Federal Reserve says it will continue stimulus
WASHINGTON – The Federal Reserve says the U.S. economy still needs support from the Fed’s low interest-rate policies because it is growing only moderately.
In a statement released Wednesday after a two-day policy meeting, the Fed says it will keep buying $85 billion a month in bonds to keep long-term interest rates low and encourage more borrowing and spending.
It also says it plans to hold its key short-term rate at a record low near zero at least as long as the unemployment rate stays at more than 6.5 percent and the inflation outlook remains mild.
The Fed again noted that budget policies in Washington have restrained growth, but it made no mention of the 16-day government shutdown.
New York City raises age for smoking to 21
NEW YORK – Smokers younger than 21 in the nation’s biggest city will soon be barred from buying cigarettes after the New York City Council voted overwhelmingly Wednesday to raise the tobacco-purchasing age to higher than all but a few other places in the United States.
City lawmakers approved the bill – which raises from 18 to 21 the purchasing age for cigarettes, certain tobacco products and even electronic-vapor smokes – and another that sets a minimum $10.50-a-pack price for tobacco cigarettes and steps up law enforcement on illegal tobacco sales.
“This will literally save many, many lives,” said an emotional City Councilman James Gennaro, the bill’s sponsor, whose mother and father died from tobacco-related illnesses. “I’ve lived with it, I’ve seen it ... but I feel good today.”
Israel announces plan to expand settlements
JERUSALEM – Israel announced plans Wednesday to build more than 1,500 homes in Jewish settlements in east Jerusalem and the West Bank, dealing a setback to newly relaunched peace efforts hours after it had freed a group of long-serving Palestinian prisoners.
The construction plans drew angry condemnations from Palestinian officials, who accused Israel of undermining the U.S.-led talks by expanding settlements on the lands where they hope to establish an independent state.
Israel had freed the 26 Palestinian prisoners as part of a U.S.-brokered agreement to restart the talks. The construction was meant to blunt anger over the release of the prisoners, all of whom had been convicted of murder in the deaths of Israelis.
Associated Press
