Waiting game: The Federal Reserve reiterated today that it will be “patient” in raising interest rates from record lows even as the U.S. economy moves steadily closer to full health. The Fed signaled in a statement after its latest policy meeting that no rate increase is imminent despite the economic gains. A key reason is that inflation remains well below the Fed’s target rate. And it said the pressures holding down inflation—mainly plunging oil prices—have intensified. Yet the Fed sketched a brightening picture of the economy, noting a strengthening job market, lower unemployment, rising consumer spending and higher household purchasing power fueled by lower energy prices. The Associated Press has the full story.
Hard times: BP confirmed today it is laying off employees in Houston to cope with falling oil prices, but refused to say how many local jobs will be cut. FuelFix.com reports the British oil giant’s cuts, concentrated on the functional staff at its Houston offices, are part of an effort to simplify its business in the Gulf of Mexico, BP spokesman Brett Clanton says in an emailed statement. He says the firm expects all its organizational changes to be completed by the end of the first quarter, with staff announcements to come in the next few weeks. The changes, he says, were reviewed with the company’s safety and operations team. Read the full story.
From a foreign window: The Chinese government has adopted new regulations requiring companies that sell computer equipment to Chinese banks to turn over secret source code, submit to invasive audits and build so-called back doors into hardware and software, according to a copy of the rules obtained by foreign technology companies that do billions of dollars of business in China. The New York Times reports that as copies of the rules have spread in the past month, the regulations have heightened concern among foreign companies that the authorities are trying to force them out of one of the largest and fastest-growing markets. Read the full story.
