Politics
Fed minutes show ‘many’ officials in favor of a big rate increase.
Minutes from the Federal Reserve’s March assembly confirmed that central bankers have been getting ready to shrink their portfolio of bond holdings imminently whereas elevating rates of interest “expeditiously,” two insurance policies that may become profitable costlier to borrow and spend.
The Fed is attempting to chill down a sizzling financial system, hoping to tame inflation, which is operating on the quickest tempo in 4 many years.
Central bankers raised rates of interest by 1 / 4 of a share level in March, their first enhance since 2018 — and the minutes confirmed that “many” officers would have most well-liked an excellent larger charge enhance and have been stalled solely by uncertainty tied to Russia’s invasion of Ukraine. Markets now count on the Fed to make half-point will increase in Could and presumably June, at the same time as they start to withdraw extra help from the financial system by shrinking their stability sheet.
The stability sheet stands at practically $9 trillion — swollen by their pandemic response insurance policies — and Fed officers plan to shrink it by permitting a few of their government-backed bond holdings to run out. That may push up longer-term rates of interest, serving to to make mortgages and different forms of borrowing pricier. Increased charges might mood consumption and enterprise funding, resulting in slower progress, extra muted hiring, and weaker wage will increase. Ultimately, the chain response ought to assist to cheaper price will increase.
Fed officers “anticipated it could be acceptable to start this course of at a coming assembly, presumably as quickly as in Could,” the minutes confirmed.
Perceive Inflation within the U.S.
Fed officers try to chill off the financial system at a time when it’s rising shortly and the job market is quickly bettering. Employers added 431,000 jobs in March, wages are climbing quickly, and the unemployment charge is nearly matching the 50-year low that prevailed earlier than the pandemic.
Central bankers are hoping that the sturdy job market will assist them gradual the financial system with out tipping it into an outright recession. That can be a problem, given the Fed’s blunt coverage instruments, a actuality that officers have acknowledged.
On the identical time, Fed officers are frightened that if they don’t reply vigorously to excessive inflation, shoppers and companies might come to count on persistently greater costs. That would perpetuate fast value will increase and make wrestling them below management much more painful.
“It’s of paramount significance to get inflation down,” Lael Brainard, a Fed governor who’s the nominee to be the central financial institution’s vice chair, mentioned on Tuesday. “Accordingly, the committee will proceed tightening financial coverage methodically by means of a sequence of rate of interest will increase and by beginning to cut back the stability sheet at a speedy tempo as quickly as our Could assembly.”
Ms. Brainard’s assertion that stability sheet shrinking might occur “quickly” caught markets without warning, sending shares decrease and charges on bonds greater. Traders additionally centered their consideration on Wednesday’s minutes.
Inflation F.A.Q.
What’s inflation? Inflation is a lack of buying energy over time, which means your greenback is not going to go as far tomorrow because it did right this moment. It’s sometimes expressed because the annual change in costs for on a regular basis items and companies resembling meals, furnishings, attire, transportation and toys.
Moreover confirming Ms. Brainard’s sign that stability sheet shrinking might start imminently, the minutes confirmed that “many” assembly contributors “would have most well-liked a 50 foundation level enhance within the goal vary for the federal funds charge at this assembly.”
Whereas they held off on a supersized enhance amid uncertainty tied to Russia’s invasion of Ukraine, officers signaled that will increase above 1 / 4 level could possibly be acceptable if inflation remained elevated.
“All contributors underscored the necessity to stay attentive to the dangers of additional upward strain on inflation and longer-run inflation expectations,” the minutes confirmed.
And officers pointed to indicators that speedy value will increase might final.
“Many contributors indicated that their enterprise contacts continued to report substantial will increase in wages and enter costs that have been being handed by means of into greater costs to their clients with none important lower in demand,” the minutes confirmed.
Components that Fed officers thought might trigger inflation to persist included “sturdy combination demand, important will increase in power and commodity costs, and provide chain disruptions that have been prone to require a prolonged interval to resolve,” the minutes mentioned.
Politics
Dem leader condemns Thanksgiving bomb threats against liberal lawmakers after Team Trump targeted
House Minority Leader Hakeem Jeffries condemned several threats, mostly focused on lawmakers from Connecticut, targeting members of his caucus, just days after numerous threats were made against President-elect Trump’s cabinet selections.
Jeffries, D-N.Y., confirmed in a statement Friday that several Democrats were targeted with threats ranging from pipe bombs in their mailboxes to “swatting” — or filing a false police report on another person’s behalf that often results in a SWAT team being dispatched.
All of the threatening messages were signed “MAGA,” Jeffries said, adding law enforcement found no ordnance at any of the targeted lawmakers’ homes.
“America is a democracy. Threats of violence against elected officials are unacceptable, unconscionable and have no place in a civilized society. All perpetrators of political violence directed at any party must be prosecuted to the full extent of the law,” he said.
TOP DEM: ‘UNDOCUMENTED IMMIGRATION’ IS A THREAT TO NATIONAL SECURITY
“House Democrats will not be deterred or intimidated from serving the people by violent threats. We have been in close communication with the Sergeant at Arms office and it is imperative that Congress provide maximum protection for all Members and their families moving forward.”
After Jeffries spoke out, Rep. Seth Magaziner, a Democrat from neighboring Rhode Island, announced on Friday afternoon that his home had been targeted, as well. Magaziner said Providence police responded quickly and no one was harmed.
Sen. Christopher Murphy, D-Conn., had his home targeted by a bomb threat. A spokesperson said it appeared to be part of a “coordinated effort.”
Five other Democrats from the Constitution State received similar threats, including Reps. Joe Courtney, John Larson, Rosa DeLauro, Jahana Hayes and James Himes.
CT DEM SAYS IT’S CLEAR HUNTER BIDEN BROKE THE LAW
“There is no place for political violence in this country, and I hope that we may all continue through the holiday season with peace and civility,” said Himes, the top Democrat on the House Intelligence Committee who replaced Sen.-elect Adam Schiff, D-Calif.
Prior to that spate of threats, Trump’s U.N. ambassador-designate Rep. Elise Stefanik, R-N.Y., said she was traveling home to her North Country district for Thanksgiving when she was informed of a threat against her home.
Former Rep. Matt Gaetz, R-Fla. — Trump’s initial choice for attorney general — also received a threat.
Former Rep. Lee Zeldin, R-N.Y. — Trump’s nominee to lead the Environmental Protection Agency — said his home was subjected to a “pro-Palestinian-themed” pipe bomb threat. Zeldin is Jewish.
Former Rep. Lori Chavez-DeRemer, R-Ore., whom the president-elect tapped for Labor secretary, said her Oregon home was targeted, as was that of former San Diego Chargers cornerback Scott Turner, whom Trump named to lead the Department of Housing and Urban Development.
Trump nominees including Cantor-Fitzgerald CEO Howard Lutnick, America First Policy Institute President Brooke Rollins and former Fox News host Pete Hegseth also received threats.
In a statement, the FBI said it is aware of “numerous bomb threats and swatting incidents targeting incoming administration nominees and appointees, and we are working with our law enforcement partners.”
“We take all potential threats seriously and, as always, encourage members of the public to immediately report anything they consider suspicious to law enforcement,” it said.
Fox News’ Kevin Ward contributed to this report.
Politics
Capitol rioter's defamation suit against Fox News is dismissed
A Delaware court judge has dismissed a defamation lawsuit against Fox News filed by a Jan. 6 rioter who said the network falsely identified him as an FBI informant.
U.S. District Court Judge Jennifer L. Hall granted Fox News’ motion to dismiss the suit filed last year by Ray Epps.
Now based in Utah, Epps alleged his life was upended after former Fox host Tucker Carlson repeatedly described him as a federal agent who helped instigate the attack on the Capitol, which was an attempt to stop the certification of the election of Joe Biden.
Carlson described Epps as a principal in a false flag operation in which the government incited the Jan. 6 riot, an unfounded conspiracy theory. He made the false comments about Epps on his program over a period of nearly two years and in a series called “Patriot Purge” that streamed on Fox Nation in 2022.
In her remarks from the bench, Hall said Carlson did not act with malicious intent.
Fox News welcomed the judge’s decision, which is the third consecutive defamation case to be decided in favor of the network after the record $787-million settlement it paid to Dominion Voting Systems in April 2024.
Dominion said its business was damaged by false claims Fox News presented regarding voting fraud in the 2020 election. Fox News chose to settle the case rather than have its executives and on-air talent take the witness stand in a trial.
A separate defamation suit filed by Nina Jankowicz, the former head of the federal Disinformation Governance Board, was dismissed in July. Another case brought by Tony Bobulinski, a former business partner of Hunter Biden, was thrown out on Tuesday.
“Fox News is pleased with these back-to-back decisions from federal courts preserving the press freedoms of the First Amendment,” the network said in a statement.
Epps was at the Capitol on Jan. 6, 2021, and pleaded guilty in January to a misdemeanor charge for his role in the riot.
Epps testified under oath to the House committee investigating the attack that he had no involvement with the FBI, which has also stated publicly that he had no association with the bureau.
The lawsuit claimed Epps and his wife received threatening voice mails, emails and text messages because of Carlson‘s comments. Epps told the CBS news magazine “60 Minutes” that the lies ruined his Arizona-based business and led to death threats.
Carlson’s prime-time program was pulled from the Fox News lineup on April 24, 2023, the day after Epps appeared on “60 Minutes.”
Politics
Political betting markets still have plenty of action despite end of election season
The end of the election season does not mean the end of political betting, with many platforms allowing users to place wagers on everything from the 2028 election to who will be confirmed to President-elect Donald Trump’s Cabinet.
“Some people will be amazed by this, but people are already betting on 2026 and 2028,” Maxim Lott, the founder of ElectionBettingOdds.com, told Fox News Digital. “There’s been about a quarter million dollars bet already.”
The comments come after the 2024 election produced plenty of betting action, with users across multiple platforms wagering over $2 billion on the outcome of the latest race.
WHAT ARE ELECTION BETTING ODDS? EXPERT EXPLAINS WHY TRUMP IS CURRENT FAVORITE
While mega sporting events, such as the Super Bowl and the recent Mike Tyson vs. Jake Paul fight, gives gamblers plenty to wager on after the election, those looking for something political to bet on will still have plenty of options.
One of the most popular topics is who will be the nominees for both major parties in 2028, with ElectionBettingOdds.com showing California Gov. Gavin Newsom and Vice President-elect JD Vance being the current leaders for Democrats and Republicans, respectively.
Other names with a significant amount of attention for betters include Pennsylvania Gov. Josh Shapiro and Michigan Gov. Gretchen Whitmer for the Democratic nomination, while Vance is trailed by names like entrepreneur and future head of the new Department of Government Efficiency Vivek Ramaswamy and Donald Trump Jr. on the Republican side.
“The big Democratic governors are favored to be the next nominee,” Lott said, noting that Vance currently holds a sizable lead over other options on the GOP side.
TRUMP OPENS UP LARGEST BETTING LEAD SINCE DAYS AFTER BIDEN’S DROPOUT
Vance is also the current betting leader on who will win the 2028 presidential election, ElectionBettingOdds.com shows, followed by Newson and Shapiro as the next two likely options.
However, Lott warned it is still too early to tell what the future holds, noting that the markets will start to provide more clarity as more information becomes known over the next few years.
“As the future becomes clearer… as we get closer to 2026, 2028, these odds will change,” Lott said. “So if the Trump administration is doing really well, the economy is booming, inflation is not out of control, wars are ending, Vance’s odds will certainly go up.”
Bettors also are not limited to wagering on elections, with platforms such as Polymarket allowing users to place bets on Trump’s picks to serve in his Cabinet and whether they will be confirmed. Bettors can also place wagers on questions such as if they believe the war in Ukraine will end in Trump’s first 90 days or if there will be a cease-fire in Gaza in 2024.
According to Lott, taking a look at the current betting odds for many scenarios can help inform you about what is going on in the world, even if you do not place bets yourself.
“People often ask… is there any value to this… it’s just gambling. It’s silly,” Lott said. “But actually it’s very useful… if you want to know what’s going to happen in 2028 or if the Trump administration is going to be a success, you could read 100 news articles on it. Some will misinform you. Or, you can just go to the prediction markets and see… is Vance a 20% chance of becoming the next Republican nominee or is he a 90% chance? That tells you a lot.”
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