Business News

Inflation is nearly back to 2%. So why isn’t the Federal Reserve ready to cut rates?

WASHINGTON (AP) — From Wall Street traders to car dealers to home buyers, Americans are eager for the Federal Reserve to start cutting interest rates and lightening the heavy burden on borrowers. Inflation, as measured by its preferred gauge, rose in the second half of 2023 at an annual rate of about 2% — the Fed’s target level. Yet several central bank officials have underscored that they aren’t ready to pull the trigger just yet. Most of the Fed’s policymakers have said they’re optimistic that even while the economy and the job market keep growing, inflation pressures will continue to cool. But they also caution that the economy appears so strong that there’s a risk that price increases could re-accelerate.

Stock market today: S&P 500 has its first close above 5,000 in another winning week for Wall Street

NEW YORK (AP) — Wall Street closed out its latest winning week with another milestone, the S&P 500’s first close above 5,000. The benchmark index rose 0.6%, marking its 14th winning week in the last 15. The Nasdaq composite rose 1.2%, pulling closer to its all-time high set in late 2021, as Big Tech stocks were some of the market’s strongest. Nvidia, Microsoft and Amazon all posted big gains. The Dow Jones Industrial Average was a laggard a day after setting its own all-time high, dipping 0.1%. Treasury yields held relatively steady in the bond market, helping to keep things smooth.

IRS watchdog: Contractors who failed background checks maintained access to sensitive agency systems

WASHINGTON (AP) — A new IRS inspector general report says the agency continued to give 19 contractors access to sensitive systems despite failing background reports as recently as last July. The Treasury Department’s inspector general for tax administration issued a report this week, saying, “These contractors still retained their access to one or more sensitive systems because the IRS did not take action to suspend or disable the contractors from the IRS’s systems, as required.” An IRS spokesperson would not disclose how long the contracts had access due to privacy issues. IRS Commissioner Daniel Werfel says four of the contractors have since been fired and the 15 others have passed new background checks.

Biden administration announces $5 billion commitment for research and development of computer chips

WASHINGTON (AP) — The Biden administration is announcing an investment of $5 billion in a public-private consortium aimed at supporting research and development in advanced computer chips. The announcement of the chip investment came Friday. The National Semiconductor Technology Center is being funded through the 2022 CHIPS and Science Act. That law aims to reinvigorate the computer chip sector within the United States through targeted government support. Commerce Secretary Gina Raimondo says, “We need to be building for the future and that means making investments in R&D.”

BASF sells stakes in two China ventures after reports of human rights abuses

FRANKFURT, Germany (AP) — German chemical company BASF says it’s speeding up the sale of stakes in two joint ventures in China after its local partner was accused in media reports of human rights abuses. BASF said Friday in a news release that the market for the industrial chemicals made at the production sites in the Xingiang region is under increased competitive pressure and oversupplied. However, it added that reports contained “serious allegations” about activities “inconsistent with BASF’s values.” German news media had reported that employees of a BASF partner firm had participated in a state repression campaign aimed at the region’s Muslim Uighur population.

Meta removes Instagram and Facebook accounts for Iran’s Supreme Leader Ayatollah Ali Khamenei

DUBAI, United Arab Emirates (AP) — Meta has removed Instagram and Facebook accounts run on behalf of Iran’s Supreme Leader Ayatollah Ali Khamenei after criticism over his support for Hamas after its Oct. 7 attack on Israel that sparked the monthslong war still raging in the Gaza Strip. Meta offered no specifics about its reasoning. However, it said it removed the accounts “for repeatedly violating our Dangerous Organizations and Individuals policy.” Iran’s mission to the United Nations did not immediately respond to a request for comment. Iran has provided arms and support to Hamas, though Tehran isn’t believed to have directed the Oct. 7 attack.

PepsiCo profit gets a bump on fewer charges, but sales slip after repeated price hikes

PepsiCo got a bump to fourth quarter profits thanks in part to lower charges and continued price hikes, but higher prices have hit sales. The food and drinks company said Friday that it expects organic revenue growth of at least 4% this year. That is less than half the 9.5% growth that PepsiCo booked in 2023. Shares dropped 2% before the opening bell even as the company announced a 7% boost to its annual dividend, and said that it would buy back about $1 billion of its shares.

AP-NORC Poll: Most Americans say air travel is safe despite recent scares

A new poll by the Associated Press and NORC Center for Public Affairs Research finds most Americans believe air travel is generally safe in the U.S. The poll was released Friday. About 7 in 10 U.S. adults say planes are a “very” or “somewhat” safe method of travel. Even so, only about 2 in 10 U.S. adults have “a great deal” of confidence that airplanes are being properly maintained, or that they are safe from structural faults. The poll was conducted following a Jan. 5 accident in which a panel blew off an Alaska Boeing 737 Max 9 jetliner in midflight.

Finnish carrier Finnair is asking passengers to voluntarily weigh themselves before boarding flights

COPENHAGEN, Denmark (AP) — Finland’s national carrier Finnair is asking passengers to be weighed voluntarily and anonymously so that it can update their standard weight figures. A Finnair spokeswoman said Friday that passengers at Finland’s main airport in Helsinki “are not penalized for their weight” and “the numbers are kept discreet away from prying eyes.” About 800 people have joined the survey that began this week so far. The figures will be sent to the Finnish transport and communications agency later this year and be used for future balancing of aircraft and loading calculations. Airlines can either use official data or do their own standard weights measurements. Finnair has chosen the latter but the figures must be renewed every five years.

Israel is holding up food for 1.1 million Palestinians in Gaza, the main UN aid agency there says

JERUSALEM (AP) — The director of the main U.N. aid agency for Palestinians says Israeli restrictions are preventing food for 1.1 million people from reaching war-battered Gaza. Tens of thousands in the war-battered enclave are struggling with starvation. The head of the agency told reporters Friday that its Israeli bank account was frozen and that authorities warned off the Israeli contractor. That means more than 1,000 containers of That means 1,049 containers of rice, flour, chickpeas, sugar and cooking oil are stuck, even as a quarter of families in Gaza face catastrophic hunger. Separately, the U.N. food agency warned of possible famine as early as May.