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Fed is discussing withdrawing economic aid if inflation rises
WASHINGTON (AP) – In the face of uncomfortably high inflation and the COVID-19 Delta variant raising economic concerns, a divided Federal Reserve will meet this week to discuss when and how to reverse its ultra-low interest rate policy. Right now, the U.S. economy is growing strongly in the wake of the pandemic recession and the hiring pace is healthy, so Fed policymakers are likely to move closer to action soon. In particular, officials are expected to discuss the timing and mechanisms of slowing their $ 120 billion per month bond purchases – a pandemic-era policy that aims to keep long-term lending rates low to keep borrowing and borrowing – to boost spending.
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Business travel moves, but many road warriors stay on the ground
NEW YORK (AP) – Business travel is starting to recover from the pandemic, but the Road Warriors are coming back much more slowly than leisure travelers. That makes a big difference for airlines that make up to half of their revenue from business travel. Airline officials expect business travel to pick up noticeably after Labor Day, once offices and schools reopen. Business travelers plan their return wisely. Some experts believe that business trips are chosen less and more carefully, but take longer. Others believe the pandemic will result in different types of travel, but not necessarily less, with fewer conferences and more opportunities for distant workers to meet on projects.
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‘Holy Moly!’: Battle against a ransomware hack in Texas
DALLAS (AP) – The Associated Press has learned new details about a ransomware attack that affected around two dozen communities in Texas two years ago. Thousands of pages received by AP and interviews with individuals involved show that Texan communities struggled with disruptions to key government services for days as workers in small towns and cities suffered a cascade of frustrations from the sophisticated cyberattack. The records also reveal new details about the scope and casualties of the attack, including an air base where access to a law enforcement database was blocked and a city was forced to manually operate its water supply system.
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New home sales down 6.6% in June
WASHINGTON (AP) – New home sales fell 6.6% for the third straight month in June. to its lowest level in more than a year. The Commerce Department reported Monday that June’s decline in sales resulted in a seasonally adjusted annual rate of 676,000. This was followed by a decline in sales of 7.7% in May and a decline of 10.1% in April. The sales pace in June declined 19.4% year-over-year and was the slowest since April 2020. Housing construction has emerged from the steep but brief pandemic recession since the economy began in April last year.
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Stocks shake off a shaky start and end a little higher
NEW YORK (AP) – Stocks got off to a shaky start and finished slightly higher on Wall Street, pushing major indices a little further into record territory. The S&P 500 was up 0.2% on Monday, as was the Dow Jones Industrial Average. The strength in communications and energy companies outweighed weakness in other sectors. Investors are still watching a steady flow of corporate earnings and will be on the lookout for any clues from the Federal Reserve as to when it might begin unwinding its exceptional economic bailout. The Fed released its latest monetary policy statement on Wednesday. Bitcoin rose to $ 37,500.
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Tesla reaches milestone with first quarterly profit of $ 1 billion
SAN RAMON, Calif. (AP) – Tesla’s quarterly earnings surpassed $ 1 billion for the first time. The results come as the electric car pioneer navigated a pandemic-induced shortage of computer chips that has been a major headache for other automakers. The financial milestone announced on Monday extended a two-year prosperity streak that has cleared Tesla’s long-term profitability questions raised in its early years of losses and production problems. Tesla posted $ 1.1 billion in profits from April through June and produced more than 200,000 cars for the first time. However, Tesla cautioned that its recent momentum could be slowed by a persistent shortage of chips that have become vital parts of modern automobiles.
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Fears of inflation and politics shape views on the Biden economy
WASHINGTON (AP) – A new poll by the Associated Press-NORC Center for Public Affairs Research shows 54% of Americans think the economy is bad. That compares to 45% who say the conditions are good. The results indicate the inflationary risks to President Joe Biden’s agenda. Biden’s $ 1.9 trillion coronavirus aid package and strong job growth haven’t had much of an impact on public opinion. The results suggest that inflation worries many Americans who filter their thoughts about the economy through politics. About 6 in 10 Democrats say the economy is good, while three-quarters of Republicans say conditions are bad.
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Warming rivers in the western United States are killing fish and endangering industries
SAN FRANCISCO (AP) – Baby salmon are dying by the thousands in one California river and a host of endangered salmon could be wiped out in another. Fishermen who make a living from adult salmon as soon as they step into the Pacific Ocean are sounding the alarm as scorching heat waves and prolonged drought in the western United States raise water temperatures and endanger fish from Idaho to California. A crash in the yearling class of young salmon can have a lasting impact on the overall population and shorten or stop the fishing season. That could have devastating consequences for the commercial salmon fishery, which is worth $ 1.4 billion in California alone. Fishermen say that some customers are already pricing out the high cost of salmon.
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The S&P 500 rose 10.51 points, or 0.2%, to 4,422.30. The Dow Jones Industrial Average rose 82.76 points, or 0.2%, to 35,144.31. The Nasdaq added 3.72 points or less than 0.1% to 14,840.71. The Russell 2000 Smaller Business Index rose 7.27 points, or 0.3%, to 2,216.92 points.
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