Fed’s Powell facing rising criticism for inflation missteps
WASHINGTON (AP) — Federal Reserve Chair Jerome Powell won praise for his deft leadership during the maelstrom of the pandemic recession. As threats to the U.S. economy have mounted, though, Powell has increasingly struck Fed watchers as much less sure-footed. Inflation has proved higher and far more persistent than he or the Fed’s staff economists had foreseen. And at a policy meeting last week, Powell announced an...
Fed’s Powell facing rising criticism for inflation missteps
WASHINGTON (AP) — Federal Reserve Chair Jerome Powell won praise for his deft leadership during the maelstrom of the pandemic recession. As threats to the U.S. economy have mounted, though, Powell has increasingly struck Fed watchers as much less sure-footed. Inflation has proved higher and far more persistent than he or the Fed’s staff economists had foreseen. And at a policy meeting last week, Powell announced an unusual last-minute switch to a bigger interest rate hike than he had previously signaled — and then followed with a news conference that many economists described as muddled and inconsistent.
Facebook and US sign deal to end discriminatory housing ads
NEW YORK (AP) — The Justice Department says Facebook will change its algorithms to prevent discriminatory housing advertising as its parent company subjects itself to court oversight in a response to a U.S. lawsuit. The Justice Department announced Tuesday in a release that Meta Platforms Inc., formerly known as Facebook Inc., reached an agreement to settle the lawsuit filed the same day. The release said it was the Justice Department’s first case challenging algorithmic discrimination under the Fair Housing Act. U.S. Attorney Damian Williams called the lawsuit groundbreaking. A Facebook spokesperson said the company was excited to pioneer the effort to improve housing ads.
EXPLAINER: How platforms dealt with ‘RINO hunting’ video
Washington (AP) — When a GOP Missouri U.S. Senate candidate released a video Monday in which he cocked a gun after calling for a hunt of fellow Republicans who he believes are “RINOs,” or Republicans in Name Only, Facebook scraped it off its platform within a few hours. But it’s still live on YouTube, where it’s been watched thousands of times, and on Twitter, which deliberately left it up after limiting its spread. It’s a striking example of the different ways various platforms treat posts that violate their policies, meaning that one banned on Facebook might stay live on Twitter, depending on who has said what.
Ford pledges to work with community near future factory
BROWNSVILLE, Tenn. (AP) — Ford Motor Co. officials are pledging to be good neighbors to those in rural west Tennessee who live near the automaker’s planned electric truck factory, a project expected to create thousands of jobs and change the face of the region. More than 200 people attended a panel discussion Tuesday at a high school in Brownsville, one of many communities that will be affected by Ford’s $5.6 billion project to build electric F-Series pickups at a 3,600-acre (1,460-hectare) parcel of land known as the Memphis Regional Megasite in Haywood County.. The project, called BlueOval City, is a joint venture with SK Innovation, which will build a battery factory at the site.
Snap, crackle, pop: Kellogg to split into 3 companies
Kellogg Co., the maker of Frosted Flakes, Rice Krispies and Eggo, will split into three companies focused on cereals, snacks and plant-based foods. Kellogg’s, which also owns plant-based food maker MorningStar Farms, said Tuesday that the spinoff of the yet-to-be named cereal and plant-based foods companies should be completed by the end of next year. The cereal and plant-based food companies will remain headquartered in Battle Creek, Michigan, where Kellogg was founded in 1906. The snack company __ which accounts for 80% of Kellogg’s sales __ will have its corporate headquarters in Chicago. Shares of Kellogg rose almost 2% to $70.15 Tuesday.
Wall Street ends broadly higher after sharp losses last week
NEW YORK (AP) — Stocks are ending higher on Wall Street Tuesday, clawing back some of the ground they lost last week in their worst weekly drop since the beginning of the pandemic. The S&P 500 rose 2.4%. It’s still 21.5% below the record high it set in January. The tech-heavy Nasdaq climbed 2.5% and the Dow Jones Industrial Average added 2.1%. Markets will be closely watching congressional testimony this week from Federal Reserve Chair Jerome Powell for more clues about the Fed’s thinking about inflation and future interest rate hikes. The yield on the 10-year Treasury note rose to 3.30%.
Biden, Chevron chief trade sharp words over gas prices
WASHINGTON (AP) — In a pointed back and forth, the head of Chevron has complained that President Joe Biden has vilified energy firms at a time when gasoline prices are at near record levels and the president responded that the oil company CEO was being “mildly sensitive.” The administration is weighing whether to call on Congress to suspend the federal gasoline tax. Biden says he has little sympathy for the oil companies and that they need to increase production. The U.S. president says, “I didn’t know they get their feelings hurt that quickly.” Biden is also facing criticism from economists and companies that a gas tax holiday would not increase supplies and lower prices.
Final arguments unfold in second act of Theranos trial drama
SAN JOSE, Calif. (AP) — Federal prosecutors on Tuesday depicted former Theranos executive Ramesh “Sunny”” Balwani as an instrumental accomplice in a fraud hatched by his secret lover, Theranos CEO Elizabeth Holmes, while his lawyers depicted him as a loyal soldier who tried to save the blood-testing company. The dueling presentations were part of the finishing touches on a three-month-old trial that will whether Balwani will wind up in the same predicament as Holmes, who was convicted of defrauding Theranos investors in a separate trial that concluded earlier this year. The closing arguments are scheduled to continue Wednesday before a judge turns the case over to the jury.
Pilots picket as airline unions leverage summer travel woes
DALLAS (AP) — There’s a shortage of pilots at many airlines, and pilot unions are demanding higher pay in contract negotiations. On Tuesday, hundreds of uniformed Southwest Airlines pilots picketed at the Dallas airport to protest the lack of progress on a new contract. The picketing is taking place as airline unions seek sizable wage increases. Pilots in particular could have strong leverage for higher pay because of a shortage that has led to flight cancellations.
IRS erases last season’s backlog, but still faces 2022 crush
WASHINGTON (AP) — The Internal Revenue Service says that it will have erased its backlog of last season’s tax returns by the end of this week. And with 143 million returns from this year’s tax season processed, agency officials say there’s a greater likelihood of being caught up on processing all returns by the end of this year. The agency has faced a well-publicized backlog of tens of millions of tax returns and clogged customer service phone systems. The IRS says more than twice as many returns await processing compared to a typical year at this point in the calendar year.