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u.s. news Diahuebs 28 Juli 2022

Fed unleashes another big rate hike in bid to curb inflation

(AP) — The Federal Re- has begun to slow, thereby gage has roughly doubled in
serve on Wednesday raised heightening the risk that its the past year, to 5.5%, and
its benchmark interest rate hikes will cause a reces- home sales have tumbled.
rate by a hefty three-quar- sion later this year or next.
ters of a point for a second The surge in inflation and At the same time, consumers
straight time in its most fear of a recession have erod- are showing signs of cutting
aggressive drive in three ed consumer confidence and spending in the face of high
decades to tame high in- stirred public anxiety about prices. And business surveys
flation. the economy, which is send- suggest that sales are slowing.
ing frustratingly mixed sig-
The Fed’s move will raise its nals. The central bank is betting
key rate, which affects many that it can slow growth just
consumer and business loans, “I do not think the U.S. is enough to tame inflation yet
to a range of 2.25% to 2.5%, currently in a recession,” not so much as to trigger a
its highest level since 2018. Chair Jerome Powell said recession — a risk that many
Wednesday at a news confer- analysts fear may end badly.
The central bank’s decision ence. Ian Shepherdson of Panthe- recession has begun.
follows a jump in inflation In a statement the Fed issued on Macroeconomics noted
to 9.1%, the fastest annual With the November midterm after its latest policy meeting that point, saying, “The Fed But economists say that
rate in 41 years, and reflects elections nearing, Americans’ ended, it acknowledged that is not ready — yet — to con- wouldn’t necessarily mean a
its strenuous efforts to slow discontent has diminished while “indicators of spending cede that weaker growth is recession had started. Dur-
price gains across the econ- President Joe Biden’s pub- and production have soft- a reason to slow the pace of ing those same six months
omy. By raising borrowing lic approval ratings and in- ened,” “job gains have been tightening,″ when the overall economy
rates, the Fed makes it cost- creased the likelihood that robust in recent months, and might have contracted, em-
lier to take out a mortgage the Democrats will lose con- the unemployment rate has On Thursday, when the ployers added 2.7 million
or an auto or business loan. trol of the House and Senate. remained low.” The Fed typi- government estimates the jobs — more than in most
Consumers and businesses cally assigns high importance gross domestic product for entire years before the pan-
then presumably borrow and The Fed’s moves to sharply to the pace of hiring and pay the April-June period, some demic. Wages are also rising
spend less, cooling the econ- tighten credit have torpedoed growth because when more economists think it may show at a healthy pace, with many
omy and slowing inflation. the housing market, which is people earn paychecks, the that the economy shrank for a employers still struggling
especially sensitive to inter- resulting spending can fuel second straight quarter. That to attract and retain enough
The Fed is tightening credit est rate changes. The average inflation. would meet one longstand- workers.
even while the economy rate on a 30-year fixed mort- ing assumption for when a

Ex-cops Kueng, Thao sentenced for violating Floyd’s rights

(AP) — A federal judge for more than nine minutes or comment immediately af- 5 ¼ to 6 ½ years for Thao. Magnuson said there was no
on Wednesday sentenced as the 46-year-old Black man terward. For both men, prosecutors question that Kueng violated
two former Minneapolis said he couldn’t breathe and argued for sentences within Floyd’s rights by failing to get
police officers who were eventually grew still. The The lower sentences for Kue- that range or longer, argu- off him when Floyd became
convicted of violating killing, captured in bystand- ng, who is Black, and Thao, ing in Kueng’s case that he unresponsive. But he also
George Floyd’s civil rights er video, sparked protests who is Hmong American, “didn’t say a word” as Floyd mentioned what he called
to lighter terms than rec- worldwide and a reckoning raise questions about wheth- lay dying. They also disputed “an incredible number” of
ommended in sentencing of racial injustice. er they would consider a plea that Thao’s role was minor, letters supporting Kueng that
guidelines, calling one deal or risk a state court trial with prosecutor LeeAnn Bell he said came from other of-
“truly a rookie officer” Kueng pinned Floyd’s back, on Oct. 24, when they face saying he had “a bird’s-eye ficers.
and describing the other Thao held back concerned counts of aiding and abetting view of what was going on” “You were truly a rookie offi-
as “a good police officer, bystanders, and a fourth of- second-degree murder and with Floyd pinned to the cer,” Magnuson told Kueng.
father and husband.” ficer, Thomas Lane, held second-degree manslaughter. pavement, and had “years
Floyd’s feet. Lane was sen- Lane, who is white, pleaded on the force” that meant he Thao was sentenced at a
U.S. District Judge Paul tenced last week to two years guilty to a state charge of should have known better. subsequent hearing, where
Magnuson sentenced J. Al- — also below guidelines aiding and abetting second- She said Thao sometimes he spoke for more than 20
exander Kueng to three years and a sentence that Floyd’s degree manslaughter and is looked directly at Floyd and minutes, frequently quoting
in prison and Tou Thao to brother Philonise called “in- awaiting sentencing in that at times had bystanders tell- scripture as he said his arrest
3½ years for violating Floyd’s sulting” — while Chauvin case. ing him exactly what was and time in jail led him to
rights in the May 25, 2020, was sentenced earlier to 21 happening. turn toward God, but did not
killing in which then-Offi- years. Floyd’s immediate Sentencing guidelines on the directly address his actions or
cer Derek Chauvin pinned family members did not at- federal counts called for 4¼ The federal government offer any words to the Floyd
Floyd’s neck with his knee tend Wednesday’s hearings to 5¼ years for Kueng and brought the civil rights family. Thao — like Lane
charges against all four of- and Kueng — remains free
ficers in May 2021, a month on bond, but spent several
after Chauvin was convicted weeks in jail after his 2020 ar-
of murder and manslaughter rest on the state charges.
in state court. They were seen
as an affirmation of the Jus- Both men are due to report
tice Department’s priorities to federal prison on Oct. 4,
to address racial inequities in though Magnuson noted that
policing, a promise made by could change because of their
President Joe Biden before state trial. Magnuson said he
his election. And they came would recommend that they
just a week after federal pros- be allowed to serve their time
ecutors brought hate crimes at minimum-security fed-
charges in the killing of eral facilities in Duluth or
25-year-old Ahmaud Arbery in Yankton, South Dakota,
in Georgia and announced so they could be near family.
two sweeping probes into The final decision is up to the
policing in two states. Bureau of Prisons.