close video Powell is going to push forward rate hikes: Danielle DiMartino Booth
Quill Intelligence LLC CEO and chief strategist gives her take on what is next for the Federal Reserve on ‘Making Money.’
Federal Reserve Chairman Jerome Powell on Tuesday stressed that central bank policymakers remain committed to wrestling high inflation under control, even though the methods to do so can prove to be politically unpopular.
"Price stability is the bedrock of a healthy economy and provides the public with immeasurable benefits over time," Powell said Tuesday in remarks prepared for delivery at a conference held by Sweden's central bank. "But restoring price stability when inflation is high can require measures that are not popular in the short term as we raise interest rates to slow the economy."
The Fed's structure – in which it makes decisions free of oversight by elected officials – allows it to take "these necessary measures without considering short-term political factors," he added.
In his speech, Powell largely stuck to the topic of central bank independence and did not comment on where monetary policy may be headed in coming months. Policymakers last year voted to raise interest rates seven straight times to a range of 4.25% to 4.5%, well into restrictive territory. In speeches since then, officials have signaled that additional hikes are coming – and that they intend to hold rates at elevated levels for some time.
Federal Reserve Chairman Jerome Powell speaks during a news conference at the Federal Reserve Board building in Washington, Wednesday, July 27, 2022. (AP Photo/Manuel Balce Ceneta / AP Images)
Although Powell received broad bipartisan support last year for another four years at the helm of the Fed, he has also faced backlash from members of both political parties over the central bank's role in the inflation crisis. Democrats, including Sen. Elizabeth Warren of Massachusetts, have warned the rapid rate hikes could lead to "widespread" job losses, while Republicans have accused the Fed of gross oversight for the spike in consumer prices.
On top of that, climate activists and some lawmakers have demanded the Fed take further action on climate change in order to shift the U.S. economy away from fossil fuels. The Fed has asked six of the nation's biggest banks to participate in a scenario designed to measure their response to climate-related financial risks, but has done little else on the matter.
Powell acknowledged the Fed has "narrow, but important responsibilities" regarding managing potential risks created by climate change, he said the central bank must stick to its dual mandate: Ensuring price stability and maximum employment through interest rate policies.
The Marriner S. Eccles Federal Reserve building in Washington, D.C., US, on Wednesday, July 6, 2022. (Photographer: Al Drago/Bloomberg via Getty Images / Getty Images)
"We should 'stick to our knitting' and not wander off to pursue perceived social benefits that are not tightly linked to our statutory goals and authorities," Powell said. "Taking on new goals, however worthy, without a clear statutory mandate would undermine the case for our independence."
Lady Gaga has performed in front of an estimated 2.1 million people at a free show on Rio de Janeiro’s Copacabana Beach.
Some 500,000 tourists travelled to watch the concert, which was paid for by the city in an attempt to boost the struggling economy.
Saturday night’s two-hour show, which marked Gaga’s biggest ever, marked the first time she had played in Brazil since 2012, having cancelled an appearance at the Rock in Rio festival in 2017 over health issues.
Gaga, who released her seventh studio album, Mayhem, in March, opened with a dramatic, operatic edition of her 2011 track Bloody Mary, before launching into Abracadabra, one of her most recent hits.
Image: Pic: AP
Image: Pic: AP
“Brazil! I missed you. I missed you so much,” she exclaimed, before launching into Poker Face, one of her biggest hits.
The American pop star drew in a similar crowd to Madonna’s in May last year, who performed at the same beach, which is transformed into an enormous dance floor for the shows.
Addressing the crowd in English and through a Portuguese translator, Gaga became emotional as she said: “I’m so honoured to be here with you tonight.
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Image: Gaga addresses the crowd. Pic: Reuters
Image: Gaga seen performing on giant screens set up across the beach. Pic: Reuters
“Tonight we’re making history, but no one makes history alone. Without all of you, the incredible people of Brazil, I wouldn’t have this moment. Thank you for making history with me.
“The people of Brazil are the reason I get to shine today. But of all the things I can thank you for, the one I most am grateful for is this: that you waited for me. You waited more than 10 years for me.”
She said it took so long to come back because she was “healing” and “getting stronger”. The pop sensation cancelled many of her shows in 2017 and 2018 due to her fibromyalgia condition, which can cause pain and fatigue.
It is estimated Gaga’s show will have injected around 600 million reais (£79.9m) into the economy, nearly 30% more than Madonna’s show.
The large-scale free shows are set to continue annually until at least 2028, always taking place in May, which is considered the economy’s “low season”, according to the city’s government.
A hefty security plan was in place, including the presence of 3,300 military and 1,500 police officers, along with 400 military firefighters.
‘A dream come true’
Image: Fans gather on the beach. Pic: Reuters
Image: Pic: AP
The city has been swarmed with Gaga fans since her arrival on Tuesday, with some even keeping vigil outside of the hotel she has been staying at.
Many arrived at the beach at the crack of dawn on Saturday to secure good spots on the beach, despite the show not starting until 9.45pm.
Image: An aerial view shows fans gathering on Copacabana beach ahead of Lady Gaga’s arrival. Pic: Reuters
Ana Lara Folador, who attended with her sister, said it was “a dream come true”, and that Gaga had “really shaped a part of my personality, as a person and an artist”.
Ingrid Serrano, a 30-year-old engineer who made a cross-continent trip from Colombia to Brazil to attend the show, turned up in a T-shirt featuring Lady Gaga’s outlandish costumes over the years.
“I’ve been a 100% fan of Lady Gaga my whole life,” she said, adding the 39-year-old megastar represented “total freedom of expression – being who one wants without shame”.
Image: A fan dons an unusual face mask. Pic: AP
Image: A fan strikes a pose. Pic: AP
Matheus Silvestroni, 25, an aspiring DJ and a Gaga fan since the age of 12, endured an eight-hour bus ride from Sao Paulo for the show.
He said it was Gaga who had inspired him to embrace his sexuality and pursue his dream of becoming an artist.
“I was bullied because I was a fat, gay kid, so I was an easy target,” he said. “Gaga was very important because she sent a message that everything was okay with me, I wasn’t a freak, because I was ‘Born This Way’.”
Rio is known for holding massive open-air concerts, with Rod Stewart holding a Guinness World Record for the four million-strong crowd he drew to Copacabana Beach in 1994.
The Conservatives are calling for Lucy Powell to resign after the Labour MP’s exchange with a commentator about grooming gangs.
The comment was made by Ms Powell, the leader of the House of Commons, after Conservative political commentator Tim Montgomerie started to ask a question on BBC Radio 4’s Any Questions.
“I don’t know if you saw the documentary on Channel 4 about rape gangs,” he started, in relation to the recent programme Groomed: A National Scandal, which centred around five girls who were sexually abused by rape gangs.
Ms Powell, who is MP for Manchester Central, responded: “Oh, we want to blow that little trumpet now, do we? Yeah, OK, let’s get that dog whistle out.”
Sir Keir Starmer and the government have been under sustained pressure from political opponents over the handling of historical sex abuse cases in the UK.
ConservativeHome founder Mr Montgomerie, who will be appearing on Sunday Morning With Trevor Phillips, continued: “There is a real issue where… There were so many people in local government, in the authorities, who, for good reason, were worried about upsetting community tensions, that those girls went undefended.”
The conversation moved on, but politicians criticised Ms Powell’s comment, with some calling for her to resign.
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Shadow home secretary Chris Philp said in a statement: “This shocking outburst from a Labour cabinet minister belittles the thousands of girls and women who were raped by grooming gangs over decades.
“We have consistently called for a national enquiry in parliament, which has been blocked by Labour ministers who don’t seem to know or care about the disgusting crimes which have been perpetrated.
“Anyone who has seen the shocking Channel 4 documentary will know that it is clearer than ever that this is not a ‘dog whistle’.
“To dismiss thousands of victims who were raped and the cover up that followed is sickening. She should resign.”
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Shadow justice secretary Robert Jenrick said: “Labour’s Lucy Powell thinks it’s a ‘dog whistle’ to demand arrests and accountability for the rape gangs. What a disgusting betrayal of the victims. They are part of the cover-up.”
Ousted Reform MP Rupert Lowe, now an independent, shared a letter he wrote to Ms Powell demanding she apologise, calling her comments “deeply, deeply offensive”.
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On X on Saturday night, Ms Powell said: “In the heat of a discussion on AQ, I would like to clarify that I regard issues of child exploitation and grooming with the utmost seriousness. I’m sorry if this was unclear.
“I was challenging the political point scoring around it, not the issue itself. As a constituency MP I’ve dealt with horrendous cases. This Gvt is acting to get to the truth, and deliver justice.”
Tech billionaire Elon Musk had accused Sir Keir of being “complicit” in the failure of authorities to protect victims and prosecute abusers while the PM was director of public prosecutions from 2008-2013.
The prime minister has repeatedly defended his record, saying it shows he tackled the issue head-on.
The Israeli Air Force is regarded as one of the country’s most elite units.
So, when hundreds of current and former pilots call for an end to the war in Gaza to get the hostages out, Israelis take notice.
This month, 1,200 pilots caused a storm by signing an open letter arguing the war served mainly “political and personal interests and not security ones”.
But Guy Paron, a former pilot and one of those behind the letter, said the Israeli government had failed to move to phase two of the ceasefire deal with Hamas, brokered under US President Donald Trump.
That deal called for a full withdrawal of Israeli forces from Gaza and the release of all the remaining hostages. Mr Netanyahu continues to argue that the war must continue to put pressure on Hamas.
Mr Paron said the (Israeli) government “gave up or violated a signed agreement with Hamas” and “threw it to the trash”.
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“You have to finish the deal, release the hostages, even if it means stopping that war,” he argued.
It’s not the first time Israeli pilots have taken up a cause. Many of them also campaigned against Mr Netanyahu’s 2023 judicial reforms.
“In this country, 1,000 Israeli Air Force pilots carry a lot of weight,” Mr Paron added.
“The Air Force historically has been the major force and game-changer in all of Israel’s wars, including this current one. The strength of the Air Force is the public’s guarantee of security.”
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UN runs out of food aid in Gaza
Anti-government campaign spreads
Now, the open letter campaign has spread to other parts of the military.
More than 15,000 people have signed, including paratroopers, armoured corps, navy, special units, cyber and medics. The list goes on.
Dr Ofer Havakuk has served 200 days during this war as a combat doctor, mostly in Gaza, and believes the government is continuing the war to stay in power.
He has also signed an open letter supporting the pilots and accused the prime minister of putting politics first.
Image: Israeli Prime Minister Benjamin Netanyahu described the authors of the original letter as ‘bad apples’. Pic: AP
He said Mr Netanyahu “wants to keep his coalition working and to keep the coalition together. For him, this is the main purpose of the war”.
A ceasefire could lead to the collapse of the prime minister’s fragile far-right coalition, which is opposed to ending the war.
Threat of dismissal
The Israeli military has threatened to dismiss those who have signed protest letters.
We met a former pilot who is still an active reservist. He didn’t want to be identified and is worried he could lose his job.
“This is a price that I’m willing to pay, although it is very big for me because I’m volunteering and, as a volunteer, I want to stay on duty for as long as I can,” he told us.
The controversy over the war and the hostages is gaining momentum inside Israel’s military.
It is also exposing deep divisions in society at a time when there is no clear sign about how the government plans to end the war in Gaza, or when.
The renewed war in Gaza over the last year and a half followed deadly Hamas attacks on Israel on 7 October 2023, which killed 1,200 people, mostly civilians, and saw around 250 taken hostage.
More than 51,000 people have been killed in Gaza during the Israeli military’s response, many of them civilians, according to the enclave’s Hamas-run Ministry of Health.