In brief: Fed maintains low rates

Washington – The Federal Reserve on Tuesday repeated its pledge to hold interest rates at record lows to foster the economic recovery and ease high unemployment.

But the Fed’s assessment of the economy was a bit more upbeat. It said the job market is stabilizing. It also said business spending on equipment and software has risen significantly.

Still, the Fed cautioned that spending by consumers could be dampened by high unemployment, sluggish wage growth, lower wealth and tight credit.

“The Fed painted the economy in a slightly brighter shade,” said Stuart Hoffman, chief economist at PNC Financial Services Group. “Now, it is a lighter shade of gray.”

The Fed held its target range for its bank lending rate at zero to 0.25 percent, where it’s been since December 2008.

Associated Press

FAA orders fix for 777 software

Washington – The Federal Aviation Administration wants new software installed on Boeing 777s to prevent crews from inadvertently engaging the autopilot before takeoff.

The problem can result in a high-speed rejected, or aborted, takeoff and increase the chance of a runway overrun.

Boeing says the problem is rare – just nine reported instances of a rejected takeoff because of inadvertent engagement of the autopilot during the 777’s 15-year service history.

The airworthiness directive is to be published in the Federal Register today. The rule takes effect 15 days later. Boeing said it supports the FAA’s directive.

Associated Press

Sugar beet crop gets OK for 2010

San Francisco – A federal judge on Tuesday said farmers can harvest their genetically engineered sugar beets this year, ruling the economic impact too great and that environmental groups waited too long to request that the crop be yanked from the ground and otherwise barred from the market.

Nearly all sugar beets planted are genetically engineered and the crop accounts for half the nation’s sugar supply.

U.S. District Court Judge Jeffrey White last year sided with the environmental groups when he ruled that federal regulators five years ago improperly approved the genetically engineered crop for market.

In January, the Center for Food Safety, Earthjustice and other groups asked White to immediately halt the planting and harvest of all genetically engineered beets while determining how to resolve the lawsuit.

In denying their request, White noted that the Center for Food Safety and the other groups who sued had ample opportunity to make such a request and he chastised them for waiting until this year to act.

Associated Press