FEDERAL RESERVE

FED MINUTES SHOW RATE HIKES MAY SOON BE OVER WASHINGTON – Federal Reserve policymakers differed last month on how much higher interest rates would need to rise to keep the economy and inflation on an even keel, but most believed the end of the nearly two-year rate-hike campaign probably wasn’t far off. Minutes of the Fed’s closed-door meeting on December 13, released yesterday, provided insight into the most extensive changes to date in the wording of the central bank’s policy statement, which economists parse for clues about the possible course of future rate moves.

One of the most important changes was that the Fed dropped language – contained in previous statements – that described interest rates as being too low, or accommodative. Economists viewed that as a sign that the Fed was winding down its rate-raising campaign.

– Associated Press

MARKETS

ESTEE LAUDER TO JOIN S&P500 INDEX

Estee Lauder Companies, maker of Clinique and Bobbi Brown cosmetics, will join the Standard & Poor’s 500 Index, S&P said. The New York-based company will replace Mercury Interactive Corporation after the close of trading tomorrow, according to a statement from S&P, a unit of McGraw-Hill.

– Bloomberg News

RETAIL

WAL-MART DECEMBER SALES WORRY WALL STREET

Tepid December sales at Wal-Mart Stores made Wall Street uneasy yesterday, but many analysts don’t expect disappointing results from other retailers – most merchants are expected to meet their modest holiday expectations.

The chief economist at the International Council of Shopping Centers, Michael Niemira, agreed. He noted that Wal-Mart is still “behind the curve,” despite its efforts in improving its merchandise offerings.

Nonetheless, given Wal-Mart’s size and reach, the estimated December same-store sales increase of 2.2% the retailer announced Saturday will hurt the overall industry’s sales for the month. Wal-Mart’s forecast is based on stores open at least a year, considered the best gauge of a retailer’s strength.

– Associated Press

BROADCASTING

CBS PLANS TO DRIVE GROWTH WITH INTERNET, HANDHELD DEVICES

CBS plans to drive growth with its Internet sites and the sale of television shows on handheld devices, its chief executive, Leslie Moonves, said.

Shares of CBS, which was split from Viacom to form a separate company, gained in their first day of New York Stock Exchange composite trading. Viacom shares also advanced. “Although our growth will be moderate at first, there’s great opportunities for all the new media deals,” such as an agreement to place CBS shows on Comcast’s video-on-demand, Mr. Moonves said in an interview yesterday. CBS is also talking with Apple Computer about selling shows for the iPod, he said.

– Bloomberg News

IN BRIEF

Gold in New York climbed 2.6%, the most since February 2002, on speculation that investors will buy bullion because of concern about inflation … The chairman of the Securities and Exchange Commission, Christopher Cox, named Brian Cartwright, a partner at the law firm Latham & Watkins, as the agency’s chief legal officer … BASF AG, the world’s biggest chemical maker, made a $4.9 billion hostile bid for Engelhard Corporation, an American supplier of pollution-control devices … Crude oil surged above $63 a barrel in New York, a two-month high, after a pricing dispute between Russia and Ukraine disrupted shipments to Europe and raised concern Russia is not a reliable energy supplier.

– Bloomberg News