Bernanke defends Fed's low-interest-rate policies

WASHINGTON — Facing criticism from Republican lawmakers, Chairman Ben Bernanke stood behind the Federal Reserve's low-interest-rate policies Wednesday and sought to reassure members of Congress that the central bank has a handle on the risks.

In his second day of testimony on Capitol Hill, Bernanke told members of the House Financial Services Committee that the bond purchases are needed to boost a still-weak economy and that they have helped create jobs for average Americans.

The bond purchases are intended to lower long-term interest rates. That encourages more borrowing and spending, which generates growth.

AP

Federal Reserve Chairman Ben Bernanke testifies on Capitol Hill today.

Still, Republicans said the bond purchases could generate higher inflation.

"We have gone too far in monetary policy and the monetary easing and it is in this member's opinion time to pull back," said Rep. Gary Miller, R-Calif.

Bernanke said the Fed is weighing the costs and the benefits.

"We plan to have a continual discussion and review of both the costs and the benefits and try to make sure that we are taking the right steps given those costs and benefits," Bernanke told the House panel.

Bernanke's remarks during his semiannual monetary report to Congress largely repeated comments made a day earlier to a Senate panel.

The Fed chairman made clear that the Fed's low-interest-rate policies are giving crucial support to an economy still burdened by high unemployment. He also acknowledged the risks of keeping rates low indefinitely. But he expressed confidence that such risks pose little threat now and gave no signal that the Fed might shift away from those policies.

The aggressive program to buy $85 billion a month in Treasurys and mortgage bonds had kept borrowing costs low, he said. And that, in turn, has helped strengthen sectors such as housing and autos, he said.

Bernanke rejected a suggestion by Rep. John Campbell, R-Calif., that the Fed's policies were mainly helping the federal government with its borrowing needs and big banks and foreign governments.

"This is very much focused at the average American citizen," Bernanke said. "Our estimates are that we've helped create many private-sector jobs. ... People are able to buy houses at very low mortgage rates, refinancing at low mortgage rates. People are able to get car loans at low rates."

The low borrowing rates have boosted demand, Bernanke said, and that has helped to lift home prices, making home owners feel more financially secure.

"In a lot of dimensions, we have, I think, benefited Main Street and that's certainly our objective," Bernanke said.

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Drivers line up for $2.27 gas at the Finish Line in Sweetwater

Hundreds of cars were backed up for more than four blocks waiting for gas Wednesday at the Finish Line in Sweetwater.

Drawing the crowd: a special promotion at the gas station and convenience store on 109th Avenue and West Flagler Street.

Drivers started lining up at 5 a.m. to pay a cash price of $2.27 per gallon, close to a 50 percent savings.

The promotion was part of the “14 Days of Neighborly Love,” an event hosted by Miami-Dade Commissioner Jose “Pepe” Diaz. It started on Valentine’s Day and ended Wednesday.

Miami-Dade residents were able to take advantage of other services and goods at a discount or for free, such as tax preparation, marriage counseling, car washes, and free SunPass transponders.

Finish Line owner Tony Cuevas and Roly Ramirez, owner of Doral Collision Center and Exclusive motoring, sponsored the $2.27 gas on the event’s opening and closing day.

“We’re very grateful for the success that we have,” Ramirez said. “I always give back in some way or another.”

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Jurors to decide fate of Miami imam accused of aiding Pakistani Taliban

For two months, federal prosecutors portrayed Miami imam Hafiz Khan in the worst possible light: terrorist sympathizer, Taliban supporter and pathological liar.

“His whole defense is a lie,” Assistant U.S. Attorney John Shipley told 12 jurors Tuesday during closing arguments.

The 77-year-old Khan, with his hunched shoulders and flowing white beard, testified that he sent about $50,000 to Pakistan to help a religious school, the poor and his extended family overseas — not to arm Taliban militants bent on killing Americans and Pakistanis.

“This is America, folks,” his attorney, Khurrum Wahid, said during closings. “You don’t have to accept what the government tells you.”

Now, the jurors must decide the fate of Khan, the former Muslim cleric at the Flagler Mosque in Miami. Khan, who was arrested along other family members in May 2011, has stood trial on four counts of conspiring to provide material support to terrorists and to a foreign terrorist organization, as well as providing actual support in both conspiracies.

Each count — built upon evidence of FBI-recorded phone conversations, a wired informant and bank transactions between 2008 and 2010 — carries a maximum sentence of 15 years in prison.

The prosecution’s case has had its share of setbacks. U.S. District Judge Robert Scola found that the evidence against Khan appeared “overwhelming” when he rejected the defendant’s bid for an acquittal at the end of trial. But the judge had also ruled midway through the trial that the government’s case against Khan’s son, Izhar Khan, a Broward imam, lacked evidence and threw it out.

Moreover, last summer prosecutors dropped the charges against another of Khan’s sons, Irfan, a Miami cab driver, without explanation.

Both brothers, along with another sibling, Ikram Khan, attended the closing arguments Tuesday with other supporters from the elderly imam’s mosque.

The case ultimately may come down to whether jurors believed Hafiz Khan, who was often evasive, unresponsive and rambling on the witness stand during four days of testimony last week.

Khan testified that he lied about his ostensible support for the Pakistani Taliban because he wanted to obtain $1 million from a purported Taliban sympathizer — who was actually an FBI informant — to help innocent victims of war in the Swat Valley region of Pakistan near the Afghanistan border.

Khan, who was unaware his conversations were being recorded, said he wished Americans would die in pursuit of al-Qaida leader Osama bin Laden and that terrorists would destroy the Pakistan government. He was also recorded praising the attempted 2010 Times Square bomb plot in New York City.

But on the witness stand, Khan testified his recorded statements were “all lies,” meant to curry favor with the FBI informant, known as Mahmood Siddiqui, who was paid $126,000 by the federal government for his undercover work. Siddiqui had promised Khan the money to help poor victims of the war between the Taliban and Pakistan.

“There are many times I am agreeing with him, but that does not mean that I mean it,” Khan testified.

Khan, a naturalized U.S. citizen who came to this country in 1994, sparred during cross-examination with Shipley, who grew frustrated as the frail yet feisty imam dodged his questions about his true beliefs about terrorism.

Shipley, however, pointed out that Khan made similar comments in other telephone conversations with friends and relatives that also were intercepted by the FBI.

Shipley’s colleague, prosecutor Sivashree Sundaram, said during closing arguments that the case was “straight forward.”

“This defendant convicted himself with his own words and actions,” Sundaram told jurors. “These are not the words of a peace-loving man.”

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Derek Hough Talks Maksim Chmerkovskiy Dancing with the Stars Exit

ET caught up with the brand-new cast of Dancing with the Stars season 16 after their big Good Morning America announcement Tuesday morning, where one looming question couldn't be ignored -- can the show survive without popular pro dancer Maksim Chrmerkovskiy?

"It's the nature of the show, you know. People aren't asked back certain seasons and come back later," pro dancer Derek Hough says. "It'll be a different dynamic but that's what it's about I suppose. I'm excited for the new pros."

Pics: The Complete List of 'Dancing with the Stars' Winners

However, he did share that the producers of the ABC hit are trying to bring back a more "positive" vibe to the show -- and it's no secret that Maksim was a controversial figure in seasons past.

"We had a meeting with the producers, and like, we really want to bring the innocence back to the show and the positivity and the fun and not -- [yes] be competitive -- but we don't want to make it a negative competitiveness," Derek shares.

Derek, already a three-time winner of the coveted mirror ball trophy, is paired up with country star Kellie Pickler this season, who just happens to be the first crossover contestant from American Idol!

"It's exciting to kind of get the whole 'pick Pickler' thing going again and I don't know, it's great to step outside your comfort zone and try something new and I think it's when you do things like that you grow," an excited Kellie tells ET.

Related: 'DWTS' Season 16 Cast Revealed!

Check out the video to hear thoughts from brand-new DWTS contestants like Olympic gymnast Aly Raisman, D.L. Hughley, Andy Dick, NFL wide receiver Jacoby Jones, Wynonna Judd and Real Housewives' Lisa Vanderpump.

Dancing with the Stars premieres March 26 on ABC.

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Carrie Fisher hospitalized after strange cruise performance: report

Carrie Fisher was hospitalized briefly after a strange, off-key performance she delivered aboard a Caribbean cruise, according to published reports today.

Fisher was treated for her bipolar condition, according to celebrity Web site TMZ.com, citing the actress' publicist.

"There was a medical incident related to Carrie Fisher’s bipolar disorder,” the rep said. “She went to the hospital briefly to adjust her medication and is feeling much better now."

The iconic “Star Wars” actress has openly discussed her battles with addiction and bipolar disorder.

Video surfaced last week of Fisher on a cruise ship, belting out a rambling, off-key standard. Her dog is on stage, where the pooch relieved himself.

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Univision bumps NBC into fifth place

A failing NBC has left Univision the fourth most popular network in the United States — at least for now.

The latest ratings from the February “sweeps” race — a milestone moment for network ratings in the television business — had NBC fall behind its Spanish-language rival. The Doral-based network finished the sweeps period with a viewership that amounted to 1.5 percent of all adults between 18 and 49. That’s considered the key demographic for television advertisers, and it’s the most common yardstick for measuring a network’s success.

The 1.5 percent share was ahead of NBC’s 1.2 percent share. CBS dominated the contest with a 4.9 percent share, followed by Fox (2.0 percent) and ABC (1.7 percent), according to EW.com.

Univision has beaten CBS before in the ratings race, but this is the first time the Spanish-language powerhouse has bested NBC. The victory is a bit sweeter since NBC owns Univision’s cross-town rival, Telemundo. As NBC slid, Univision saw audience for its news programs and telenovelas grow.

But the ratings pecking order can be topsy-turvy. In November, NBC took the fall sweeps contest with a No. 1 ranking, thanks to big audiences brought in by The Voice, Revolution and Sunday Night Football.

DOUGLAS HANKS

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Citizens Property Insurance strains to pull in belt on spending

The Maryland insurance executive charged with cleaning house at Citizens Property Insurance has had trouble sticking to the tighter travel expense policy he put in place.

Since Barry Gilway became Citizens CEO in June, he has stayed in a hotel at nearly twice Citizens’ room rate cap, charged liquor to a corporate credit card in violation of company rules, submitted expense forms late and had to be reminded to include itemized receipts.

A review of travel costs shows that Citizens has taken some steps toward frugality since the Herald/Times revealed in August that executives were enjoying lavish meals and five-star hotel stays at the same time the state-run insurer was aggressively trying to raise rates.

But even with a new policy designed to rein in costs, old habits die hard.

Some executives, including Gilway, have failed to file expense reports within the required 15 days of a trip. They’re still spending hundreds of dollars to change airplane tickets. Co-workers are still dining with each other at company expense at high-end restaurants like Tampa’s Capital Grille and Orlando’s Ocean Prime.

Recent expense reports also indicate that Citizens could have done more in the past to hold down costs at Florida hotels.

For a board meeting in February, 2012, Citizens paid $179 a night for employees to stay at the Peabody in Orlando.

But after Citizens imposed a $150 cap on in-state lodging, the Peabody agreed to reduce its rate to $149 a night for a December meeting.

"We had to work very diligently to get the rate down and it was a one-time thing they were able to get done for us since we had done business with them previously,’’ said Christine Ashburn, a Citizens spokesperson. "Due to their rates we will no longer be working with them going forward.’’

Expense reports filed since the travel policy changed in October also show that good hotels in out-of-state cities were available at much lower rates than what Citizens executives customarily spent. Before last fall, Sharon Binnun, the chief financial officer, typically stayed in New York City hotels costing $350 a night and up. But for a recent trip, she booked a room at the swank Marriott Marquis in Times Square at a nightly rate of just $204.

Under the new travel policy, Citizens executives are allowed to charge the company up to $60 a day for meals, still far higher than the $36-a-day limit set by other state agencies. On numerous occasions in the past few months, executives sought only partial reimbursement for expensive meals to avoid exceeding the cap.

More changes may be in the works.

"We currently are reviewing our expense procedures to develop and implement policies that more closely align with state policies and expect to have the revised policy in place in early March,’’ Ashburn said.

Last year, Gov. Rick Scott called on his inspector general to investigate Citizens after the Herald/Times reported on extravagant spending and allegations of corporate misconduct and waste, including hundreds of thousands of dollars in severance packages paid to executives who resigned amid scandal.

Scott weighed in again last week after the Herald/Times reported that Binnun and other top executives had received raises between 12 and 24 percent. Scott called the raises "foolish" and urged the executives to return them. Gilway and Citizens board chairman Carlos Lacasa have repeatedly said high salaries and travel expenses are justified as the cost of doing business in the competitive insurance world.

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Janet Jackson Married Wissam Al Mana

Rumors that Janet Jackson is planning her wedding to Wissam Al Mana have been flying fast and furious for weeks now. There's only one problem: they're already married!

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In their first joint statement as a couple, Janet Jackson and Wissam Al Mana confirm the news exclusively to ET, saying, "The rumours regarding an extravagant wedding are simply not true. Last year we were married in a quiet, private, and beautiful ceremony."

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"Our wedding gifts to one another were contributions to our respective favourite children’s charities. We would appreciate that our privacy is respected and that we are allowed this time for celebration and joy. With love, Wissam and Janet"

Congratulations to the happy couple!

Photo by world-renowned photographer, Marco Glaviano.

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Census to replace "Negro" with "black" or "African-American"

WASHINGTON — After more than a century, the Census Bureau is dropping its use of the word "Negro" to describe black Americans in surveys.

Instead of the term that came into use during the Jim Crow era of racial segregation, census forms will use the more modern labels "black" or "African-American".

The change will take effect next year when the Census Bureau distributes its annual American Community Survey to more than 3.5 million U.S. households, Nicholas Jones, chief of the bureau's racial statistics branch, said in an interview.

He pointed to months of public feedback and census research that concluded few black Americans still identify with being Negro and many view the term as "offensive and outdated."

AP

In this April 14, 1964 black-and-white file photo, a man holds a Confederate flag at right, as demonstrators, including one carrying a sign saying: "More than 300,000 Negroes are Denied Vote in Ala", demonstrate in front of an Indianapolis hotel where then-Alabama Governor George Wallace was staying.

"This is a reflection of changing times, changing vocabularies and changing understandings of what race means in this country," said Matthew Snipp, a sociology professor at Stanford University, who writes frequently on race and ethnicity. "For younger African-Americans, the term 'Negro' harkens back to the era when African-Americans were second-class citizens in this country."

First used in the census in 1900, "Negro" became the most common way of referring to black Americans through most of the early 20th century, during a time of racial inequality and segregation. "Negro" itself had taken the place of "colored." Starting with the 1960s civil rights movement, black activists began to reject the "Negro" label and came to identify themselves as black or African-American.

Still, the term has lingered, having been used by Martin Luther King Jr. in his speeches. It also remains in the names of some black empowerment groups that were established before the 1960s, such as the United Negro College Fund, now often referred to as UNCF.

For the 2010 census, the government briefly considered dropping the word "Negro" but ultimately decided against it, determining that a small segment, mostly older blacks living in the South, still identified with the term. But once census forms were mailed and some black groups protested, Robert Groves, the Census Bureau's director at the time, apologized and predicted the term would be dropped in future censuses.

When asked to mark their race, Americans are currently given a choice of five government-defined categories in census surveys, including one checkbox selection which is described as "black, African Am., or Negro." Beginning with the surveys next year, that selection will simply say "black" or "African American."

In the 2000 census, about 50,000 people specifically wrote in the word Negro when asked how they wished to be identified. By 2010, unpublished census data provided to the AP show that number had declined to roughly 36,000.

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Miami medicine goes digital

About 10 years ago, Dr. Fleur Sack quit her practice as a family physician to become a hospital department head. Spurring her decision was the need to switch from paper records to electronic ones to keep her private practice profitable. “At that time, it would have cost about $50,000,” Dr. Sack recalled. “It was too expensive and it was too overwhelming.”

But times and technologies changed, and last year, Dr. Sack left her hospital job to restart her medical practice with an affordable system for managing electronic patient records. She agreed to a $5,000 setup fee and a subscription fee of $500 per month for the system. Her investment also qualified her for subsidy money, which the federal government pays in installments, and to date, her subsidy income has paid for the setup fee and about two years of monthly fees. “So far, I’ve got my check for $18,000,” she said. “There’s a total of $44,000 that I can get.”

That kind of cash flow is one reason why so-called EHR software systems for electronic health records have been among the hottest-selling commercial products in the world of information technology. EHR system development is a growth industry in South Florida, too. Life sciences and biotechnology are among the high growth-potential sectors identified by the Beacon Council-led One Community One Goal economic development initiative unveiled in 2012; already, the University of Miami has opened a Health Science Technology Park while Florida International University has launched a program in its graduate school of business oriented toward biotechnology businesses.

For many young businesses in the area’s IT industry, government incentives are paving the way. The federal government is pushing doctors and hospitals to use electronic health records to cut wasteful spending and improve patient care while protecting patient privacy — sending digital information via encrypted systems, for example, rather than regular email.

Under a 2009 federal law known as the HITECH Act, maximum incentive payments for buying such systems range up to $44,000 for doctors with Medicare patients and up to $63,750 for doctors with Medicaid patients. Hospitals are eligible for larger incentive payments for becoming more paperless. The subsidy program isn’t permanent; eligible professionals must begin receiving payments by 2016. But by then, the federal government will be penalizing doctors and hospitals that take Medicare or Medicaid money without making meaningful use of electronic health records.

“What the government did is, they incentivized, and now they’re going to penalize,” said Andrew Carricarte, president and CEO of IOS Health Systems in Miami, one of the largest South Florida-based vendors of online software service for physician practices. He said insurance companies also may start penalizing physicians for failing to adopt electronic health records because “the commercial payers always follow Medicare and Medicaid.”

It’s all part of the growth story at IOS Health Systems, which has more than 2,000 physicians across the nation using its online EHR system. Carricarte said many of the company’s customers buy their second EHR system from IOS after their first one flopped. “Almost 40 percent of our sales come from customers who had systems and are now switching over to something else,” he said.

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