Business News

Federal Reserve cuts its key interest rate by a quarter-point 

WASHINGTON (AP) — The Federal Reserve cut its key interest rate by a quarter-point in response to the steady decline in the once-high inflation. The rate cut follows a larger half-point reduction in September, and it reflects the Fed’s renewed focus on supporting the job market as well as fighting inflation, which now barely exceeds the central bank’s 2% target. Thursday’s move reduces the Fed’s benchmark rate to about 4.6%, down from a four-decade high of 5.3% before September’s meeting.

Restaurants, other services still in grip of high inflation even as overall rate slows

NEW YORK (AP) — While prices for most goods have been falling throughout the year, inflation for a wide range of services remains high. That’s straining consumers eating out, servicing their cars and paying for various kinds of insurance. Prices for services rose 3.7% in September from a year ago, according to the personal consumption expenditures price index.

Stock market today: Wall Street adds to its big gains after the Fed cuts interest rates

NEW YORK (AP) — U.S. stocks are ticking higher after the Federal Reserve cut interest rates for a second straight time, just as everyone expected. The S&P 500 rose 0.7% Thursday and moved little following the Fed’s widely anticipated afternoon announcement. The Dow Jones Industrial Average added 3 points, and the Nasdaq composite gained 1.5%. Chair Jerome Powell said it’s too early to know how Donald Trump’s victory in the presidential election will shift the Fed’s interest-rate policies. Treasury yields remained lower following the Fed’s announcement, giving back their big gains from the day before. Bank stocks also lagged the market as other Trump trades lost momentum.

Slightly more Americans apply for unemployment benefits last week, but layoffs remain at low levels

The number of Americans applying for jobless aid ticked up last week but layoffs remain at historically low levels. The Labor Department reported Thursday that jobless claim applications rose by 3,000 to 221,000 for the week of Nov. 2. That’s fewer than the 227,000 analysts forecast. The four-week average of weekly claims, which softens some of the week-to-week fluctuations, fell by 9.750 to 227,250. Weekly applications for jobless benefits are considered representative of U.S. layoffs in a given week. Continuing claims, the total number of Americans collecting jobless benefits, rose by 39,000 to 1.89 million for the week of Oct. 26. That’s the most since late 2021.

Average rate on a 30-year mortgage in the US rises for 6th straight week

The average rate on a 30-year mortgage in the U.S. rose for the sixth straight week, returning to its highest level since early July. Mortgage buyer Freddie Mac said Thursday that the rate ticked up to 6.79% from 6.72% last week. That’s still down from a year ago, when the rate averaged 7.5%. When mortgage rates increase they can add hundreds of dollars a month in costs for borrowers. Mortgage rates are influenced by several factors, including the yield on U.S. 10-year Treasury bonds, which lenders use as a guide to price home loans. Bond yields have been rising following encouraging reports on inflation and the economy.

Bank of England cuts UK interest rates again despite modest budget-related inflation spike

LONDON (AP) — The Bank of England has cut its main interest rate by a quarter of a percentage point after inflation across the U.K. fell below its target rate of 2%. The bank said Thursday its rate-setting panel lowered the benchmark rate to 4.75%. That is its second cut in three months, though bank governor Andrew Bailey cautioned that interest rates would not be falling too fast over coming months, partly because of the modest inflationary impact of last week’s budget, the first by the new Labour government. Bailey also said it was “not useful or wise to enter into speculation” about what policies might be introduced by Donald Trump;s incoming U.S. administration

Caroline Ellison begins 2-year sentence for her role in Bankman-Fried’s FTX fraud

DANBURY, Conn. (AP) — A former top executive in Sam Bankman-Fried’s fallen FTX cryptocurrency empire has begun her two-year prison sentence. The Federal Bureau of Prisons says Caroline Ellison reported Thursday to the federal prison in Danbury, Connecticut. She had pleaded guilty for her role in a massive fraud that cost investors, lenders and customers billions of dollars. She also testified extensively against former boyfriend Bankman-Fried. He was sentenced to 25 years in prison. Both the judge and prosecutors said Ellison deserved credit for her cooperation. She tearfully apologized at her sentencing hearing in New York in September and said she was “deeply ashamed.”

Carbon pollution from high flying rich in private jets soars

A new study says private jet carbon pollution soared 46% from 2019 to 2023. Thursday’s study figures about a quarter million of the super wealthy last year emitted 17.2 million tons of carbon dioxide flying in private jets. That’s about the same amount of carbon pollution as generated by the 67 million people who live in Tanzania. The study calculates that most of the 26,000 planes tracked spew more heat-trapping gases in about two hours than the average person on Earth does in a year. Still, carbon pollution from aviation is only 4% of the world’s emissions.

Small Business Administration-backed financing rose 7% to $56B in fiscal 2024

The Small Business Administration said it backed $56 billion in financing to small businesses and disaster-affected areas during the fiscal year ending Sept. 30, up 7% from a year prior. The growth was driven by smaller loans, the agency said in its annual Capital Impact report. For the first time since 2008, the SBA distributed more than 100,000 financings to small businesses, up 22% from fiscal 2023 and 50% over 2020.

Italy opens procedure against China’s Sinochem for possible breach of Pirelli governance

MILAN (AP) — Italy has opened up an administrative procedure against China’s Sinochem, the largest shareholder in Italian tiremaker Pirelli, over possible violations of restrictions placed by Rome to protect strategic assets. Pirelli announced said the procedure was launched under the so-called “golden power” provisions, which include restrictions to the access of some information and higher-vote thresholds for strategic decisions invoked by the government last summer. Sinochem, which controls a 37% stake in Pirelli, has denied any violations of the restrictions, the Italian company said.