Saturday, July 26 2014 2:02 AM EDT2014-07-26 06:02:47 GMT
Police are searching for two men who carjacked an SUV and plowed into a group of children and adults selling fruit at a Philadelphia street corner, killing three kids and seriously injuring two women.More >>
Police were searching for two men who carjacked an SUV and plowed into a group of children and adults selling fruit to raise money for their church, killing three kids and critically injuring their mother and the...More >>
Saturday, July 26 2014 12:45 AM EDT2014-07-26 04:45:52 GMT
The Ohio State marching band is moving forward without its director; a day after he was fired they're performing with the Columbus Symphony in what's often considered the band's unofficial season kickoff.More >>
Having forced out a beloved football coach and watched its president retire after a series of verbal gaffes, Ohio State University again finds itself grabbing headlines with the firing of a celebrated marching band...More >>
Friday, July 25 2014 11:56 PM EDT2014-07-26 03:56:40 GMT
Police have arrested the foster parent of a 10-month-old girl who died after being left inside a hot car in Wichita, Kansas.More >>
A 10-month-old Kansas girl died after being strapped for more than two hours inside a sweltering car, and police arrested a foster parent who said he'd forgotten about her until something on TV jogged his memory, an...More >>
Friday, July 25 2014 11:23 PM EDT2014-07-26 03:23:25 GMT
A federal judge has dismissed a Wyoming man's lawsuit claiming a group secretly found the missing airplane of aviation pioneer Amelia Earhart in the South Pacific but kept it quiet so it could continue to raise...More >>
A federal judge on Friday dismissed a Wyoming man's claims that an aircraft recovery group secretly found wreckage of aviation pioneer Amelia Earhart's missing airplane in the South Pacific but kept it quiet so it...More >>
Friday, July 25 2014 10:33 PM EDT2014-07-26 02:33:36 GMT
U.S. District Judge Neil V. Wake was attending a ceremony for a judicial colleague when he received an urgent - and unusual - request: Lawyers for a condemned inmate wanted him to stop an execution that didn't...More >>
U.S. Sen. John McCain says the execution of an Arizona inmate that lasted two hours was torture.More >>
Friday, July 25 2014 9:35 PM EDT2014-07-26 01:35:42 GMT
A large family that lives at the shore and suffered losses during Superstorm Sandy will share a $20 million lottery jackpot that one of the 17 siblings said will be "a great pick-me-up."More >>
A lottery-playing tradition started by the matriarch of a large New Jersey shore family paid off for her 17 children this week when the group won a $20 million jackpot that will partly be used to help family members...More >>
Friday, July 25 2014 9:32 PM EDT2014-07-26 01:32:57 GMT
An 80-year-old man who came home to find two burglars said he shot and killed one of them despite her pleas that she was pregnant, but it's the woman's alleged accomplice who has been arrested on suspicion...More >>
Prosecutors Friday were waiting for the results of a police investigation into the killing of a burglar by an 80-year-old California homeowner who says he shot the woman in the back as she fled his home and ran down an...More >>
Friday, July 25 2014 9:15 PM EDT2014-07-26 01:15:50 GMT
A federal appeals court is upholding a Florida law that restricts what doctors can discuss about guns with their patients.More >>
A Florida law restricting what doctors can tell patients about gun ownership was deemed to be constitutional Friday by a federal appeals court, which said it legitimately regulates professional conduct and doesn't...More >>
Friday, July 25 2014 9:05 PM EDT2014-07-26 01:05:50 GMT
It's been called a David vs. Goliath story, a "Tale of Two Arthurs" and even the "ultimate Greek tragedy," but the characters in this drama are not Biblical or literary figures.More >>
It's been called a David vs. Goliath story, a "Tale of Two Arthurs" and even the "ultimate Greek tragedy," but the characters in this drama are not Biblical or literary figures. They're grocery store owners.More >>
Friday, July 25 2014 8:44 PM EDT2014-07-26 00:44:45 GMT
Two men forced a woman into the backseat of her vehicle at gunpoint, drove off but later lost control and plowed into a group of people on a corner near a fruit stand in Philadelphia on Friday, police said. Two...More >>
Two men carjacked a woman at gunpoint but soon sped out of control, killing three children Friday as they plowed into a group selling fruit to raise money for their church, Philadelphia police said.More >>
Unaccompanied minors enroll in US schools, presenting opportunities and extra costsMore >>
Unaccompanied minors enroll in US schools, presenting opportunities and extra costsMore >>
By DAVID McHUGH and PAN PYLAS Associated Press
FRANKFURT, Germany (AP) - European Central Bank head Mario Draghi said Monday that a stronger euro would put at risk the shaky recovery in the 18 countries that use the shared currency.
Draghi made the remark to legislators in the European Parliament in Strasbourg amid worries that the modest rebound in Europe is stalling. Data showed industrial production fell by 1.1 percent in May in the currency zone.
A stronger euro would hurt export-dependent businesses. However Draghi offered no new steps to boost the economy beyond the raft of measures the bank announced on May 8. Markets shrugged off the remark and the euro traded little changed at around $1.36.
At that level, it is down from its 2014 peak of just below $1.40, its highest in 2 1/2 years.
Draghi said that while the bank does not target any particular exchange rate it would monitor the effect of any appreciation of the euro because that would affect the inflation rate, the bank's chief policy target. He said that the exchange rate "remains an important driver of future inflation in the euro area," adding that in the present context, an appreciated exchange rate is a risk to the sustainability of the recovery."
Draghi gave little indication that the bank was ready to move beyond its current efforts to raise inflation and spur the economy. The ECB has raised the possibility of buying financial assets such as government bonds to pump new money into the economy. That would be aimed at raising the worrisome low rate of inflation of only 0.5 percent. And it could also weaken the euro's exchange rate.
With the economy barely growing and not creating many jobs, politicians are piling pressure on the central bank. If needed, the ECB could further loosen its monetary policy through interest rate cuts or launch a monetary stimulus similar to those undertaken by the U.S. Federal Reserve and the Bank of England. Those programs involve injecting new money into the economy by buying large amounts of bonds and other financial assets.
Asked about asset purchases, Draghi referred legislators to statements from the bank's previous meetings where it has said it is ready to deploy such unconventional tools if the inflation outlook worsens and prices levels do not eventually start rising toward the bank's goal of just under 2 percent.
Some economists think Draghi and the ECB will be reluctant to go down that route, partly because of technical problems such as how to buy assets - and which ones - across a currency bloc comprising 18 countries. Draghi has said such a program, called quantitative easing or QE, is within the bank's mandate and could be used if needed.
The International Monetary Fund on Monday added to the debate, saying the ECB should undertake a "substantial balance sheet expansion, including through asset purchases" if inflation fails to pick up.
The IMF suggested in its regular report on the eurozone economy that the ECB should buy its member states' government debt to "reduce government bond yields, induce higher equity and corporate bond values, and ultimately raise demand and inflation expectations across the euro area."
For now, Draghi is expected to resist the pressure.
"For the time being, it seems likely that Draghi will stick with attempting to talk the euro lower," said Jane Foley, senior currency strategist at Rabobank International.
The calls on Draghi to do more may become more acute in the coming months if growth remains anemic and inflation, at 0.5 percent, stays below the 2 percent target.
The ECB has not sat on the sidelines in recent months. It is currently reviewing the finances of Europe's largest financial groups and is planning to give them more cheap loans if banks lend more to businesses. It has also reduced its benchmark interest rate to a record low of 0.15 percent and set a negative rate for the deposits that banks keep at the central bank in the hope that pushes them to lend more. And it has extended its standing offer of unlimited short-term credit to banks into 2016.
Pan Pylas reported from London. Juergen Baetz in Brussels also contributed.
Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.