The US economy faces a new threat
CNN
The biggest danger facing the American economy for years has been inflation.
The biggest danger facing the American economy for years has been inflation. Now, another problem is emerging as a credible threat on the horizon: Unemployment. Just as inflation continues to cool, yellow lights are flashing in the still-strong jobs market. The Federal Reserve must now confront the risk that it’s making a mistake by keeping interest rates too high for too long. That’s why some economists are pleading with the Fed to ease up its inflation fight—before high interest rates, which it’s used to tame surging prices, grind the US economy into a recession. “It’s time to cut rates,” said Joe Brusuelas, chief economist at RSM. “Inflation is fading as the primary focus of concern. The balance of risks is slowly tipping towards higher unemployment.” Mark Zandi, chief economist at Moody’s Analytics, said the labor market is straining under the weight of high borrowing costs.
Nippon Steel is expected to re-file its application for a national security review by American regulators of its $15 billion takeover bid of US Steel, sources familiar with the matter told CNN on Tuesday, buying Japan’s largest steelmaker an additional 90 days to close its acquisition of an American rival after political opposition emerged in an election year.
So far, the attacks that targeted Iran-backed Lebanese militant group Hezbollah members through their pagers have had devastating consequences. At least nine people, including an eight-year-old girl, were killed, and at least 2,800 were wounded. Over 150 of those injured are in critical condition, according to the Lebanese health minister.