Month: June 2022

On Wednesday, the Federal Reserve concluded a two-day policy meeting by raising key interest rates by .75% — something it hasn’t done in almost 30 years.  The move is seen as a necessary measure to get a handle on rising inflation. The last time the central bank increased rates by .75% was 1994 — just before the economy boom for the late 1990s.  The Fed’s decision had an immediate impact on Wall Street; by 2:15 p.m., the Dow Jones Industrial Average was up about 140 points, the S&P 500 was up about 30 points, and the Nasdaq composite had increased by almost 180 points.

With consumer inflation rising at an annual rate of about 8.6%, which is far above the Fed’s target range, analysts said the central bank has to be aggressive. The Fed increased rates by a half-point at its last policy meeting in early May, which was its largest increase since 2000.

After the announcement, Fed Chairman Jerome Powell discussed Wednesday’s .75% rate increase and explained the reasoning behind it:  “The labor market is extremely tight and inflation is much too high. Against this backdrop today the Federal Open Market Committee raised its policy interest rate by .75% and anticipates ongoing increases to that rate will be appropriate. My colleagues and I are acutely aware that high inflation poses a significant hardship especially on those least able to meet the higher costs of essentials like food, housing and transportation. Inflation has surprised to the upside. In response to these developments, the committee decided that a larger increase within the target range was warranted at today’s meeting.”

Chairman Powell continued: “Over the coming months, we will be looking for compelling evidence that inflation is moving down, consistent with inflation returning to 2%. Clearly today’s 75-basis point increase is an unusually large one and I do not expect moves of this size to be common. We are determined to take measures to restore price stability. The American economy is very strong and well-positioned to handle tighter monetary policy.”

Over the past year, the rising costs of energy have fueled inflation in the United States. Gas prices are over $5 per gallon in several states. with the AAA reporting that the national average was $5.01 on Wednesday.  The full economic and inflationary outcome that will result from Wednesday’s rate increase won’t be known for months.

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Dr. Anthony Fauci, the United States’ top infectious diseases expert who has helped lead the nation through the COVID-19 pandemic, tested positive for the virus on Wednesday.

The 81-year-old Fauci, who is the director of the National Institute of Allergy and Infectious Diseases, tested positive on a rapid antigen test. The NIAID said in a statement: “He is fully vaccinated and has been boosted twice. He is currently experiencing mild symptoms.”  The statement added that Fauci will isolate and continue working from his home, and plans to return to work with the National Institutes of Health once he tests negative. According to the statement, Fauci “has not recently been in close contact with President [Joe] Biden or other senior government officials.”   They also said that Fauci is being treated with the antiviral medication Paxlovid.

Fauci was a member of former President Donald Trump’s White House Coronavirus Task Force in the early days of the pandemic and then served on Biden’s White House COVID-19 Response Team.

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Senate Minority Leader Mitch McConnell announced Tuesday he supports the framework agreement for a gun reform plan announced by a bipartisan group of senators over the weekend. A total of 60 votes would be required to pass the measure with the Senate split 50-50 between Republicans and Democrats.

McConnell said during his weekly press conference that he would likely lend his vote to the deal announced by a group of 10 Republicans and 10 Democrats: “I’m comfortable with the framework and if the legislation ends up reflecting what the framework indicates, I’ll be supportive….I think if this framework becomes the actual piece of legislation, it’s a step forward, a step forward on a bipartisan basis, and further demonstrates to the American people that we can come together, which we have done from time to time on things like infrastructure and postal reform, to make progress for the country.”

A group of 20 senators led by Democratic Sen. Chris Murphy of Connecticut and Republican Sen. John Cornyn of Texas announced Sunday they reached consensus on the key priorities of a deal to reform the nation’s gun laws. The agreement would provide incentives for states to pass so-called “red flag” laws, boost mental health resources, provide funding for school safety resources, clarify the definition of a federally licensed firearms dealer and crack down on criminals who illegally straw purchase and traffic guns. It would also expand background checks for firearms buyers under 21, by requiring an investigative period to review juvenile and mental health records.

It does not, however, include a provision supported by President Joe Biden and other Democrats to raise the minimum age for purchasing semi-automatic rifles from 18 to 21 years old that was included in a bill passed by the Democrat-led House last week.

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A Russian court on Tuesday extended pre-trial detention for American basketball star Brittney Griner, who was detained in February and so far has spent more than three months in prison on drug charges. Griner, 31, had been detained in Russia  after an airport stop for allegedly carrying vape cartridges with hashish oil in her luggage. Griner’s pre-trial detention was previously extended to May 19, and then for another 30 days before Tuesday’s addition. Now, Griner will remain in custody at least through July 2, according to Russia’s state-run TASS news agency Tuesday. The agency said that the court’s 18-day extension for Griner came at “the request of the investigation.”

Griner was taken into custody at Sheremetyevo International Airport, near Moscow, on Feb. 17 after officials allegedly found vape cartridges with hashish oil in her bag, which is illegal to possess in Russia. She was charged with “large-scale transportation of drugs” and could face up to 10 years in prison.

The arrest came about a week before Russia invaded Ukraine, and some U.S. officials are concerned that Americans jailed in Russia could be used as leverage. Last month, the U.S. government changed Griner’s status to “wrongfully detained,” which means that the United States will take more proactive measures to free Griner and will no longer wait for the Russian justice system to resolve the issue.

Griner was visiting Russia to play basketball for the Russian Premier League team UMMC Ekaterinburg during the offseason.  Women basketball players often compete for teams overseas during their U.S. offseason to earn more income. The 6-foot-9 center won an NCAA title at Baylor in 2012; a WNBA title with the Phoenix Mercury, her current team, in 2014; and gold medals with the U.S. women’s team at the 2016 and 2020 Olympics. When the WNBA kicked off this year’s season on May 6, it honored Griner with a floor decal bearing her initials and jersey number (No. 42) on the sideline of all 12 WNBA courts.

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