Federal Reserve Chairman Ben Bernanke told lawmakers Wednesday the Fed is ready to act if the economy gets weaker. He warned them that allowing the nation to default on its debt would send “shock waves through the entire financial system.” Underscoring how fragile the economy remains two years after the Great Recession, Bernanke laid out three new steps the Fed could take, including a fresh round of government bond purchases designed to stimulate economic growth. “We have to keep all the options on the table. We don’t know where the economy is going to go,” Bernanke told the House Financial Services Committee.
Walgreen board OKs stock buyback
Drugstore operator Walgreen Co. said is raising its quarterly dividend by almost 29 percent to 22.5 cents and its board has authorized a new $2 billion stock buyback program. Walgreen said the 28.6 percent increase from a regular dividend of 17.5 cents is the largest hike in the company’s history. The dividend will be paid Sept. 12 to shareholders of record as of Aug. 19. The company also said it has completed the $1 billion stock buyback program it announced in October. It said its board has approved a new $2 billion program.
Job chairman promises plans
The chairman of President Barack Obama’s jobs and competitiveness council said Wednesday there is no magic potion to jobs creation, but the panel is devising pragmatic plans to put people back to work. General Electric Co. Chairman and CEO Jeffrey Immelt spoke Wednesday with employees during a visit to his company’s gas turbine plant in Greenville, S.C., which employs 3,300 people including 1,700 engineers. Immelt said his four months on the Obama advisory panel has taught him that even his company can be held accountable for where it creates jobs. He says the panel is working on devising a hundred different business plans for every sector of the economy, with practical steps to create jobs.
Chrysler to recall 250,000 Ram pickups
Chrysler is recalling nearly 250,000 Ram pickups because a bad part in the steering system can cause drivers to lose control of the truck. The Ram is Chrysler’s top-selling vehicle. The recall covers 242,780 Ram 1500, 2500 and 3500 pickups from the 2008 to 2011 model years. The National Highway Traffic Safety Administration said a part near the left front wheel can fracture, and potentially cause crashes. The problem happens mainly at low speeds in tight turns. Chrysler says drivers have reported a few minor crashes and one minor injury. Affected models include 2008-2011 Ram 2500 and 3500 four-wheel-drive pickups and 2008-2011 Ram 3500 two-wheel-drive chassis cabs made from Feb. 14, 2008 through March 28, 2011. Also affected are 2008 Ram 1500 mega cab four-wheel-drive models made from Feb. to August in 2008.
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