Business News

Federal Reserve sees some progress on inflation but envisions just one rate cut this year

WASHINGTON (AP) — Federal Reserve officials said inflation has fallen further toward their target level in recent months but signaled that they expect to cut their benchmark interest rate just once this year. The policymakers’ forecast for one rate cut was down from a previous forecast of three, likely because inflation, despite having cooled in the past two months, remains persistently elevated. The Fed said the economy is growing at a solid pace while hiring has “remained strong.” The officials also noted that in recent months there has been “modest further progress” toward its 2% inflation target. That is a more positive assessment than after the Fed’s previous meeting.

US inflation cooled in May in a sign that price pressures may be easing

WASHINGTON (AP) — Inflation in the United States eased in May for a second straight month, a hopeful sign that an acceleration of prices that occurred early this year may have passed. The trend, if it holds, could move the Federal Reserve closer to cutting its benchmark interest rate from its 23-year peak. Consumer prices excluding volatile food and energy costs — the closely watched “core” index — rose 0.2% from April to May. That was the smallest such increase since October. Even as overall inflation moderates, such necessities as groceries, rent and health care are much pricier than they were three years ago — a continuing source of public discontent and a political threat to President Joe Biden’s re-election bid.

Stock market today: Wall Street climbs on hopes for coming cuts to interest rates

NEW YORK (AP) — U.S. stocks rose following a surprisingly encouraging update on inflation and a reassurance that the Federal Reserve still sees a cut to interest rates as likely this year. The S&P 500 climbed 0.9% Wednesday to add to its all-time high set a day before. The Nasdaq composite rose 1.5% to build on its own record. The Dow Jones Industrial Average lagged the market and slipped 0.1%. Treasury yields dropped in the bond market after the report in the morning showed a slowdown in inflation in consumer prices during May. They pared their losses but stayed lower after the Fed held its main interest rate steady.

Thefts of charging cables pose yet another obstacle to appeal of electric vehicles

DETROIT (AP) — Across the U.S., thieves have been targeting electric-vehicle charging stations, intent on stealing the cables, which contain copper wiring. The price of copper is near a record high on global markets, which means criminals stand to collect rising sums of cash from selling the material. The stolen cables often disable entire charging stations. Broken-down chargers have emerged as the latest obstacle for U.S. automakers in their effort to convert more Americans to EVs despite public anxiety about a scarcity of charging stations. If even finding a charging station doesn’t necessarily mean finding functioning cables, it becomes another reason for buyers to stick with gasoline-fueled or hybrid vehicles, at least for now.

Sony Pictures acquires Alamo Drafthouse Cinema, the dine-in movie theater chain

Sony Pictures Entertainment is getting into the exhibition business. The studio behind recent films like “Bad Boys: Ride or Die” and “The Garfield Movie” has acquired the distinctive theater chain Alamo Drafthouse Cinema. Included in the deal announced Wednesday is the genre film festival Fantastic Fest. Sony said it will continue to welcome content from all studios and distributors at the theaters. For many years, Hollywood studios were banned from owning movie theaters, but that changed in 2020 when the Paramount Consent Decrees were terminated. For Sony, the Drafthouse acquisition is also tied into its experiences initiatives.

Senators blast health and law enforcement officials over illegal e-cigarettes used by teens

WASHINGTON (AP) — Senators criticized top federal officials over the rise of illegal electronic cigarettes in the U.S., a multibillion-dollar business that has flourished in recent years. Members of the Senate Judiciary Committee questioned Food and Drug Administration and Justice Department leaders about efforts to stay on top of the vaping industry. The government agencies have cracked down on a handful of manufacturers of e-cigarettes, but thousands of unauthorized products continue to be sold in vape shops and convenience stores. Most are imported from China. Senator Dick Durbin singled out the FDA for not taking action against a vape shop selling illegal products less than a mile from its headquarters.

From smart glasses to a rainbow rodeo, some Father’s Day gift ideas for all kinds of dads

NEW YORK (AP) — Whether you go big, small or DIY, there are lots of way to please dad on Father’s Day. If store-bought is your jam, try a weighted pillow built to de-stress. Or maybe a compact smokeless electric grill perfect for balconies or parks that ban open flames. Does he like to have fun with instant photography? The Fujifilm Instax Mini 99 has lots of fun settings to make tiny prints. Got a history buff? There’s a new book out about the World War II hero aircraft carrier the USS Cowpens. Quince offers leather-bound books that include one on Kobe Bryant.

Baltimore’s busy port fully reopens after bridge collapse, and a return to normal is expected

BALTIMORE (AP) — Authorities anticipate that commercial shipping traffic through the Port of Baltimore will soon return to normal levels after its main channel fully reopened earlier this week. The reopening followed a roughly $160 million cleanup after the massive bridge collapsed into the channel in March. Some shipping companies rerouted cargo to other ports following the Francis Scott Key Bridge collapse. But U.S. Transportation Secretary Pete Buttigieg says he believes they will return to Baltimore with the channel restored. President Joe Biden has pledged that the federal government will cover the full cost of rebuilding. The funding still awaits approval from Congress.

Europe wants affordable electric vehicles from China. But not at the cost of its own auto industry

FRANKFURT, Germany (AP) — The European Union is moving to hike tariffs on electric vehicles made in China. EVs are the latest flash point in a broader trade dispute over Chinese government subsidies and the Asian nation’s burgeoning exports of green technology to the 27-nation bloc. The European Commission, the EU’s executive arm, said on Wednesday that preliminary results from an ongoing investigation into Chinese EV subsidies show the country’s battery electric vehicle “value chain” benefits from “unfair subsidization” that hurts EU rivals. On July 4, it plans to impose provisional import taxes of up to 38.1%, on electric vehicles from China. That’s on top of the 10% duties for all imported EVs.

Southwest Airlines CEO says he won’t resign. A hedge fund is trying to get him fired

DALLAS (AP) — The CEO of Southwest Airlines says he is not resigning in the face of pressure from a hedge fund that wants him fired. CEO Robert Jordan said on Wednesday that his leadership team is producing its own plan for improving Southwest’s financial performance. Elliott Investment Management has said it bought a $1.9 billion stake in Southwest and wants to replace Jordan as well as the airline’s chairman with executives from outside the company. Elliott accuses Southwest leadership of failing to change with evolving customer tastes, and says that’s why Southwest shares have fallen more than 50% over the past three years.