The economy grew at a sluggish 2.2 percent pace in the final quarter of last year, the government reported Wednesday in one of the steepest downward revisions in years. In another report, new-home sales plunged in January by the largest amount in 13 years. The pair of reports released Wednesday by the Commerce Department came a day after stocks on Wall Street and around the globe took a nosedive.
House Democratic leaders are developing an anti-war proposal that wouldn’t cut off money for U.S. troops in Iraq but would require President Bush to acknowledge problems with an overburdened military. The plan could draw bipartisan support but is expected to be a tough sell to members who say they don’t think it goes far enough to assuage voters angered by the four-year conflict.
Wall Street rebounded fitfully Wednesday from the previous session’s 416-point plunge in the Dow industrials. Investors took comfort from comments by Federal Reserve Chairman Ben Bernanke but still showed signs of unease about the economy. In late afternoon trading, the Dow industrials were up 55.76, or 0.46 percent, at 12,272.00. Broader stock indicators were also higher. The Standard & Poor’s 500 index was up 7.82, or 0.56 percent, at 1,406.86, and the Nasdaq composite index was up 9.57, or 0.40 percent, at 2,417.43.\nIt’s better than nothing, federal health advisers said Tuesday in urging approval of the first bird flu vaccine as a stopgap against a potential pandemic. The panel said in a 14-0 vote that the vaccine was effective, despite evidence it wouldn’t protect most people against the deadly H5N1 strain of bird flu. The panel then voted that it was safe.
A federal judge who must decide whether alleged al-Qaida operative Jose Padilla is mentally fit for trial said Wednesday that the former Chicago gang member hasn’t behaved strangely but may not be cooperating with his attorneys. The judge said that one psychologist had found Padilla “gracious” and said he had not demonstrated any odd behavior or outbursts in the courtroom or while in custody.
