Federal Reserve cuts rates but ‘hawkish’ forecast hits stocks and sends dollar jumping
The Federal Reserve cut interest rates by a quarter of a percentage point but signalled a slower pace of easing next year, sending the dollar racing to a two-year high and igniting a sell-off in US stocks.
he Federal Open Market Committee on Wednesday voted to reduce benchmark rate to 4.25 per cent to 4.5 per cent, its third cut in a row. Cleveland Fed president Beth Hammack casting a dissenting vote, preferring to hold rates steady.
Officials’ projections for rates in 2025 also pointed to fewer cuts than forecast, underscoring policymakers’ concern about lingering inflation. In a sign of those worries, policymakers also raised their inflation forecast for next year.
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EPA approves California’s plan to ban sale of new petrol-powered cars by 2035
The US Environmental Protection Agency has approved California’s plan to ban the sale of new petrol-powered passenger cars sold in the state by 2035.
The environmental agency granted a waiver to California under the Clean Air Act to enforce its Advance Clean Cars II regulations and to establish low nitrogen oxide emission standards for heavy-duty engines and vehicles.
Donald Trump has criticised the EPA’s car emissions rules, referring to them as “the insane electric vehicle mandate” and has threatened to eliminate tax credits for EVs. But the EPA’s latest move could complicate his plan.
“Clean cars are here to stay,” said California governor Gavin Newsom. “Naysayers like president-elect Trump would prefer to side with the oil industry over consumers and American automakers, but California will continue fostering new innovations in the market.”
Czech tycoon Křetínský accepts union demands after Royal Mail takeover
Czech tycoon Daniel Křetínský has accepted union demands for restrictions on gig economy delivery workers and compulsory redundancies following his takeover of Royal Mail.
An agreement with the Communication Workers Union published on Wednesday set out the billionaire’s commitment to not hire owner-drivers in Royal Mail’s domestic operation, while maintaining a 25 per cent limit on these recruits in its international Parcelforce business.
Křetínský’s EP Group also conditionally agreed to not make compulsory redundancies while implementing changes to Royal Mail’s universal service obligation to deliver all letters six days a week.
The deal also confirmed previously reported plans to pay 10 per cent of dividends taken by EP Group into an employee investment trust, to hold regular meetings with union representatives, and to not raid the pension surplus except to reinvest in the business.