this week in the news

Bernanke called remarks last month to a CNBC reporter that caused a stir in financial markets a "lapse of judgment," at a Senate hearing on financial literacy (WSJ)

The markets are "too freaked out about inflation" the gregarious Chen told Barron's editors Monday. "Inflation is peaking as we speak." (Barons, Chen Zhao, managing editor of the BCA Global Investment Strategy)

YAHOO AND EBAY ANNOUNCED a strategic partnership for Internet searches, advertising, online payments and a co-branded toolbar.(WSJ)

Vonage's offering marked the worst IPO in nearly two years, closing down 13% at $14.85. MasterCard priced at $39, below expectations but still the biggest U.S. IPO since May 2004. (WSJ)

May 25 (Bloomberg) -- Copper rose on the London Metal Exchange on speculation that production may not meet demand this year because of strikes and declining output at some mines.

WASHINGTON (Reuters) - The U.S. economy shot forward at an upwardly revised 5.3 percent annual rate in the first quarter, the fastest growth in 2-1/2 years, as companies built up inventories and exports strengthened, a Commerce Department report on Thursday showed.

``Housing is clearly cooling,'' Fed Bank of Dallas President Richard Fisher said on May 22 after a speech in Dallas. ``All of us are looking at the impact on consumption of the cooling of the housing sector.'' (Bloomberg)

Disposable income, adjusted for inflation, rose 2.1 percent in the first quarter after a 5.1 percent increase. Last month, the government estimated a 3.2 percent rise in first-quarter real disposable income after a 6.7 percent increase. (Bloomberg)

The rise in wages and salaries is ``more fuel for household spending,'' Dean Maki, chief U.S. economist at Barclays Capital in New York, said before the report. ``It also suggests more inflationary pressures because unit labor costs are the biggest costs for businesses.'' (Bloomberg)