Federal Reserve signals end to inflation fight with a sizable half-point rate cut
WASHINGTON (AP) — The Federal Reserve cut its benchmark interest rate by an unusually large half-point, a dramatic shift after more than two years of high rates that helped tame inflation but also made borrowing painfully expensive for consumers. The rate cut, the Fed’s first in more than four years, reflects its new focus on bolstering the job market. Coming just weeks before the presidential election, the Fed’s move also has the potential to scramble the economic landscape just as Americans prepare to vote. The policymakers signaled that they expect to cut their key rate by an additional half-point in their final two meetings this year, in November and December. And they envision four more rate cuts in 2025 and two in 2026.
The Federal Reserve is finally lowering rates. Here's what consumers should know
NEW YORK (AP) — The Federal Reserve has cut its benchmark interest rate from its 23-year high, with consequences for debt, savings, auto loans, mortgages and other forms of borrowing by consumers and businesses. The Fed announced that it reduced its key rate by an unusually large half-percentage point, to between 4.75 and 5 percent, the first rate cut in more than four years. The central bank is acting because, after imposing 11 rate hikes dating back to March 2022, it feels confident that inflation is finally mild enough that it can begin to ease the cost of borrowing. At the same time, the Fed has grown more concerned about the health of the job market.
Stock market today: Asian markets forge higher after Fed's first rate cut in over 4 years
Asian markets have forged higher after the Federal Reserve kicked off its efforts to prevent a recession in the U.S. with a bigger-than-usual cut to interest rates. Japan's Nikkei 225 index jumped 2.5% and the Japanese yen weakened against the dollar. On Wednesday, the S&P 500 slipped 0.3% but it remains within 1% of its all-time high set in July. The Dow Jones Industrial Average fell 0.2%, and the Nasdaq composite gave back 0.3%. Because the Fed's first cut to interest rates in four years was so well telegraphed, markets had already climbed in anticipation. So market reactions to the Fed's shift in approach were relatively muted. Treasury yields rose.
Mission specialist for Titan sub owner to testify before Coast Guard
A mission specialist for the company that owned the Titan submersible that imploded is scheduled to testify before the U.S. Coast Guard. Renata Rojas is the latest person connected to OceanGate to testify before the investigatory panel Thursday, after two days of testimony that raised questions about the company’s operations before the doomed mission. OceanGate co-founder Stockton Rush was among five people who died when the submersible imploded en route to the wreck of the Titanic in June 2023. The Coast Guard has opened a public hearing that is part of a high level investigation into the cause of the implosion earlier this month.
Stock market today: Most of Wall Street edges lower after Fed delivers a big cut to rates
NEW YORK (AP) — Most of the U.S. stock market edged lower after the Federal Reserve kicked off its efforts to prevent a recession with a bigger-than-usual cut to interest rates. The S&P 500 slipped 0.3% Wednesday but remains within 1% of its all-time high set in July. The Dow Jones Industrial Average fell 0.2%, and the Nasdaq composite gave back 0.3%. Because the Fed's first cut to interest rates in four years was so well telegraphed, and because markets had already climbed so much in anticipation of it, Wall Street’s reactions to the Fed's momentous move were relatively muted. Treasury yields rose in the bond market.
Teamsters union declines to endorse Trump or Harris for president
WASHINGTON (AP) — The International Brotherhood of Teamsters has declined to endorse Kamala Harris or Donald Trump for president, saying neither candidate has sufficient support from the 1.3 million-member union. Vice President Harris met Monday with a panel of Teamsters, having long courted organized labor and made support for the middle class her central policy goal. Trump also met with a panel of Teamsters and even invited President Sean M. O’Brien to speak at the Republican National Convention, where the union leader railed against corporate greed. The Teamsters said Wednesday that internal polling of its members showed Trump with an advantage over Harris.
Google wins legal bid to overturn 1.5 billion euro antitrust fine in EU digital ad case
LONDON (AP) — Google has won a court challenge against a 1.49 billion euro European Union antitrust fine imposed five years ago that targeted its online advertising business. The EU’s General Court said Wednesday it was throwing out the 2019 penalty imposed by the European Commission, which is the 27-nation bloc’s top antitrust enforcer. The commission’s ruling applied to a narrow portion of Google’s ad business: ads that the U.S. tech giant sold next to Google search results on third-party websites. Regulators had found that Google inserted exclusivity clauses in its contracts that barred these websites from running similarly placed ads sold by Google’s rivals.
Boeing CEO says the company will furlough employees soon to preserve cash during labor strike
Boeing’s CEO says the company will begin furloughing a large number of employees to save cash during a strike by union machinists. Chief executive Kelly Ortberg said Wednesday that executives, managers and other employees would be required to take time off without pay starting in the coming days. Factory workers in the Pacific Northwest began a strike Friday after rejecting a proposal to raise pay by 25% over four years. They want raises of at least 40%. The furloughs are expected to affect tens of thousands of Boeing employees. Ortberg says he and other senior executives also will take pay cuts for as long as the strike lasts.
Tupperware lifts the lid on its financial problems with bankruptcy filing
NEW YORK (AP) — Tupperware Brands has filed for Chapter 11 bankruptcy protection. The company that revolutionized food storage decades ago and became inextricably linked to the parties where women seeking a measure of financial independence and fun in midcentury America sold the colorful products says it will seek court approval for a sale. The filing late Tuesday followed years of the company struggling to revitalize its core business and direct-to-consumer sales strategy. came after growing struggles to revitalize the business. Tupperware saw a resurgence during the early days of the COVID-19 pandemic, but demand has since waned amid rising competition. And financial troubles have continued to pile up for the Florida company.
Oversight board says it will help speed up projects to fix Puerto Rico's electric grid
SAN JUAN, Puerto Rico (AP) — A federal control board that oversees Puerto Rico’s finances says it will step in to help speed up projects to fix the island’s crumbling power grid as widespread outages persist. Robert Mujica, the board’s executive director, said Wednesday that only $1.2 billion out of more than $17 billion authorized by U.S. Congress to stabilize the U.S. territory’s grid and improve reliability has been spent in the seven years since Hurricane Maria hit the island as a Category 4 storm. He said the situation “is not acceptable” as he rejected calls that the government cancel its contract with Luma Energy, which operates the transmission and distribution of power.
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