NATIONAL NEWS

Fed raises rates, Greenspan steps down The Federal Open Market Committee decided Tuesday to raise its target for the federal funds rate by 25 basis points to 4-1/2 percent. On the same day, 18-year chairman of the Federal Reserve, Alan Greenspan, stepped down from the position making way for Bush-appointee, Ben S. Bernanke, who was confirmed by a Senate vote on Thursday. A private swearing-in ceremony for Ben S. Bernanke is scheduled for Feb. 1 at the Federal Reserve Board. The Federal Reserve gave the following updates: “Although recent economic data have been uneven, the expansion in economic activity appears solid. Core inflation has stayed relatively low in recent months and longer-term inflation expectations remain contained. Nevertheless, possible increases in resource utilization as well as elevated energy prices have the potential to add to inflation pressures.” In a related action, the Board of Governors unanimously approved a 25-basis-point increase in the discount rate to 5-1/2 percent. New Supreme Court Justice confirmed Samuel A. Alito Jr. was sworn in today as the 110th justice in the history of the Supreme Court. President Bush’s conservative nominee to replace retiring Justice Sandra Day O’Conner was confirmed by a sharply divided Senate, with most voting on party lines. Senator Lincoln Chafee of Rhode Island was the only Republican to vote against the nominee. In addition, independent Senator James M. Jeffords of Vermont as well as four Democrats—Robert C. Byrd of West Virginia, Ben Nelson of Nebraska, Tim Johnson of South Dakota and Kent Conrad of North Dakota—also voted against Alito’s confirmation. Justice Alito was judge on the United States Court of Appeals for the Third Circuit for 15 years. Clinton company to expand, add 150 jobs Eagle Bend Mfg., Inc., located in Clinton, Tenn., will expand its facility by 30,000 square feet. The project includes a significant financial investment and will create 150 new jobs. Eagle Bend originally located in Anderson County in 1986, currently employs over 500 people at their 304,000 square foot building. “Tennessee is enjoying a strong and vibrant economy and today’s announcement is more great news, particularly for Anderson County,” said Governor Phil Bredesen. “Eagle Bend represents the type of economic development we are aiming for by assisting companies already growing and expanding in Tennessee.” Eagle Bend uses a variety of metal forming processes including a new advanced technique called hot forming. This process has been developed to manufacture ultra high strength steel automotive body structural components.