New claims for unemployment benefits dropped unexpectedly last week, but the number of people continuing to seek aid rose sharply.

President-elect Barack Obama's proposed tax cuts ran into opposition Thursday from senators in his own party who said they wouldn't do much to stimulate the economy or create jobs.

President-elect Barack Obama warned Thursday that the nation's recession could "linger for years" unless Congress acts to pump huge sums from Washington into the U.S. economy.

The U.N. suspended aid shipments in the Gaza Strip on Thursday and the Red Cross restricted its convoys after their trucks came under Israeli fire.

Major retailers Thursday reported dismal sales for December, confirming fears that the holiday season was the weakest in four decades.

Floods and avalanches kept tens of thousands of people in Washington state from their homes Thursday and cut off highways that link Seattle's ports with markets around the country.

President-elect Barack Obama warned Thursday that the nation's recession could "linger for years" unless Congress acts to pump huge sums from Washington into the U.S. economy.

Thousands of evacuated residents were allowed to return to their homes Thursday after firefighters took advantage of slowing winds overnight to partially contain a wildfire near Denver.