(Reuters) - Consumer inflation was subdued in October and new home building slumped to its lowest level in 1-1/2 years, further supporting the Federal Reserve's move to boost the sluggish economy through additional monetary easing. The data on Wednesday could help to ease criticism of the Fed's unpopular November 3 decision to inject more money into the economy through purchases of $600 billion worth of government debt.

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(Reuters) - Warning of a "death spiral" without drastic changes, a group of experts on the U.S. federal budget deficit on Wednesday called for a 2011 Social Security tax holiday, a soft drink tax and government spending freezes. In an ambitious plan to slash the deficit and the fast-mounting national debt, the group also called for a new 6.5 percent national sales tax, as well as lower and simpler individual income and corporate tax rates.

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(Reuters) - The United States should use all available tools, including labeling China a currency manipulator, to put pressure on Beijing to raise the value of its yuan, a U.S. watchdog panel said on Wednesday. "China's deliberately undervalued (yuan) has unfairly conferred substantial economic advantages on China to the detriment of major trading partners, principally the United States and Europe," the U.S.-China Economic and Security Review Commission said in an annual report.

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(Reuters) - Target Corp (TGT.N) expects to post its best same-store sales in three years during the upcoming holiday season, sending its shares up as some analysts bet it will outpace larger rival Wal-Mart Stores Inc (WMT.N). The discount chain benefited from the strong performance of its credit card business in its third quarter and believes it will lure more shoppers during the holidays with a new credit card program that offers 5 percent off all purchases.

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(Reuters) - The U.S. Federal Reserve's newest bid to lower borrowing costs should boost jobs and lift inflation to healthier levels, making the controversial action worth the risk, Boston Fed President Eric Rosengren said on Wednesday. The Fed's decision in early November to pump $600 billion into the financial system by buying Treasuries faced strong opposition within the Fed as some questioned its effectiveness, and has since drawn criticism from abroad and domestically over its potential to create asset bubbles in emerging economies and feed inflation at home.

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(Reuters) - A Manhattan bankruptcy court judge ruled that Bank of America Corp's (BAC.N) seizure of $500 million deposits held by Lehman Brothers Holdings Inc (LEHMQ.PK) shortly ahead of the latter's bankruptcy was unauthorized. According to court papers, Lehman had deposited the money in August 2008 as collateral so Bank of America could continue to honor Lehman's checks at times when no funds were on deposit, effectively extending an unsecured line of credit to Lehman pending the clearance of deposits.

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(Reuters) - China will intervene to control consumer prices if they rise too quickly, the government said on Wednesday, a move that will do little by itself to tame inflation but could foreshadow harsher monetary tightening. Steps to cool demand in China, the world's fastest-growing major economy, could weigh on global markets at a time when recoveries in Europe and the United States remain fragile.

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(Reuters) - Warren Buffett praised the U.S. government's efforts to bail out the economy during the financial crisis two years ago, preventing an economic collapse. In a letter published by the New York Times, Buffett wrote that all corporate America's dominoes were lined up and were ready to topple at lightning speed in the aftermath of Lehman Brothers bankruptcy in September 2008.

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(Reuters) - Stock index futures pointed to a lower open on Tuesday on continued concerns that China could raise interest rates, though strong results at Wal-Mart helped limit losses. Chinese shares sank nearly 4 percent to a one-month low on reports that China will unveil food price controls and crack down on speculation in agricultural commodities to contain inflationary pressure.

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(Reuters) - U.S. core producer prices recorded their largest decline in more than four years in October, underscoring the Federal Reserve's concerns about the low inflation environment. The Labor Department said on Tuesday the core Producer Price Index, which excludes food and energy costs, fell 0.6 percent -- the biggest drop since July 2006 -- after edging up 0.1 percent in September.

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