Senate Eyes 40 MPG Auto Fuel Economy Bill
A Mid East crisis sparks renewed push for 40 mpg average fuel economy with a Senate vote due Monday and House activists threatening to bypass the Energy and Commerce Committee. Supporters argue a 40 mpg standard could save millions of barrels of oil daily while automakers warn of economic disruption and job losses. Transportation Secretary Skinner fears higher mileage goals will raise fatalities and urges a Bush veto.
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Fed Stand Could Deepen Possible Recession
Washington reports that the Fed under Greenspan warned of new risks from oil price shocks after Iraq invaded Kuwait, signaling inflation threats and a potential longer deeper recession if policy remains tight. Analysts say easing could come too late, risking a harsher downturn.
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