Connect with us

News

Federal Reserve officials wanted ‘greater confidence’ that US inflation was cooling

Published

on

Federal Reserve officials wanted ‘greater confidence’ that US inflation was cooling

Stay informed with free updates

Federal Reserve officials thought that US inflation was cooling but still needed “greater confidence” before they agreed to cut interest rates from their 23-year high, according to minutes of their most recent meeting.

“Participants suggested that a number of developments in the product and labour market supported their judgment that price pressures were diminishing,” said the minutes from the June meeting, published on Wednesday.

Some rate-setters also noted that retailers were now offering price cuts in the face of weakening consumer demand.

Advertisement

But members of the Federal Open Market Committee also thought they should hold rates at the current level of 5.25-5.5 per cent until “additional information had emerged to give them greater confidence” that inflation was moving “sustainably” to the Fed’s 2 per cent target, the minutes said.

The minutes come after months of concern that price pressures were still not easing as quickly as Fed officials hoped, making them reluctant to cut borrowing costs too quickly.

The Fed sharply increased rates two years ago in a bid to quell inflation that reached multi-decade highs in 2022. Inflation fell quickly last year, and the central bank’s preferred gauge dipped again to 2.6 per cent in May. But it still above its target.

However, the record of the meeting also revealed some policymakers’ concerns that unemployment could rise too quickly if rates remained too high for too long.

“Several participants specifically emphasised that with the labour market normalising, a further weakening of demand may now generate a larger unemployment response than in the recent past when lower demand for labour was felt relatively more through fewer job openings.”

Advertisement

The Bureau of Labor Statistics will publish a closely watched report on the job market on Friday. Economists polled by Bloomberg predict that 190,000 jobs were added in June, which would be a sharp slowdown from the month before.

Officials indicated at the meting in June that they expect to cut borrowing costs just once this year, down from their previous forecast of three cuts.

Inflation and high borrowing costs have become a political problem for President Joe Biden, with polls showing voters remain unhappy with the cost of living in recent years and his handling of the economy.

Traders in the futures market are now pricing in a 70 per cent chance of a cut in September — the final policy decision ahead of the presidential election on November 5. Nearly two cuts are priced by year-end. The central bank next meets on July 31.

Rate-setters signalled in their statement after the last meeting that other factors including the effect of two years of high rates on consumer demand, easing of labour markets and boost to supplies would contribute to more disinflation.

Advertisement

News

Multiple people shot near street festival in Toledo, Ohio, authorities say

Published

on

Multiple people shot near street festival in Toledo, Ohio, authorities say

A shooting near a community festival in Toledo, Ohio, wounded at least 12 people on Saturday, with police saying a search for the suspects was ongoing.

Two of the wounded were in a critical condition, Toledo deputy police chief Joe Heffernan said. He said it appeared there were at least two people firing weapons who were “probably shooting at each other”.

The Toledo police department said the shooting happened near the Old West End festival, an annual gathering of live music and home tours in a historic district of the city.

Police investigate where multiple people were shot at a community festival in Toledo, Ohio. Photograph: Paul Sancya/AP

The department said an active search was under way for those responsible.

“I am deeply concerned about the situation in Toledo tonight,” Ohio governor Mike DeWine said in a statement. “Summer festivals should be safe spaces for families to spend time together without fear of violence.”

Advertisement

Multiple videos posted to social media showed people running over the sound of gunshots and emergency officials tending to others who appeared wounded.

Kevin Berry said he was sitting in the neighbourhood arboretum listening to live music with his friends when he heard a handful of gunshots ring out.

“Everybody hit the deck,” he said.

Police officers block off a road near where multiple people were shot at a community festival. Photograph: Paul Sancya/AP

When he looked back up, he saw a gun being tossed to the ground. Police officers who were already on-site for the festival immediately responded to the scene.

Berry, who has medical training and served in the US Navy, said he walked around the area looking for potential victims who might need help.

Advertisement

He said he saw at least five people with gunshot wounds.

Police officers work at the scene of a shooting near a festival in Toledo, Ohio. Photograph: WTVG/AP

“The folks who were hit were spread out around the arboretum area,” he said.

The Old West End festival is a two-day celebration in Toledo’s historic district that includes live music, food vendors, home tours and shopping.

“This tragedy is really weighing heavily on both the residents and those who visit and enjoy this festival year after year,” said city council member Theresa Morris.

Advertisement
Continue Reading

News

Video: Protester Hit by Car at Newark ICE Detention Center

Published

on

Video: Protester Hit by Car at Newark ICE Detention Center

new video loaded: Protester Hit by Car at Newark ICE Detention Center

A vehicle hit a protester on Friday as it was leaving Delaney Hall, an immigration detention center in Newark that has been the site of protests since late May.

By Cynthia Silva

June 6, 2026

Continue Reading

News

Despite a competitive market, finding a summer job is highly beneficial for teens

Published

on

Despite a competitive market, finding a summer job is highly beneficial for teens

A lifeguard overlooks an outdoor swimming pool.

Etienne Laurent/Getty Images


hide caption

toggle caption

Advertisement

Etienne Laurent/Getty Images

Teenagers hoping to hold the whistle as a lifeguard or camp counselor, or just work any job this summer are having a hard time getting hired.

“They now have more competition. There may be fewer jobs available,” says Brad Hershbein, an economist at the W.E. Upjohn Institute for Employment Research. “They kind of get stuck with the short straw.”

Many factors are contributing to the competition for entry-level jobs: AI, inflation, tariffs, even those oil tankers stuck in the Persian Gulf. But all signs are pointing to 2026 being the worst job market for teens in decades.

Advertisement

“So many people are increasingly desperate to find a job, any job, especially if they have college loans,” Hershbein says. “That makes it that much harder for someone younger to be able to compete.”

The Bureau of Labor Statistics counted 219,000 fewer teens working this May compared to last May. Their participation in the labor force has been sliding since a peak of nearly 58% in the 1970s. Today, about a third of teens are in the labor force, either working or looking for summer work.

Mariella Silva, 19, had to hustle before finding a summer job as a barista at Zeke’s Coffee, a roastery and coffee shop in Washington, D.C.

She says now that she’s working, she feels more grown up. She is learning from her older coworkers and starting to understand and appreciate the value of money. She says, “Every time I spend something, I’m like, oh, this is like two hours of work.” She says she really feels the pinch of inflation when she considers whether to buy a meal out in the world, “I’m like, hmm. . . there’s food at home.”

Her boss, Jesse Lauritsen, doesn’t actually hire many teens. For starters, their schedules are hard to accommodate. Teens often have school or sports commitments and are new to the idea of carving out big chunks of time for work shifts.

Advertisement

“If they can only work one day a month, there’s no point in really hiring them,” Lauritsen says.

Economist Brad Herschbein notes that hiring managers may view teens as an investment that won’t pay off right away. “It’s almost a community service, rather than getting that productivity right away,” he says.

The dwindling job opportunities for teenagers means that plenty of them won’t get their first workforce experience while they’re still young, he adds. “A growing share of 18- to 19-year-olds are neither employed nor in school. They’re not really engaged in child care either.”

Economists call such people “idle.” It’s a strong term, but might be accurate, according to time-use surveys.

Advertisement

“They do seem to be engaging in a lot of leisure,” says Hershbein “The quintessential stereotype is, you know, someone’s playing video games all day.”

That pattern doesn’t just worry their parents. Many cities and school districts are trying hard to line up job opportunities for young people.

At a community pool in Ann Arbor, Michigan, Gayle Hurn hires over a hundred lifeguards and swim instructors every summer: She says she’s got a roster full of teenagers from around the city. “I think we need to start viewing teens as a really important part of the infrastructure of the workplace.”

Hurn says everyone who visits the pool feels the joy that her young workers bring to their job, even if she admits that teenagers can be hard to manage. “It’s my job to help them not just get a paycheck, but really build them so that when they move on from me, they can be super successful and really great contributors to whatever other work environment they join.”

Hurn makes them put away their phones, she works around their vacation schedules and she helps them through difficult conversations.

Advertisement

Happily, she adds, her teen employees are totally worth it.

Continue Reading
Advertisement

Trending