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U.S. NEWSThursday 19 November 2015

Minutes show Fed pondering December rate hike Company warns
of long layoffs at

MARTIN CRUTSINGER statement. A couple of of- since then, the job market on Nov. 4, Yellen called a Bovey iron plant
AP Economics Writer
ficials worried that it might surged in October, with December rate hike a “live

WASHINGTON (AP) — Fed- be signaling too strongly employers adding 271,000 possibility” if the economy BRIAN BAKST

eral Reserve officials be- the possibility of a Decem- jobs, the most this year. stays on track. William Dud- Associated Press

lieved last month that ber rate hike. “Dec. 16 is a very, very live ley, president of the Fed’s ST. PAUL, Minn. (AP) —

the economic conditions More worrisome taconite

needed to trigger the first production news came to

interest rate hike in nearly Minnesota’s Iron Range on

a decade could “well be Wednesday, with another

met” by their next meeting company warning of mass

in December. layoffs in a region already

Minutes of the October dis- ailing from the downturn of

cussions released Wednes- the domestic steel industry.

day revealed Fed officials’ Magnetation LLC an-

view that the job market nounced the possible cur-

would improve further and tailment of iron ore pro-

that inflation would begin duction next year a plant

to move toward their 2 per- in Bovey, which would trig-

cent annual target. ger layoffs of longer than

They also took note of the six months. It advised of

U.S. economy’s resilience the shift in a federal notice

through a summer of fi- that’s required at least 60

nancial market turbulence days ahead of layoffs of

and felt that global threats more than 50 workers for

had “diminished.” extended durations.

The Fed has kept its bench- Gov. Mark Dayton and

mark for short-term rates state leaders already are

near zero since late 2008. considering a special ses-

In the end, the Fed at its sion to provide extended

Oct. 27-28 meeting left its Federal Reserve Chair Janet Yellen speaks during a conference in Washington. Federal Reserve unemployment benefits
key rate unchanged but officials believed last month that the economic conditions needed to trigger the first interest rate to steelworkers who will
said further progress could hike in nearly a decade could “well be met” by their next meeting in December. soon exhaust their maxi-
justify a December hike. mum allotment. Senate
(AP Photo/Manuel Balce Ceneta)

Officials in the minutes However, most members date for action, and frank- New York regional bank, Majority Leader Tom Bakk,

stressed that no decision felt the new wording would ly, given the stellar 271,000 seconded that view in a a Cook Democrat, said

had yet been made. underscore that they had jobs report since the Oc- separate appearance in statement Wednesday

The wording in the Octo- not made a decision on a tober meeting, we would that same day. that legislation to address

ber statement marked the rate hike but that “it may be astounded if they don’t In a speech last week, Lo- persistent unemployment

first time in seven years of well become appropriate” raise rates finally,” said retta Mester, president of and poverty among black

ultra-low rates that Fed to start raising rates in De- Chris Rupkey, chief finan- the Fed’s regional bank in Minnesota residents should

had ever suggested that it cember if the data show cial economist at MUFG Cleveland, said that she also be on the agenda. In

might raise rates at its next the economy performing Union Bank in New York. believed the time to hike a written statement, Day-

meeting. as expected. The Octo- In recent weeks, a number rates was “quickly ap- ton said Wednesday he’s

The minutes showed that ber meeting came after of Fed speakers have said proaching” and argued in agreement with Bakk.

Fed officials debated a disappointing Septem- that a rate hike in Decem- that waiting too long to be- Matt Lehtinen, president of

whether to insert the “next ber jobs report which was ber was on the table. gin raising rates could al- Grand Rapids-based Mag-

meeting” phrase into the noted in the minutes. But In congressional testimony low inflation to take hold.q netation, said up to 163

workers could be affect-

Germany’s IG Metall opening US office with UAW ed but some could angle
for open positions at the

company’s other plants

ERIK SCHELZIG ufacturers are exploiting cheating on U.S. emissions tional Partnership Initiative” in the region. The notice

Associated Press low-wage environments in tests, creating an air of un- include improving wages says nothing would oc-

NASHVILLE, Tenn. (AP) — the U.S. South, where work- certainty at all of its facili- and working conditions cur until after Jan. 31, but

Germany’s largest trade ing conditions — including ties, including its lone U.S. among the numerous Ger- Lehtinen said the scope of

union is opening a joint of- health and safety situations plant in Chattanooga. man-owned automotive the production shift would

fice with the United Auto — tend to be challenging The growing cooperation suppliers — and at manu- be known within the next

Workers in Tennessee to for employees,” according between the UAW and IG facturers like Volkswagen month. According to com-

promote labor issues at to a statement obtained Metall is unlikely to be seen in Tennessee, Mercedes pany figures, the three-

German automakers and by The Associated Press in as a welcome develop- in Alabama and BMW in year-old plant extracts

suppliers in the southern advance of the official an- ment among anti-labor South Carolina. and processes more than

United States. Frankfurt- nouncement of the new Republicans in the South, The office also plans to pro- 1 million metric tons of iron

based IG Metall estimates joint office scheduled for who argue that a union ex- mote German-style works ore per year, with some of

that 100,000 people work later this week. The move pansion in the auto industry councils to represent both it shipped as far as its plant

for German-owned auto- has been in the works for would hurt future recruiting hourly and salaried plant in Indiana for steel produc-

motive companies in the months, but comes against efforts, especially among employees. tion. “While any operating

U.S. Unlike at their parent the backdrop of scan- Asian companies. The UAW has been thwart- curtailment is unfortunate,

companies’ factories in dal at Volkswagen, which The new office will be lo- ed for decades in efforts we must balance our cur-

Germany, most of the U.S. has been the UAW’s chief cated near the General to organize foreign-owned rent production with our

workers aren’t represented target among foreign au- Motors plant in the Nash- plants in the South, but has customers’ needs to sus-

by unions. “IG Metall be- tomakers in the U.S. Volk- ville suburb of Spring Hill. come closest at Volkswa- tain our business in these

lieves some German man- swagen has admitted to The goals of the “Transna- gen in Chattanooga.q challenging markets,”q