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The US economy’s strength and continued tight labor markets could warrant further Federal Reserve interest rate increases, Fed Chair Jerome Powell said on Thursday in remarks that appeared to push back against market expectations that the central bank’s rate hikes had reached an end.

“We are attentive to recent data showing the resilience of economic growth and demand for labor. Additional evidence of persistently above-trend growth, or that tightness in the labor market is no longer easing, could put further progress on inflation at risk and could warrant further tightening of monetary policy,” Powell said in remarks to the Economic Club of New York.

For inflation to durably return to the Fed’s 2% target, it “is likely to require a period of below-trend growth and some further softening in labor market conditions,” Powell said.

Since the Fed began raising interest rates in March of 2022 the unemployment rate has varied little from the current 3.8%, below the level most Fed officials feel is noninflationary, and overall economic growth has generally remained above the 1.8% annual growth rate Fed officials see as the economy’s underlying potential.

The Fed is “proceeding carefully” in evaluating the need for any further rate increases, Powell said, likely leaving intact current expectations that the Fed will leave its benchmark policy rate steady at the current 5.25% to 5.5% range at the upcoming Oct. 31-Nov. 1 meeting.

There is evidence the labor market is cooling, Powell said, with some important measures approaching levels seen even before the pandemic.

Powell also noted a number of fresh “uncertainties and risks” that need to be accounted for as the Fed tries to balance the threat of allowing inflation to rekindle against the threat of leaning on the economy more than is necessary.

Those include new geopolitical risks to the economy from the “horrifying” attack on Israel by the Palestinian militant Hamas group, Powell said.

“Our institutional role at the Federal Reserve is to monitor these developments for their economic implications, which remain highly uncertain,” Powell said. “Speaking for myself, I found the attack on Israel horrifying, as is the prospect for more loss of innocent lives.”

He also noted recent market-driven increases in bond yields that have helped to “significantly” tighten overall financial conditions.

“Persistent changes in financial conditions can have implications for the path of monetary policy,” Powell said, with higher market-based interest rates, if sustained, doing the same job as Fed rate increases.

But the Fed chair also voiced what has become a lingering theme at the central bank: That despite steady progress on lowering inflation, the battle isn’t over, with further rate increases still a possibility and the duration of tight monetary conditions still to be determined.

“Inflation is still too high, and a few months of good data are only the beginning of what it will take to build confidence that inflation is moving down sustainably toward our goal,” Powell said, citing the progress made since inflation peaked last year but also noting that one of the Fed’s main measures of inflation remained at 3.7% through September, nearly twice the central bank’s target.

“We cannot yet know how long these lower readings will persist, or where inflation will settle over coming quarters,” Powell said. “The path is likely to be bumpy and take some time…My colleagues and I are united in our commitment to bringing inflation down sustainably to 2%.”

The weeks since the Fed’s September meeting have been unusually turbulent, with worries about regional war in the Middle East rising and bond markets driving market interest rates higher, tightening the financial conditions faced by businesses and households somewhat independent of the Fed.

Data since the Fed’s last meeting also has shown US job growth reaccelerating unexpectedly, retail sales defying predictions of a slowdown and varying measures of prices offering inconsistent signals about whether inflation is on track to return to the Fed’s 2% target in a timely manner.

Powell’s appearance comes less than 48 hours before the beginning of the traditional quiet period ahead of the rate-setting Federal Open Market Committee’s meeting on Oct. 31-Nov. 1. While a handful of other Fed officials have appearances later on Thursday and Friday before blackout begins on Saturday, it is Powell’s remarks that will set the tone for policy expectations heading into that meeting.

Should they leave rates unchanged in two weeks as is now widely expected, it would mark the first back-to-back meetings with no rate increase since the Fed kicked off its hiking campaign in March 2022.

A Reuters poll of more than 100 economists published on Wednesday showed more than 80% expect no rate hike at the next meeting, and most also believe the Fed is done with rate hikes even though a majority of policymakers at their September meeting projected one more quarter-point increase was likely to be needed by year end.

Many in the poll offered the caveat that if progress on inflation stalls out or reverses, the Fed would not hesitate to resume raising rates.

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At least 36 killed after fire engulfs Hong Kong high-rise buildings – with 279 reported missing

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At least 36 killed after fire engulfs Hong Kong high-rise buildings - with 279 reported missing

At least 36 people have been killed after a fire engulfed several buildings at a high-rise residential complex in Hong Kong, officials have said.

Hong Kong leader John Lee said another 279 people were reported missing. He said 29 people remained in hospital.

About 900 people have been evacuated to temporary shelters after Hong Kong’s deadliest fire in years broke out at the Wang Fuk Court housing complex in the city’s Tai Po district.

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Fire chiefs said high temperatures made it challenging for crews to mount rescue operations.

Mr Lee said the fire was “coming under control” shortly after midnight.

The blaze was upgraded to a level 5 alarm, the highest level of severity, as night fell.

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The dead included one firefighter, officials said earlier.

A number of firefighters were said to have been hurt while trying to tackle the flames as they ripped through the 31-storey towers.

Records show the Wang Fuk Court site consisted of eight blocks with almost 2,000 apartments housing around 4,800 residents, including many elderly people. It was built in the 1980s and has recently been undergoing a major renovation.

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The fire, which broke out at 2.51pm local time, had spread on bamboo scaffolding and construction netting set up around the exterior of the complex.

It was not known how the fire started, but officials said it began at the external scaffolding of one of the buildings before spreading inside and to nearby buildings, likely aided by windy conditions.

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Firefighters have been seen aiming water at the intense flames from high up on ladder appliances.

Pictures showed thick grey smoke billowing out from the buildings as emergency services battled to control the blaze.

Flames and smoke were still shooting out of many windows as night fell.

Chinese President Xi Jinping expressed condolences to the firefighter who died and extended his sympathies to the families of the victims, according to state broadcaster CCTV. he also urged efforts to minimise casualties and losses.

Tai Po is in the northern part of Hong Kong and close to the border with the mainland Chinese city of Shenzhen.

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Bamboo scaffolding is a common sight in Hong Kong at building construction and renovation projects.

However, the government said earlier this year it would start phasing it out for public projects because of safety concerns.

It was the deadliest fire in Hong Kong in years, following the deaths of 41 people in a commercial building in Kowloon in November 1996.

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Girl, 13, arrested after teenager shot dead in Los Angeles

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Girl, 13, arrested after teenager shot dead in Los Angeles

A 13-year-old girl has been arrested following the fatal shooting a 16-year-old boy in Los Angeles County, California, police have said.

Officers responded on Sunday about 5pm to a report of a shooting in the city of Pomona.

They found a teenage boy suffering from a gunshot wound.

He was pronounced dead at the scene after firefighters arrived.

A motive for the crime is as yet unknown, police said.

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Pomona Police Department said in a statement: “Due to the nature of the incident, investigators from the Pomona Police Department’s Major Crimes Unit responded to the scene and initiated an extensive investigation.

“During the course of their investigation, they identified a 13-year-old female as the possible perpetrator. She was taken into custody and transported to Juvenile Hall.”

The victim’s and the suspect’s identities have not been revealed.

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The Kia EV4 is delayed, but another EV is still quietly coming to the US

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The Kia EV4 is delayed, but another EV is still quietly coming to the US

The EV4 will sadly not arrive in the US as expected, but Kia said it’s still planning on launching another EV that’s expected to be an even bigger hit.

Kia confirms EV4 delay, says another EV is still US-bound

The EV4, Kia’s first electric sedan, was expected to launch in the US within the next few months, but that will no longer be the case.

Kia has indefinitely delayed the launch of the EV4 in the US due to policy changes under the Trump administration.

The loss of the $7,500 federal EV tax credit and added tariffs on Korean imports have forced Kia, like many others, to adjust their US lineup.

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According to Kia America’s marketing boss, Russel Wager, the EV4 is only a small part of the broader tariff-related impacts the Korean automaker is facing. Wager told Car and Driver on the sidelines of the LA Auto Show that the changes will likely impact other vehicles and prices.

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2026 Kia EV4 US-spec (Source: Kia)

When asked for specifics about why the EV4 is being pushed back, Wager said, “Can you give me the answer of when the tariffs are going to be resolved in Mexico, Canada, and Seoul? If you give me that answer, I’ll be as specific as possible.”

While the EV4 is delayed indefinitely, Wager suggested bringing the EV3 to the US, Kia’s compact SUV, is still part of the plan.

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Kia EV3 (Source: Kia)

The Kia EV3 is already one of the most popular EVs in Europe and the UK’s best-selling retail electric car this year. Given the growing demand for smaller SUVs, the EV3 is expected to be an even bigger hit with US buyers than the EV4.

When it will launch in the US or how much it will cost remains up in the air until Kia gets a better idea of market conditions.

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The 2026 Kia EV9 (Source: Kia)

Kia’s EV sales plunged after the federal tax credit expired at the end of September. Sales of the EV6 and EV9 fell by 71% and 66% last month compared to October 2024.

According to Wager, the automaker won’t really know what demand looks like until February or March 2026, since the loss of the $7,500 credit likely pulled buyers forward.

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Kia EV3 Air in Frost Blue (Source: Kia UK)

Kia is still ready to launch the EV4 in the US, but that’s only if the tariff situation stabilizes. Earlier this month, the US and South Korea agreed to reduce tariffs on imports from 25% to 15%.

“At that point in time we look at it and say, are we at 25 [percent], are we at 15—and then we can build our business case,” Wager said, adding, “It was originally designed and engineered when the tariffs were zero percent.”

The electric pickup that Kia announced just a few months ago may never make it to the US. Wager pointed to Ford halting F-150 Lightning production and reports that it could be scrapped altogether.

In the meantime, Kia is heavily discounting its current electric vehicles, offering a $10,000 customer cash bonus on every model. Or, you can opt for 0% financing for 72 months plus an extra $2,500 bonus cash. Kia’s sister company, Hyundai, is also offering generous discounts with IONIQ 5 leases starting at just $189 per month.

Interested in a test drive? We can help you get started. You can use our links below to find Kia and
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