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The Federal Reserve on Wednesday took its foot off the brakes and hiked interest rates yet again — taking them to a 22-year high.

Fed Chairman Jerome Powell announced the unanimous decision for a quarter-point hike, raising the benchmark federal-funds rate to a range between 5.25% and 5.5%. 

It marked the 11th increase in the past 12 meetings following last month’s brief pause.

The hike sent the benchmark rate to its highest point since 2001 — and Powell signaled that another increase is possible before the year’s out as officials continue to wrestle with stubbornly-high inflation.

The process of getting inflation back down to 2% has a long way to go,” Powell said at a press conference following the decision.

“We think were going to need to hold, certainly, policy at restrictive levels for some time, and wed be prepared to raise further if we think thats appropriate.

Powell, who initially insisted that inflation was “transitory before it soared to a four-decade high, also proclaimed that Fed staff is no longer forecasting a recession.

“We do have a shot” for inflation to return to target without high levels of job losses, he said.

“So the staff now has a noticeable slowdown in growth starting later this year in the forecast, but given the resilience of the economy recently, they are no longer forecasting a recession,” he said.

Key measures of inflation remain more than double the Fed’s target, and the economy by many measures, including a low 3.6% unemployment rate, continues to outperform expectations given the rapid increase in interest rates.

Job gains remain “robust,” the Fed said, while it described the economy as growing at a “moderate” pace, a slight upgrade from the “modest” pace seen as of the June meeting. New data on Thursday is expected to report the economy grew at a 1.8% annual pace in the second quarter, according to economists polled by Reuters.

Powell ruled out the possibility of cutting the fed rate this year.

“Well be comfortable cutting rates when were comfortable cutting rates, and that wont be this year,” he said.

Investors took the anticipated quarter-point hike in stride, pushing the Dow into the green for the 13th straight session — it’s best streak since 1987. The S&P 500 and the Nasdaq closed slightly down.

“The forward guidance remains unchanged as the committee leaves the door open to further rate hikes if inflation does not continue to trend lower,” said Kathy Bostjancic, chief economist at Nationwide. “Our view is the Fed is likely done with rate hikes for this cycle since continued easing of inflation will passively lead to tighter policy as the Fed holds the nominal fed funds rate steady into 2024.”

Despite the positive stock run, higher rates mean Americans are in for increased costs when it comes to borrowing funds to purchase homes and cars, which will likely dampen consumer spending.

The cost of credit cards may also remain high, making it more difficult for consumers to pay off their debt.

The average credit card interest rate in the US is currently 24.24%, according to LendingTree — the highest rate since the online loan marketplace began tracking average rates in 2019.

The latest figure is up from the average credit card interest rate of 16% in March 2022, just before the Fed started hiking rates.

Meanwhile, the Consumer Price Index a closely-monitored measure of inflation that tracks changes in the costs of everyday goods and services rose 3% in June versus a year earlier.

Last month’s advance was short of the 4% rise the CPI saw in May compared to the same month in 2022.

In June 2022, inflation peaked at 9.1%.

Policymakers are set to meet three more times by the end of this year, in September, November and December.

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Sports

Mizuhara pleads guilty to felony bank, tax fraud

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Mizuhara pleads guilty to felony bank, tax fraud

Ippei Mizuhara agreed Wednesday to plead guilty to federal charges of felony bank fraud and submitting a false tax return after authorities found that he stole nearly $17 million from Los Angeles Dodgers superstar Shohei Ohtani in order to pay off gambling debts to an illegal sportsbook.

Mizuhara, 39, who had been Ohtani’s longtime interpreter, is expected to enter his guilty plea in the coming weeks. His arraignment is scheduled for Tuesday in the U.S. District Court for the Central District of California.

A sentencing date has not been set. The total maximum sentence Mizuhara could receive for both crimes would be 33 years imprisonment and fines of $1.25 million, but in exchange for his plea — outlined in the agreement released Wednesday — prosecutors would recommend a reduced sentence.

A spokesperson for Ohtani declined to comment.

Federal authorities filed the complaint against Mizuhara on April 11, just three weeks after an ESPN investigation detailing wire transfers of $500,000 from Ohtani’s bank account to the bookmaking operation. Mizuhara initially told ESPN Ohtani had sent the money to help him pay his debts but later changed his story to say Ohtani had no knowledge of his gambling or the wire transfers. Ohtani’s attorneys alleged the slugger had been the victim of a “massive theft.”

“The extent of this defendant’s deception and theft is massive,” said United States Attorney Martin Estrada in a press release. “He took advantage of his position of trust to take advantage of Mr. Ohtani and fuel a dangerous gambling habit.”

Also in the statement, IRS Criminal Investigation Special Agent in Charge Tyler Hatcher said, “Mr. Mizuhara exploited his relationship with Mr. Ohtani to bankroll his own irresponsibility.”

The documents filed Wednesday further detailed a relationship of trust in which Ohtani, who did not speak English, relied on his Japanese translator to help him with everything from answering questions at press conferences, transacting with financial advisors and sports agents, and opening bank accounts.

Mizuhara began placing bets with an illegal bookmaker in September 2021, and as his losses quickly mounted, he began to exploit his access to Ohtani’s financial accounts to pay off his debts.

Mizuhara took many steps to deceive Ohtani, including changing contact information on the baseball player’s bank accounts so communication would come to Mizuhara. He even impersonated Ohtani on the phone with calls to the bank, which he did at least 24 times, according to the plea agreement.

In September 2023, Mizuhara told Ohtani he needed $60,000 for dental work, which Ohtani arrange to give him via a check drawn from a business account. However, Mizuhara pocketed that money and instead used Ohtani’s debit card to pay the $60,000 dental bill.

ESPN’s Tisha Thompson contributed to this report.

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Politics

Proposed US Blockchain Integrity Act would ban crypto mixers for 2 years

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Proposed US Blockchain Integrity Act would ban crypto mixers for 2 years

The bill introduced in the House would impose a fine of up to $100,000 for handling funds from mixers, while the Treasury writes a report.

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UK

Three men arrested on suspicion of terrorism offences

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Three men arrested on suspicion of terrorism offences

Three men have been arrested on suspicion of terrorism offences.

The men have been taken into custody in northern England on suspicion of “commission, preparation and instigation of acts of terrorism”.

Greater Manchester Police said that at about 7.30pm, four warrants were executed in the Bolton, Great Lever, Abram and Hindley areas.

The men, aged 35, 36 and 51, were arrested at separate locations and have been taken into custody for questioning.

Scenes remain in place at the four addresses as inquiries are carried out, the force said, while warning the local community they may see an increased police presence in the coming days.

Assistant Chief Constable Rob Potts, who holds responsibility for counter terrorism policing in the north west, said: “This evening we have executed a number of planned warrants as part of an ongoing counter terrorism investigation.

“Three men have been taken into custody for questioning and scenes remain in place as we conduct further enquiries.

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“Today’s activity has been the culmination of much detailed planning and we have put measures in place to minimise disruption to local residents as much as possible.”

He added: “I want to reassure members of the public that we do not currently believe there to be any wider threat linked to today’s activity.”

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