US interest rates see fourth 0.75 percentage point rise to tackle inflation

Published

3 years ago

November 2, 2022

admin

The US central bank has imposed its fourth major interest rate rise in a row.

The Federal Reserve, the central bank known as the Fed, has once again hiked rates by 0.75 percentage points in an effort to curb soaring inflation.

The widely-expected rise will mean more expensive borrowing for the likes of mortgage holders and those paying credit card debt.

American interest rates now stand at 3.75% to 4% up from 3% to 3.25% since the last increase in September.

The latest tough stance has been taken in an effort to limit spiralling inflation, which stood at more than 8.2% in the US in the 12 months up to September. The rises are being made as part of an overall plan to reduce inflation to 2%.

There is to be no let up in pursuing that target as the committee that decides US interest rates said it anticipated “ongoing increases” in rates will be appropriate “for some time”.

The Fed has taken on responsibility for inflation, speaking at the announcement, chair of the Fed, Jay Powell said price stability is the responsibility of his organisation and the bedrock of the economy. “Without price stability, the economy does not work for anyone,” he said.

Just how high those rates reach remains to be seen. Mr Powell added there’s “significant uncertainty” around the level of rate rises but it’s expected rates will be higher than previously expected.

What will determine how much interest rates rise are readings on public health, labour market conditions, inflation, and financial and international developments.

The longer the current high rate of inflation continues, the greater the chance that expectations of inflation will become entrenched, Mr Powell added.

Click to subscribe to The Ian King Business Podcast wherever you get your podcasts

Now is not the time to be considering when interest rises may moderate, he said, ongoing rate hikes are needed to get to a level that is “sufficiently restrictive”.

The impact of those rate rises are already having a negative effect on the economy, economists have said.

“A Fed-induced recession is still a very real – and dangerous – possibility,” said Rakeen Mabud, chief economist and managing director of policy and research at the Groundwork Collaborative.

“The slowdown in the housing market is the canary in the coal mine – a warning of the real price we will all pay if Chair Powell continues on his interest rate bender.”

If rates continue to rise a recession worse than that experienced after the global financial crisis could result, the United Nations Conference on Trade and Development (UNCTAD) had warned.

The rate had been 0% at the beginning of this year but the Fed has progressively increased the figure across five announcements. The low rate was reached during the pandemic when the Fed wanted borrowing to be cheap for businesses and consumers to remain financially afloat.

US economy bounces back from recession territory even as storm continues to brew

Not since the early 1980s has the Fed embarked on such an aggressive monetary-tightening campaign with Mr Powell on Wednesday describing the rises are increasing at a “historically fast pace”.

Prior to Wednesday’s increase, the Fed had already upped rates in September, June and July by what were, at the time, rises not seen since 1994.

The Fed is just one of many central banks targeting interest rates as inflationary pressures drive the cost of living crises across economies.

On Thursday, the Bank of England is anticipated to also raise its base rate of interest by 0.75% to 3%.

US

Donald Trump wades into Sydney Sweeney ad debate

Published

6 hours ago

August 5, 2025

admin

Donald Trump wades into Sydney Sweeney ad debate

Donald Trump has waded into the debate surrounding Sydney Sweeney’s jeans ad.

The American Eagle ad, which features the 27-year-old actress, who starred in the HBO series Euphoria and White Lotus, has the tagline “Sydney Sweeney has great jeans”.

It has sparked a debate in the US over race and Western beauty standards.

In a Truth Social post, the US president described it as the “hottest ad out there”.

Hailing Sweeney as a “registered Republican”, he said the jeans are “flying off the shelves”, adding: “Go get ’em Sydney!”

Most of the criticism of the ad has centred on videos using the word “genes” instead of “jeans”, with one in which Sweeney says: “Genes are passed down from parents to offspring, often determining traits like hair colour, personality and even eye colour. My jeans are blue.”

Critics argued the play on words potentially promotes eugenics, a discredited theory that believed humanity could be improved through the selective breeding of certain traits.

But others have defended the ad, saying the critics are reading too much into its message.

The video appeared on American Eagle’s Facebook page and other social media channels, but is not part of the ad campaign.

In a statement on Instagram on Friday, American Eagle Outfitters said the campaign “is and always was about the jeans. Her jeans. Her story. We’ll continue to celebrate how everyone wears their AE jeans with confidence, their way. Great jeans look good on everyone.”

Stocks in American Eagle Outfitters jumped by 23.3% after Mr Trump’s intervention.

Trump knows all publicity is good publicity

They say all publicity is good publicity, and Sydney Sweeney’s American Eagle ad is certainly notching up the column inches, especially now Donald Trump has intervened.

The US president must have been breathlessly excited when he found out Sweeney was a registered Republican because he wrote a Truth Social post in support of her before deleting it twice and reposting three times to correct various spelling and grammatical errors.

He clearly could not wait to get involved in the discourse.

“Sydney Sweeney, a registered Republican, has the HOTTEST ad out there,” he wrote. “Go get ’em Sydney!”

In any other era, the president weighing in so heavily on one side of a pop culture issue would’ve been unusual.

But the current president knows people are talking about the ad around their dinner tables and at parties right now. By injecting himself into the discussion, they will now be talking about him too.

In his Truth Social post, which he reposted three times to fix various typos, Mr Trump compared the ad with “woke” ones “on the other side of the ledger” – as he criticised other companies, as well as hitting out at Taylor Swift.

“The tide has seriously turned – Being WOKE is for losers, being Republican is what you want to be,” he wrote.

Sky News has contacted Sweeney’s agent for comment.

US

Soulja Boy arrested on suspected weapons charge during traffic stop

Published

24 hours ago

August 4, 2025

admin

Soulja Boy arrested on suspected weapons charge during traffic stop

Soulja Boy has been arrested and charged with possession of a firearm during a traffic stop.

The rapper, whose real name is DeAndre Cortez Way, was a passenger in the car that was stopped in the Fairfax area of Los Angeles early on Sunday morning, the LAPD said.

“A passenger was detained and police arrested DeAndre Cortez Way for being a convicted felon in possession of a firearm,” the statement added.

Possessing a firearm as a convicted felon is a felony.

The 35-year-old was booked into jail in the LAPD’s Wilshire Division shortly after 6am. It is not clear if he has since been released.

Police did not provide information on what prompted the traffic stop and who else was in the vehicle with Way.

Soulja Boy is yet to publicly comment on the incident.

Soulja Boy is best known for his 2007 hit Crank That, which topped the Billboard Hot 100 for seven weeks and landed him a nomination for best rap song at the Grammys.

The rapper was arrested and charged with a felony in 2014 for carrying a loaded gun during a traffic stop in LA.

In April this year, the Chicago hip-hop artist was ordered to pay more than $4m (£3m) in damages to his former assistant after being found liable for sexually assault, as well as physically and emotionally abusing them.

US

Tennessee: Man tries to detonate 14 explosive devices while being arrested

Published

2 days ago

August 3, 2025

admin

Tennessee: Man tries to detonate 14 explosive devices while being arrested

Police in Tennessee have discovered 14 improvised explosive devices in a man’s home as they were arresting him, the local sheriff’s office said.

Officers were executing a warrant in the home of Kevin Wade O’Neal in Old Fort, about 45 miles (70km) east of Chattanooga, after he had threatened to kill public officials and law enforcement personnel in Polk County.

After arresting the 54-year-old, officers noticed “something smouldering” in the bedroom where he was found.

On closer inspection, they discovered an improvised explosive device and evacuated the house until bomb squad officers arrived at the scene.

Fourteen devices were found inside the property – none of which detonated.

O’Neal was charged with 11 counts of attempted first-degree murder, corresponding to nine officers and two other people inside the property when the suspect tried to detonate the devices.

He also faces 14 counts of prohibited weapons and one count of possession of explosive components.