Fed: Status quo on interest rates
Published 10:55 am Wednesday, August 6, 2008
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. The next direction for rates probably is up but that’s not likely until next year. Fed Chairman Ben Bernanke and all but one of his central bank colleagues agreed Tuesday to leave its key rate alone at 2 percent for the second straight meeting. In turn, the prime lending rate for millions of consumers and businesses remained at 5 percent. The prime rate applies to certain credit cards, home equity lines of credit and other lines.
Cardiac Science gets big sale
Cardiac Science Corp. of Bothell said American Electric Power is purchasing 350 automated heart defibrillators for installation at company facilities located in 12 states. The utility already has installed 500 of Cardiac Science’s defibrillators. John Hinson, Cardiac Science’s president and chief executive officer, said he expects larger orders to continue coming into his company as more companies realize the value of installing defibrillators in the workplace.
Airlines better at arriving on time
The Transportation Department said Tuesday that the nation’s airlines were on time more often in June compared with a year ago, and customers filed fewer complaints about their baggage. The DOT’s Bureau of Transportation Statistics said that 1.8 percent of domestic commercial flights were canceled in June, down from 2.7 percent in June 2007 but higher than the 1 percent cancellation rate posted in May 2008. The 19 carriers reporting on-time performance recorded an overall on-time rate of 70.8 percent in June, higher than June 2007’s 68.1 percent but down from May 2008’s 79 percent.
Weyerhaeuser to cut 1,500 jobs
Weyerhaeuser Co. on Tuesday said it would cut about 1,500 employees, or 6.3 percent of its global work force, as part of an ongoing plan to scale back operations to focus on timberlands and wood products. About 1,000 of the job cuts will take place in Weyerhaeuser’s headquarters in Federal Way, where 2,500 people work. The rest are at Weyerhaeuser offices throughout the country.
Wendy’s sales below expectations
Wendy’s International Inc. reported lower second-quarter profits Tuesday on expenses from restructuring and a special committee formed a year ago to seek a possible sale. The results missed Wall Street expectations. Wendy’s, the nation’s third-largest burger chain, earned $19.9 million, or 22 cents per share, down from $29.3 million, or 33 cents per share, a year ago. Revenue edged lower to $632 million from $633 million. Excluding special expenses, earnings from continuing operations came in at 30 cents per share, versus 41 cents per share in the same period a year ago, and below the 37 cents per share that analysts had been expecting.
From Herald staff and news services
