The dollar rose against other major currencies this week, coming off an earlier two-year low as traders reaffirmed the Federal Reserve’s interest-rate statement that was released in the previous session. The Federal Open Market Committee held its benchmark federal funds rate unchanged at 5.25%. The Fed repeated that “some inflation risks remain,” but took out the reference to “the extent and timing of any additional firming.”
When responding to criticism from many corporate executives and business groups that rule changes in the wake of the Enron and WorldCom scandals had gone too far, Treasury Secretary Henry Paulson has suggested that the Bush Administration is considering a more business-friendly approach to regulations. At a conference that was gathered together executives with government officials, past and present, Mr Paulson questioned whether lawmakers and regulators had struck the right balance between investor protection and market competitiveness.
US labour costs have reached a higher level than what was estimated while efficiency at work has dropped to almost half the initially reported figure in the final quarter of last year, raising the threat of inflationary pressures. The Labor Department stated that revised data on non-farm workers showed that productivity had actually grown by 1.6 per cent between October and December, at an annualised rate, rather than the 3 per cent which it first reported. This was largely in line with predictions for the revised figures by Wall Street economists.
Yum Brands Inc., the parent company of KFC, Taco Bell, and Pizza Hut has for the time being closed its doors to many of its restaurants in New York City. Apparently they have made this decision because of the rat infestation that occured last week. They made a statement to the public stating that they would re-open thier doors after inspections have been made by the city’s health department.