NPR 2008-07-17

Federal Reserve Board Chairman Ben Bernanke told members of the House Financial Services Committee today that inflation is too high and remains 1 a top priority of the Federal Reserve. The Fed Chairman also acknowledged Americans are hurting whether or not the US economy is technically 2 in a recession. "It's clear that growth has been slowed, that the labor 3 market is weak. And so, conditions are tough on average families. I have no doubt of whether it's technically a recession or not. I don't see why that makes a great deal of difference." On the topic of Fannie Mae and Freddie Mac, Bernanke said the mortgage finance giants are adequately capitalized and, in his words, “in no danger of failing”.

Speaking today in West Lafayette, Louisiana, Democratic presidential hopeful Barack Obama said much of the heightened security threat against the US comes in the form of emerging nuclear and biological weapons. Presumptive Democratic nominee 4 also accused the Bush administration of failing to adjust to what he termed, “the stateless threats of the 21st century”. Obama said one of his goals as president would be to work to get rid of the nuclear weapons, though he said as long as such weapons exist, US will retain a strong deterrent 5.

Education and the economy were the focus of a speech by Senator John McCain today before the NAACP Convention in Cincinnati. NPR's Audie Cornish reports.

Senator John McCain asked black voters at the NAACP meeting to break with conventional thinking about education issues. McCain is pushing for expanded merit pay, school vouchers 6 and more money for tutoring programs.  "After decades of hearing the same big promises from the public education establishment and seeing the same poor results, it is surely time to shake off old ways and time to demand new reforms." McCain joked about missing last year's convention due to campaign troubles. Some in the audience said after having President George Bush turn down several invitations, they hope McCain would do better if elected. Audie Cornish, NPR News.

Two dead Israeli soldiers returned to Israel in a prisoner swap 7 will be buried tomorrow. Linda Gradstein reports.

In a statement, Israeli Prime Minister Ehud Olmert said Israel paid a heavy price for the bodies of the two soldiers, but that Israel has a moral obligation to its troops. He said that obligation is the glue that holds Israeli society together and enables Israel to survive while surrounded by enemies. The families of the two Israeli soldiers said they're grieving, but there is also relief that the uncertainty 8 of the past two years is over. The capture of the two soldiers sparked a month-long war between Israel and Lebanon two years ago. In exchange for the two soldiers, Israel freed Samir Kantar, the longest serving Arab prisoner in Israel. Kantar was convicted of killing 9 an Israeli man and his four-year-old daughter as well as a policeman in 1979. He received a hero's welcome when he arrived in Lebanon. For NPR News, I'm Linda Gradstein in Jerusalem.

On Wall Street, the Dow Jones Industrial Average rose 276 points.

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Defense 10 officials are now confirming that a worsening situation in Afghanistan may require a need for more US troops there this year. And officials say as a result, they're looking for ways to send additional forces. The assessment 11 comes at a time of escalating 12 violence in Afghanistan with officials confirming insurgents 13 are waging more sophisticated and better-planned attacks. That includes an attack Sunday where nine US soldiers were killed at a base in eastern Afghanistan. Defense Secretary Robert Gates said there are no plans to break the Pentagon's promise that soldiers would be deployed 14 for no more than twelve months at a time.

College students who get sick could take time off from school without jeopardizing 15 their health insurance coverage 16. That's under legislation approved by a US House committee. NPR's Julie Rovner has more.

Most health insurers stop covering children on their parents’ plans when they turn 18, unless they are full-time 17 students. But what happens if those students get seriously ill? In 2004, New Hampshire college student Michelle Morse maintained a full schedule of classes while being treated for colon 18 cancer, simply so she could keep her coverage. She died six months after her graduation. The bill approved by the House Energy and Commerce Committee would forbid insurance plans from dropping coverage for college students who take up to twelve months off due to illness. It's backed by a broad array of health groups, including the health insurance industry. Julie Rovner, NPR News, Washington.

Would you buy a car from an automaker that has filed for bankruptcy 19? Apparently 20, most Americans would not, at least based on a survey of 6,000 would-be car buyers from CMW Research. The firm says more than 80 percent of those intending to purchase a new vehicle in the next six months said they would not buy from a company that filed Chapter 11.