Fed stays course...New home sales fall...FBI rescues children

Washington (AP) The Federal Reserve is standing pat. It's decided to leave its federal funds rate unchanged at 2 percent.

This is the first time in 10 months the Fed has declined to reduce interest rates at one of its regular meetings.

WASHINGTON (AP) Sales of new homes fell in May for the sixth time in seven months. The Commerce Department says new homes were sold at a seasonally adjusted annual rate of 512,000 units in May, down 2.5 percent from the April level. The median price of a new home sold last month also declined.

WASHINGTON (AP) The FBI says it's rescued 21 children forced into prostitution and arrested hundreds of people. The Justice Department says it targeted 16 cities as part of Operation Cross Country.

Supreme Court (AP) The Supreme Court has struck down a Louisiana law allowing the death penalty for people convicted of raping a child. In a separate case, the justices ruled a convicted killer should get a new trial because the jury should not have heard about statements the victim had made to police.

TAMPA, Fla. (AP) A mentally ill homeless man is going to prison for threats he'd made against President Bush. Timothy Wade Pinkston has been sentenced to 57 months behind bars for threats he'd made while he was committed to a hospital psychiatric unit.

(Copyright 2008 by The Associated Press. All Rights Reserved.) APNP 06-25-08 1339CDT | save this article / add to your favorites list