Federal Reserve cuts key rate for first time this year
WASHINGTON (AP) — The Federal Reserve cut its key interest rate by a quarter-point Wednesday and projected it would do so twice more this year as concern grows at the central bank about the health of the nation’s labor market. The move is the Fed’s first cut since December and lowered its short-term rate to about 4.1%, down from 4.3%. Fed officials, led by Chair Jerome Powell, had kept their rate unchanged this year as they evaluated the impact of tariffs, tighter immigration enforcement, and other Trump administration policies on inflation and the economy. The only dissenter was Stephen Miran, the recent Trump-appointee.
US stocks churn amid uncertainty about how many more rate cuts are coming from the Fed
NEW YORK (AP) — U.S. stocks churned between gains and losses, but they ultimately remained near their record levels. The S&P 500 fell 0.1% Wednesday and hung near its record set at the start of the week. The Dow Jones Industrial Average rose 260 points, or 0.6%, while the Nasdaq composite fell 0.3%. Stocks initially rose and bond yields fell after officials at the Federal Reserve indicated they may cut interest rates several more times by the end of 2026. But they snapped back after Fed Chair Jerome Powell warned not to take the projections as gospel.
Nvidia CEO Huang says he's disappointed by China chip curbs
LONDON (AP) — Chipmaker Nvidia's CEO said he was disappointed about restrictions on sales to China amid U.S.-China trade and tech tensions. The company faces restrictions on exporting advanced chips to China, crucial for AI development. This week, Beijing regulators accused Nvidia of antitrust breaches. And a media report on Wednesday said that China's internet regulator is banning domestic tech companies from buying a specific Nvidia chip model tailored for the local market. CEO Jensen Huang said he plans to discuss the issue with President Trump at a U.K. state banquet. Despite the challenges, Huang remains supportive of both governments as they navigate these geopolitical policies.
What the Fed rate cut will mean for your finances
NEW YORK (AP) — The Federal Reserve has cut its benchmark interest rate for the first time in nine months. Since the last cut, progress on inflation has slowed while the labor market has cooled and Wall Street has rallied. That means Americans are dealing with both high prices and a challenging job market. The federal funds rate, set by the Federal Reserve, is the rate at which banks borrow and lend to one another. The rates that consumers pay to borrow money aren’t directly linked to this rate. But shifts in Fed policy affect what people pay for credit cards, auto loans, mortgages, and other financial products.
Fed convenes meeting with a governor newly appointed by Trump and another he wants to oust
WASHINGTON (AP) — After a late-night vote and last-minute ruling, the Federal Reserve began a key meeting on interest rate policy Tuesday with both a new Trump administration appointee and an official the White House has targeted for removal. With those two in place, the Fed’s two-day meeting could be unusually contentious for an institution that typically prefers to operate by consensus. The White House said it would appeal a ruling late Monday that allowed Fed governor Lisa Cook to remain on the board despite President Donald Trump's attempt to fire her.
Amazon spends $1 billion to increase pay and lower health care costs for US workers
NEW YORK (AP) — Amazon says it’s investing $1 billion to raise wages and lower the cost of health care plans for its U.S. fulfillment and transportation workers. The Seattle-based company said Wednesday that the average pay is increasing to more than $23 per hour. Some of its most tenured employees will see an increase between $1.10 and $1.90 per hour and full-time employees, on average, will see their pay increase by $1,600 per year. Amazon also said it will lower the cost of its entry health care plan to $5 per week and $5 for co-pays, starting next year. Amazon said that will reduce weekly contributions by 34% and co-pays by 87% for primary care, mental health and most non-specialist visits for employees using the basic plan.
Ticket marketplace StubHub slips on the public stage in its trading debut on Wall Street
NEW YORK (AP) — StubHub received a lackluster reception on Wall Street Wednesday. The ticket marketplace saw its stock fall 2% from its initial public offering price of $23.50 per share on its first day of trading. The company's shares trade on the New York Stock Exchange under the symbol “STUB.” StubHub, which is based in New York, said buyers in more than 200 countries and territories used its platform to purchase more than 40 million tickets in 2024. It was co-founded in 2000 by current CEO, Eric Baker. He will remain CEO and maintain control of the company.
Engine trouble forces Northrop Grumman to delay supply delivery to International Space Station
CAPE CANAVERAL, Fla. (AP) — A newly launched supply ship has run into engine trouble that is preventing it from reaching the International Space Station. Northrop Grumman's capsule rocketed into orbit Sunday from Florida aboard SpaceX. But less than two days later, the capsule's main engine shut down prematurely while trying to boost its orbit. The Cygnus capsule was supposed to dock Wednesday. But NASA says everything is on hold while flight controllers consider an alternate plan. The capsule holds 11,000 pounds of cargo for the seven space station residents.
UNHCR official warns that the 1951 refugee convention is increasingly under threat
The U.N. refugee agency says that governments around the world are increasingly undermining the global convention on refugees and asylum-seekers even threatening its very existence. Wednesday's stark warning by the UNHCR came on the 75th anniversary of the U.N. Refugee Convention. The agreement is a 1951 document that defines who refugees are and outlines the responsibilities of countries hosting them. Many countries have moved to suspend applications for asylum. The United States has sought bilateral deals with third countries especially in Africa to deport migrants.
Cracker Barrel expects weaker sales and restaurant traffic after logo controversy
Cracker Barrel said Wednesday it expects lower sales and weaker customer traffic in the coming year as the controversy over its planned logo change continues to play out. In a conference call with investors, Cracker Barrel said traffic at its restaurants was down 1% in early August, before it announced it was adopting a more simplified logo. But after the announcement on Aug. 18, traffic dropped 8% as longtime fans criticized the change. Cracker Barrel said it now expects store traffic will fall between 4% and 7% for the full 2026 fiscal year. The company has since scrapped the logo and planned remodels of its restaurants.
