Connect with us

Published

on

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.

With Post Wires

Continue Reading

World

Orebro attack: Victim of Sweden shooting rang fiancee one last time to tell her he loved her

Published

on

By

Orebro attack: Victim of Sweden shooting rang fiancee one last time to tell her he loved her

One of the victims of the attack on an adult education centre in Sweden rang his fiancee one last time after being shot to tell her he loved her.

Salim Iskef, 29, is thought to be one of the 10 people killed in Orebro on Tuesday.

Local media has named Rickard Andersson as the perpetrator behind the attack, which the Swedish prime minister described as the worst mass shooting in the country’s history.

After being shot, Mr Iskef, a newly engaged nursing assistant, managed to call his fiancee one final time.

“He said he loved me so much”, Kareen Elia, his fiancee, told Sky News’ Swedish partner TV4.

“You have no words. I can’t describe the feelings. We were supposed to get married on July 25,” she said.

She added that, after he called her lying on the floor, she could not understand what she was seeing on FaceTime and was in shock.

Then he said: “Take care of my mother, yourself,” Ms Elia told the Swedish outlet. She added: “He said he had been shot. That they had shot us. I asked where. He hung up. I called again and again but he didn’t answer.”

Ms Elia was critical of the police’s handling of the situation, saying officers could have saved him if they had acted faster.

She also said she was still waiting for confirmation of her fiancee’s death. “We haven’t seen him yet,” she added.

‘We heard him walking around’

It comes as one of the survivors told Sky News correspondent Ashna Hurynag how, as she hid fearing for her life, she heard the footsteps of Andersson close by.

Meracil Kallkvist said: “I was really shaking. It was scary. I was thinking, I was going to panic.

“I wanted to run to save my life because I was thinking I don’t want to get… [hurt] here sitting down and hiding.”

Please use Chrome browser for a more accessible video player

Sweden shooting survivor recounts ordeal

She recounted how she panicked as the first shots rang out, fearing something might have exploded, while some of the other students went to investigate the noises.

Ms Kallkvist said: “They wanted to know, then after like two seconds because [of the] other shots, one person ran back, someone was shooting, so I ran.”

While looking for somewhere to hide, she described how she met her teacher and, unable to lock the door of the room they were in, they pushed tables and chairs against it to try to block it.

It was then they heard Andersson walking around.

Read more from Sky News:
Germany’s race to be ready for war
Hottest January on record shocks scientists
British woman, 24, dies in Sri Lanka

Ms Kallkvist added: “After, we heard him walking around. Yes… it was really scary, if he’d just turned to the room where we were hiding…

“He [was] just walking around and talking and after we heard banging on the doors, I think it was the other room, then suddenly shots again.”

Police previously said they were yet to establish a motive and that the gunman was believed to have shot himself dead.

Continue Reading

World

Sri Lanka: British woman Ebony McIntosh, 24, dies after hostel fumigated for bed bugs, police say

Published

on

By

Sri Lanka: British woman Ebony McIntosh, 24, dies after hostel fumigated for bed bugs, police say

A British woman has died on holiday in Sri Lanka after a room in her hostel was fumigated for bed bugs, local police said.

Ebony McIntosh, 24, from Derby, was taken to hospital in the capital Colombo on Saturday after becoming ill.

She had reportedly suffered vomiting, nausea and breathing difficulties – but died there hours later.

Another woman Nadie Raguse, 26, from Germany, who was also staying at the Miracle Colombo City Hostel died, Sri Lanka police said.

The force’s spokesperson Buddhika Manatunga said a room in the hostel had been fumigated for bed bugs before the women fell ill – and that they are investigating the possibility of poisoning by noxious pesticides.

The hostel is closed until further notice.

The digital marketing and social media manager’s family has set up a GoFundMe page to help with the cost of returning her body to the UK.

‘Absolutely heartbroken’

A statement on the page read: “We are absolutely heartbroken to share that our beautiful baby girl and big sister Ebony has passed away unexpectedly on Saturday 1st February 2025, thousands of miles away from home.

“Words cannot begin to express how broken we are, it’s been like a nightmare since we found out on Sunday morning, we have prayed and prayed that this can’t be true. It couldn’t possibly happen to our lovely Ebs.”

The statement added: “We cannot even begin to imagine how scared she must have felt at the time and it hurts us so badly to think of the pain she was in. We need to be with her and bring her home safely.

“She passed away with someone from the hostel beside her. We are endlessly grateful to this man for staying with her during her last moments.”

The family said Ms McIntosh had started her holiday on 28 January when she flew from Heathrow to “follow her dreams of travelling all over South Asia, starting in Sri Lanka”.

They said she was “full of excitement for her adventures ahead, in typical Ebony style she had spent months researching and planning and drawing up schedules for the coming months”.

“Her trip was cruelly cut short on Saturday 1st February, when she [was taken] very ill in the hostel she was staying in.”

Read more from Sky News:
Decision to demolish Grenfell criticised
Steve Coogan avoids driving ban
Emaciated dog and tarantulas abandoned

A cause of death has not been established – and a post-mortem examination cannot take place until the family arrives on 10 February, the police said.

A Foreign, Commonwealth & Development Office (FCDO) spokesperson confirmed: “We are supporting the family of a British woman who died in Sri Lanka, and are in contact with the local authorities.”

Continue Reading

World

‘Dangerous climate breakdown’ warning as hottest January on record shocks scientists

Published

on

By

'Dangerous climate breakdown' warning as hottest January on record shocks scientists

Last month was the warmest January on record, according to new data.

The finding has baffled scientists, who had expected changes in ocean currents in the Pacific to take the edge off rising global temperatures.

Figures released by the European Copernicus climate service show average temperatures around the world in January were 1.75C warmer than before greenhouse gas emissions started to rise significantly in the industrial revolution around 150 years ago.

That’s 0.1C above the record set last January. And it comes after a year in which temperatures topped 1.5C, the target for climate negotiations, for the first time.

Please use Chrome browser for a more accessible video player

2024 was the warmest year on record

Dr Friederike Otto, a climate scientist at Imperial College London, warned that the rising pace of climate change would increase the risk of extreme weather and its consequences.

“This January is the hottest on record because countries are still burning huge amounts of oil, gas and coal,” she said.

“The Los Angeles wildfires were a stark reminder that we have already reached an incredibly dangerous level of warming. We’ll see many more unprecedented extreme weather events in 2025.”

Read more:
Role climate change did – and did not – play in California wildfires

Please use Chrome browser for a more accessible video player

Is new COP deal a good one?

January had been expected to be slightly cooler than last year because of a natural shift in weather patterns and ocean currents in the Pacific, called La Nina.

But that hasn’t been enough to slow the upward trend in temperatures.

‘Frankly terrifying’

Bill McGuire, emeritus professor of geophysical & climate hazards at UCL, said: “The fact that the latest robust Copernicus data reveals the January just gone was the hottest on record – despite an emerging La Nina, which typically has a cooling effect – is both astonishing and, frankly terrifying.

“Having crashed through the 1.5C limit in 2024, the climate is showing no signs of wanting to dip under it again, reflected by the fact that this is the 18th of the last 19 months to see the global temperature rise since pre-industrial times top 1.5C.

“On the basis of the Valencia floods and apocalyptic LA wildfires, I don’t think there can be any doubt that dangerous, all-pervasive, climate breakdown has arrived.”

Read more from Sky News:
Lab-grown meat for dogs goes on sale
‘Self-healing roads’ could help fix pothole problem

The consequences of a warming atmosphere are also being directly felt in the UK, with more intense rainfall increasing the risk of surface flooding.

The Environment Agency released figures in December showing 4.6 million properties in England are at risk from flooding as drainage systems are overwhelmed by rainfall. That’s a 43% increase on previous estimates.

But adapting to a climate change is hugely expensive.

The government on Wednesday announced it would spend £2.65bn over two years to shore up existing flood defences and protect an extra 52,000 homes and businesses – a tiny fraction of the number at risk.

Continue Reading

Trending