World/Nation Briefs June 8, 2012

Bernanke signals no imminent aid for economy

WASHINGTON - Slumping job growth has alarmed some economists who fear the U.S. economy is in trouble.

Ben Bernanke doesn't appear to be one of them.

The Federal Reserve chief sketched a hopeful outlook in testimony to a congressional panel Thursday and sent no signals that the Fed will take further steps soon to aid the economy.

Bernanke acknowledged that Europe's debt crisis poses risks to the U.S. financial markets. He also noted that U.S. unemployment remains high at 8.2 percent. And he said the Fed is prepared to take steps to boost the U.S. economy if it weakens.

But he said Fed officials still need to study the most recent economic trends, including job growth. For now, Bernanke said he foresees moderate growth this year.

He said he's mindful that all that could change, if Europe's crisis quickly worsened or U.S. job growth stalled.

"As always, the Federal Reserve remains prepared to take action as needed to protect the U.S. financial system and economy in the event that financial stresses escalate," he told the Joint Economic Committee.

Liberals remain frustrated with Obama's record

PROVIDENCE, R.I. - They are trying to be hopeful, but the Democratic Party's most passionate voters are struggling to hide their frustration with President Barack Obama.

Republicans attack the president as a big-government liberal. Many liberals meeting Thursday at Netroots Nation - it describes the annual convention as "a giant family reunion for the left" - argue instead that Obama hasn't fought hard enough for progressive priorities on taxes, health care and the economy.

Even more problematic for the president: With the election just five months away, some are threatening not to donate money or time or even vote in November for the man who overwhelmingly ignited their passions and captured their imaginations four years ago.

"I want to be happy with him," said Democrat Kristine Vaughan, a 45-year-old school psychologist from Canton, Ohio. "But I am finding that he has succumbed to the corporate influence as much as everyone else. I think he has so much potential to break out of that, but overall he has been a disappointment."

Vaughan isn't sure whether she'll vote for Obama a second time and probably won't donate money as she did during his first campaign. She refuses to support Republican challenger Mitt Romney, but is considering writing in another candidate in protest.

Republicans press Holder on gun-trafficking

WASHINGTON - Attorney General Eric Holder clashed Thursday with congressional Republicans seeking more information about a flawed gun-trafficking investigation in Arizona.

Lawmakers at a House Judiciary Committee hearing asked Holder what he knew in advance of public disclosure of a so-called gun-walking tactic in early 2011. As part of Operation Fast and Furious, agents were told to forego immediate arrests of suspected straw purchasers of guns and instead try to track the guns to higher-ups in gun-smuggling rings. Such a tactic is normally barred under Justice Department policy.

Agents lost track of hundreds of guns which flowed south to Mexico, where many were recovered at crime scenes. Two such guns were found in the U.S. at the scene of the killing of border agent Brian Terry.

Holder told the committee he became aware of the gun-walking tactic at the same time as the public and that he found out "about the same time" that guns found at the scene of Terry's death were part of Operation Fast and Furious.

UN observers in Syria investigate mass killing

BEIRUT - U.N. observers came under fire Thursday as they tried to reach the site of the latest reported mass killing in Syria - about 80 people, including women and children who were shot or stabbed. The deaths added urgency to diplomatic efforts to end the escalating bloodshed.

As reports emerged of what would be the fourth such mass slaying of civilians in Syria in the last two weeks, the United States condemned President Bashar Assad, saying he has "doubled down on his brutality and duplicity."

U.N. patrols in Syria have on several instances been deliberately targeted with heavy weapons, armor-piercing ammunition and a surveillance drone, U.N. Secretary-General Ban Ki-moon told the Security Council, according to a senior U.N. official.

Early Fleetwood Mac guitarist Bob Welch found dead

NASHVILLE, Tenn. - Bob Welch, a former member of Fleetwood Mac who went on to write songs and record several hits during a solo career, died Thursday of a self-inflicted gunshot wound, police said. He was 65.

Police spokesman Don Aaron said Welch's wife found him with a chest wound at their south Nashville home around 12:15 p.m.

Welch was a guitarist and vocalist for Fleetwood Mac from 1971 to 1974. He formed the British rock group Paris in 1976, and had hits including "Sentimental Lady" in 1977 and "Ebony Eyes" in 1978. Fleetwood Mac's Christine McVie and Lindsey Buckingham did backup vocals on "Sentimental Lady."

Aaron said Welch apparently had health issues recently. He said a suicide note was left.

Fleetwood Mac's career took off in the mid-1970s after Welch left the band.

- The Associated Press