Month: July 2023

The Federal Reserve announced Wednesday it had raised its key interest rates by another 0.25 points, increasing the federal funds rate range to a 22-year high of 5.25% to 5.5%, the highest level in 22 years. This is the 11th Fed interest rate increase since March 2022.

In a statement Wednesday afternoon, the Federal Reserve said that while consumer prices have declined for 12 straight months, consumer prices increased 3% year on year in June. Inflation remains elevated and job gains have been robust while unemployment has remained low. By raising its interest rates, the Federal Reserve hopes to make borrowing and investing more expensive, thereby reducing overall demand for goods, services and labor in the economy.  However, Wednesday’s rate increase will make it harder still for consumers and business to afford loans.

Fed Chair Jerome Powell affirmed after Wednesday’s interest rate announcement that the central bank no longer expects a recession to occur as a result of the increases, adding that it could bump up the key interest rate even further. The Federal Reserve’s statement said it “seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run. In support of these goals, the committee decided to raise the target range for the federal funds rate to 5-1/4 to 5-1/2 percent.”  As it continues to monitor inflation there’s a possibility of yet another interest rate hike ahead. the Fed said it will “continue to assess additional information and its implications for monetary policy.”

Editorial credit: Domenico Fornas / Shutterstock.com

President Biden’s son, Hunter Biden, pleaded not guilty to federal tax charges on Wednesday, after a plea deal fell through during the court hearing amid a dispute between the legal teams over a separate gun-related charge. Biden appeared in court with the intent of pleading guilty, as lawyers deliberated for more than three hours over the terms of the original deal. Back in June, Biden said he would plead guilty to two federal offenses connected with his taxes and businesses.

Presiding District Court Judge Maryellen Noreika questioned whether Biden would still agree to the terms of his plea arrangement if there was a potential for additional charges in the future. Biden said he would not plead guilty to the tax charges without a deal in place to avoid prosecution on the gun charge, but changed course after extensive negotiations between his lawyers and prosecutors while Noreika waited in her chambers. Biden’s lawyer Chris Clark said during the hearing that the deal was off: “As far as I’m concerned, the plea agreement is null and void.” The parties ultimately agreed that the deal would only grant Biden immunity on a limited set of tax, drug and firearm offenses.

Biden pleaded not guilty to charges of failing to pay taxes on more than $1.5 million in income in 2017 and 2018 despite owing more than $100,000, prosecutors allege. He did not enter a plea in a separate case where he is charged with unlawfully owning a firearm while addicted to and using a controlled substance, a felony. Biden also possessed a firearm in October 2018 despite “knowing he was an unlawful user of and addicted to a controlled substance,” a charge for which he had agreed to enter a pretrial diversion agreement to avoid prosecution.

The case marks the first time the Justice Department has brought charges against the child of a sitting president. If the issue isn’t resolved, Hunter Biden would face a court trial.

Editorial credit: Domenico Fornas / Shutterstock.com

UPS and the Teamsters union both announced on Tuesday that have reached a tentative contract on working conditions for UPS’s 340,000 unionized employees. If ratified, the contact would avert a strike that would have been the biggest in 60 years. Voting on the contract begins Aug. 3 and ends Aug. 22.

Part-time workers’ pay was a major sticking point in the negotiations, with many employees decrying the two-tier wage system in the current contract. The new Teamsters leadership called it “unfair,” and that tiered system will end under the new agreement. The new contract also raises starting pay for part-timers to $21 an hour, up from the current contracted pay of $15.50, and includes catch-up raises for longtime workers. Full-time workers will see their top hourly rate go up to $49 an hour. The Teamsters called the five-year contract “overwhelmingly lucrative,” and said it “raises wages for all workers, creates more full-time jobs, and includes dozens of workplace protections and improvements.”

Teamsters president Sean O’Brien said in a statement: “Rank-and-file UPS Teamsters sacrificed everything to get this country through a pandemic and enabled UPS to reap record-setting profits. We demanded the best contract in the history of UPS, and we got it.” The agreement also provides for air conditioning in trucks, paid time off for Martin Luther King, Jr. Day, and more full-time positions, according to the Teamsters.

UPS chief executive Carol Tomé said in a statement: “This agreement continues to reward UPS’s full- and part-time employees with industry-leading pay and benefits while retaining the flexibility we need to stay competitive, serve our customers and keep our business strong.” 

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LeBron James’ eldest son, LeBron “Bronny” James Jr., was hospitalized recently after suffering cardiac arrest. The 18-year-old was rushed to the hospital following a basketball workout at the University of Southern California on Monday, July 24. Bronny is currently in his freshman year at USC and is a member of the school’s basketball team.

According to TMZ Sports, a 911 call was made around 9:26 a.m. PT from the USC Galen Center in Los Angeles, California, where the Trojans basketball team plays and practices. According to the site, Bronny was unconscious and taken to the hospital via ambulance. A spokesperson for the James family told TMZ on Tuesday, July 25: “Medical staff was able to treat Bronny and take him to the hospital. He is now in stable condition and no longer in ICU. We ask for respect and privacy for the James family and we will update media when there is more information …LeBron and Savannah wish to publicly send their deepest thanks and appreciation to the USC medical and athletic staff for their incredible work and dedication to the safety of their athletes.”

LeBron and his wife, Savannah James, welcomed Bronny in October 2004; the couple also share son Bryce, 16, and daughter Zhuri, 8. Bronny, a McDonald’s All-American player, recently committed to playing ball for USC.

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