Thursday, July 28, 2022

Wake-Up Call: Feds Raise Key Rate Again


The Federal Reserve raised its benchmark interest rate by a big three-quarters of a point yesterday for a second straight time as it continues its fight against high inflation. The rate hike will raise its key interest rate, which affects many consumer and business loans, to a range of 2.25 percent to 2.5 percent, its highest level since 2018. Fed Chair Jerome Powell said at a news conference that the Fed remains committed to reducing inflation, but also held out the possibility that it may soon shift to smaller rate increases.



The newest rate hike comes after inflation increased to 9.1 percent, the fastest annual rate in 41 years.

➤MANCHIN, SCHUMER REACH SURPRISE DEAL ON HEALTH CARE, CLIMATE, TEXAS, DEBT: Senate Majority Leader Chuck Schumer and Democratic Senator Joe Manchin announced a surprise agreement yesterday after months of negotiation that will address health care, climate change, raising taxes on large corporations and high earners, and reducing the federal debt. Schumer and Manchin said the measure would reduce carbon emissions by around 40 percent by 2030. Until the unexpected announcement, it had been expected that there would be a much narrower package on just reducing drug prices and extending health care subsidies, because of Manchin's opposition to anything larger due to inflation concerns. There wasn't an immediate explanation for Machin's abrupt reversal to back a broader package, but it does include provisions aimed at helping Americans deal with higher prices and is called "The Inflation Reduction Act of 2022." A vote is expected next week, which under the process the Democrats are using will only require 50 votes, not 60 to defeat what would otherwise be an assured Republican filibuster.

➤BIDEN ENDS COVID ISOLATION AFTER TESTING NEGATIVE: President Biden ended his Covid-19 isolation Wednesday after he tested negative for the virus both in the morning and Tuesday night, and appeared in the Rose Garden, his first time in public since testing positive last Thursday. Biden, who is fully vaccinated and had two boosters, had five days of treatment with the anti-viral Paxlovid, and had mild symptoms during his illness. Biden pointed to his own experience in saying that Americans can, quote, "live without fear" of the pandemic if they take advantage of what's available to them by getting booster shots, taking home tests, and using Paxlovid if they do get infected. He siad, "You don’t need to be president to get these tools to be used for your defense. In fact, the same booster shots, the same at-home test, the same treatment that I got is available to you."


➤SENATE PASSES BILL TO INCREASE COMPUTER CHIP PRODUCTION IN U.S.: The Senate passed legislation yesterday that's intended to encourage semiconductor companies to build plants to make more computer chips in the U.S. The measure, which passed on a bipartisan 64-33 vote, includes federal grants and tax breaks for companies that build their chip facilities in the U.S., and also directs Congress to significantly increase spending on high-tech research programs that will help the country stay economically competitive. Backers of the legislation say the U.S. must move to make computer chips in the U.S. to avoid the risk of losing a secure supply of the semiconductors that power automobiles, computers, appliances and some of the military’s most advanced weapons systems. The House is expected to vote on the measure late this week.


➤TWO EX-MINNEAPOLIS COPS SENTENCED FOR VIOLATING GEORGE FLOYD'S CIVIL RIGHTS: Two former Minneapolis police officers, J. Alexander Keung and Tou Thao, were sentenced yesterday after being convicted on federal charges of violating George Floyd’s civil rights. U.S. District Judge Paul Magnuson sentenced the two to lighter terms than is in the sentencing guidelines, giving Keung a three-year sentence and Thao three-and-a-half years. Kueng pinned Floyd's back and Thao held back concerned bystanders while then-Officer Derek Chauvin kneeled on Floyd's neck for more than nine minutes, leading to his death, in May 2020. A fourth officer, Thomas Lane, held Floyd’s feet, and he was sentenced last week to two years, also below guidelines. Chauvin was sentenced earlier to 21 years, which he's serving concurrently with his 22 1/2-year state sentence.

➤FLORIDA FILES COMPLAINT AGAINST MIAMI BAR FOR DRAG SHOWS IN PRECENSE OF KIDS:  The administration of Florida Republican Governor Ron DeSantis filed a state complaint of disorderly conduct against a Miami bar on Tuesday, charging that its weekend drag shows expose children to "sexually explicit" performances. The complaint against R House says, "The nature of the performances . . . particularly when conducted in the presence of young children, corrupts the public morals and outrages the sense of public decency." R House's owners said they are "working with the Department of Business and Professional Regulation . . . to rectify the situation," which it called a "misunderstanding." If found to be in violation of local laws and codes, R House could lose its liquor license. The complaint references a July 3rd video that circulated on social media showing a drag dancer in a G-string bottom and breasts covered only in pasties with dollar bills in the G-string leading a girl who looked to be about 3 to 5 years old around the restaurant. After that, investigators went to a few drag brunches, and found other drag brunch videos on social media. They noted the drag brunch menu has an Under 12 section, meaning kids are welcome. The complaint contends that that, quote, "performances and simulated sexual activity -- particularly when conducted in the presence of young children -- constituted lewd activity and warrants revocation of respondent’s license."


➤FTC MOVES TO BLOCK FACEBOOK PARENT META'S ACQUISITION OF VIRTUAL REALITY COMPANY: The Federal Trade Commission (FTC) moved yesterday to block Facebook parent company Meta from acquiring virtual reality company Within Unlimited and its fitness app Supernatural, saying it would hurt competition and violate antitrust laws. The FTC filed a court complaint seeking a temporary restraining order and preliminary injunction against the acquistion, saying Meta is already a key player, quote, "at each level of the virtual reality sector." Meta said in a statement, "The FTC's case is based on ideology and speculation, not evidence."

➤BLACK FAMILY SUES SESAME PLACE ALLEGING RACIAL DISCRIMINATION BY CHARACTERS: A Black family filed a class action lawsuit Wednesday alleging that character peformers at Sesame Place Philadelphia racially discriminated against them during a visit to the park last month. The suit filed on behalf of Quinton Burns and his child says that employees dressed as Sesame Street characters only interacted with white visitors during a "Meet and Greet" event, refusing to interact with them or other Black visitors. It names the performers dressed as the characters Elmo, Ernie, Telly Monster, and Abby Cadabby, and alleges company leadership had known the four performers held racial biases. The lawsuit comes soon after Sesame Street park officials apologized to another Black family after a video went viral showing two Black children seemingly snubbed by the Rosita character. In addition to money, the suit wants the company to issue formal apology to Black Americans, conduct psychological screenings to avoid hiring racially bigoted workers, and give employees mandatory cultural sensitivity training and educational courses "on the history of discrimination against Black people in America."

➤SPRITE WILL NO LONGER USE GREEN PLASTIC BOTTLES: Say goodbye to Sprite soda coming in its iconic green plastic bottle, with the Coca-Cola Company saying yesterday that the company would be changing its Sprite bottles from green to clear. The goal is to reduce plastic waste by using a new clear bottle that it more recyclable. Sprite's current packaging contains green polyethylene terephthalate, and although it is recyclable, it can't be specifically recycled into new bottles.


🏀U.S. OFFERS DEAL TO BRING GRINER, WHELAN HOME: Secretary of State Antony Blinken said yesterday that the U.S. had offered a deal to Russia to bring WNBA star Brittney Griner and other American jailed in Russia, Paul Whelan, home. Blinken didn't offer details of the proposed deal, but media reports said the U.S. has offered to trade convicted Russian arms dealer Viktor Bout for Griner and Whelan. Bout has served 10 years of his 25-year sentence.


Meanwhile, Griner testified yesterday for the first time in her Russian trial on drug charges, after she was found with vape cartridges containing cannabis oil in her luggage at a Moscow airport in February. Griner said that an interpreter translated only a little of what was being said when she was detained, and that officials told her to sign documents, but, quote, "no one explained any of it to me." Griner had pleaded guilty, but said she hadn't intend to bring the cartridges and had packed quickly to return to Russia, where she plays in a basketball league in the WNBA's offseason. She said, "I still don’t understand to this day how they ended up in my bags," saying she was aware of the Russian law outlawing cannabis oil and she hadn't intended to break it.

🏈QB BURROW TO MISS SOME OF BENGALS' CAMP AFTER APPENDECTOMY: Cincinnati quarterback Joe Burrow will miss some of the Bengals' camp that just began after having a successful appendectomy on Tuesday. Head coach Zac Taylor said there's no timetable for Burrow's return, but he didn't expect him to fall behind in practice, saying, "The good news is he has two years in [the system]. He knows it. He still has his iPad. He won’t be behind the eight ball."

Andrew Benintendi
⚾YANKEES ACQUIRE ALL-STAR BENINTENDI: The New York Yankees acquired All-Star outfielder Andrew Benintendi from the Kansas City Royals in exchange for three minor league pitching prospects, it was announced last night. The 28-year-old Benintendi was named to the All-Star Game for the first time this season. Through Wednesday, he's batting a career-best .320 with three home runs and 39 RBIs.

⚾TROUT, WITH RARE SPINAL CONDITION, SAYS 'CAREER IS NOT OVER': The Los Angeles Angels' head trainer, Mike Forstad, revealed yesterday that star outfielder Mike Trout has a rare spinal condition that could affect him for the rest of his life. But Trout said later that while he appreciated all the support he got in the wake of Forstad's comments, quote, "my career is not over." The three-time American League MVP said, "I think he meant that I have to stay on top of the routine I do on a daily basis to keep it from coming back." Trout left a game on July 12th with what was called back spasms and went on the injured list a week later with what was then called rib cage inflammation. Trout said his goal is to be back this year.

🏌WATSON TO JOIN LIV GOLF: U.S. golfer Bubba Watson, a two-time Masters champion, will reportedly be joining Saudi-backed LIV Golf, the latest high-profile player to do so. U.K.-based The Telegraph first reported the news yesterday, saying the 43-year-old is set to make his LIV debut in their event outside Boston over Labor Day weekend. Watson has been out of action since late May due to a torn meniscus.



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