The Axis
Of
Evil
Is Closed
Management
US plans to station diplomats in Iran for first time since 1979
Washington move signals thaw in relations
Ewen MacAskill in Washington
The Guardian,
Thursday July 17, 2008
The US plans to establish a diplomatic presence in Tehran for the first time in 30 years as part of a remarkable turnaround in policy by President George Bush.The Guardian has learned that an announcement will be made in the next month to establish a US interests section – a halfway house to setting up a full embassy. The move will see US diplomats stationed in the country.
The news of the shift by Bush who has pursued a hawkish approach to Iran throughout his tenure comes at a critical time in US-Iranian relations. After weeks that have seen tensions rise with Israel conducting war games and Tehran carrying out long-range missile tests, a thaw appears to be under way.
Economic Fears Slice Oil Prices for Second Day
By JAD MOUAWAD and MICHAEL M. GRYNBAUM
Published: July 17, 2008
Concerns about a slowing economy and rising inflation pushed oil prices down sharply for a second day on Wednesday, an unusual dip in the oil price rally that began more than six years ago.
The two-day decline totaled more than $10.50 a barrel, but analysts cautioned that it was still unclear how far prices would fall and that the respite may be temporary.The drop in oil price contributed to a jump on Wall Street, with most major markets rising more than 2.5 percent. Investors were also buoyed by news that Wells Fargo planned to increase its dividend, easing some concerns about the stability of banks.
USA
Inflation surge puts Fed in a quandary
After the biggest monthly rise in consumer prices since 1991, the central bank can’t ignore the risks of inflation.
By Mark Trumbull | Staff writer of The Christian Science Monitorfrom the July 17, 2008 edition
Consumer prices took their biggest upward jump in 17 years last month, a surge that highlights the squeeze on America’s standard of living and the difficult policy choices facing the Federal Reserve.Fed officials are walking a fine line – and at the moment they’d rather not be forced to focus on inflation as their top priority. They’re also trying to revive a moribund economy and prevent a crisis in the financial industry from growing more severe.
Even as consumer prices surged 1.1 percent in June alone, some other news this week gives the central bank some leeway to balance those competing goals. Oil prices, which have been the big driver of inflation around the world this year, fell dramatically.