Greenspan says Fed: may still boost economy

Federal Reserve Chairman Alan Greenspan, above, said Tuesday that the Fed would not be “out of business” in terms of stimulating the economy even if it should push a key interest rate to zero.

Greenspan used his appearance before the Council on Foreign Relations to dispute worry expressed by some economists that the Fed may be running out of ammunition to jump-start the economic recovery.

Greenspan did not give a hint during his appearance whether the central bank would0 lower interest rates again, but private economists believe the Fed stands ready to cut rates further if needed to keep the economy from dipping back into recession.

Economy: Prices, trade deficit up

Consumer prices rose modestly in October, especially hitting the wallets of motorists and Americans needing medical care. But falling prices for airfares, computers and other items provided some bargains.

The government’s most closely watched inflation gauge, the Consumer Price Index, increased 0.3 percent in October from the previous month, the Labor Department reported Tuesday.

Separately, the Commerce Department said the nation registered a $38.03 billion trade deficit in September, the second highest on record. The red-ink ledger reflected a surge in demand for foreign cars and airplanes. The September deficit was down $254 million from the all-time high of $38.28 billion set in August.

Chamber: Kansas business group selects new president

A manager with the Pennsylvania Chamber of Business and Industry has been named the president and CEO of the Kansas Chamber of Commerce and Industry.

S. Lewis Ebert will begin his position with the Kansas chamber on Jan. 1. He replaces John Fowler, who left in July to lead the chamber of commerce in Stillwater, Okla.

KCCI chairman Dale Davis said he expected Ebert to enhance the chamber’s “prestige within the business and lobbying arenas.” While in Pennsylvania, Ebert held positions dealing with marketing, member services, and government and media relations.

Standard & Poor’s: Aquila rated junk status

Kansas City, Mo.-based Aquila Inc.’s credit rating was cut to junk status on Tuesday by Standard & Poor’s on concern that restructuring costs and low power prices will hurt the electricity and natural gas distributor’s earnings as it quits the merchant energy business.

The move marks the third agency this year to lower Aquila’s credit rating to junk status. Company CEO Richard C. Green Jr. said the downgrade may trigger an additional $238 million in payments the company will have to make on its debt. He said the company has enough cash to meet the needs.