WASHINGTON, D.C. (BNO NEWS) – The Federal Reserve Board on Tuesday made the decision not to take new steps to try and boost the economy, but suggested that the decision could very easily change in the coming months.

The Federal Reserve said that they will “maintain the target range for the federal funds rate at 0 to ¼ percent and continues to anticipate that economic conditions, including low rates of resource utilization, subdued inflation trends, and stable inflation expectations, are likely to warrant exceptionally low levels of the federal funds rate for an extended period.” Furthermore, the Fed said that they will continue to monitor the economic outlook and financial status of the U.S. and could put certain policy tools in place “as necessary” to promote economic recovery and price stability.

They did say that the pace of recovery and employment was slowing down and that little has change from its last policy meeting on August 10. However, Fed leaders expressed strengthened concerns, more than they had expressed in August, saying that inflation was too low.

“Measures of underlying inflation are currently at levels somewhat below those the Committee judges most consistent, over the longer run, with its mandate to promote maximum employment and price stability,” the Washington Post reported the Federal Open Market Committee as saying.

With economic recovery slowing down to less-than-modest rates, and with overall U.S. growth only coming in at 1.6 percent in the second quarter, the unemployment rate could possibly go up instead of coming down, if the growth persists at such slow levels.

“[The] Committee anticipates a gradual return to higher levels of resource utilization in a context of price stability, although the pace of economic recovery is likely to be more modest in the near term that had been anticipated,” the Federal Reserve said, warning a slower immediate recovery than originally reported.

Even despite Wall Street experiencing a four-month high and an economic rally in nearly all sectors, consumer confidence is getting worse and that’s undoubtedly impacting economic growth. In addition, employers, specifically small businesses, are hesitant to begin adding employees to the payroll. The housing market remains at a depressed level and bank lending continues to detract, but regardless, the Federal Reserve does predict an up-trend in the future.

It’s understood that if there isn’t any increase in the recovery rate, the Federal Reserve could take drastic measures, such as printing new money to artificially induce inflation. Additionally, Federal Reserve Chairman Bernanke said that the Federal Reserve could use a monetary policy called “quantitative easing”, which involves buying hundreds of billions of dollars in bonds.

Federal Reserve officials will likely spend the next weeks researching and considering new options, setting the stage for a potential decision and other steps that will likely come at their next meeting on November 2 -3.

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(Eds: Provides updates)

SANAA, YEMEN (BNO NEWS) – Yemen on Tuesday launched a full scale offensive against al Qaeda operations in the country’s southeastern province, dispatching forces backed by heavy weaponry, jets, and helicopters, a government official said.

The official said that the offensive was in response to a militant attack last week on a pipeline that was carrying liquefied natural gas, and described the pipeline as the “lifeline of the region,” CNN reported. The official added that militants have occupied homes and barricaded themselves in, and challenged claims that 80,000 people had been displaced.

BBC indicated that almost all local residents have fled, with some going to neighboring villages, and others going even farther. The fighting is focused in the town of Hutu in the mountain region of Shawba. The offensive also signals the escalation of a U.S. backed offensive against the terror offshoot in Yemen.

The Yemeni government has been fighting a growing al Qaeda element in the region called al Qaeda in the Arabian Peninsula (AQAP). The militant offshoot of al Qaeda grabbed the attention of the West with the Christmas Day attempted bombing of a Northwest Airlines trans-Atlantic flight as it landed in Detroit, Michigan. The suspect, Umar Farouk Abdulmutallab, was has pleaded not guilty to six federal terrorism charges, was reportedly trained and given arms in Yemen.

Since the organization’s founding in January 2009, AQAP has claimed responsibility for a number of terrorist attacks against Saudi, Korean, Yemeni, and U.S. targets. Yemen has since put four al Qaeda suspects on trial on Monday, and the defense ministry for the country said that the suspects – two Yemenis, a German, and an Iraqi – are accused of criminal conspiracy and planning to target foreign tourists and interests as well as vital government and military targets in Yemen.

The White House has increased focus on Yemen, and on Monday, the President’s counterterrorism advisor, John Brennan, approved U.S. military support for Yemen. A counterterrorism official said that the Obama administration recognizes the fact that not enough is being done in Yemen to meet the challenges that are posed by organizations like al Qaeda in the Arabian Peninsula.

The Obama administration is reportedly considering adding armed CIA drones to help fight the increased threat of al Qaeda in Yemen, a U.S. official said in August.

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WASHINGTON, D.C. (BNO NEWS) – The defense bill that included the repeal of the military “don’t ask, don’t tell” policy, which bars individuals from revealing that they are homosexual, failed to advance in the U.S. Senate on Tuesday as Republicans united to keep the bill from coming up for debate, CNN reported.

The bill was stalled with a 56-43 vote, four short of the 60 votes needed to bring the bill up for debate and to break the Republican filibuster. Senate Majority Leader Harry Reid also joined the opposition in a tactical move, allowing him to bring it up later.

Republicans stood, as expected, united against the measure, despite some GOP senators favoring lifting the Pentagon’s requirement that gay and lesbians keep their sexual orientation a secret.

President Obama had promised to repeal the congressional enacted ban on military service on openly homosexual members of the military. White House Press Secretary Robert Gibbs indicated that Obama was “disappointed” at the results of the Senate vote but said that, “we’ll keep trying.”

“The president obviously continues to urge Congress to act, and is working as well with the Pentagon to see this come to fruition,” Gibbs said. Though, this came as GOP Senators objected to Reid’s plan to add an immigration-related provision to the defense bill. Essentially, Reid wants to tack on a measure that would provide a path to citizenship for students and soldiers who are children of illegal immigrants, something that Republican Senators are, by and large, staunchly opposed to.

“I am opposed to illegal immigration, and I am deeply disappointed that Washington politicians are playing politics with military funding in order to extend a form of amnesty to certain illegal immigrants,” Republican Senator Scott Brown from Massachusetts said in a statement, issued hours prior to Tuesday’s vote.

One of Maine’s moderate Republican senators, Susan Collins, said on Tuesday that she would agree to join a GOP filibuster unless Reid agrees to open the bill up for debate. She said that she supported the repeal of the “don’t ask, don’t tell” policy, but wouldn’t vote for the bill if it is going to preclude Republican amendments.

Reid indicated that he wanted the Senate to allow discussion of the bill now, but wouldn’t have a final vote until after the Nov. 2nd congressional elections. GOP Senators are insistent that before that can happen; there must be an open debate that insures they can propose their desired amendments.

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WASHINGTON, D.C. (BNO NEWS) – The U.S. Senate plans to vote on a broad defense spending bill on Tuesday that will include a provision on the repeal of the “don’t ask, don’t tell” policy of requiring that gay and lesbian members of the U.S. military keep their sexuality a secret, CNN reported on Monday.

Republicans in the Senate appear to be united against the repeal, including certain GOP senators who are in support of lifting the policy. Republican opponents to the policy are not happy that Democratic leaders refuse to allow GOP amendments to the National Defense Authorization Act, which includes the “don’t ask, don’t tell” provision.

Two Republican senators, Olympia Snowe and Susan Collins, are being pressured by celebrities and popular figures to support the Democrats in getting the 60 votes needed to open debate on the measure, as they both oppose the “don’t ask, don’t tell” policy. Collins, however, said that she was ready to stand with fellow Republicans against the bill. She said that she recognizes that “many of her colleagues have a different view” than she does regarding the policy. Snowe remains undecided, according to her aide John Gentzel.

The defense authorization act, which is a broader defense policy bill, wouldn’t rescind the “don’t ask, don’t tell” until the Pentagon completes a review of the impact the repeal would have on the military. The review is due to be completed in December and would serve as the basis of the certification by the President, U.S. Defense Secretary, and the Chairman of the Joint Chiefs of Staff.

However, Republicans aren’t happy with that decision and say that Congress should hold off on any decision until the military completes its review. Senator John McCain of Arizona, who is also the top Republican on the Armed Services Committee, said that approving the repeal before the finish of the review process is an insult to military personnel.

Defense Secretary Robert Gates and Admiral Mike Mullen, the Joint Chiefs chairman, have publicly supported the repeal. The military already has groups working to look at how the change would work if implemented.

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WASHINGTON, D.C. (BNO NEWS) — Police officers responding to reports of an armed man in the vicinity of Capitol Hill shot a suspect on early Friday morning, police said.

The shooting happened just after 5 a.m. EDT on a street near Capitol Hill, according to U.S. Capitol Police spokeswoman Sgt. Kimberly Schneider. She said a lookout for a man with a gun went out over the radio minutes before the shooting.

Schneider said the responding police officers observed the man after which he brandished a weapon. Officers shot the suspect when he refused to drop his weapon.

The spokeswoman said the suspect was transported to a local hospital with unknown injuries. His condition was not immediately known.

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WASHINGTON, D.C. (BNO NEWS) – U.S. Army Reserve Lt. Colonel Anthony Shaffer, author of controversial book Operation Dark Heart, on Monday told BNO News that he initially tried to stop the New York Times from publishing an article that revealed that the U.S. Defense Department plans to buy all printed copies of the book and destroy them, but appreciated the indirect credibility and added interest it spurred.

Operation Dark Heart has already hit a number of best seller lists, before the book has even been cleared to hit the shelves. There was only 10,000 copies printed of the book initially and the Pentagon is in negotiations to buy those and presumably destroy them. Shaffer told BNO News’ Joda Thongnopnua that while he couldn’t discuss the contents of the book or its status, as Army Public Affairs requested that he not comment, he did say that the effort by the Department of Defense has proved to “help his credibility and enhance interest.”

He noted that he didn’t seek out the controversy and in fact, tried to stop the New York Times from filing their story. “I actually tried to stop the New York Times from running the article, and based on the fact that the DoD effort has only served to help my credibility and enhance interest, I kind of appreciate it. Though, I’m sure that is not what they had in mind.”

The book, previously cleared by the Army after relatively minor changes, was then read by intelligence services and defense department officials who immediately scrambled to stop the book from hitting shelves. Allegedly, the Defense Department identified over 200 passages of classified material but it’s understood by officials close to the publication of the book said that some of the sensitive material that had been removed was over 20 years old or even in the public domain. There is some suspicion that the reason the Pentagon wants the book gone is not because of the specific classified information revealed, but rather that it delves into U.S. dealings in Pakistan intelligence and intelligence community failures over the long term.

Shaffer was previously involved in the so-called Able Danger controversy, after he said that the U.S. Defense Intelligence Agency (DIA) did not properly evaluate intelligence on 9/11 hijacker Mohammad Atta. Shaffer told the 9/11 Commission in 2003 that the DIA leadership did not share the information that it had discovered two of the three terror cells that were implicated in the September 11th attacks with the FBI because military lawyers had legal concerns. The 9/11 Commission Report didn’t mention Shaffer’s allegations. Shaffer told BNO News that there would be more information on the Atta issue “soon” but couldn’t comment more on the issue, saying that the news is both connected and separate to the release of Operation Dark Heart.

Prior to the controversy, Shaffer said he had planned to do additional books. “I have one non-fiction (follow-up) in mind to Dark Heart, and there are several folks I’ve discussed collaborating to write fiction [with],” he said.

Shaffer wasn’t able to go into detail about why the intelligence community had a problem with the book but the Army had cleared it to be published. He did say that, in the future, it will be clear as to why the Army gave the green light for the book and why the DIA and other intelligence agencies didn’t.

He said that the controversy with Atta in 2003 and now the news surrounding Operation Dark Heart was an example of poor practice within the intelligence community and bad leadership. He compared the situation with the 9/11 intelligence failure to the Enron Corporation failures, an American energy giant that went bankrupt in late 2001, that happened around the same time. “Did the leadership at Enron get promoted and go on to run other, bigger companies when Enron failed? That is in many ways what we did after 9/11,” Shaffer noted. “Many of the leaders who failed to do their job before 9/11 were promoted into even more senior positions of leadership, no one was held accountable.”

He criticized the office of the Director of National Intelligence, which is currently headed by Lt. Gen. James Clapper, saying that it isn’t “helpful in its current form.”

“The CIA continues to be out of control, and from what I observe and hear from my friends on the inside, things are not any better,” Shaffer said. “And it’s just a matter of time before the next underwear bomber or Times Square bomber.”

The book is expected to be released after either the Pentagon redacts a number of the classified information or buys all 10,000 currently printed copies and destroys them. The publisher said that he’d be happy to sell the copies to the Pentagon and print entirely new copies to sell, since the Defense Department has already made the book famous. The plan to destroy the book has provided Shaffer and Operation Dark Heart with publicity that simple advertising doesn’t get.

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WASHINGTON, D.C. (BNO NEWS) – The Obama administration is ready to unveil plans to offer advanced aircraft to Saudi Arabia in a deal that totals some $60 billion, the largest U.S. arms deal in history, the Wall Street Journal reported on Sunday.

The administration plans to present the $60 billion transaction as a job creator, which could potentially support at least 75,000 jobs, according to company estimates. It also sees the sale of advance fighter jets and military helicopters to key Middle Eastern ally Riyadh as part of a collection of allies in the region against Iran.

Talks between the U.S. and Saudi Arabia have been rumored for months, but a number of new details were revealed by the Wall Street Journal. This includes the number and model of the aircraft that will be sold as well as how much the Saudis intend to spend in the initial installment as well as a plan to upgrade the Saudi kingdom’s navy and missile defenses.

While the Saudi kingdom has set the cap of fighter jets and helicopter purchases to $60 million, they will probably only purchase half of that amount.

The notification to Congress on the deal is expected to be submitted within next week, and the administration will authorize Saudi Arabia to buy as many as 84 new F-15 fighter jets, upgrade 70 more, and purchase three types of helicopters. This includes 70 Apaches, 72 Black Hawks, and 36 Little Birds, officials close to the deal said.

The notification could trigger a congressional review, which may result in lawmakers pushing for changes or seeking to impose conditions that could potentially block the deal, but so far, that isn’t expected.

Lockheed officials stated that they see the potential for an export industry in the Middle East, especially where the major concern exists about Iran’s ballistic missile development program. The benefit to job growth is a major plus in building support in Congress for the $60 billion package, officials said. “It’s a big economic sale for the U.S. and the argument is that it is better to create jobs here than in Europe,” said someone close to the negotiations.

Pro-Israel legislators have, in the past, expressed concern over arms sales to the Middle Eastern country that they say undercuts Israel’s military edge and provides support to a government with a terrible human rights record. However, U.S. officials say that the Israelis are becoming more comfortable with the sale to Saudi Arabia, as the planes will not have long-range weapons and the Israelis are set up to buy a more advanced fighter, the F-35.

Anthony Coresman, an academic at the Center for Strategic and International Studies, said that the deal is so complex and massive that changes are inevitable. “This is not the kind of negotiated where you’ve really agreed on the final details until you actually have put the final contract out,” he said.

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WASHINGTON, D. C. (BNO NEWS) – A U.S. federal appeals court ruled on Thursday that federal funding of embryonic stem cell research could continuing while the appeals court considers a judge’s ruling that determined that the U.S. Government could not fund research that uses embryonic stem cells

The appeals judges noted in a ruling that the suspension should “not be construed in anyway as a ruling on the merits” of the case. The judges gave both the U.S. Government and the plaintiffs in the case, who argue that embryonic stem cell research is unethical, until September 20 to file their written arguments. Steven Aden, the lawyer for the plaintiffs said that the appeals court ruling “essentially calls a timeout.”

The suspension will also allow the National Institutes of health to provide $78 million to 44 scientists whose research the agency had previously been financing. The stay also allows Congress time to consider legislation that would make the recent ruling that banned the research largely unimportant, a prospects that some Democrats have invited. Critics are staunchly opposed, but embryonic stem cell research is a popular legislative fight that could give some Democrats a much needed boost during the upcoming November elections.

The appeals court ruling was welcomed by embryonic stem cell research advocates and was criticized and condemned by those who oppose the research practice, but it increases the long-going debate that has surrounded the research for years.

The controversy lies in the research potential for embryonic stem cells, which could morph into any cell in the body and given enough research and funding, allow the formation of new organs to be made inside a laboratory environment, which presents a number of exciting possibilities for the medical field. However, those within the anti-abortion movement say that the embryos that the stem cells come from are destroyed in the process and the collection of them is akin to murder.

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WASHINGTON, D.C. (BNO NEWS) – U.S. President Barack Obama on Wednesday urged Israeli and Palestinian leaders not to let the chance of a peace deal “slip away”, saying that the opportunity may not come again soon, BBC reported.

President Obama spoke a day before the new round of direct talks between the Israeli Prime Minister and the Palestinian President was due to begin. Earlier in the day he condemned the “senseless slaughter” of four Israeli settlers who were shot dead by a Hamas drive-by shooting in the West Bank occupied territories.

He spoke at the White House on Wednesday evening after meeting with Israel Prime Minister Netanyahu, Palestinian Authority President Mahmoud Abbas, Jordanian King Abdullah, and Egyptian President Hosni Mubarak. Obama indicated that the talks went well, saying that they were “very productive” meetings.

The President also indicated that the U.S. could not force peace upon the two parties and that the U.S. could not want peace more than Israel and the Palestinians. He praised Abbas and Netanyahu, saying they were leaders who “I believe want peace.”

The initial meetings took place among fresh violence, however. Two Israelis were shot and wounded on Wednesday near Ramallah. Israeli officials said that the man was in serious condition in the hospital. Israeli spokesman said that Palestinian militants, most likely Hamas, were involved in the attack. U.S., Israeli, and Palestinian officials all condemned the attacks but said they would not allow it to derail the new momentum seen in the peace process.

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MANHATTAN, NEW YORK (BNO NEWS) – A woman, member of an international sex trafficking conspiracy arrived on late Monday to a Manhattan court to face charges of conspiracy to commit sex trafficking, forced labor and alien smuggling, U.S. District Attorney Preet Bharara said on Tuesday.

Un Sun Lee Brown, 60, had been at large since being charged in 2006. She recently surrendered to the Office of Homeland Security Investigations (HSI) in Washington D.C. on August 1. She was charged as a result of an investigation that convicted 25 people in 2006 and 2007.

Brown, last known to be a resident of Silver Spring, Maryland, was allegedly involved in an international criminal operation that smuggled women from South Korea into the U.S. and placed those women in various prostitution businesses in northeastern U.S.

The defendant owned the 14k Spa in Washington D.C., which was an undercover prostitution business. Brown generated thousands of dollars in annual income at her illegal business by charging customers house fees for having sex with the women

In contrast, Brown did not pay them any wages or salaries and instead charged $500 per week from the money they received directly from the customers for sex. She usually had five Korean women at a time that slept on mattresses on the floor inside a room of the spa.

The Korean victims were also subjected to house rules, established by Brown that prohibited them from going outside the business or refusing customers. On one occasion, one woman suffered a sexual assault inside the 14k Spa and was instructed to refund the customer and not to inform the police.

“Un Sun Brown has finally surrendered to HSI authorities to face federal sex trafficking charges. Brown and her co-conspirators allegedly made hundreds of thousands of dollars prostituting women, forcing five of them to reside in a single room and requiring to have sex with customers for no wages and at risk of their personal safety,” Bharara said.

If convicted, Brown faces a maximum sentence of five years in prison and a fine of up to $250,000.

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