Members of Congress sharply questioned Federal Reserve Chairman Ben Bernanke on Wednesday over whether the Fed’s policies are raising the risk of higher inflation in the months ahead. House Budget Committee Chairman Paul Ryan, R-Wis., said he is concerned that the Fed won’t be able to detect inflati
on until “the cow is out of the barn” and inflation already is spreading dangerously through the economy. Bernanke acknowledged that inflation is surging in emerging economies. But he downplayed the risks to the U.S. economy, even as lawmakers expressed concerns about rising gasoline and food prices. Inflation in the United States remains “quite low,” Bernanke said. He blamed higher prices on strong demand from fast-growing countries such as China– not the Fed’s policies to stimulate the economy, including buying $600 billion worth of Treasury debt.
Whole Foods beats profit expectations
Whole Foods Market Inc. said Wednesday that its comeback continued in the first quarter with a 79 percent increase in net income, and the natural and organic grocery chain raised its full-year guidance. Whole Foods said it earned $88.7 million, or 51 cents per share, for the 16 weeks that ended Jan. 16. That’s up from $49.7 million, or 32 cents per share, a year earlier. The results beat analysts’ average forecast for earnings of 46 cents per share, according to data from FactSet. Whole Foods raised its forecast for full-year earnings, based on the strong sales trends and signs of growing consumer confidence, to a range of $1.76 to $1.80 per share from $1.66 to $1.71 per share.
Cisco’s share price falls with profits
Cisco Systems Inc., the world’s largest maker of computer-networking equipment, said Wednesday that its net income fell 18 percent in the latest quarter, and it provided a disappointing forecast for the current quarter. Cisco’s stock plummeted in after-hours trading, replaying its movement after the company reported its earnings for the previous quarter. The shares were down $2.14, or 9.7 percent, to $19.89. Cisco said it earned $1.5 billion, or 27 cents per share, in its fiscal second quarter, which ended Jan. 29. That compares with $1.9 billion, or 32 cents per share, in the same quarter a year ago. Cisco earned 37 cents per share, 2 cents more than the average of analysts polled by FactSet.
Ford sues Ferrari over F150 racer
Ford Motor Co. has sued Ferrari in federal court in Detroit, saying the sports car maker has violated its trademark over the pickup truck name F-150. The suit is based on Ferrari’s naming of its new Formula 1 racing car the “F150,” and its creation of the website www.ferrarif150.com. Dearborn-based Ford says in Wednesday’s filing that its trademark is being harmed, and the suit asks a judge to block Ferrari from using the trademark in the U.S. Ford also seeks unspecified damages from Ferrari.
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