Greenspan's remarks hint at higher rates

WASHINGTON - An upbeat Alan Greenspan said Tuesday the economy has "picked up again," but the Federal Reserve chairman also talked about the possibility of higher interest rates, and that sent stock prices down.

Greenspan, who spoke at a Senate Banking Committee hearing, did not say what central bank policy-makers would be doing about short-term interest rates. But he told senators the banking system was well prepared to deal with rising rates, a statement investors interpreted as suggesting the Fed was at least considering an increase.

USA Today editor retires amid scandal

NEW YORK - The editor of USA Today, the country's largest-selling newspaper, retired suddenly Tuesday amid a scandal over fabrications and deceptions by Jack Kelley, one of the paper's star reporters.

Karen Jurgensen, 55, had been the paper's editor since 1999. Her departure came on the heels of a comprehensive report on the Kelley fiasco compiled by three veteran newspaper editors.

Ex-US Airways exec entitled to millions

ARLINGTON, Va. - US Airways Group Inc.'s former president and chief executive, who stepped down this week because of friction with unions over cost-cutting, will collect a multimillion-dollar severance package.

The airline has not disclosed the exact amount of David Siegel's severance, but its annual proxy statement indicates that he is entitled to receive a $4.5 million payment, and possibly more, within five days.

Former Boeing official admits to conspiracy

ALEXANDRIA, Va. - A former Air Force official pleaded guilty to conspiracy Tuesday for secretly negotiating for a job with Boeing Co. while she oversaw the Pentagon's consideration of a multibillion-dollar contract with the aviation giant.

Darleen A. Druyun, 56, of Vienna, Va., entered the plea in U.S. District Court to a single count of conspiracy, which carries a maximum five years in prison.

Druyun was an Air Force procurement officer before becoming a vice president at Boeing.