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Thursday, June 15, 2023

6/15 WAKE-UP CALL: Feds Leave Rates Unchanged..For Now

The Federal Reserve decided not to raise interest rates at its latest meeting but warned that it might have to raise them again twice this year. The central bank’s rate is currently five percent to 5.5 percent. Unless inflation continues to subside, it could raise the rate to about 6 percent. Just before the Fed announcement, the government announced that producer prices rose 1.1 percent in May 2022 compared to a year earlier, indicating that inflation is continuing to ease.

A hawkish message from the Federal Reserve amid a robust stock market rally is presenting investors with a conundrum: how to maintain exposure to rising equities while also guarding against the possible upheavals tighter monetary policy can bring. The central bank left rates unchanged on Wednesday, as widely expected, but surprised some markets by signaling that borrowing costs will likely increase another half a percentage point by the end of this year as it reacts to a still-strong economy and a slower decline in inflation. Traders' expectations for peak rates moved higher after the announcement.

But some are growing worried that tighter monetary policy is increasing the chances of ructions in the financial system similar to the crisis that saw several high profile bank collapses this year and sparked weeks of financial market volatility. While the U.S. economy has been largely resilient - the banking system aside - investors have cast a wary eye on areas that may be particularly vulnerable as easy money dries up. Among the potential weak spots are commercial real estate, where a wave of defaults could have repercussions for banks and the broader economy, as well as other credit market sectors

➤HEAVY FIGHTING IN UKRAINE: After a week of heavy fighting, the real tests of Kyiv's counteroffensive lie ahead, with Ukrainian troops some distance from Russia's main defensive line and the bulk of forces prepared for the push still on standby. Ukraine struck in two areas along the southeastern front last week as it began the main phase of its long-awaited operation, reporting seven retaken villages but also taking losses including Western infantry fighting vehicles and tanks. "On both sides, a lot of it's going to come down to attrition," said Rob Lee, a senior fellow at the Foreign Policy Research Institute and among analysts who have reported losses on both sides based on satellite and photographic evidence. "The risk for them (the Ukrainians) is that before they get to that (Russian) defensive line, they take too much attrition and it'll be too tough to breach it and exploit it." President Volodymyr Zelenskiy has said Western equipment like battle tanks and armored vehicles should help protect the lives of Ukrainian soldiers.


➤STARBUCKS ORDERED TO PAY WOMAN FOR BEING WHITE: Starbucks ordered to pay $25.6M to manager who says she was fired for being white after viral Philly arrests A federal jury has awarded $25.6 million to the white Starbucks manager fired in 2018 following the widely scrutinized arrests of two Black men at a Philadelphia store caught on viral video. The arrests prompted national uproar, protests at the Center City location, policy changes, and questions over racism, policing and public safety. Following a six-day trial in Camden, the jury Monday ordered Starbucks to pay Shannon Phillips of Woolwich Township $25 million in punitive damages and $600,000 in compensatory damages, finding that the coffee giant fired Phillips amid backlash for the episode at the 18th and Spruce St. location because she was white.

➤PHILLY I95 REBUILD UNDERWAY: Crews will work 24 hours a day to build a temporary roadway where a portion of I-95 collapsed Sunday in Northeast Philadelphia, a short-term fix that means the highway will partly reopen before the reconstruction project is completed, Gov. Josh Shapiro announced Wednesday. But while speaking to reporters during his second visit to the site of the deadly tanker truck crash, Shapiro declined repeated requests to provide a timeline or price tag for the project. ”We realize this is a challenge for motorists,” he said. “That’s why these guys are working their tails off to get it done as quickly as possible.”

Shapiro and top advisers outlined a several-step process set to begin Thursday once demolition of the damaged portion of the highway is complete. At that point, workers will truck in 2,000 tons of recycled glass pieces from Delaware County, which will be used to fill in the demolished area. If all goes to plan, crews will then pave over the filled-in gap and open three lanes of traffic in each direction to vehicles.

➤DEBRIS FROM PHILLY I95 COLLAPSE ENDS IN DEATH FOR WOMAN: A woman was killed after a large piece of metal pierced her windshield and hit her on I-95, just 10 miles south of where an overpass on the busy highway collapsed the previous day in Philadelphia, police said. Caramia Panichelli, 33, of Philly, was driving on I-95 Monday evening following the fatal tanker truck collision that took out a northbound overpass when her 2014 Subaru was hit by debris, Pennsylvania State police said. Officials have yet to determine where the metal debris that struck and killed Panichelli came from. Police did not specifically indicate that her death was related to the collapse. The City of Brotherly Love is still reeling from the calamity that struck on Sunday morning when a tanker carrying 8,500 gallons of gas flipped on a northbound off-ramp curve.

➤GRAND JURY INDICTS FORMER MARINE: Daniel Penny's exact charges will only be unsealed when he appears in court at a later date - expected to be July 17. Penny is currently free on a $100,000 bail. He surrendered himself to authorities on May 12 - nearly two weeks after the fatal incident occurred. Penny placed Jordan Neely - a homeless schizophrenic - in a chokehold on an F-train. Neely lost consciousness and eventually died. The grand jury's decision means Manhattan District Attorney Alvin Bragg will be able to proceed to trial, where Penny, if convicted, may face up to 15 years in prison.

➤BIDEN AND 'OUR KIDS' SPARKS BACKLASH: Florida Governor Ron DeSantis' 2024 presidential campaign and billionaire Elon Musk have slammed the White House for a tweet celebrating the 'LGBTQI+ Community' and 'our kids' that are a part of it. The Biden administration shared a video on Monday in honor of Pride month and showed the presidential estate lit in rainbow colors.  Biden says in the clip: 'These are our kids. These are our neighbors. Not somebody else's kids; they're all our kids ... LGBTQ Americans, especially children, you are loved, you are heard, and this administration has your back.' The post's reference to children was met with backlash from social media users, led by the official account for DeSantis' campaign and Twitter boss Musk.DeSantis' campaign account shared screenshots from the video and wrote: 'They are not your kids.' Musk replied: 'Our kids are not fodder for the government.'

➣SOUTHERN BAPTISTS EXPELLS TWO CHURCHES: Southern Baptists, the largest Protestant denomination in the U.S., overwhelmingly reaffirmed a prohibition on women serving as pastors, rebuffing one of their most prominent ministers. Delegates to the annual meeting of the Southern Baptist Convention, gathering this week in New Orleans, voted to deny appeals by California’s Saddleback Church and Fern Creek Baptist Church in Louisville, Ky., to overturn their expulsions from the SBC. Both churches were “disfellowshipped” by the SBC’s executive committee in February because they had appointed women as pastors, a role that the denomination’s statement of faith states is reserved for men according to the teaching of the Bible. 


⚾MLB RANGERS 6 ANGELS 3: Two of baseball's most prolific sluggers sent balls into orbit on Wednesday, as the Braves' Ronald Acuna Jr. and the Angels' Shohei Ohtani hit home runs of 461 feet and 453 feet, respectively.  What's more, Ohtani's American League-leading 21st homer of the year was clocked at 116.1mph, making it the hardest hit opposite-field homer by a left-handed hitter since 2015.  Unfortunately for Ohtani and the Angels, it came in a losing effort as Anaheim fell, 6-3, to the first-place Texas Rangers. 

⚾MLB METS 4, YANKEES 3, 10 INNINGS  Brandon Nimmo hit a game-ending double in the 10th inning and the New York Mets recovered from a string of mental and physical errors to beat the New York Yankees for a two-game Subway Series split. In the 10th, with Eduardo Escobar the automatic runner at second, Albert Abreu (2-2) struck out Mark Vientos. Nick Ramirez relieved and Nimmo hit a drive over Jake Bauers and off the wall in right-center. Escobar tagged up and sprinted home with a headfirst slide, giving the $355 million Mets just their second victory in 11 games and third walk-off win this season. Dominic Leone (1-2) got his first win since joining the Mets last month. The Mets made two errors and committed only the second shift violation in the major leagues this season.


⚾MLB SCORES:

  • Rays 6 Athletics 3
  • Brandon Nimmo
    Phillies 4 D-Backs 3
  • Twins 4 Brewers 2
  • Braves 6 Tigers 3
  • Blue Jays 3 Orioles 1
  • Red Sox 6 Rockies 3
  • Cubs 10 Pirates 6
  • Reds 7 Royals 4
  • Astros 5 Nationals 4
  • Marlins 4 Mariners 1
  • Padres 5 Guardians 0
  • White Sox 8 Dodgers 4
⚾ASTROS’ McCULLERS HAS SEASON-ENDING SURGERY: Houston Astros pitcher Lance McCullers Junior had season-ending surgery this week on a right arm injury. He has been out all season and is not expected to return until the 2024 season.

⚾METS’ RELIEVER DREW SMITH SUSPENDED: New York Mets reliever Drew Smith has been suspended for 10 days after being thrown out of Tuesday’s game against the New York Yankees for allegedly using a “sticky substance” on his hands. Smith denied using a banned substance but said he will not appeal the decision. The Yankees won the game 7-6.

⚾LAST STAND FOR OAKLAND A’s FANS: Nearly 28,000 fans of the Oakland Athletics packed the city’s Coliseum on Tuesday for a “reverse boycott” that they hoped would sway the team’s owners to stay in the city. They showed up too late. The Nevada Senate just voted to approve $380 in public money to build a Las Vegas ballpark for the A’s. The protest crowd was more than triple the average number that attended recent home games. Poor fan turnout, plus the stadium’s dilapidated condition, were cited as reasons for the team to seek a new home.

➤SMOKY AIR DRIFTS ACROSS MINNESOTA: The air reeked with smoke across northern and central Minnesota yesterday. The cause was the Canadian wildfires, which descended on the East Coast last week. Air quality hit the “very unhealthy” category in much of central Minnesota including St. Cloud and the Twin Cities. City athletic events were canceled in Minneapolis, according to the Minneapolis Star Tribune. The American Lung Association recommended residents stay indoors, close the windows, and turn the air conditioner on using the recirculation setting. The smoke is expected to gradually dissipate today.

➤ROUGH WEATHER HITS SOUTH: An outbreak of severe weather – with multiple reports of tornadoes – continued Wednesday across the South, ahead of what promised to be a dangerous evening of violent storms for the region. A tornado was reported to have caused damage in Abbeville, Alabama, Wednesday morning, emergency management officials said. Tornado damage was also reported in eastern Texas Wednesday afternoon, officials said, including reports of cars being blown off the road in Cass County. There were no immediate reports of injuries. The National Weather Service issued numerous tornado warnings throughout the afternoon, mainly in southeast Alabama and southwest Georgia.



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