Here are some top business stories for Wednesday:
Fed cuts key rate by half-point to 1.25 percent
WASHINGTON, Nov. 6 (UPI) -- The U.S. Federal Reserve Board Wednesday cut the key short-term interest rate, the federal funds rate, by 50 basis points to 1.25 percent.
The monetary easing exceeded Wall Street's expectations, and it marks the Fed's first effort to jump-start the economy this year. It takes the fed funds rate to near the July 1961 level when it averaged 1.17 percent. The Fed didn't target rates at that time, however.
In its statement announcing the cut, Fed policy-makers warned that "greater uncertainty, in part attributable to heightened geopolitical risks, is currently inhibiting spending, production, and employment."
But, it added that "inflation and inflation expectations remain well contained," indicating that going forward, the risks to the economy are balanced.
"In these circumstances, the committee believes that today's additional monetary easing should prove helpful as the economy works its way through this current soft spot," it said.
"With this action, the committee believes that, against the background of its long-run goals of price stability and sustainable economic growth and of the information currently available, the risks are balanced with respect to the prospects for both goals in the foreseeable future."
The Federal Open Market Committee's decision to cut rates for the first time since last December comes amid mixed economic reports that have tended towards the downside.
These include high unemployment, contracting manufacturing, declining consumer confidence and rising concern among investors and the public over possible U.S. military action against Iraq.
Policy-makers were unanimous in their vote to ease policy.
The Fed cut its target for short-term rates 11 times in 2001, a record for a calendar year, to fight the effects of a recession that likely began in last March and was worsened by the Sept. 11 terror attacks.
The bank cut rates at each of its eight scheduled meetings last year and during three impromptu conference calls.
Three of the reductions occurred after the Sept. 11, 2001, terrorist attacks in New York and Washington. Until Wednesday's meeting, the FOMC had opted to leave rates unchanged at all of its policy meetings this year.
The FOMC holds eight regularly scheduled meetings a year to direct the open market operations of the Federal Reserve Bank of New York in a manner designed to foster the long-run objectives of price stability and sustainable economic growth.
The FOMC holds its final meeting of the year on Dec. 10.
Ex-exec.: 'Not guilty' in Enron collapse
HOUSTON, Nov. 6 (UPI) -- Former Enron Chief Financial Officer Andrew Fastow pleaded innocent Wednesday to a 78-count federal indictment related to the collapse of the Houston energy trading company.
"Your honor, in answer to each of the charges, I am not guilty," he told U.S. Magistrate Marcia Crone.
Fastow, 40, allegedly enriched himself and some associates by setting up off-balance-sheet partnerships to hide Enron's troubled financial situation.
He is charged with fraud, money laundering and obstruction of justice. He is free on $5 million bond.
Fastow's attorney, John W. Keker, had no comment, but in the past he has said the truth about his client has yet to be told.
He told the Houston Chronicle that Fastow was hired to create the partnerships that he is now accused of using for his own personal gain.
Attorneys on both sides say Fastow is not cooperating with the government, according to the Chronicle.
The Securities and Exchange Commission earlier charged Fastow with civil fraud, which is punishable by financial penalties and a ban on working for a public company.
Chicken parmigiana, beef recalled
WASHINGTON, Nov. 6 (UPI) -- National Custom Packing Inc. of Castroville, Calif., Wednesday recalled 85,000 pounds of frozen chicken parmigiana because it may contain shrimp not listed on the ingredient label, posing an allergy hazard.
The recall involves Bertolli chicken parmigiana and penne in tomato mozzarella sauce with the codes 2H19NC2[A-F], 2H20NC2[A-F], 2H28NC2[B-D] or 2X20NC2[B-C]. Each package also bears the establishment code P-21340 inside the Agriculture Department seal.
The recalled chicken was produced Aug. 19-20, Aug. 28 and Sept. 20 and distributed to retail stores in Connecticut, Maine, Massachusetts, New Hampshire, New York, Rhode Island and Vermont.
The problem was discovered after a consumer inquiry to the company.
In other action:
Lone Star Food Service Ltd. of Austin, Texas, recalled 2,800 pounds of beef products that failed to list hydrolyzed corn protein in the bacon on the ingredient label.
The mislabeled packages were produced between Oct. 2 and Nov. 1 and distributed to hotels, restaurants and institutions in Texas.
The recalled meat came in 6- to 8-ounce packages with establishment code 2274 inside the USDA seal. The problem was discovered through a routine Food Safety and Inspection Service inspection.
