Business News

Business News

AP-Summary Brief-Business

September 18, 2024

Federal Reserve cuts key rate by sizable half-point, signaling end to its inflation fight

WASHINGTON (AP) — The Federal Reserve cut its benchmark interest rate by an unusually large half-point, a dramatic shift after more than two years of high rates that helped tame inflation but also made borrowing painfully expensive for consumers. The rate cut, the Fed’s first in more than four years, reflects its new focus on bolstering the job market. Coming just weeks before the presidential election, the Fed’s move also has the potential to scramble the economic landscape just as Americans prepare to vote. The policymakers signaled that they expect to cut their key rate by an additional half-point in their final two meetings this year, in November and December. And they envision four more rate cuts in 2025 and two in 2026.

The Federal Reserve is finally lowering rates. Here’s what consumers should know

NEW YORK (AP) — The Federal Reserve has cut its benchmark interest rate from its 23-year high, with consequences for debt, savings, auto loans, mortgages and other forms of borrowing by consumers and businesses. The Fed announced that it reduced its key rate by an unusually large half-percentage point, to between 4.75 and 5 percent, the first rate cut in more than four years. The central bank is acting because, after imposing 11 rate hikes dating back to March 2022, it feels confident that inflation is finally mild enough that it can begin to ease the cost of borrowing. At the same time, the Fed has grown more concerned about the health of the job market.

Treasury rule would expand tax credits for installing electric vehicle chargers

WASHINGTON (AP) — The Biden administration is moving to clarify how homeowners and businesses can receive lucrative tax credits for installing electric vehicle chargers. A rule proposed Wednesday by the Treasury Department would make credits worth up to $1,000 for individuals and $100,000 for businesses available for each EV charger that is installed. If finalized, the new rule would be especially valuable to businesses that plan to install multiple chargers and would be able to earn significant credits to offset the expense. The proposal announced Wednesday follows guidance issued in January that made tax credits for installing EV chargers available in about two-thirds of the country.

Stock market today: Wall Street holds near records after Fed delivers a big cut to rates

NEW YORK (AP) — Wall Street is holding near its records after the Federal Reserve kicked off its efforts to prevent a recession with a bigger-than-usual cut to interest rates. The S&P 500 was virtually flat Wednesday. The Dow Jones Industrial Average slipped 31 points but was still near its record set on Monday. The Nasdaq composite rose 0.2%. Because the Fed’s first cut to interest rates in four years was so well telegraphed, and markets had already moved so much in anticipation of it, Wall Street’s reactions weren’t that big despite the historic nature of the Fed’s action. Treasury yields edged higher after wavering up and down.

Teamsters union declines to endorse Trump or Harris for president

WASHINGTON (AP) — The International Brotherhood of Teamsters has declined to endorse Kamala Harris or Donald Trump for president, saying neither candidate has sufficient support from the 1.3 million-member union. Vice President Harris met Monday with a panel of Teamsters, having long courted organized labor and made support for the middle class her central policy goal. Trump also met with a panel of Teamsters and even invited President Sean M. O’Brien to speak at the Republican National Convention, where the union leader railed against corporate greed. The Teamsters said Wednesday that internal polling of its members showed Trump with an advantage over Harris.

Google wins legal bid to overturn 1.5 billion euro antitrust fine in EU digital ad case

LONDON (AP) — Google has won a court challenge against a 1.49 billion euro European Union antitrust fine imposed five years ago that targeted its online advertising business. The EU’s General Court said Wednesday it was throwing out the 2019 penalty imposed by the European Commission, which is the 27-nation bloc’s top antitrust enforcer. The commission’s ruling applied to a narrow portion of Google’s ad business: ads that the U.S. tech giant sold next to Google search results on third-party websites. Regulators had found that Google inserted exclusivity clauses in its contracts that barred these websites from running similarly placed ads sold by Google’s rivals.

Boeing CEO says the company will furlough employees soon to preserve cash during labor strike

Boeing’s CEO says the company will begin furloughing a large number of employees to save cash during a strike by union machinists. Chief executive Kelly Ortberg said Wednesday that executives, managers and other employees would be required to take time off without pay starting in the coming days. Factory workers in the Pacific Northwest began a strike Friday after rejecting a proposal to raise pay by 25% over four years. They want raises of at least 40%. The furloughs are expected to affect tens of thousands of Boeing employees. Ortberg says he and other senior executives also will take pay cuts for as long as the strike lasts.

Iconic Tupperware Brands seeks Chapter 11 bankruptcy

NEW YORK (AP) — Tupperware Brands has filed for Chapter 11 bankruptcy protection. The company that revolutionized food storage decades ago says it plans to continue operating and will seek court approval for a sale. The filing comes after growing struggles to revitalize the business. Tupperware saw a resurgence during the early days of the COVID-19 pandemic, but demand has since waned amid rising competition. And financial troubles have continued to pile up for the Florida company. Tupperware began to struggle as more families gave up making dinner from scratch and started dining out more.

Lebanon is rocked again by exploding devices as Israel declares a ‘new phase’ of war

BEIRUT (AP) — Israel’s defense minister declares a “new phase” of war as Hezbollah officials and Lebanon’s state media say explosions went off in Beirut and multiple parts of Lebanon in an apparent second wave of detonations of electronic devices. The Hezbollah officials and state media said Wednesday that walkie-talkies and even solar equipment detonated a day after hundreds of pagers blew up. Lebanon’s Health Ministry says at least 14 people were killed and 450 were wounded. Israel’s defense minister made no mention of the mysterious waves of exploding devices in his remarks.

What to know about the two waves of deadly explosions that hit Lebanon and Syria

NEW YORK (AP) — Just one day after pagers used by hundreds of members of millitant group Hezbollah exploded, more electronic devices detonated in Lebanon Wednesday in what appeared to be a second wave of sophisticated, deadly attacks that targeted an extraordinary number of people. Both attacks, which are widely believed to be carried out by Israel targeting Hezbollah, have hiked fears that the two sides’ simmering conflict could escalate into all-out war. This week’s explosions have also deepened concerns about the scope of potentially-compromised devices, particularly after such bombings have killed or injured so many civilians.

Myrtle Virginia Young Phipps
September 18, 2024
AP-Newswatch
September 18, 2024