News Wrap: Fed keeps interest rates steady but signals more hikes to come

Read the Full Transcript

• Geoff Bennett:

  Welcome to the "NewsHour."

  The Federal Reserve is hitting pause on its push for higher interest rates, at least for now. The Central Bank today decided not to raise rates for the first time in 15 months.

• Amna Nawaz:

  But the Fed also indicated it may still hike rates by another half-a-percentage point this year to slow growth and curb inflation. Chairman Jerome Powell said that's because the latest economic data is stronger than expected.

• Jerome Powell, Federal Reserve Chairman:

  Growth estimates moved up a bit. Unemployment estimates moved down a bit. Inflation estimates moved up a bit. And all three of those point in the same direction, which is that perhaps more restraint will be necessary than we had thought at the last meeting.

• Geoff Bennett:

  The Fed's goal is to bring inflation down to a 2 percent annual level. Right now, it's still running at twice that number.

  Now to the day's other news.

  Nearly 80 people drowned off the coast of Greece in one of the worst migrant disasters this year. They had sailed from Libya on a fishing boat, trying to reach Italy, when the vessel sank. As many as 500 people may have been on board. More than 100 were rescued as the day progressed. Survivors were taken to a warehouse in the Greek port city of Kalamata.

• Yannis Karvelis, Greek Regional Health Director (through translator):

  It is indeed a tragic situation, a very difficult situation with a very large number of shipwrecked people, a number that I think we have not faced in the past to such an extent and volume.

• Geoff Bennett:

  U.N. migration officials say more than 17,000 people have died or disappeared trying to cross the Central Mediterranean since 2014.

  Officials in Northern Nigeria have confirmed at least 106 people died after their overcrowded boat capsized early Monday. The boat was carrying up to 300 people back from a wedding when it overturned after hitting a log in the river. Police say at least 144 people were rescued, and the search continued today.

  In Ukraine, Russia stepped up aerial attacks overnight trying to blunt a counteroffensive by government forces. In the south, new shelling in Odessa destroyed buildings and littered streets with shattered glass. In the east, rescuers pulled people from wreckage left by missile strikes. In all, at least six people were killed.

  Italy's former Prime Minister Silvio Berlusconi was honored today with a national day of mourning and a state funeral. A somber procession took place inside the Duomo cathedral in Milan.

  In his eulogy, the city's Roman Catholic archbishop acknowledged sharp divisions over Berlusconi's legacy.

  Mario Delpini, Archbishop of Milan (through translator): When a man is a character, he is always on stage. He has fans and detractors. He has people cheering for him and people hating him. He was a man with a desire for life.

• Geoff Bennett:

  Outside, tens of thousands of supporters chanted Berlusconi's name and waved flags for A.C. Milan, the football club he once owned. Berlusconi died Monday at the age of 86.

  China announced a strategic partnership with the Palestinian Authority today, expanding its influence in the Middle East. President Xi Jinping welcomed Palestinian President Mahmoud Abbas to Beijing. They signed an agreement to strengthen economic ties and promote an independent Palestinian state.

  Lawmakers in Europe are moving to set the world's first broad rules on artificial intelligence. The European Parliament voted today to ban certain types of A.I., such as facial recognition and public surveillance. And ChatGPT and similar services must disclose all A.I.-generated content.

• Roberta Metsola, President, European Parliament:

  Going forward, we are going to have to need clear boundaries and limits on artificial intelligence. And, here, there's one thing that we will not compromise on. Any time technology advances, it must go hand in hand with our fundamental rights and democratic values.

• Geoff Bennett:

  Separately, European Union regulators ordered Google to sell parts of its lucrative digital advertising business, in a bid to foster more competition. The company said it will oppose the move.

  At the White House, President Biden vetoed a bill that would block new rules on heavy-duty truck pollution. Republicans in Congress have argued the rules will make trucks too expensive for small businesses. The president said the mandates will reduce harmful air pollution and lead to fewer premature deaths.

  A jury in Oregon says electric utility Pacific Corp must pay punitive damages in the Labor Day weekend fires of 2020. The fires destroyed more than 5,000 buildings and killed nine people. The jury found that downed power lines sparked the flames because the utility left them energized. Today's verdict, plus an earlier finding, could run into the billions of dollars.

  Miami Mayor Francis Suarez filed paperwork today to enter the race for the Republican presidential nomination. He did so just a day after former President Donald Trump appeared in a Miami court on federal charges. The 45-year-old joins a crowded Republican field and is vying to be the first sitting mayor elected president.

  Wall Street searched for direction today with the Fed announcement on interest rates. The Dow Jones industrial average lost 232 points to close it 33979. The Nasdaq rose 53 points. The S&P 500 gained just three points.

  And the man who discovered that whales could sing has died. Roger Payne passed away Saturday in Vermont. Back in 1967, he realized the haunting sounds on an underwater recording were actually whales communicating through song. He even produced an album called "Songs of the Humpback Whale" that galvanized global efforts to save them from extinction. Roger Payne was 88 years old.

  Still to come on the "NewsHour": the exiting White House COVID response coordinator on preparing for the next pandemic; killer whales exhibit strange behavior in encounters with boats off the coast of Spain; and the founder of a recycling nonprofit gives a Brief But Spectacular take on sustainable fashion.

Improved audio player available on our mobile page