Reports show growth but at sluggish pace
WASHINGTON - A mixed picture of the economy emerged one day before key midterm elections that have focused on the nation's financial health.
Spending by Americans slowed in September and their incomes fell for the first time in more than a year. At the same time, manufacturing activity grew by the most in five months, and the weak construction industry showed a little life.
The new data reported by the government and a private trade group Monday suggest the economy is growing, albeit at an anemic pace.
Fed likely to increase purchases of gov't bonds
WASHINGTON - With unemployment at 9.6 percent, the Federal Reserve is all but certain this week to launch a new program to try to fortify the economy. Yet the program isn't expected to do much to ease a crisis that's left nearly 15 million people jobless.
People are also reading…
Today, Chairman Ben Bernanke opens a two-day meeting where he will help craft a Fed plan to buy more government bonds. The idea is for those purchases to further drive down interest rates on mortgages and other loans. Cheaper loans might then lead people to spend more. The economy would benefit. And companies would step up hiring.
That's the plan, anyway. But many question whether it will provide much benefit.
AIG generates $37B for bailout repayment
NEW YORK - AIG said Monday it raised nearly $37 billion from the divestiture of two foreign insurance units and will use that money to repay a government bailout.
The repayment will include the government's taking a bigger stake in the company and eventually needing to sell common stock in AIG to recoup its money, similar to what it is doing right now with Citigroup Inc. shares.
Rates dip at T-bill auction
WASHINGTON - Interest rates on short-term Treasury bills fell in Monday's auction to the lowest levels since June.
The Treasury Department auctioned $29 billion in three-month bills at a discount rate of 0.125 percent, down from 0.130 percent last week. Another $28 billion in six-month bills was auctioned at a discount rate of 0.155 percent, down from 0.170 percent.
Discount rates reflect that the bills sell for less than face value.
National Enquirer owner to file for bankruptcy
After years of dishing tales of celebrity folly and misfortune, The National Enquirer's publisher has fallen on hard times of its own.
American Media Inc. plans to seek federal bankruptcy protection in the next two weeks or so. The privately held company announced its intention Monday.
The Associated Press