U.S. economy is healing

The U.S. economy grew at a modest 2.8 percent rate in the final three months of last year, the fastest since spring 2010 and was the third straight quarter that growth has accelerated.

 

Americans spent more on cars and trucks, and companies built up their stockpiles. But growth in the fourth quarter and all of 2011 was held back by the biggest annual government spending cuts in four decades.

 

The Commerce Department says the economy grew just 1.7 percent last year, roughly half of the growth in 2010 and the worst since the recession.

Fed is likely to leave interest rate near zero through 2014

The Federal Reserve said Wednesday that it was likely to leave short-term interest rates at near zero levels at least through late 2014. The Fed is pushing out its easy-monetary policy even further into the future than previously indicated.

An interest-rate forecast is a historic step for the Fed, the latest in a series of moves under Chairman Ben S. Bernanke to increase transparency and communications with the public.

Policymakers at the central bank acknowledged the recent improvements in the economy but said that they expected economic growth over coming quarters to be modest and the unemployment rate, currently 8.5%, to decline only gradually. The Fed committee repeated its concern that strains in global financial markets continue to pose significant downside risks to the economic outlook.

Since August, the Fed had said it was likely to keep the federal funds rate at near zero at least through mid-2013. The federal fund rate broadly influences rates on loans for businesses and consumers.

Google users has to agree to new privacy policy

Google announced Tuesday that it will require all of its users to agree to a new privacy policy that will integrate user data across 60 Google products including Gmail, YouTube and search. The policy will also encompass information, including location data, collected on mobile devices. Users will not be allowed to opt-out. It will take effect March 1.

According to Google privacy director Alma Whitten said that “if you're signed in, we may combine information you've provided from one service with information from other services. In short, we'll treat you as a single user across all our products, which will mean a simpler, more intuitive Google experience."