Fed Raises Rates to Fight Inflation and Trump to Sell Heavy Bombs to Israel

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Here's the Scoop 28 min 4 speakers 4 chapters transcribed 6 hours ago
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What is the main topic discussed in this episode?

Doha Madani 0:00
It'll be Ed and a guitar if he continues at this point. He's not made any any sort of announcement that anyone's joining his tour right now. I
Yasmin Basu 0:09
mean, Ed Sheeran and a guitar is pretty great, but I'm not quite sure that's what he was going for. Hi, everybody, and welcome to Here's the Scoop from NBC News. I'm Yasm Basugan. So today on the show, in fact, we are talking about the controversy. I mean, everybody is talking about it, right? Ed Sheeran, McLamore, and Robert Kraft. So Robert Kraft owns Gillette Stadium. Ed Sheeran was supposed to be having a show there. Opening for him, amongst others, was McLamore. Robert Kraft comes forward and says, no, no, no, you cannot perform here if Macklemore is gonna be your opener because he has said some pro-Palestinian things, especially at the last concert that he played in New Jersey. So Ed Sheeran drops MacLamore, but is actually pointing the finger at the promoters who made the final decision.
Yasmin Basu 0:52
So we're gonna get into all of that, the controversy around it, what people are saying and who they're blaming. Плюс форті тазен хевіон бомс кубел.

What is the opening controversy about Ed Sheeran, Macklemore and Robert Kraft?

Yasmin Basu 1:03
Within this two point eight potential billion dollar arms deal between Israel and the Trump адміністрація. Сойзис хапань на? And is Congress gonna have a say in it? Up first, though. So we're all feeling it, right? From gas to groceries. Inflation has been ticking up since the beginning of the year. To combat that. The Fed raised interest rates by a quarter percent today. Here is Federal Reserve Chair Kevin Warsh.
Kevin Warsh 1:33
The plain fact is that inflation is too high and has been for too long.
Yasmin Basu 1:39
Now, this is of course the opposite of what the president has been demanding, and it's all coming just ahead of the midterms. So why this decision? Why now? And what effect is this gonna have on regular consumers? For that, I wanna bring in NBC News business reporter. Allie Canal. Hi Allie. Hi Asmund. Okay, so let's talk through this because Fed chair, uh Kevin Warsh has decided to raise interest rates by a quarter of a percent. Why now?
Allie Canal 2:06
Why now? Well, the Fed share was pretty strong in the fact that it's due to inflation. So you have to remember that the Fed has a dual mandate to maintain stable prices, which is keeping inflation in check, and also making sure they're achieving sustained maximum employment. So the let that's focused on the labor market. The labor market has been strong. The problem area has been inflation. So right now inflation is at 3.4%. The Fed's target is 2%. Now, here's where it gets a little interesting. The main reason that inflation has been so high, especially over the past few months, is due to the war with Iran that's been raising oil prices, which is having a ripple effect across the supply chain, especially if you look at things like diesel prices.
Allie Canal 2:49
The Fed raising interest rates by a quarter percentage point that doesn't reopen the Strait of Formule. Lower oil prices. But what it does do is it establishes some credibility with the Fed that they are willing to fight this inflation fight to try and bring that uh inflation number back down to two percent and perhaps allow for more breathing room so that prices don't get out of hand, which we do tend to see over time. Listen, one of the reasons why.
Yasmin Basu 3:18
The president became so upset with former Fed Chair Jerome Powell. Um, towards the end of him being the Fed chair was the fact that he would not lower interest rates. Right? Yeah. And in fact, the talk was that Kevin Warsh was in favor of lowering interest rates. So now, a few months into him being the Fed chair, he has in fact increased interest rates. So was this a surprise?
Allie Canal 3:47
It wasn't a surprise at this point because back in August, when Kevin Warsh took the stage at the Jackson Hole Symposium, he gave a pretty what we call in the biz hawkish speech, right? Really targeting inflation, basically telegraphing that they want to bring inflation back down to 2%. The best tool that the Fed has in order to do that is interest rates. So that started to tip markets off.

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