NPR 2008-12-17

The Federal Reserve slashed 1 a key bank lending rate to just about zero today. The move establishes the federal funds target rate between 0 and 0.25%. The rate cut is an effort to spur the economy. NPR's Wendy Kaufman has more.

The action by the Fed sets the rates at historic lows. The Central Bank also signaled that it will keep rates exceptionally low for some time. Officials said the Federal Reserve said they would also rely more heavily on a process known as quantitative 2 easing, essentially 3 creating more cash and using that to finance lending activity. Historically, the Fed has lowered interest rates to spur the economy, and the Fed has been reducing rates for some time, but it hasn't had the desired effect. So now it's turning to what Fed Chairman Ben Bernanke calls the second arrow in the Federal Reserve's quiver: providing liquidity 4. The Fed had previously 5 announced it would purchase large quantities of agency debt and mortgage-backed securities. The Fed says now it stands ready to expand such purchases and it's considering to purchase a longer-term treasury 6 securities. Wendy Kaufman, NPR News.

The White House said today while it doesn't believe bankruptcies 7 of viable 8 solution to the domestic automakers' problems, neither does it apparently 9 intend to be rushed into throwing a lifeline to the Big Three. White House spokesperson Dana Perino during a daily briefing today said the administration is (quote) "moving with all deliberate speed trying to put together a plan". Both General Motors and Chrysler said they needed an immediate 10 cash infusion 11 to survive. Ford 12 said it's ok without government money for now, though the automaker said it would like a government line of credit it could tap into in the event its condition worsens more than expected in 2009.

Environmentalists are fuming 13 over President-elect Barack Obama's apparent choice of secretary of the interior. They say Colorado Senator Ken 14 Salazar is too cozy 15 with agriculture, mining and oil interests. NPR's Jeff Brady reports.

Salazar is a Democrat 16 from Colorado and on paper his credentials 17 look good for the post. He has a ranching 18 background, he ran Colorado's department of natural resources and those in the industry respect him. Laura Skaer with the Northwest Mining Association says Salazar is fair and balanced. "And he understands the importance of producing domestic minerals and domestic energy to meet our country's needs." The most environmental groups say Barack Obama promised change and they want one of the round to run the interior department, specifically, Arizona Representative Raul Grijalva. The department of the interior is responsible for managing a half billion acres of public land, mostly in the West. Jeff Brady, NPR News, Washington.

Even all those deep discounts on the part of retailers 20 apparently aren’t prompting many people to open their wallets; the National Retail 19 Federation 21 says its most recent survey finds by the second week of December, a significant number of people have not yet begun their holiday shopping.

On Wall Street today, the Dow closed up 359 points, the NASDAQ gained 81 points. This is NPR.

The lawyer for three Guantanamo detainees said today the men have been sent to Bosnia where they are expected to be released to their families, the lawyer calling it a very happy ending. The three were reportedly taken to Bosnia, boarded an unscheduled flight then transported by armored car to police headquarters there. A judge in Washington last month ordered the release of the three Algerian-born men on the ground that government's case was not strong enough to hold them. Result was a hearing on the government's evidence for holding the prisoners as so-called enemy combatants.

Police in the Hollywood, Florida have closed the book on one of the country's best-known unsolved cases--the 1981 abduction and murder of six-year-old Adam Walsh. Police say they've concluded a man long considered the chief suspect in the case was in fact the child's murderer. From Miami, NPR's Greg Allen reports.

The 27-year search for the son's murderer became a crusade for John and Reve Walsh. Preliminary odds 22 with Hollywood police, they are accused of botching the investigation 23. But at a news conference in Hollywood, John Walsh had only praise for police who finally concluded what he's long maintained. But Adam's murderer was convicted a serial 24 killer 25, now dead named Ottis Toole. "It's not about closure; see that picture of that little boy? We will always be the parent of that murdered little boy. It's about justice." Galvanized in the action by their son's murder, the Walsh's testified before Congress and lobbied for passage of the missing children's act. Walsh's the host of America's Most Wanted, with his wife also co-funded the National Center for Missing and Exploited Children, who was on own effort, he said, to make sure Adam didn't die in vain. Greg Allen, NPR News, Miami.