IBGerm

Ford reported its first U.S. sales increase in almost two years, and other automakers said sales improved as car and truck buyers were lured back to showrooms by the government’s Cash for Clunkers program.

Officially the Car Allowance Rebate System (CARS), the program offers the owners of older cars and trucks several thousand dollars toward the purchase of a new, more fuel-efficient vehicle and scraps their older vehicle.

Automakers were stunned by the shopping crowds brought out by CARS last week, overwhelming the program’s Web site. Congress is deliberating whether to re-fund the program, which is recommended by the White House.

On Thursday, Federal Reserve Chairmen launched a “robust defense of its independence.” Vice Chairman Donald Kohn said that allowing sensitive decisions to be politically criticized would cause higher interest rates and hurt the USA’s credit  rating.

Kohn warned the House of Representatives that if there was removal of power of  monetary independence of the Federal Reserve would cause interest rates to raise due to inflation fears from investors.

The Federal Reserve has felt Ron Paul’s bill, hr 1207, as a threat to its independence. The bill would audit and bring transparency to an otherwise secretive entity. Paul’s bill has about 250 cosponsors.

Source: www.reuters.com