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Fed's Kocherlakota touts tax cuts for business spending

(Reuters) - Cutting taxes on business investment is an effective form of economic stimulus that could go a long way toward mending the damage from the financial crisis and Great Recession, a top Federal Reserve official said on Saturday. In prepared remarks that did not touch on monetary policy, Minneapolis Federal Reserve Bank President Narayana Kocherlakota told a National Bureau of Economic Research conference that even apparently permanent damage to the economy can be reversed if policymakers are willing to take appropriate steps.

Jobless claims at seven-year low, signal firming economy

By Lucia Mutikani WASHINGTON (Reuters) - The number of Americans filing new applications for unemployment benefits tumbled last week to the lowest level in nearly seven years, strengthening views of faster job growth. Thursday's report was the latest sign of momentum in the economy after activity was hobbled by an unusually cold winter.

S. Korea stands pat on interest rates

South Korea's central bank on Thursday kept interest rates at 2.5 percent for the 11th consecutive month, citing signs of recovery at home and abroad and uncertainty about the US Federal Reserve's stimulus. "Global economy is expected to continue moderate recovery, but there still are lingering risks as the US Fed's possible change of monetary policy can... pummel growth of emerging economies," the bank said in a statement. The Fed's huge asset-purchase scheme has provided much-needed foreign investment in countries such as South Korea.

China says no major stimulus planned; March trade weak

By Aileen Wang and Adam Rose BOAO/BEIJING (Reuters) - Chinese Premier Li Keqiang ruled out major stimulus to fight short-term dips in growth, even as big falls in imports and exports data reinforced forecasts that the world's second-largest economy has slowed notably at the start of 2014. Li stressed on Thursday that job creation was the government' policy priority, telling an investment forum on the southern island of Hainan that it did not matter if growth came in a little below the official target of 7.5 percent.

Fed's Tarullo sees little need for rapid U.S. rate hikes

By Jonathan Spicer WASHINGTON (Reuters) - The modest pace of U.S. economic growth in recent years suggests that when the time comes to raise interest rates the Federal Reserve will be able to do so gradually without fear of a sudden surge in inflation, a top Fed official said on Wednesday. Many economists, both at the Fed and outside, had expected the economy to roar back after the Great Recession, requiring a rapid tightening of policy at some point, Fed Board Governor Daniel Tarullo told a dinner forum in Washington, D.C.

U.S. recovery 'reasonably well grounded': Fed's Tarullo

WASHINGTON (Reuters) - The U.S. economic recovery looks "reasonably well grounded" as it progresses, a top Federal Reserve official said on Wednesday, adding that easy monetary policies have helped it along. Fed Governor Daniel Tarullo, who rarely speaks out about policy, told a dinner forum that while the pace of the recovery from recession has been less than desired, the monetary stimulus has had "demonstrable" positive effects on rate-sensitive sectors such as housing and automobiles.

Fed's Evans sees longer-term U.S. growth of up to 2.5 percent

WASHINGTON (Reuters) - The U.S. economy can probably sustainably grow at just under 2.5 percent, and as low as 2 percent, over the longer term, a top Federal Reserve official said on Wednesday. Chicago Fed President Charles Evans also dismissed the notion that the United States has slipped into a lower-growth slump in the wake of the recession, called a "secular stagnation." (Reporting by Jonathan Spicer; Editing by James Dalgleish)

S. Korea's jobless rate drops but job creation slows

SEJONG, April 9 (Yonhap) -- South Korea's jobless rate dropped in March from a month earlier, but job creation also slowed, raising concerns that the labor market conditions are not improving fast, a government report showed Wednesday. According to the report by Statistics Korea, the jobless rate stood at 3.9 percent last month, down from 4.5 percent tallied in February. The seasonally adjusted jobless rate also dropped from 3.9 percent to 3.5 percent.

Age discrimination laws no shield for older Americans during recession: paper

By Lucia Mutikani WASHINGTON (Reuters) - Older unemployed Americans got no help from laws against age discrimination during the recession and may have quit the labor force as a result, according to a Federal Reserve Bank of San Francisco study. The study by David Neumark and Patrick Button, published on Monday, found very little evidence that strong state measures to protect against age discrimination had helped older workers weather the recession better than their younger counterparts.

Eurozone recovery edges ahead, unemployment stays high

The eurozone economy is expected to recover steadily in the first quarter of this year with growth of 0.4 percent pulled by industrial production, but then flag slightly, three top forecasting bodies said on Monday. Threats to this outlook came from a slowing of demand from emerging economies, and tension over Ukraine. But this improvement will have scant effect on high eurozone unemployment, largely because consumers' buying power has been crimped by austerity measures in some eurozone countries and by the effects of unemployment.
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