Economy News

WASHINGTON (Reuters) - Senate Republicans blocked a $30-billion plan to help community banks boost lending to small businesses, dealing a blow to President Barack Obama's election-year battle to reduce unemployment. Full Story »

WASHINGTON - Toxic assets the government bought during the bailouts of American International Group Inc. and Bear Stearns are finally gaining value, the Federal Reserve Bank of New York said Thursday. Full Story »

PHOENIX - The U.S. Air Force has chosen bases in Arizona, Florida, Utah and Vermont as homes for the military's F-35 Joint Strike Fighter, prompting applause from officials banking on the pricey new combat jets to supercharge their communities' economies. Full Story »

Initial jobless claims drop to 457,000 Full Story »

WASHINGTON (Reuters) - Federal Reserve officials clashed on Thursday over whether the central bank should be more aggressive in supporting the stumbling economy and one said the Fed's current policy may be contributing to worryingly low levels of inflation. Full Story »

WASHINGTON (Reuters) - New claims for unemployment benefits slipped last week, but stayed at a stubbornly high level that underscored the labor market recovery was having trouble gaining traction. Full Story »

WASHINGTON - Debate is intensifying at the Federal Reserve over how best to cope with a weakening recovery, with momentum growing for a concrete plan to prevent a backslide into recession. Full Story »

WASHINGTON (AFP) - The US economy risks "Japanese-style" stagnation, a top Federal Reserve official warned Thursday, as a key economic report was expected to show the recovery is losing pace. Full Story »

A look at economic developments and activity in major stock markets around the world Thursday: Full Story »

JOBLESS CLAIMS DROP: New requests for unemployment benefits dropped last week by 11,000 to 457,000, the third drop in four weeks. Full Story »

NEW YORK - The major oil companies continue to climb back from the recession, with higher fuel prices driving up earnings. Full Story »

NEW YORK - The dollar slid to its lowest level against the euro in nearly three months Thursday amid mounting concerns about the U.S. economy at a time when European indicators are improving. Full Story »

Tire inventories dwindled during the recession with money so tight. J.P. Morgan analyst Himanshu Patel asked Goodyear executives on Thursday to discuss the commercial truck inventory situation. Goodyear's president and CEO, Richard J. Kramer, said rebuilding inventories would provide a sales opportunity. Full Story »

NEW YORK - Interpublic Group of Cos., a marketing conglomerate, on Thursday reported second-quarter results above analyst estimates — the latest indication that companies are growing more comfortable spending on advertising as the economy recovers. Full Story »

HAVANA - Cuba says its budget deficit came in far below forecasts in the first half of 2010, evidence that tax increases and deep spending cuts on food imports may be helping the communist government weather a severe economic crunch. Full Story »

WASHINGTON (Reuters) - The Federal Reserve should consider buying more Treasury securities, instead of promising an extended period of low rates to support recovery, should inflation drift lower, a top Fed official said. Full Story »

SOUTHFIELD, Mich. - Vehicle parts maker Federal-Mogul Corp. reported a $49 million profit for the second quarter on Thursday as the company capitalized on its global restructuring while the auto industry continued to recover from the recession. Full Story »

New applications for unemployment benefits fell last week for the third time in four weeks, a sign layoffs may be slowing. But jobless benefit claims remain above 450,000, an elevated level that also indicates companies aren't hiring large numbers of new workers. Full Story »