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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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Stanley Cup playoffs daily: Who wins Game 6 of Stars-Jets?

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May 17, 2025

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Stanley Cup playoffs daily: Who wins Game 6 of Stars-Jets?

The Dallas Stars were in position to win their series against the Winnipeg Jets in Game 5 on Thursday; instead, the Jets blanked them 4-0, extending their postseason by at least one more game.

That game is Saturday in Dallas (8 p.m. ET, ABC/ESPN+). Will the Stars punch their ticket to the Western Conference finals — and a rematch against the Edmonton Oilers? Or will the Jets force a Game 7 back on home ice Monday?

Read on for a game preview with statistical insights from ESPN Research, a recap of what went down in Friday’s game and the three stars of Friday from Arda Öcal.

Matchup notes

Dallas Stars at Winnipeg Jets
Game 6 | 8 p.m. ET | ABC/ESPN+

With a 3-2 lead in the series, the Stars are -380 to win, per ESPN BET; the Jets are +290 to take the series. Dallas is +325 to win the Stanley Cup, while Winnipeg is +2200.

Including the series that have been completed this year, teams that have led 3-1 in a playoff series are 23-1 since 2023 (the only loser was the Bruins against the Panthers in the 2023 first round).

Can Connor Hellebuyck buck his nightmarish road/home split this postseason? He has gone 6-1 at home in the playoffs, with a 1.73 goals-against average and .916 save percentage; he’s 0-5 on the road, with a 5.84 GAA and .793 SV%.

Kyle Connor has been a reliable source of scoring for Winnipeg, with 16 points in 12 games. His 1.33 points-per-game rate is the third highest in a single postseason by an American-born player (minimum 10 games played), behind Jake Guentzel in 2018 (1.75) and Brian Leetch in 1995 (1.40).

Mikko Rantanen leads the goal- and point-scoring races this postseason, with nine goals and 19 points. His newly formed line with Mikael Granlund and Roope Hintz has outscored opponents 7-2 in 108:34 of ice time together.

Stars goalie Jake Oettinger has gone 17-6 with a 2.03 GAA and .924 SV% (with one shutout) in 23 career postseason games following a loss.

Öcal’s three stars from Friday

No. 34 scored the first goal of the game in the third period, which counts as the game winner. It was his first goal against the Panthers — and first against any team beyond the first round — in his postseason career.

2. Maple Leafs shot blockers

The Leafs blocked 31 shots in this game, including some key moments late in the third period, preserving a shutout for Joseph Woll and forcing a Game 7. This was Woll’s first career postseason shutout, and he got lots of help from his friends.

Pacioretty was responsible for the insurance goal in the third period, his third of the postseason as the veteran continues his quest for his first Stanley Cup.

Friday’s recap

Toronto Maple Leafs 2, Florida Panthers 0
Series tied 3-3 | Game 7 Sunday

With a trip to the Eastern Conference finals at stake for the Panthers — and a continuation of the playoff run on the line for the Leafs — the two teams remained scoreless through two periods, with memorable saves by both goaltenders. At 6:20 of the third period, Toronto captain Auston Matthews scored his first goal of the series, and that would prove to be all the team needed for the W; Max Pacioretty‘s goal at 14:17 added some reassurance. After a Game 5 he’d like to forget, Joseph Woll stopped all 22 shots he faced. The two teams head back to Toronto for Game 7 Sunday. Full recap.

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Max Pacioretty backhands a clutch goal for Leafs

Max Pacioretty scores Toronto’s second goal of the third period to give them a 2-0 lead in a must-win Game 6 vs. Florida.

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U.S. beats Germany 6-3 at ice hockey worlds

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May 17, 2025

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U.S. beats Germany 6-3 at ice hockey worlds

  • Associated Press

May 17, 2025, 10:27 AM ET

HERNING, Denmark — The United States blew a three-goal first-period lead before beating Germany 6-3 at the ice hockey world championship on Saturday.

Conor Garland‘s power-play goal 4:50 into the third period proved to be the winner as the Americans moved level on points (11) with the Czech Republic, trailing Group B leader Switzerland by two points.

Tage Thompson struck 1:42 into the game on a power play for his fourth goal of the tournament. Frank Nazar doubled the advantage before Drew O’Connor made it 3-0 on a rebound with 5:43 left in the first.

But the U.S. is making a habit of squandering leads. The Americans lost a four-goal advantage before prevailing 6-5 over Norway in overtime Wednesday.

Germany scored three times in the second. Defenseman Erik Mic’s goal 8:43 into the period sparked the rally. Jonas Muller scored from the slot with 5:17 remaining and Wojciech Stachowiak tied it at 3-3 less than a minute later on a power play.

After Garland’s go-ahead goal, Logan Cooley made it 5-3 with 3:29 to go and Clayton Keller scored into an empty net with 1:53 left. Garland had three assists.

Germany has nine points.

In Stockholm, Finland defeated Latvia 2-1 to stay third in Group A with 11 points. Latvia has six points in fifth.

Later Saturday, Canada plays Slovakia and Sweden meets France in Stockholm, while the Czech Republic faces Kazakhstan in Herning, where Denmark takes on Norway.

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James Comey: Trump says ex-FBI director’s seashells post ‘meant assassination’

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May 17, 2025

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James Comey: Trump says ex-FBI director's seashells post 'meant assassination'

A former FBI director has been interviewed by the US Secret Service over a social media post that Republicans say was a call for violence against President Donald Trump.

James Comey, who led the FBI from 2013 until he was fired in 2017 by Mr Trump during his first term in office, shared a photo of seashells appearing to form the numbers “86 47”.

James Comey, then the FBI Director, in July 2016. File pic: AP/J. Scott Applewhite
Image:
James Comey later removed the Instagram post. File pic: AP

He captioned the Instagram post: “Cool shell formation on my beach walk.”

Some have interpreted the post as a threat, alleging that 86 47 means to violently remove Mr Trump from office, including by assassination.

What does ’86 47′ mean?

The number 86 can be used as a verb in the US. It commonly means “to throw somebody out of a bar for being drunk or disorderly”.

One recent meaning of the term is “to kill”, according to the Merriam-Webster Dictionary, which said it had not adopted this meaning of 86 “due to its relative recency and sparseness of use”.

The number has previously been used in a political context by Matt Gaetz, who was President Donald Trump’s pick for attorney general but withdrew from consideration following a series of sexual misconduct allegations.

Mr Gaetz wrote: “We’ve now 86’d…” and listed political opponents he had sparred with who ended up stepping down.

Meanwhile, 47 is supposedly representing Mr Trump, who is the 47th US president.

Mr Comey later removed the post, saying he thought the numbers “were a political message” and that he was not aware that the numeric arrangement could be associated with violence.

“I didn’t realise some folks associate those numbers with violence. It never occurred to me, but I oppose violence of any kind, so I took the post down,” Mr Comey said.

Mr Trump rejected the former FBI director’s explanation, telling Fox News: “He knew exactly what that meant. A child knows what that meant… that meant assassination.”

Donald Trump Jr accused Mr Comey of “casually calling for my dad to be murdered”.

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US Homeland Security Secretary Kristi Noem confirmed in a post on X that Mr Comey had been interviewed as part of “an ongoing investigation” but gave no indication of whether he might face further action.

The Secret Service is part of the Department of Homeland Security.

White House deputy chief of staff Taylor Budowich said Mr Comey had put out “what can clearly be interpreted as a hit on the sitting president of the United States”.

“This is deeply concerning to all of us and is being taken seriously,” Mr Budowich wrote on X.

Another White House official James Blair said the post was a “Clarion Call (…) to terrorists & hostile regimes to kill the President of the United States as he travels in the Middle East”.

Read more US news:
Smokey Robinson under criminal investigation
Cassie challenged over Diddy ‘freak off’ allegations

Mr Trump fired Mr Comey in May 2017 for botching an investigation into 2016 democratic presidential nominee Hillary Clinton, the White House said at the time.

While Mr Comey was the director of the FBI, the agency opened an investigation into possible collusion between the Trump 2016 presidential campaign and Russia to help get Mr Trump elected.

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