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Fed Hikes Rates, More To Come
1As expected, the FOMC raised its key rate by 25 basis points for a 12th straight meeting, to 4%. Policymakers said "core inflation has been relatively low," but they'll continue to up rates at a "measured" pace. Fed funds futures predict hikes in Dec. and likely Jan. The Fed said hurricanes "temporarily depressed" output and jobs, but the economy is still in good shape. More on this page
Tax Panel Proposes Big Reforms
2A presidential panel recommended 2 designs to scrap most deductions, credits and other tax breaks. Changing home mortgage breaks and eliminating state and local tax deductions would be unpopular, but most people affected by that would benefit from an end to the alternative minimum tax. President Bush must decide how much to push tax reform in '06. More on this page
Bush Urges $7.1 Bil Bird Flu Plan
3The president outlined his strategy to prepare for a possible bird flu pandemic. He'll ask Congress for $1.2 bil to buy vaccine to protect 20 mil Americans, $2.8 bil to speed vaccine development and funds to stockpile other anti-virals. While a bird flu outbreak has killed less than 100 people in Asia, experts fear it could mutate into a pandemic.
Stocks Slide On Mixed Volume