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The Internal Revenue Service started making the direct deposits on Monday with the goal of completing 800,000 payments each day over the first three days of this week. No deposits will be made Thursday while the IRS prepares a big batch of 5 million direct deposits scheduled on Friday.

The IRS had expected to begin the program in May but was able to start a few days earlier by utilizing a computer system that can process payments on a daily basis. The government's paper checks will start going out on May 9, a week earlier than previously announced.

The rebates, which are expected to reach 130 million households, range up to $600 for an individual and $1,200 for married couples plus $300 for eligible children younger than 17.

The rebates were the centerpiece of the government's $168 billion economic stimulus package enacted in February and are designed to bolster consumer spending and lift the economy out of the doldrums.

Fed Chairman Ben Bernanke and his colleagues are walking a tightrope. They are trying to shore up economic growth and at the same time they are mindful that they can't let inflation get out of hand. It's a bit of an economic dilemma: The very rate reductions the Fed depends on to energize the economy can also sow the seeds of inflation down the road.

"It's a very challenging environment," said John Silvia, chief economist at Wachovia.

In a nod to those conflicting forces, the Fed probably will opt for a moderate-sized rate reduction of one-quarter percentage point at the end of its two-day meeting on Wednesday, Silvia and other economists predict.

The Fed, which has been cutting rates since last September, turned more forceful in January and March, when housing, credit and financial problems took a turn for the worse, threatening to plunge the country into a deep recession. The rate cuts in January and March marked the most aggressive Fed intervention in a quarter-century.

The cost of sending a first-class letter will rise a penny to 42 cents on May 12, but the Forever stamps -- currently selling for 41 cents -- will remain valid for full postage after the increase.

Forever stamps were introduced last year and since then more than 6 billion have been sold, with interest growing as the rate increase nears.

"We knew the Forever Stamp would be a big hit with our customers and we continue to replenish our stock to meet demand," said Postal Service Consumer Advocate Delores Killette. "We introduced these stamps as a customer convenience to ease the transition during price changes."

Unlike the Forever stamps, other 41-cent stamps will require additional postage when the new rates take effect. Postal officials said they printed an additional 1.5 billion 1-cent stamps in anticipation of the demand.

The Conference Board, a private business research group, releases its April survey of consumer confidence at 10 a.m. EDT. The consensus estimate of Wall Street economists surveyed by Thomson/IFR is 62, slipping from March's 64.5 reading amid rising prices for energy and food. Economists' latest estimates ranged from 58 to 65.

In March, the index, which is approaching a five-year low, fell nearly 12 points from the prior month.

Wall Street remains worried that inflation could accelerate and curtail consumer spending, which accounts for more than two-thirds of the U.S. economy. That's also of paramount concern for the Federal Reserve, which begins a two-day policy meeting Tuesday afternoon.

Policymakers are expected to cut interest rates by a quarter point on Wednesday, but then hold firm for the remainder of the year. The Fed is facing a difficult juggling act of trying to shore up the faltering economy while also trying to keep inflation from taking off.

Outside the cubicle, inside the Quonset hut: The structure housing Garden Glass is definitely not your normal in-town work site. Nestled beside the Imperial Mobile Home Park on West Loudon, it maintains a stolid, sturdy presence but doesn't, Hudson says, attract a lot of walk-in traffic.

Quonset to ya? Quonset huts, named for Quonset Point, R.I., where they were first manufactured, were produced by the thousands for the war effort in the 1940s. The humble, sliced tube of a structure is all about hard work, adaptability and can-do spirit.

Hudson shares the 40-foot by 100-foot hut with her husband, Dick Hudson, also known as Mr. Fixit, but much of the space is taken up as a garage and storage. "Once you move in a place like this, you don't move out," says Shirley Hudson, looking around at the old signs, old vehicles, and miscellaneous stuff that is either full of potential or too cool to throw away.

The building used to be part of the mobile home park long ago, when the park was more like a retirement village and it felt like the country out on Loudon. Later, it spent time as a Canada Dry distributor, says Hudson, then was rented out to various tenants before the Hudsons bought it in the 1990s.

Tracinda Corp., Kerkorian's investment company, said it planned to make a $170 million cash offer for up to 20 million additional shares at $8.50 a share, citing evidence that Ford's turnaround plan was working.

Kerkorian's announcement touched off a wave of speculation on how he might try to influence the Dearborn, Mich., automaker in the coming months. The 90-year-old mogul made an unsuccessful bid for Chrysler last year and pushed for General Motors Corp. to form an alliance with Nissan Motor Co. and Renault SA in 2006 after acquiring nearly 10 percent of the company.

The Ford family, while owning 4 percent of the company's shares, has 40 percent voting rights of the company through a special class of stock, making a takeover unlikely, analysts said. Kerkorian could be interested in leaving his imprint on the company's turnaround, putting an ally on Ford's board or advocating for an alliance with another automaker, they said.

"Tracinda is unlikely to be activist in the conventional sense given the voting structure. Instead, we believe it will seek to be a 'constructive agitator,'" said Morgan Stanley & Co. auto analyst Jonathan Steinmetz in a note to investors.

The first direct deposits from the Internal Revenue Service landed in bank accounts Monday, shoppers were already using the cash to play catch-up on the basics, such as milk and other groceries.

Analysts say the rest will probably be used to pay down debt.

Alicia Flaxman, a stay-at-home mother from Seekonk, Mass., was shopping at a Target store Monday and said she would use some of the rebate for food - cheaper items like potatoes, not more expensive meat and fish.

"My bills are double," she said. "I go to the supermarket and I spend $200. I used to spend $120."

Simplistic-sounding, even a little hokey, his "the Consumer is Boss" mantra for P&G employees has worked. Sales, profits and stock price have climbed as the maker of such products as Pampers diapers, Crest toothpaste and Olay skin care has rebounded and grown in the eight years since Lafley was promoted to run a venerable company that was in a skid.

In an Associated Press interview, Lafley discussed the consumer philosophy and strategic changes he's made, while remaining cagey about his future plans.

"The consumer is the key at the end," Lafley said. "If we can get her or him involved at the beginning, we have a much better chance at success."

P&G has long been a leader in consumer research, but under Lafley has expanded consumers' role in product innovation, getting their feedback early in development and learning about their wants and needs by going into their online worlds, their suburban basement laundries and their villages in Mexico and China.

But the market wants to hear this week that the Fed is confident, too.

The central bank's policy makers meet Tuesday and Wednesday to decide whether to lower interest rates again, and to issue an updated assessment of the U.S. economy and financial system. Most investors think the Fed will lower rates by another quarter-point but also will suggest it is gearing up for a pause.

"There's enough mixed signals out there that now's the time to put that forward," said Kurt Karl, chief U.S. economist at Swiss Re, referring to mediocre-but-not-horrific readings on the economy and corporate profits that have helped bring some stability to the stock market.

Already the central bank has incrementally reduced the key rate by 3 percentage points since last summer, to 2.25 percent from 5.25 percent. On top of rate cuts, the Fed has been lending more money to banks, while the government is preparing to mail out tax rebates.

"It's defining you and your unique talents, and establishing you as an expert in what you do best," said Roffer, brand strategy expert and author. Her company, Big Fish Marketing, has worked with television networks including MTV, Fox Cable, ABC and Discovery, plus Web sites to develop brands and promotional campaigns.

Roffer will be a keynote speaker at the Women's Business and Leadership Conference on May 6 at the Radisson Plaza Hotel sponsored by Chase Bank and Women Leading Kentucky, professional women's educational organization.

She will share her eight steps to creating a personal brand.

A pioneer in personal branding, Roffer, who sees her mission to help women lead more directed lives, wrote one of the first books on the concept, Make a Name for Yourself: Eight Steps Every Woman Needs to Create a Personal Brand Strategy for Success.

HUMANA'S PROFIT UP 12.5%

Health insurer Humana Inc. reported a 12.5 percent rise in its first-quarter profit Monday as growth in its Medicare Advantage, military and commercial businesses more than offset problems in its stand-alone Medicare prescription drug plans. The results beat Wall Street expectations, and the company raised full-year earnings-per-share projections. The Louisville-based company earned $80.17 million, or 47 cents a share, for the three months that ended March 31 compared with $71.2 million, or 42 cents a share, for the year-ago period. Revenue rose 12 percent to $6.96 billion from $6.2 billion. Humana shares rose $1.50, or 3.3 percent, Monday to close at $46.38.

STORAGE CUSTOMIZER CLOSET FACTORY SOLD

Customized storage producer The Closet Factory has been sold. The company, which has a factory in Simpsonville and showrooms both there and at the Lexington Design Center, was purchased by Jerry Ostertag of Arlington, Va. He purchased the company from Bill Morgenthal. It has 15 employees.

Bloomberg: www.bloomberg.com/invest//calculators/currency.html

Provides foreign exchange calculations for more than 200 currencies.

CoinMill.com: coinmill.com/exchange_rate_calc.html

Offers four methods of foreign currency conversions, including a multi-currency global conversion tool.

The Central Kentucky Inventors Council will meet at 6:30 p.m. May 6 at the Bluegrass Area Development Center, 699 Perimeter Drive. Topic: Marketing and Commercialization: A Hands-On Guide to Selling Your Product. Free. Information: www.ckic.org or (859) 201-1311.

The next Professional Women's Forum meeting will be 11:30 a.m. to 1 p.m. May 7 at the Red Mile clubhouse. Program: Lexington's Habitat for Humanity Women's Build. Reservations: e-mail Prowomensforum@aol.com.

The Bluegrass Kiwanis Club meets at 11:30 a.m. Thursdays at Ryan's Steak House, 701 Red Mile Road. Information: Paul Bimschleger, (859) 272-1467.

The Lexington Kiwanis Club meets at 11:30 a.m. Tuesdays at Ryan's Steak House, 701 Red Mile Road. Information: Mel Boyd, (859) 277-2058.

University of Louisville College of Business, 2008 Kentucky International Equine Summit: Through Tuesday, Radisson Plaza, 400.

Coal Prep and Aggregate Processing: Through Friday, Hyatt Regency, 1,200.

Source: www.visitlex.com

• Pioneer Southwest Energy Partners L.P. Ð Irving, Texas, 8.25 million units of limited partnership, priced $19 to $21, managed by Citigroup, Deutsche Bank, and UBS Investment Bank. Proposed NYSE symbol PSE. Business: Limited partnership formed to own and acquire oil and gas properties in Texas and New Mexico.

Actuator chip for inkjet printhead with electrostatic discharge protection. Inventors: Jason Young, Lexington; Nicole Rodriguez, Lexington. Patent No. 7,361,966 assigned to Lexmark International, Inc., Lexington.

Swivel assembly for connecting a wand to a nozzle assembly of a vacuum cleaner. Inventors: Ryan Dant, Lexington; Richard Downey, Danville. Patent No. 7,356,876 assigned to Panasonic Corp. of North America, Secaucus, N.J.

Sterile fluid pumping or mixing system and related method. Inventor: Alexandre Terentiev, Lexington. Patent No. 7,357,567 assigned to LevTech, Inc., Lexington.

Phase-control power controller for converting a line voltage to a RMS load voltage. Inventors: Ernest Weyhrauch, Richmond; Matthew Ballenger, Lexington; George Kendrick, Lexington. Patent No. 7,358,689 assigned to Osram Sylvania Inc., Danvers, Mass.

Central Bank Mortgage: Tom Breathitt and Brad Fields have been named vice presidents.

Traditional Bank: Sherry Asberry, Myndall Coffman, Sarah Hall and Miller Wilson have been promoted to banking center officers in the Lexington market. Amelia Bayley and Lucy Coburn have been promoted to banking center officers for the bank's Winchester and Paris locations. Brett Setzer and Kenny Angelucci have joined the board of directors for Traditional Bancorporation.

Health care

Central Baptist Hospital: Patty Mason has been named vice president of planning, marketing and business development. Gayle Abbott has been named director of network development.

The Purebred Arabian Horse Trust has begun construction of an 8,000-square-foot addition to the Kentucky Horse Park's International Museum of the Horse. The project, funded by the Trust and the American Arabian horse community, will be the first major addition to the 52,000-square-foot museum since its opening in 1978. With this addition, the museum's permanent exhibition space will expand by almost 30 percent.

A Touch of Paradise Massage Center will celebrate its grand opening from 1-6 p.m. May 3 with an open house featuring an appearance by The Fillies of Horsemen Arena Football, free chair massages and door prizes. A Touch of Paradise is owned and operated by licensed massage therapist Eric Byrd and offers a variety of massage services including relaxation, therapeutic and craniosacral therapy. Address: 366 Waller Avenue, Suites 107 and 109. Phone: (859) 338-4694. Web site: www.atouchofparadiseinc.com.

Mail items about new businesses or changes to existing ones to Business Transitions, Business Monday, Lexington Herald-Leader, 100 Midland Avenue, Lexington, Ky. 40508; fax to (859) 231-3326; or e-mail hlbusiness@herald-leader.com.

One answer is a growing category of funds known as managed income funds or managed payout funds. They're designed to replace paychecks with regular distributions.

But just as retirement can mean golf to one person and parachute jumping to another, there can be broad differences in how these funds operate. Soon-to-retire workers should make time to examine these funds before investing.

Feeling out the differences among such funds is a bigger assignment than it was only a few months ago. Since October, when Fidelity Investments introduced its Income Replacement Funds, other big-name companies have followed. Russell Investments, Charles Schwab, TIAA-CREF, and Vanguard have all set foot in this area.

Some funds, like a product from Fidelity, are designed to gradually draw down a sum of money by a certain date. Others, like a fund from Vanguard, are designed to act more like a personal endowment, making payouts while striving to protect the principal. Among the funds, some aim to keep pace with inflation, while others try to add to capital.

The company announced Monday that it plans to cut one shift each at pickup truck and large sport utility vehicle plants in Flint and Pontiac, Mich.; Janesville, Wis.; and Oshawa, Ontario, resulting in about 3,550 layoffs.

The world's largest automaker by sales said the cuts, to take effect this summer, were brought on by weak demand due to high gasoline prices and an economic downturn.

GM said it will make about 88,000 fewer pickups and 50,000 fewer big SUVs this calendar year because of the cuts. The layoffs represent just over 4 percent of GM's hourly manufacturing work force of about 80,000 in North America.

The announcement came after stock markets closed. GM shares rose 56 cents, or 2.6 percent, to $21.94 Monday, then lost 3 cents in after-hours trading.

About 44 percent of survey participants said paying for gasoline was a "serious problem" for them. Across all income levels, the cost of gas was the most frequently cited economic concern. The price of gas nationally averaged $3.60 a gallon on Monday, according to the Energy Department.

More than a quarter of households earning more than $75,000 a year described paying for gasoline as a serious problem. For those with incomes of less than $30,000, about 63 percent felt that way.

In a distant second and third place among participants' economic concerns were: getting a good-paying job or raise, 29 percent; and paying for health care and health insurance, 28 percent.

Following in fourth place was difficulty paying rent or mortgage, 19 percent.

In an annual report on business conditions, American Chambers of Commerce for China, Shanghai and South China rejected calls by some in the United States for punitive measures over Beijing's trade surplus and currency controls. They also called on Beijing to repeal rules that limit foreign investment and competition.

"Defending and preserving the openness of the trade relationship should be a core commitment of both the U.S. and Chinese governments," James Zimmerman, chairman of the American Chamber of Commerce in China, said at a news conference Monday.

"With slowing economic growth in the U.S., the focus needs to be on enhancing America's overall competitiveness rather than seeking defensive protectionist solutions," Zimmerman said.

The groups said they will send a 40-member delegation to Washington in May to deliver the report to key lawmakers. Zimmerman said they hope to meet with the U.S. presidential candidates or their aides.

Among the hardest hit states were Nevada, Florida and, in particular, California, where Stockton led the nation with a foreclosure rate that was 6.6 times the national average, Irvine, Calif.-based RealtyTrac Inc. said.

Nationwide, 649,917 homes received at least one foreclosure-related filing in the first three months of the year, up 112 percent from 306,722 during the same period last year, RealtyTrac said.

The latest tally also represents an increase of 23 percent from the fourth quarter of last year.

RealtyTrac monitors default notices, auction sale notices and bank repossessions.

But Monday, the Wrigley clan announced it's cashing out after four generations as the iconic confectioner becomes a subsidiary of privately held Mars Inc. in a $23 billion deal.

"I think the legacy of the Wrigley family will survive and endure for some time to come," said Bill Wrigley Jr., the company's executive chairman and the great, great grandson of William Wrigley Jr.

"We must respect the past, but at all times do what's right for the future."

Under the agreement, Wrigley shareholders will receive $80 in cash for each share. Mars of McLean, Va., also will assume a small amount of Wrigley debt.