Business News

The Federal Reserve sees cooler inflation and slower job market, suggesting a rate cut is nearing

WASHINGTON (AP) — The Federal Reserve says that greater progress has been made in reducing inflation to its 2% target. That’s a sign that the central bank is moving closer toward cutting its key interest rate for the first time in four years. In a statement issued after it concluded its two-day meeting, the Fed also said that job gains have moderated and acknowledged that the unemployment rate has risen. Yet Fed officials said they still need to gain confidence inflation is under control, clouding the timing of a rate cut.

Stock market today: S&P 500 jumps to best day in 5 months as tech rebounds, rate cuts come into view

NEW YORK (AP) — Big technology stocks drove a rally for U.S. indexes, as Wall Street grew even more convinced long-sought cuts to interest rates will be arriving soon. The S&P 500 jumped 1.6% Wednesday for its best day in five months. The Dow Jones Industrial Average rose 0.2%, and the Nasdaq composite soared 2.6%. The widespread gains came as Treasury yields eased in the bond market after the Federal Reserve gave the clearest indication yet that it could begin lowering interest rates in September. Chip stocks helped lead the way after Advanced Micro Devices delivered stronger profit than expected. Oil prices jumped, and stock indexes rose worldwide.

US stands by decision that 50 million air bag inflators are dangerous, steps closer to huge recall

DETROIT (AP) — U.S. auto safety regulators say they stand by a conclusion that more than 50 million air bag inflators are dangerous and should be recalled, taking another step toward a massive recall. The move Wednesday by the National Highway Traffic Safety Administration involves inflators made by ARC Automotive Inc. and another parts manufacturer. It comes despite opposition from automakers. The inflators in about 49 million vehicles from 13 manufacturers can explode and hurl shrapnel into drivers and passengers. The agency has said the inflators are responsible for at least seven injuries and two deaths in the United States and Canada since 2009.

Delta CEO says airline is facing $500 million in costs from global tech outage

Delta CEO Ed Bastian says the airline is facing $500 million in costs for the global technology breakdown this month. Speaking on CNBC, Bastian said Wednesday that the monetary amount represents lost revenue as well as “the tens of millions of dollars per day in compensation and hotels” for the five-day period.

Washington, DC, sues StubHub, saying the resale platform inflates ticket prices with deceptive fees

WASHINGTON (AP) — The ticket resale company StubHub is defending its pricing practices from a lawsuit filed by the attorney general for Washington, D.C. The nation’s capital said in a lawsuit Wednesday that the company advertises deceptively low prices and then ramps up prices with extra fees. Washington Attorney General Brian Schwalb argues that the practice known as “drip pricing” violates consumer protection laws in the nation’s capital. The company, on the other hand, says its practices are consistent with the law and industry norms. Washington’s lawsuit says StubHub has sold nearly 5 million tickets there since 2015 and reaped about $118 million in fees. The suit seeks damages and a halt to the pricing structure.

After an extraordinary run of political news, interest in the presidential election is perking up

News executives were worried for the first half of the year about consumers expressing relatively little interest in the coming election. That’s changed. There’s evidence that interest has started to perk up following an extraordinary run of news. That includes the assassination attempt on former President Donald Trump, President Joe Biden’s decision not to seek re-election and the rapid ascension of Vice President Kamala Harris as the Democratic candidate. Taboola says its measurement of news sites shows interest going up. Fox News was the most obvious beneficiary of the boost in attention, with July representing its most-watched month since November 2020.

Boeing names its next CEO while posting a quarterly loss of more than $1.4 billion

Boeing has a new chief executive. The company says aerospace industry veteran Robert “Kelly” Ortberg will take over as CEO next week, replacing David Calhoun. Boeing announced Ortberg’s hiring on Wednesday as it reported a second-quarter loss of more than $1.4 billion. The company’s revenue was even lower than Wall Street’s dismal expectations. Ortberg is former CEO of aerospace manufacturer Rockwell Collins. He is coming to Boeing at a tumultuous time. The company is the subject of multiple investigations into its safety culture and manufacturing quality. Boeing agreed to plead guilty this month to a federal fraud charge in connection with its 737 Max jetliner and two crashes that killed 346 people.

UAW endorses Harris, giving her blue-collar firepower in industrial states

DETROIT (AP) — The United Auto Workers is endorsing Vice President Kamala Harris for president, giving her union firepower for the likely contest this November against Republican Donald Trump. UAW President Shawn Fain says the union’s “job” in this year’s election is to defeat Trump. The union has more than a million active and retired members with a strong base in what the Democrats call the “blue wall” states of Michigan, Pennsylvania and Wisconsin.

Paychecks grew more slowly this spring, a sign inflation may keep cooling

WASHINGTON (AP) — Pay and benefits for America’s workers grew more slowly in the April-June quarter than in the first three months of the year, a trend that could keep price pressures in check and encourage the inflation-fighters at the Federal Reserve. Compensation as measured by the government’s Employment Cost Index rose 0.9% in the second quarter, down from a 1.2% increase in the previous quarter, the Labor Department said Wednesday. Compared with the same quarter a year earlier, compensation growth was 4.1%, a slight drop from 4.2% in the first quarter.