The Federal Reserve cautioned America's political leaders Wednesday that their policies are hurting the economy.The Fed stood by its aggressive efforts to stimulate the economy and reduce unemployment. But it sent its clearest signal to date that tax increases and spending cuts that kicked in this year are slowing the economy.“Fiscal policy is restraining economic growth,” the Fed said in a statement after a two-day policy meeting.The Fed maintained its plan to keep short-term interest rates at

World Business May 2, 2013

Three college friends of Boston Marathon bombing suspect Dzhokhar Tsarnaev were arrested and accused Wednesday of trying to protect him by going into his dorm room and getting rid of a backpack filled with hollowed-out fireworks three days after the deadly attack.The three 19-year-olds were not accused of any role in the bombing itself. But in a footnote in the court papers outlining the charges, the FBI said that about a month before the tragedy, Tsarnaev told two of them that he knew how to ma

World News May 2, 2013

A top Japanese envoy sought Wednesday to calm negative sentiment in the U.S. against the Shinzo Abe government's controversial take on history.In an op-ed piece in the Washington Post, Ambassador to Washington Kenichiro Sasae said his country has already expressed its "feelings of deep remorse and heartfelt apology" for wartime atrocities."The (Japanese) government believes that it is always important to face history head-on and with humility," he said. "It is also desirable that efforts to do s

Foreign Affairs May 2, 2013

Former U.S. President Jimmy Carter may soon travel to North Korea as part of his efforts, not always fruitful, to broker the resumption of dialogue and win the release of a Korean-American man detained there, diplomatic sources said Wednesday.But the South Korean and U.S. governments apparently take a dim view of Carter's possible trip to North Korea out of concern that the communist nation may try to exploit it for propaganda purposes.Carter recently sent a letter to Secretary of State John Ker

North Korea May 2, 2013

South Korean police have raided the office of a pro-North Korean activist group as part of a probe into its alleged violation of the nation's draconian security law, officers said Wednesday.The so-called "sopoong" is a Seoul-based organization formed in 2006 by pro-North activists. The group claims its goal is to call for the reunification of the two Koreas.The Seoul Metropolitan Police Agency (SMPA) said it has also searched the houses of 10 members of the organization to search and seize relev

North Korea May 1, 2013

Ricin was found in the former martial arts studio of the man suspected of sending poison letters to President Barack Obama and other officials, and it was discovered on a dust mask and other items he threw in the trash, federal prosecutors said in a court document made public Tuesday.The affidavit says an FBI surveillance team saw James Everett Dutschke remove several items from the studio in Mississippi on April 22 and dump them in a trash bin down the street. The items included a dust mask tha

World News May 1, 2013

South Korea's trade surplus narrowed in April from a year earlier as local exporters lost ground in overseas markets in the face of a weaker Japanese yen, the government said Wednesday.The country chalked up a trade surplus of $2.58 billion last month, compared with a surplus of $3.36 billion a month earlier, according to the Ministry of Trade, Industry and Energy. Exports gained 0.4 percent on-year to $46.29 billion last month, while imports inched down 0.5 percent to $43.71 billion over the ci

May 1, 2013

Cyprus' lawmakers approved on Tuesday a multi-billion bailout agreement with international creditors aimed at preventing the crisis-hit country from going bankrupt.The agreement was passed in the 56-seat parliament as expected with 29 votes in favor and 27 against. Cyprus struck the 23 billion euro ($30 billion) deal with its euro partners and the International Monetary Fund last month.Voting in favor were the ruling center-right Democratic Rally party and its ally, the Democratic party, which t

World Business May 1, 2013

The leader of Lebanon's Hezbollah militant group said Tuesday that Syrian rebels will not be able to defeat President Bashar Assad's regime militarily, warning that Syria's “real friends,” including his Iranian-backed militant group, were ready to intervene on the government's side.In Damascus, a powerful bomb ripped through a bustling commercial district, killing at least 14 people and bringing Syria's civil war to the heart of the capital for the second consecutive day.Hezbollah, a powerful Sh

World News May 1, 2013

The first paramedic on scene at Michael Jackson's home the day he died said Tuesday the singer looked emaciated and like someone at the end of a chronic illness.On the second day of a trial pitting Jackson's mother against tour promoter AEG Live, paramedic Richard Senneff -- the first witness to be called -- said doctor Conrad Murray was "frantic, pale and sweating.""The patient was in pajamas. He looked very pale, very, very underweight," he said, recounting how he was called to the self-styled

Performance May 1, 2013

President Barack Obama said he wants more information about chemical weapons use in the Syrian civil war before he decides on escalating U.S. military or diplomatic responses, despite earlier assertions that use of such weapons would be a “game-changer.” With the U.S. disengaging from the unpopular war in Afghanistan and still smarting from the difficult conflict in Iraq, Obama has been reluctant to unleash American military power in the Syrian fighting, a civil war that has killed tens of thous

World News May 1, 2013

Despite being labeled “clumsy” for his part in one of FIFA's biggest corruption scandals, Sepp Blatter was cleared of any criminal or unethical wrongdoing in a case involving millions of dollars in bribes for World Cup contracts.The reputation of Blatter's predecessor as FIFA president, Joao Havelange, was further damaged, however. The 96-year-old Brazilian, who led FIFA from 1974-98, was forced to step down as honorary president due to his involvement in the case.A report issued Tuesday by FIFA

Soccer May 1, 2013

Overall relations between South Korea and the United States are expected to remain healthy in the coming years but budget constraints on both sides may strain the alliance, a recent U.S. congressional report said.A new approach toward North Korea by South Korea's Park Geun-hye administration is also a potential source of friction, according to the Congressional Research Service (CRS)."Considered by most analysts to be a strong supporter of the alliance, Park is expected to continue close defense

Foreign Affairs May 1, 2013