and price levels for this fiscal year and next on October 30. We are closely watching whether weakness in demand is increasing downward pressure on prices," he said.
WASHINGTON - The euro's value weakened in the first half as investors recognised Europe's vulnerability to the global slowdown, the Treasury Department said in its semi-annual foreign exchange report.v Expectations of stronger growth in the euro area had "buoyed demand" for the
euro in the fourth quarter of last year, but "the euro experienced a general depreciation (in H2 2001) as evidence accumulated of European vulnerability to the global slowdown," the Treasury said in the report.
WASHINGTON - The threat of terrorism could reverse the gains from globalisation, especially if it hampers freedom of movement across borders, according to Federal Reserve board chairman Alan Greenspan. "A global society reflects an ever more open economic environment in which participants are free to engage in commerce and finance wherever in the world the possibilities of increased value added arise," Greenspan said in a speech prepared for delivery to the Institute for International Economics.
WASHINGTON - Investigators Wednesday found traces of the deadly anthrax bacteria in a fifth site around the US Capitol, an elevator bank in a Senate office building, the US Capitol Police said. Traces of anthrax werefound in the first-floor freight elevators of the Hart Senate Office Building, one of two Senate buildings which remain closed, according to Capitol Police Lieutenant Dan Nichols.
BETHLEHEM, West Bank - A Palestinian policemen was shot dead by Israeli gunfire early Thursday in the Palestinian West Bank town of Bethlehem, one of several invaded by Israeli forces in a week of military action that sparked strong international criticism.