NPR 2008-04-03

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Transcript¹

 From NPR News in Washington, I'm Jack² Speer.

 Federal Reserve Board Chairman Ben Bernanke told the Congress today, the economy may contract in the first half of 2008. He largely stayed away from using the term recession however, he did not rule out the possibility. Bernanke also said it's not up to the Fed to bail³ out homeowners facing foreclosure. NPR's Paul Brown has more.

 Bernanke told the Joint⁴ Economic Committee that it appears the economy is growing modestly right now. But he said for the first half of 2008 it could contract slightly. Bernanke said he's not ready to use the word recession to describe what's happening because that's a technical term that depends on data not yet available. The Fed has got involved in helping⁵ troubled investment banks stabilize⁶ their finances and Democratic Senator Charles Schumer asked if it's appropriate for the Fed to do that while not helping homeowners struggling to make payments on subprime mortgages. Bernanke replied, "I think housing is very important and we need to address it but of course that's the Congress' sphere of influence not the Fed's." He did say the concerns about the housing market and credit now appeared to be dragging down overall economic activity. Paul Brown, NPR News, Washington.

 The Federal Aviation Administration says four US airlines are under investigation⁷ for failing to comply with inspection⁸ and maintenance regulations. FAA officials would not name the airlines under investigation but Southwest, American, Delta⁹ and US Airways¹⁰ have all taken aircraft out of service in recent weeks for maintenance and inspection related issues. And today United Airlines grounded its entire fleet of Boeing 777 jetliners and cancelled several long haul flights while a fire suppression system on the plane is checked. NPR's David Schaper reports.

 Chicago based United says it's taken all 52 of its long haul 777s out of service so that inspectors¹¹ can conduct new tests of the aircraft's cargo¹² hold fire suppression systems to make sure that they operate properly. In a statement United Airlines says a regular review of its maintenance records found that tests on one cargo hold fire suppression system had not been thorough enough. The airline says it voluntarily disclosed the problem to the FAA and that it will not fly any of its 777s until new tests are complete. United cancelled more than a third of its daily 777 departures, many of them to Europe and Asia. A congressional hearing on questionable¹³ airline maintenance, inspections¹⁴ and FAA oversight¹⁵ is scheduled for Thursday. David Schaper, NPR News, Chicago.

 President Bush attending a NATO summit meeting in Bucharest said today he expects several major US goals will be addressed at the meeting. The president said he is optimistic a decision to beef up combat forces in Afghanistan will be approved. He said he also expects a US missile defense¹⁶ system to be endorsed¹⁷ by the body.

 Orders to US factories were down for a second straight month in February. The Commerce Department reported today orders to the nation's mines, factories and utilities declined by 1.3%.

 On Wall Street the Dow Jones Industrial Average closed down 45 points to end the session at 12,608. This is NPR.

 Republican presidential candidate John McCain said those who are disappointed with the mistakes of government need to join its ranks and work to fix things. Addressing an audience at the US Naval¹⁸ Academy in Annapolis, the Vietnam veteran said more Americans should enlist¹⁹ in the military or run for office. McCain also encouraged those in attendance to seek out public service work. Earlier in the day, McCain said he's begun looking a list of names of possible running mates but offered no details. He said he plans to make his choice for running mate before the Republican convention.

 All 50 states have now been granted an extension until next year for new federal driver's license²⁰ law called Real ID. The last state Maine received its extension today after its governor pledged to seek a legislation limiting drivers licenses²¹ to citizens and legal residents. NPR's Pam Fessler reports.

 If states didn't get extensions, their residents would not be allowed to use their driver's licenses for boarding airplanes or entering federal office buildings. Maine was the last holdout but it received an extension from the Homeland Security Department after it agreed to a number of changes to make its driver's licenses more secure. Many states have concerns about Real ID. They say it's too costly²² and could cause privacy and management problems. Several have said they have no plans to implement²³ the law, but they were given extensions anyway when they listed security measures they've already taken. Homeland Security says secure driver's licenses are needed to help prevent criminals and terrorists from using fake IDs. Pam Fessler, NPR News, Washington.

 Crude oil prices ended the session higher today. The near month contract for benchmark crude was up $3.85 a barrel to close at $104.83 a barrel on the New York Mercantile Exchange.