International
US interest rates could go higher than expected
The head of the US central bank has warned that officials could raise interest rates farther and faster than previously expected in order to stabilise prices.
US stocks fell and the dollar rose following the remarks, which comes just a few weeks before the bank is due to make another rates announcement.
Many analysts had been expecting another 0.25 percentage point increase.
But the comments suggest the bank could move more aggressively.
Over the last year, the Fed has raised its benchmark rate to more than 4.5% – the highest rate since 2007 – responding to prices rising at the fastest pace in decades.
Inflation – the rate at which prices rise – in the US stood at 6.4% in January.
While that is lower than it was, it remains far higher than the 2% rate considered healthy, andMr Powell said officials have been worried by recent data suggesting that progress could be stalling.
He said that could push the bank to lift rates above the 5% to 5.5% officials had forecast in December.
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Raising borrowing costs is one mechanism to slow price increases in the wider economy.
“The latest economic data have come in stronger than expected, which suggests that the ultimate level of interest rates is likely to be higher than previously anticipated,” Mr Powell said in Congress during the first of two days of testimony on the economy.
“If the totality of the data were to indicate that faster tightening is warranted, we would be prepared to increase the pace of rate hikes,” he added.
The comments generated some pushback from lawmakers, especially those on the left.
They said the moves would do little to address causes of the inflation problem – such as the war in Ukraine and supply chain issues – while leading to an economic slowdown that will throw millions of people out of work.
“You are gambling with peoples’ lives,” said Senator Elizabeth Warren, a Democrat from Massachusetts, who also blamed the inflation problem on price-gouging by companies.
Mr Powell said the economy would be in worse shape if the bank did not act.
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“The latest economic data have come in stronger than expected, which suggests that the ultimate level of interest rates is likely to be higher than previously anticipated,” Mr Powell said in Congress during the first of two days of testimony on the economy.
“If the totality of the data were to indicate that faster tightening is warranted, we would be prepared to increase the pace of rate hikes,” he added.
The comments generated some pushback from lawmakers, especially those on the left.
They said the moves would do little to address causes of the inflation problem – such as the war in Ukraine and supply chain issues – while leading to an economic slowdown that will throw millions of people out of work.
“You are gambling with peoples’ lives,” said Senator Elizabeth Warren, a Democrat from Massachusetts, who also blamed the inflation problem on price-gouging by companies.
Mr Powell said the economy would be in worse shape if the bank did not act.
BBC News
International
American man arrested for beating tourist to death at Ireland hotel
American man arrested for beating tourist to death at Ireland hotel
A 30 year old American man whose name was not given by security officials, has been arrested for beating up a 60 year old tourist to death at the Ballyfin Demesne hotel in Laois, Ireland.
The Irish police force commonly known as ‘Garda Síochána’ announced that the incident occurred in the late hours of Tuesday, November 12.
Ballyfin Demesne hotel, is a popular luxury five-star hotel located in Laois, Ireland and special guests such as Kanye West, Kim Kardashian, George Clooney e.t.c had made use of the hotel in times past.
The victim was discovered unconscious in the late hours of Tuesday, November 12 and was then rushed to the hospital were he died due to severe beating inflicted on him by the culprit.
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Independent local councilor James Kelly stated that nearby communities were ‘stunned’ upon learning about the incident at the renowned hotel.
He said, “There would be a lot of staff from the area and they’re totally shocked by what has happened here.
“It’s something we didn’t think we’d be waking up to this morning.”
The police also noted that a senior officer has been assigned to lead the investigation and an incident room has been set up at Portlaoise Garda Station, Ireland.
Furthermore, a family liaison officer will be designated to assist the family of the deceased.
International
FBI raids home of crypto platform Polymarket CEO, after accurate prediction of Trump win
FBI raids home of crypto platform Polymarket CEO, after accurate prediction of Trump win
The Federal Bureau of Investigation on Wednesday carried out a raid at the home of Shayne Coplan, CEO of cryptocurrency prediction outlet Polymarket.
Authorities seized Mr Coplan’s phone during the raid, according to New York Post which first reported the incident.
Mr Coplan, 26, has been running the famous platform for bets throughout the 2024 presidential election in the United States.
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It wasn’t immediately clear why the search was conducted, but Polymarket promptly said it might be due to its activities during the election. Users on the platform had correctly predicted Donald Trump was going to defeat Kamala Harris. The company paid out a substantial amount to winners following the election.
“This is obvious political retribution by the outgoing administration against Polymarket for providing a market that correctly called the 2024 presidential election,” a spokesperson for Polymarket said in a statement from its headquarters in New York. “Polymarket is a fully transparent prediction market that helps everyday people better understand the events that matter most to them, including elections.”
It was unclear whether or not the FBI would be filing charges after the raid.
FBI raids home of crypto platform Polymarket CEO, after accurate prediction of Trump win
International
Two dead, buildings destroyed in American factory explosion
Two dead, buildings destroyed in American factory explosion
Two employees of Givaudan sense colour, a factory known for making colourings for beverages, located in Louisville, Kentucky, United States (US) were killed in an explosion that took place at the company’s facility.
The factory reported that the incident which took place on Tuesday, November 12 in the afternoon have also destroyed buildings around the company.
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Louisville Mayor, Craig Greenberg stated that firefighters managed to rescue and evacuate numerous individuals from the site, including some who sustained life-threatening injuries.
He also confirmed that all employees present at the plant during the explosion have been accounted for.
Earlier reports indicated that at least 11 workers were hospitalized.
The cause of the explosion is still under investigation.
Two dead, buildings destroyed in American factory explosion
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