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U.S. Federal Reserve Chair Yellen testifies before the Senate Banking Committee on Capitol Hill in WashingtonBy Michael Flaherty and Jason Lange WASHINGTON (Reuters) - The Federal Reserve on Wednesday reaffirmed it was in no rush to raise interest rates, even as it upgraded its assessment of the U.S. economy and expressed some comfort that inflation was moving up toward its target. After a two-day meeting, Fed policymakers took note of both faster economic growth and a decline in the unemployment rate, but expressed concern about remaining slack in the labor market. "Labor market conditions improved, with the unemployment rate declining further," the Fed said in a statement. "However, a range of labor market indicators suggests that there remains significant underutilization of labor resources." The reference confirmed that the central bank believes there is still a ways to go before benchmark borrowing costs need to move higher despite an improving outlook for jobs and prices.


Argentina's Economy Minister Axel Kicillof arrives at a press conference at the Argentine Consulate in New YorkBy Richard Lough, Eliana Raszewski and Daniel Bases BUENOS AIRES/NEW YORK (Reuters) - Argentina will default on its debt within hours after talks with holdout creditors broke down on Wednesday. As the clock ticked toward a midnight (0400 GMT) deadline, Economy Minister Axel Kicillof stuck firmly to the government line, repeatedly denigrating the holdouts as "vultures" after two days of intense negotiations. Argentine banks scrambled to put together a proposal to buy out the non-performing debt held by hedge funds and avert a default. It also marks a set-back to the Buenos Aires government's attempts to return to global credit markets.


A carpenter works on a new home at a residential construction site in the west side of the Las Vegas Valley in Las VegasBy Lucia Mutikani WASHINGTON (Reuters) - The U.S. economy rebounded sharply in the second quarter as consumers stepped up spending and businesses restocked, putting it on course to close out the year on solid footing. Gross domestic product expanded at a 4.0 percent annual rate after shrinking at a revised 2.1 percent pace in the first quarter, the Commerce Department said on Wednesday.


A pedestrian walks past a Beats brand display in the subway system of New York(Reuters) - Apple Inc intends to lay off about 200 people at Beats Electronics LLC following its $3 billion acquisition of the headphone and music streaming services company, Bloomberg cited a person with knowledge of the restructuring as saying. The job cuts will mainly hit human resources, finance and other departments with significant overlap between the two, the news agency reported. ...


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