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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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Ghislaine Maxwell could use ‘government misconduct’ to challenge imprisonment

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Ghislaine Maxwell could use 'government misconduct' to challenge imprisonment

Disgraced British socialite Ghislaine Maxwell could use “government misconduct” to challenge her imprisonment, her family has claimed.

The 63-year-old, who was jailed in 2022 for luring young girls to massage rooms for Jeffrey Epstein to abuse, is currently serving a 20-year prison sentence.

Maxwell’s family have frequently claimed she “did not receive a fair trial”, but legal appeals against her sex trafficking convictions have been rejected by the courts.

The latest challenge from the Maxwell family comes as President Donald Trump faces questions over whether or not he will order the release of the so-called Epstein “client list”, following a backlash from Republican loyalists who have called for any list to be made public.

Ghislaine Maxwell. Pic: US Department of Justice
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Ghislaine Maxwell. Pic: US Department of Justice

Judges previously dismissed arguments from Maxwell’s lawyers that she “should never have been prosecuted” because of a “weird” agreement drafted more than 15 years ago.

The family argue that Maxwell should have been protected under an agreement Epstein had entered with the US Department of Justice in 2007, which agreed not to prosecute any of his co-conspirators.

During her trial in 2021, Maxwell was described as “dangerous” by prosecutors, who told jurors about how she would entice vulnerable girls to go to Epstein’s properties for him to sexually abuse.

In a statement, her family said: “Our sister Ghislaine did not receive a fair trial.

“Her legal team continues to fight her case in the courts and will file its reply in short order to the government’s opposition in the US Supreme Court.”

Read more:
UK ambassador ‘regrets’ association with Epstein

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Is Trump in a corner over Epstein?

David Oscar Markus, one of her lawyers, said in the statement released by her family: “I’d be surprised if President Trump knew his lawyers were asking the Supreme Court to let the government break a deal.

“He’s the ultimate dealmaker and I’m sure he’d agree that when the United States gives its word, it should keep it.

“With all the talk about who’s being prosecuted and who isn’t, it’s especially unfair that Ghislaine Maxwell remains in prison based on a promise the US government made and broke.’

“These are sentiments with which we profoundly concur.”

Epstein, 66, was found dead in his cell at a Manhattan federal jail in August 2019 as he awaited trial on sex trafficking charges. His death was ruled a suicide.

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Schwarber lifts NL in 1st ASG home run swing-off

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Schwarber lifts NL in 1st ASG home run swing-off

ATLANTA — The 2025 MLB All-Star Game featured the two best pitchers in the world on the mound to start for their respective leagues and the two best position players in the opposing lineups. It included the first automatic ball-strike system challenges in All-Star Game history, a rousing six-run comeback, a memorable appearance for a future first-ballot Hall of Famer and a beautiful tribute to the late Hank Aaron just miles from where he surpassed Babe Ruth on the career home run list.

But the exhibition, a remarkable show played at Truist Park on a muggy Tuesday night, will be remembered for how it ended.

When it was over, nearly four hours after the first pitch, the National League outlasted the American League behind Philadelphia Phillies slugger Kyle Schwarber in an unprecedented Home Run Derby-style swing-off, with a 4-3 homer edge after the score was tied at 6-6 through nine innings.

Schwarber pulverized three home runs on three swings in the swing-off after going 0-for-2 with a walk during the nine innings, becoming the first position player to win All-Star Game MVP without recording a hit in the game.

The American League leads the National League in the All-Star Game, with a record of 48 wins, 44 losses and 2 ties.

Officially, the result, just the Senior Circuit’s second victory in the past 12 matchups, didn’t have a winning or losing pitcher of record. Unofficially, it was one of the most enthralling endings to any marquee baseball game, exhibition or not.

“It’s like wiffle ball in the backyard,” AL manager Aaron Boone said.

The tiebreaker, a baseball version of a hockey shootout, was established in 2022. On Monday, both managers — Boone and the NL’s Dave Roberts — were required to submit their list of participants and alternates to MLB should the game need the swing-off after nine innings. Knowing starters usually shower and leave the ballpark well before the end of the game, the managers opted for reserves.

The exercise again appeared to be unnecessary once the NL took a 6-0 lead — fueled by New York Mets first baseman Pete Alonso‘s three-run homer — into the seventh inning. But the AL scored four runs in the seventh and tied the game when down to its last out in the ninth to send the 95th All-Star Game to the swing-off.

“Dave asked yesterday, ‘If there’s a tie, would you do it?'” said Schwarber, the only member of the Phillies who participated in this year’s All-Star festivities. “I said, ‘Absolutely,’ not thinking that we were going to end up in a tie when you say yes. And then as the game’s going, you’re looking at the score, you’re not really thinking the game’s going to end in a tie.”

But even that process prompted brief confusion. Roberts originally selected Schwarber, Arizona Diamondbacks third baseman Eugenio Suarez and Alonso, a two-time Home Run Derby champion. But Suarez, who was hit on his left hand by a pitch in the eighth inning, was scratched after being announced and replaced by Miami Marlins outfielder Kyle Stowers.

Boone countered with Athletics designated hitter Brent Rooker, Seattle Mariners outfielder Randy Arozarena and Tampa Bay Rays first baseman Jonathan Aranda.

Los Angeles Dodgers third-base coach Dino Ebel threw for the NL. New York Yankees first-base coach Travis Chapman assumed the pressure-packed duty for the AL.

Finally, the rules: Each player was granted three swings and an unlimited number of pitches to take them.

Rooker, the only participant to also take part in Monday’s Home Run Derby, led off with two homers. Stowers followed with one. Arozarena then extended the AL’s lead to 3-1, setting the stage for Schwarber.

Schwarber, a man seemingly built to smash baseballs over the wall, has never won a Home Run Derby. He lost in the finals in 2018 and failed to advance out of the first round in 2022; he hasn’t entered another one since. On Tuesday, however, he did not falter.

The three-time All-Star, after building some drama with a delayed emergence from the NL dugout, crushed three home runs, drawing louder and louder reactions with each one. The first was a 428-foot laser that traveled 107 mph to straightaway center. Next, he cracked a 461-foot, 109 mph moon shot to right field. He finished the spree with a 382-foot dinger, dropping down to one knee as the ball soared into the right-field seats and eliciting a rambunctious reaction from his temporary teammates.

“I think the first swing was kind of the big one,” Schwarber said. “I was just really trying to hit a line drive versus trying to hit the home run. Usually, that tends to work out, especially in games.”

The pressure shifted to Aranda. Needing one homer to tie, Aranda lifted a fly ball to the warning track before clanking a ball off the top of the brick wall in right field. His last swing produced a weak fly ball to left field, giving the NL the win at eight minutes to midnight.

“First time in history we got to do this,” Roberts said, “and I think it played pretty well tonight.”

By then, the early talk of the night was old news.

This year’s exhibition was the first game at the major league level outside of spring training to feature the automated ball-strike system, an expected precursor to MLB implementing the arrangement for all games beginning next season.

The rules on Tuesday were the same as the ABS challenge rules introduced during spring training. Each team received two challenges for the game. Only the pitcher, catcher or batter could request a challenge, and the request needed to be immediate without help from the dugout or other players on the field.

Five pitches were challenged Tuesday. The first was an 0-2 changeup that AL starter Tarik Skubal threw to San Diego Padres third baseman Manny Machado that plate umpire Dan Iassogna called a ball in the first inning. Skubal and his catcher, Cal Raleigh of the Mariners, didn’t agree and challenged the pitch to make history. The call was overturned, ending Machado’s at-bat with a strikeout.

“I wasn’t even going to use them,” Skubal said. “But I felt like that was a strike, and you want that in an 0-2 count.”

Skubal became the first Detroit Tigers pitcher to start an All-Star Game since Max Scherzer in 2013. Opposite him was the other Cy Young favorite.

A year after starting the All-Star Game for the NL with 11 career outings on his résumé, Pittsburgh Pirates sensation Paul Skenes received the nod again to become the 10th pitcher to start consecutive All-Star Games and the first to accomplish the feat in his first two seasons. Last year, in Texas, Skenes walked one batter in his scoreless inning, a blip that he said “pissed me off” and pushed him to attack hitters for his All-Star Game encore.

“I was throwing every pitch as hard as I could,” Skenes said, “hoping that it landed in the strike zone.”

The result: two strikeouts on 100 mph fastballs to Tigers teammates Gleyber Torres and Riley Greene to open the contest. Skenes admittedly reached back seeking to strike out the side, but Yankees slugger Aaron Judge grounded out on another 100 mph pitch to conclude Skenes’ night.

“That’s what the All-Star Game’s for,” Skenes said. “Every hitter’s trying to hit a home run. We’re trying to strike everybody out.”

In a fitting transition, 11-time All-Star Clayton Kershaw relieved Skenes, 14 years his junior, in the second inning.

Raleigh, Tuesday’s Home Run Derby champion, welcomed the Dodgers’ Kershaw with a 101.9 mph line drive that Chicago Cubs left-fielder Kyle Tucker snagged with a sliding catch. Kershaw then struck out the Toronto Blue JaysVladimir Guerrero Jr. looking at an 87 mph slider on his sixth pitch, prompting Roberts to emerge from the NL dugout to take the ball from Kershaw and end what could have been the final All-Star Game appearance of his Hall of Fame career.

A legend selection for the game by commissioner Rob Manfred, Kershaw delivered a pregame speech in the NL clubhouse.

“We have the best All-Star Game of any sport,” said Kershaw, who on July 2 became the 20th pitcher to record 3,000 career strikeouts. “We do have the best product. So to be here, to realize your responsibility in the sport, is important. And we have Shohei [Ohtani] here. We have Aaron Judge here. We have all these guys that represent the game really, really well, so we get to showcase that and be part of that is important. I just said I was super honored to be a part of it.”

In the end, Kershaw was part of something never seen before.

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MLB re-creates Aaron’s record 715th HR at ASG

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MLB re-creates Aaron's record 715th HR at ASG

ATLANTA — Major League Baseball honored late Hall of Famer Hank Aaron by re-creating his record-breaking 715th home run through the use of projection mapping and pyrotechnics during Tuesday night’s All-Star Game.

After the sixth inning, the lights went down at Truist Park and fans stood holding their cellphone lights. The scene from April 8, 1974, at the old Atlanta-Fulton County Stadium was projected on the infield and shown on the video board.

The high-tech images of Aaron and other players were seen before a blaze of a fireball launched from home plate to signify the homer that pushed Aaron past Babe Ruth’s then-record of 714 homers.

Aaron’s widow, Billye Aaron, stood and waved as the cheers from the sellout crowd of 41,702 grew louder.

National League players warmed up for the game in batting practice jerseys with Aaron’s No. 44 on the back

One year ago, MLB celebrated the 50th anniversary of Aaron’s homer with announcements for a new statue at Baseball’s Hall of Fame and a commemorative stamp from the U.S. Postal Service.

Commissioner Rob Manfred also helped honor Aaron in Atlanta last year by joining the Braves in announcing the $100,000 endowment of a scholarship at Tuskegee University, a historically Black university in Aaron’s home state of Alabama.

Manfred noted the Henry Louis Aaron Fund, launched by the Braves following Aaron’s death in 2021, and the Chasing the Dream Foundation, created by Aaron and his wife, were designed to clear paths for minorities in baseball and to encourage educational opportunities.

Aaron hit 755 home runs from 1954 to 1976, a mark that stood until Barry Bonds reached 762 in 2007 during baseball’s steroid era.

Aaron was elected to the Hall in 1982. A 25-time All-Star, he set a record with 2,297 RBIs. He continues to hold the records of 1,477 extra-base hits and 6,856 total bases.

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