By Brai Odion-Esene

WASHINGTON (MNI) - The U.S. Treasury official responsible for overseeing the Troubled Asset Relief Program said Thursday the government now expects to profit on the capital injected into banks via various programs.

In written remarks prepared for a hearing by the House Appropriations Committee, Herbert Allison, Treasury's assistant secretary for Financial Stability, said the financial system has experienced a partial but significant recovery over the past year.

By John Shaw

WASHINGTON (MNI) - Sen. Lindsey Graham, a key Republican critic of China's currency policies, said Thursday there is strong bipartisan support for legislation that would allow the U.S. to pressure nations that use misaligned currencies to dominate the global trading system.

By Denny Gulino and Ian McKendry

WASHINGTON (MNI) - U.S. sales of existing single-family homes, town homes, condominiums and cooperatives jumped 6.8% in March to a 5.35 million annual rate, while inventories of unsold houses improved after a February surge, the National Association of Realtors reported Thursday morning.

By Courtney Tower

OTTAWA (MNI) - The Bank of Canada continued Thursday to keep financial markets guessing about when policy rate increases may begin, but said their time has come. Likely dates are June 1 or July 20 for the first of a series of increases.

WASHINGTON (MNI) - In a televised interview Thursday, U.S. Treasury Secretary Timothy Geithner said limiting banks' leverage, as well as their ability to take excessive risks, will be key to reducing the collateral damage when the financial system experiences another crisis.

He also said the administration will seek to change the GSE system "completely," when the government proposes housing finance reform early next year.

By Denny Gulino and Kevin Kastner

WASHINGTON (MNI) - Initial claims for U.S. state unemployment benefits dropped 24,000 to 456,000 in the April 17 employment survey week after seasonal adjustment and some of the drop was "not unrelated" to the surges in the previous two weeks, according to data released by the U.S. Labor Department Thursday morning.

By Joseph Plocek

WASHINGTON (MNI) - The U.S. March PPI seems like 'old news' after the CPI was released last week, and the unemployment claims data are suggesting economic stabilization.

Initial unemployment claims fell 24,000 to 456,000 for the April 17 week, the payroll survey period. This compares to 454,000 in mid-March and suggests little change in labor market conditions after a holiday-related spike earlier.

There was nothing unusual in the data, a Labor Department economist said.

By Sheila Mullan