JUDY WOODRUFF: The Federal Reserve cut a key interest rate again today to its lowest level since 2004. The cut was one quarter of a point. The central bank lowered the federal funds rate to 2 percent. It did not promise further cuts.
Instead, in a statement, it said, again, it will, quote, "act as needed" to promote sustainable economic growth and price stability.
The economy narrowly avoided recession in the year's first quarter. The Commerce Department reported today that the gross domestic product increased just 0.6 percent from January through March.
But House Majority Leader Steny Hoyer played down chances of passing another stimulus package before Memorial Day. He said, quote, "The honest answer to that is no." We'll have more on the economy right after this news summary.
In the presidential campaign today, Democrats Hillary Clinton and Barack Obama stumped in Indiana, less than a week before that state's primary, this on the day after Obama denounced his long-time pastor, Jeremiah Wright, over a series of harsh statements.
Obama said today he is ready to put the issue behind him.
SEN. BARACK OBAMA (D), Illinois: I made a statement yesterday that was hard to make, but it was what I believed. And what we want to do now, though, is to make sure that this doesn't continue to be a perpetual distraction.
I mean, it is true that part of the job when you're running for president is that anybody who is tangentially even remotely associated with you is somehow fair game.
JUDY WOODRUFF: For her part, Clinton focused on gasoline prices and her call for suspending the federal gas tax this summer.
And Republican John McCain stumped in Pennsylvania. In Allentown, he again touted his plan for tax credits to let families buy their own health insurance.
SEN. JOHN MCCAIN (R), Arizona: I believe we can strengthen our system if we put families in charge, harness better information and competition to control costs, and to provide the right incentives for the power of innovation to make our lives better.
JUDY WOODRUFF: We'll have more on the candidates' competing ideas on gas prices later in the program.
In Iraq, the month-long U.S. death toll reached a seven-month high today. Five American soldiers were killed in separate attacks in Baghdad just in the last 24 hours. That made 49 U.S. deaths for the month of April. It is the worst toll since September, when 65 Americans were killed.
In Washington, the Pentagon's director for operations, Army Lieutenant General Carter Ham, gave this assessment.
LT. GEN. CARTER HAM, Joint Chiefs of Staff: There will be indications of progress, but there will also be times when the going is tough. It is not necessarily a straight line increase in improvement. There are going to be some challenges. And there certainly have been challenges and will continue to be challenges to our operations inside Iraq.
JUDY WOODRUFF: Much of the increase in U.S. casualties has come in fighting with Shiite militants in Baghdad. Today, Iraqi Prime Minister Nouri al-Maliki vowed to press a crackdown on militias, unless they disarm and stop interfering in state affairs.
In Afghanistan, hundreds of government agents raided a hideout in Kabul today. They were hunting militants involved in a failed plot to kill President Hamid Karzai. At least seven people died in the raid. The head of Afghan intelligence said today the attempt on Karzai's life was hatched in Pakistan's tribal areas.
A U.S. report today on terror found al-Qaida is gaining strength in Pakistan. State Department officials said that has led to more attacks there and in Afghanistan. Dell Dailey, the coordinator of the report, said the U.S. is watching talks between Pakistan's new government and tribal leaders.
DELL DAILEY, counterterrorism coordinator, State Department: We want to see what they conclude with in that particular agreement. Two areas where we'd like to see no movement would be a curtailment and the stopping of any type of extremist activities inside that area. And the second is we don't want them to be able to extend out of Pakistan to Afghanistan, Europe, the United States, and those areas.
JUDY WOODRUFF: We'll have more on the troubles in Afghanistan and Pakistan's role later in the program tonight.
The U.S. Food and Drug Administration moved today to beef up oversight efforts. It said it plans to hire 1,300 new employees by October, including biologists, chemists and doctors. The agency currently has more than 10,000 workers. Congress has criticized the FDA after scandals over poisoned pet food and contaminated blood-thinning drugs.
The U.S. Senate today unanimously approved action to help students get college loans. The credit crunch has made it tougher to obtain private loans. The Senate bill will increase the borrowing limits for federally backed loans. A similar plan already passed the House.
General Motors today reported a smaller first-quarter loss than expected. The nation's largest automaker said the red ink topped more than $3 billion, mostly in one-time charges. GM reported rising sales in Asia, Europe and Latin America. Its North American operations struggled, with a weak U.S. economy and a strike at a parts supplier.
On Wall Street today, the Dow Jones industrial average lost more than 11 points to close at 12,820. The Nasdaq fell 13 points to close at 2,412.
And the price of oil fell another $2 to just under $113.50 cents a barrel.
