Business Highlights: The Fed’s cautious approach; Biden says workers need ‘a fair shot’
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Powell reinforces Fed’s cautious approach toward further interest rate hikes
WASHINGTON (AP) — Federal Reserve Chair Jerome Powell suggested that the Fed is in no hurry to further raise its benchmark interest rate, given evidence that inflation pressures are continuing to ease at a gradual pace. At the same time, Powell did not rule out another rate hike to help reduce inflation to the Fed’s 2% target level. Inflation, as measured by the U.S. consumer price index, has sunk from a 9.1% peak last year but is still 3.7%. “We are not confident,” Powell said, that the Fed’s benchmark rate is high enough to steadily reduce inflation to 2%. He added: “We know that ongoing progress toward our 2% goal is not assured. Inflation has given us a few head fakes.”
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US applications for jobless benefits inch down, remain at historically healthy levels
WASHINGTON (AP) — Slightly fewer Americans applied for jobless claims last week, further indicating that the labor market remains strong in an era of high interest rates. The Labor Department reported Thursday that applications for unemployment benefits fell by 3,000 to 217,000 for the week ending Nov. 4. Jobless claim applications are seen as representative of the number of layoffs in a given week. The four-week moving average of claims, a less volatile measure, inched up by 1,500 to 212,250. Overall, 1.83 million people were collecting unemployment benefits the week that ended Oct. 28, about 22,000 more than the previous week.
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The Hollywood strikes are over. Here’s when you could see your favorite stars and shows return
LOS ANGELES (AP) — Missed your favorite actors? After nearly four months of striking, they’re coming back. Wednesday’s deal between striking actors and studios and streaming services won’t immediately restore filming to its full swing. That will take months. But the tentative agreement that both sides say include extraordinary provisions means that more than six months of labor strife in the film and television industries is drawing to a close. Soon, tens of thousands of entertainment sector workers could get back to work. And popular franchises like “Deadpool,” “Abbott Elementary” and “The Last of Us” will be a step closer to returning to screens.
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Stock market today: Wall Street falls after the bond market cranks up the pressure again
NEW YORK (AP) — Stocks fell on Wall Street as the pressure cranked higher from the bond market again. The S&P 500 lost 0.8% Thursday. The Dow dropped 220 points, and the Nasdaq composite fell 0.9%. Stocks had been higher earlier in the day, but the market quickly sagged under the weight of rising bond yields. Yields rose after the government announced the results of a sale of 30-year Treasury bonds. They went even higher after Federal Reserve Chair Jerome Powell said the Fed will not hesitate to raise interest rates again if it feels that inflation isn’t under control.
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Biden says workers need ‘a fair shot’ as he celebrates the labor deal saving an Illinois auto plant
BELVIDERE, Ill. (AP) — President Joe Biden has gone to Belvidere, Illinois, to celebrated a labor deal that will prevent a Stellantis plant in the city from closing. During an appearance before cheering automakers, the president put on a red United Auto Workers shirt and reminded his audience that he stood with members during their strikes against Ford, General Motors and Jeep-maker Stellantis. Biden learned in June that the Stellantis plant was set to close and he made keeping it open a priority. The plant will expand as part of the tentative contract with the UAW. Biden met with UAW President Shawn Fain and Democratic Gov. J.B. Pritzker, and plans to hold a fundraiser later in Chicago.
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Apple hits setback in dispute with European Union over tax case
LONDON (AP) — Apple might end up on the hook after all for billions of euros in back taxes to Ireland in the latest twist in a long-running European Union dispute. That’s after a legal opinion Thursday from an adviser to the bloc’s top court. The adviser’s opinion says a decision by a lower court that the U.S. tech giant doesn’t have to repay the 13 billion euros ($13.9 billion) in taxes “should be set aside.” The ECJ’s opinions aren’t legally binding, but are often followed by the court, which is expected to come up with its legally binding decision next year. The case drew outrage from Apple when it was opened in 2016, with CEO Tim Cook calling it “total political crap.”
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Top US accident investigator says close calls between planes show that aviation is under stress
WASHINGTON (AP) — The nation’s top accident investigator says a surge in close calls between planes at U.S. airports this year is a clear warning sign that aviation is under stress. Jennifer Homendy, chair of the National Transportation Safety Board, told a Senate panel Thursday that close calls are incredibly rare, but we cannot ignore the recent increase in such events. Witnesses at the hearing say staffing and irregular schedules are problems at the Federal Aviation Administration and airlines.
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The average long-term US mortgage rate falls to 7.5% in second-straight weekly drop
LOS ANGELES (AP) — The average rate on the benchmark 30-year home loan fell for the second week in a row, positive news for prospective homebuyers after rates touched a 22-year high just last month. The latest decline brought the average rate on a 30-year mortgage down to 7.5% from 7.76% last week, mortgage buyer Freddie Mac said Thursday. A year ago, the rate averaged 7.08%. High rates can add hundreds of dollars a month in costs for borrowers, limiting how much they can afford in a market already out of reach for many Americans. They also discourage homeowners who locked in rock-bottom rates in recent years from selling.
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Biden’s team says progress on big public works projects may hinge on the outcome of the 2024 vote
WASHINGTON (AP) — The Biden administration says it’s started 40,000 construction projects since the passage of major infrastructure legislation two years ago. And President Joe Biden’s team is seeking to make the case that continued progress could depend on keeping him in the White House after 2024. Biden has long emphasized the bipartisan appeal of the $1 trillion investment in roads, bridges, ports, rail, internet and other projects. His administration says getting that money out the door has meant a new degree of cooperation across governments and that the outcome of the 2024 vote could put that at risk. Donald Trump has criticized the law and some Republicans in Congress are proposing cuts in infrastructure spending.
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The S&P 500 fell 35.43 points, or 0.8%, to 4,347.35. The Dow Jones Industrial Average shed 220.33 points, or 0.6%, to 33,891.94. The Nasdaq composite ended down 128.97 points, or 0.9%, to 13,521.45. The Russell 2000 index of smaller companies gave back 26.83 points, or 1.6% to 1,687.24.