Federal Reserve Chairman Ben Bernanke warned Wednesday that some of the problems that are slowing the U.S. economy could persist into next year.
Bernanke said at a news conference that the slowdown could be due, in part, to the depressed housing market and other factors that aren’t likely to fade soon.
Bernanke’s comments came as the Fed lowered its forecast for growth and raised its expectation for unemployment this year. Although the Fed said it is ending its $600 billion Treasury bond buying program, Bernanke didn’t rule out another program of bond purchases if the economy deteriorates further.
“We are prepared to take additional actions if conditions warrant,” he said.
FedEx outlook sunny as profit soars 33%
FedEx Corp. expects the global economy to hit a higher gear this year as fuel prices retreat from three-year highs and the Japanese economy recovers. FedEx said the U.S. economy will improve as well.
The world’s second-largest package delivery company issued the economic outlook Wednesday as it reported a 33 percent increase in earnings for the quarter ended May 31.
The Memphis, Tenn., company is considered a bellwether of global economic health among analysts and economists because it ships a wide variety of goods.
FedEx said it expects the U.S. economy to grow 2.5 percent this year and 3 percent in 2012.
Oil prices climb from 4-month low
Oil prices rose Wednesday for the second straight session after sinking to four-month low earlier in the week.
Benchmark oil for August delivery gained $1.24 to settle at $95.41 a barrel on the New York Mercantile Exchange. U.S. crude futures had slumped almost 11 percent to $91.14 a barrel on Monday, the lowest since February.
The drop was attributed to Saudi Arabia’s recent pledge to keep markets supplied after a meeting of the Organization of Petroleum Exporting Countries broke up June 8 without an agreement on production levels.
SEC approves rules to inspect hedge funds
Hedge funds will face closer scrutiny under rules approved Wednesday that seek to protect investors from excessive risks and prevent another financial crisis.
The rules were mandated under the financial overhaul law passed last year. They require hedge funds and private equity funds to open their books to periodic inspections by the Securities and Exchange Commission. They also force the funds to disclose information about their operations, finances and investors.
Hedge funds are investment pools that collect money from pension funds, endowments and wealthy individuals.
Pence, Ball State plan job fair July 22
Rep. Mike Pence, R-6th, announced this week he and Ball State University will be hosts for a July 22 job fair at Ball State’s Worthen Arena.
The fair will be 10 a.m. to 4 p.m. Pence, who plans to run for governor in 2012, said more than 30 employers have indicated they will participate.
For information, call 765-747-5566 or 1-800-382-8655.
