The Fed sees its inflation fight as a success. Will the public eventually agree?
WASHINGTON (AP) -- With its larger-than-usual half-point cut to its key interest rate last week, the Federal Reserve underscored its belief that it's all but conquered inflation after three long years. The public at large? Not so much. Consumer surveys show that most Americans remain unhappy with the economy, still bruised by an inflation rate that hit a four-decade high two years ago as the economy rebounded from the pandemic recession. Yet in the view of some economists, the shift toward steadily lower borrowing rates could eventually boost consumer sentiment. Inflation has sunk for more than two years and is nearly back down to the Fed's 2% target. Though that means overall prices are still rising, they're doing so much more slowly.
For home shoppers, the Fed's big rate cut is likely just a small step towards affording a home
The Federal Reserve gave home shoppers what they hoped for this week: a big rate cut and a signal of more cuts to come. Even so, aspiring homebuyers and homeowners eager to refinance should temper their expectations of a big drop in mortgage rates from here. That's because mortgage rates already fell in anticipation of the Fed's action. So, while mortgage rates are likely to fall further as the Fed implements more cuts, by how much and how quickly is uncertain. The pace of those declines will also affect those who did buy recently at higher rates and are hoping to refinance.
Co-founder of Titan to testify before Coast Guard about submersible that imploded
The co-founder of the company that owned the experimental submersible that imploded en route to the wreckage of the Titanic is scheduled to testify before the U.S. Coast Guard as part of its investigation of the maritime disaster. Businessman Guillermo Sohnlein founded Titan owner OceanGate with Stockton Rush, who was among the five people who died when the submersible imploded in June 2023. The Coast Guard has opened a public hearing as part of a high level investigation into the cause of the implosion. Sohnlein left the Washington company years ago, but in the aftermath of the submersible's implosion he spoke in defense of the company's efforts. In his testimony Monday, he is expected to provide perspective into the company's inner workings.
Global stocks are mixed after Wall Str ends a record-setting week
HONG KONG (AP) -- Global stocks are mixed following a series of key interest rate decisions announced last week by the U.S. Federal Reserve, Japan, China, and Britain. Markets in Japan were closed on Monday for a public holiday. China's central bank lowered its 14-day reverse repurchase rate to 1.85% from 1.95% on Monday after opting to keep key lending rates unchanged last week. Markets had been anticipating a cut. Friday brought a quiet close to a record-setting week on Wall Street. The S&P 500 edged 0.2% lower from its record and the Nasdaq composite fell 0.4%. The Dow Jones Industrial Average ticked 0.1% higher.
More shelter beds and a crackdown on tents mean fewer homeless encampments in San Francisco
SAN FRANCISCO (AP) -- San Francisco's sidewalks were once notorious for sprawling tents belonging to homeless people but are now largely clear. There are still thousands of homeless people living in RVs and cars and in expanded shelter beds. But Mayor London Breed's office says the nearly 3,000 people counted sleeping outdoors in tents is the lowest figure in a decade. And even fewer people are likely living on sidewalks after Breed ramped up enforcement of anti-camping laws following a U.S. Supreme Court decision this summer. Part of the decrease in tents is also due to San Francisco adding thousands of new shelter beds and affordable housing units.
Britain's Treasury chief tries to turn on the economic optimism after months of gloomy talk
LIVERPOOL, England (AP) -- British Treasury chief Rachel Reeves is pledging not to return to an era of public spending cuts despite the dire state of the U.K.'s national finances. Reeves plans to stress optimism in a speech to the Labour Party's annual conference on Monday. She's aiming to reassure party members that her first budget next month won't be all doom and gloom. The party says Reeves will stress that "my optimism for Britain burns as bright as it ever has done." The center-left party is gathering in Liverpool three months after returning to power in Britain's July 4 election. Despite the victory, many delegates are anxious about the government's faltering start and downbeat economic messaging.
9 European Union nations pledge to turn the Mediterranean into a green energy hub
LARNACA, Cyprus (AP) -- Officials from nine southern European Union member countries are focused on harnessing offshore wind and solar energy. They renewed a pledge to turn the Mediterranean region into a renewable energy hub and stave off the risks of climate change. The energy ministers of Cyprus, Slovenia and Malta, Croatia's economy minister as well as officials from Greece, Italy, France, Portugal and Spain said in a joint statement Monday that they're working on setting up joint renewable energy projects across borders without the red tape that could potentially repel investors. They called on the European Commission to head a new study on the region's renewable energy potential on which "informed decision-making and concrete action" will be taken on moving ahead with green energy projects.
California governor signs law banning all plastic shopping bags at grocery stores
SACRAMENTO, Calif. (AP) -- "Paper or plastic" will no longer be a choice at grocery store checkout lines in California under a new law signed by Gov. Gavin Newsom. California had already banned thin plastic shopping bags at supermarkets and other stores, but shoppers can purchase bags made with thicker plastic that purportedly makes them reusable and recyclable. The new measure was approved by state legislators last month and signed Sunday by the governor. It bans all plastic shopping bags starting in 2026. Consumers will now simply be asked if they want a paper bag.
Brazil drought punishes coffee farms and threatens to push prices even higher
CACONDE, Brazil (AP) -- Brazilian coffee farmers are grappling with above-average temperatures as the country, the world's largest coffee producer, faces its worst drought in more than seven decades. Vietnam, the second-largest coffee producer, is also experiencing heat and drought, affecting its coffee crops. As a result, potential supply shortages in both countries have driven up global coffee prices. Prices prices haven't reached the record highs the world saw in the late 1970s, after a severe frost wiped out 70% of Brazil's coffee plants. But they have been soaring in recent years.
An explosion at a coal mine in eastern Iran kills at least 34 workers
TEHRAN, Iran (AP) -- An explosion in a coal mine in eastern Iran has killed at least 34 workers and injured 17 others. The disaster that began Saturday night is one of the worst mining disasters in the country's history. Others still remained missing hours after the blast on Sunday. The blast struck a coal mine in Tabas, about 335 miles southeast of the capital, Tehran. On Sunday, weeping miners stood alongside mine cars that brought up the bodies of their colleagues, all covered in coal dust. Around 70 people had been working there at the time of the blast.