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.
READ ALSO:
- Iran announces arrests over schoolgirl poisonings
- Businesses reject old notes, await CBN, FG’s confirmation
- Serving Minister cannot be listed in private legal team – Keyamo explains exclusion from Tinubu’s
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.
READ ALSO:
- Court summons Wike, PDP, INEC over Rivers gov poll
- Police ban voters from taking dogs to polling units
- LP rules out alliance with any party for gov poll
- INEC delists Doguwa from Reps election winners
“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
BREAKING : Israel launches deadly attacks on Iran
BREAKING : Israel launches deadly attacks on Iran
Israel has attacked Iran, three people familiar with the matter said, as Iranian state media reported early on Friday that its forces had destroyed drones, days after Iran launched a retaliatory drone strike on Israel.
One source told Reuters the U.S. was not involved but was notified by Israel before the attack.
Iran’s Fars news agency reported three explosions were heard near an army base in the central city of Isfahan. An Iranian official told Reuters there was no missile attack and the explosions were the result of the activation of Iran’s air defense systems.
Iranian state TV said that shortly after midnight “three drones were observed in the sky over Isfahan. The air defense system became active and destroyed these drones in the sky.”
The broadcaster later said the situation in Isfahan was normal and no ground explosions had occurred.
The Israeli military had no comment on the reports.
Israel had said it would retaliate, opens new tab against Iran’s weekend attack, which involved hundreds of drones, opens new tab and missiles, in response to a suspected Israeli strike on its embassy compound in Syria. Most of the Iranian drones and missiles were downed before reaching Israeli territory.
Analysts and observers have raised concerns about the risks of the Israel-Gaza war spreading into the rest of the region.
Iranian President Ebrahim Raisi had warned Israel before Friday’s strike that Tehran would deliver a “severe response” to any attack on its territory.
READ ALSO:
- Updated: Tragedy hits Kenya, Defence chief, nine others die in military helicopter crash
- Updated: More trouble for Yahaya Bello as Immigration places him on watch list
- Tinubu orders conduct of all schools, teachers census
Iran told the United Nations Security Council on Thursday that Israel “must be compelled to stop any further military adventurism against our interests” as the U.N. secretary-general warned that the Middle East was in a “moment of maximum peril.”
Asian shares and bond yields sank on Friday while safe-haven currencies, gold and crude oil jumped. Brent crude futures rose 2% to $88.86 a barrel, the dollar gained broadly, gold rose 1% and S&P 500 futures dropped 1%.
Iran’s state television said nuclear facilities where Iran has been conducting work – which Tehran says is peaceful but which the West believes is aimed at building a weapon – were unharmed.
The Natanz nuclear site, the centerpiece of Iran’s uranium enrichment program, is in Isfahan province.
Airports in Tehran, Shiraz and Isfahan were closed until 0700 GMT, subject to extension, and flights have been cleared from the western half of Iran, slight tracking website FlightRadar24 reported.
Some flights destined for Tehran from Turkish Airlines and Emirates were returning to their origin, FlightRadar24 said on X. An Iran Air flight from Rome to Tehran was diverting to Ankara, Turkey, it showed.
FlightRadar24 showed Emirates, flydubai, Turkish Air, Wizz Air Abu Dhabi and Belavia were among the carriers continuing to use the part of Iran’s airspace that remained open on Friday morning.
Israel’s assault on Gaza began after Palestinian Islamist group Hamas attacked Israel on Oct. 7, killing 1,200, according to Israeli tallies. Israel’s military offensive has killed over 33,000 Palestinians in Gaza, according to the local health ministry.
Iran-backed groups have declared support for Palestinians, launching attacks from Lebanon, Yemen and Iraq.
BREAKING : Israel launches deadly attacks on Iran
(REUTERS)
International
Updated: Tragedy hits Kenya, Defence chief, nine others die in military helicopter crash
Updated: Tragedy hits Kenya, Defence chief, nine others die in helicopter crash
A military helicopter on Thursday crashed in Kenya, claiming the life of the country’s Defence chief, Francis Ogolla, and nine officers on board.
Kenya’s President, William Ruto, confirmed the unfortunate accident in a televised address.
He said the helicopter crashed shortly after take-off Thursday afternoon local time, killing Ogolla and nine other members of the military.
Two people survived the crash, he added.
“I am deeply saddened to announce the passing on of General Francis Omondi Ogolla, the Chief of the Kenya Defence Forces,” he said.
A team of investigators was immediately dispatched to the site of the crash in Elgeyo Marakwet County to determine the cause of the accident, Ruto said.
Ogolla left Nairobi on Thursday to visit troops in the North Rift region of the country for inspection of ongoing school renovations, the president said.
Ruto has convened an urgent meeting of the country’s National Security Council in Nairobi, according to presidential spokesperson, Hussein Mohamed.
“For me, as the Commander in Chief of the Kenya Defence Forces, it is a tragic moment for the Kenya Defence Forces fraternity and it is a most unfortunate day for the nation at large,” Ruto said.
“Our motherland has lost one of her most valiant generals. We have also lost gallant officers, servicemen, and women,” he added.
Ruto said Kenya would observe three days of mourning beginning from Friday.
Ogolla is the first Kenyan military chief to die in active service.
The general joined the Kenya Defence Forces in 1984, becoming 2nd Lieutenant in 1985 before he was posted to the Kenya Air Force, according to the Ministry of Defence website.
International
JUST IN: Court orders Mohbad’s wife to do DNA test
JUST IN: Court orders Mohbad’s wife to do DNA test
A Magistrate Court sitting in the Ikorodu area of Lagos has ordered that singer late Mohbad’s wife, Wunmi, be served notice of a pending DNA test application, by substituted means.
A statement signed by a member of the legal team to the Aloba family, Monisola Odumosu, disclosed this on Wednesday, April 17.
Mohbad’s father, Joseph Aloba, in the application filed by the legal team to the family sought an order to serve Wunmi by posting all the originating processes and other processes in the suit on the last-known address of the respondent.
READ ALSO:
- BREAKING : EFCC declares Yahaya Bello wanted, seeks information on his whereabout
- Chioma attends Davido’s concert amid hubby infidelity allegation
- Court fixes May 9 for Agunloye’s ₦1bn suit against EFCC
The statement revealed that the legal team led by Emmanuel Oroko had argued that the sheriff had attempted twice to serve Wunmi the court process but failed.
“If the process were served on the last-known address of the respondent by Order of the Court, it would constitute good service and she would be aware of the pending suit.
The Chief Magistrate granted the order and ordered that the respondent be served by posting the court process on her last known address.
It will be recalled that the Aloba family is contesting the paternity of baby Liam and filed an application before the Family Court wherein it sought an order of the court against Wunmi to present herself and baby Liam for a DNA test at any recognised laboratory in Lagos,” Odumosu said.
JUST IN: Court orders Mohbad’s wife to do DNA test
BREAKING: Court acquits Ex-AGF Adoke
Army releases Delta traditional ruler detained over slain 17 soldiers
BREAKING: Tension in Benue as riot police take over APC secretariat
-
News7 days agoFG gives update on where fleeing Binance executive is hiding
-
metro7 days agoTroops neutralise 188 terrorists, rescue 133 hostages in assault operations
-
metro7 days agoViral video: Edo CP orders trial of officer threatening people with gun
-
Opinion7 days agoBBC, Betta Edu, and ministry of corruption – Farooq Kperogi
-
News6 days agoNLC, TUC jointly propose N615,000 new minimum wage
-
Sports5 days agoUnited in hot chase for Osimhen amid transfer speculations
-
News7 days agoI helped Emefiele to collect $3m cash – Dispatch rider
-
Business7 days agoNaira could trade below ₦1,000/$ – Goldman Sachs