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News Wrap: Fed raises interest rate, warns against drawn-out trade war

In our news wrap Wednesday, the Federal Reserve raised a key short-term interest rate for the third time this year, to 2.25 percent. Fed chairman Jerome Powell also said that "widespread tariffs that remain in place for a long time" would be bad for the U.S. economy. Also, President Trump said at a news conference that he does not want to fire Deputy Attorney General Rod Rosenstein.

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  • Judy Woodruff:

    In the day's other news, President Trump said he does not want to fire Rod Rosenstein, the deputy attorney general, who oversees the Russia investigation. At his news conference this evening, the president noted that Rosenstein has denied that he talked of recording the president or trying to remove him from office.

  • President Donald Trump:

    I would much prefer keeping Rod Rosenstein, much prefer. Many people say I have the right to absolutely fire him. He said he did not say it. He said he does not believe that.

  • Judy Woodruff:

    The two men had been scheduled to meet tomorrow. But the president said he may postpone that, so that he can focus on the Senate hearing with Supreme Court nominee Brett Kavanaugh.

    The Federal Reserve has raised a key short-term interest rate for the third time this year to 2.25 percent. It serves as a benchmark for many consumer and business loans. Fed Chair Jerome Powell said the U.S. economy is strong, but he did warn against a drawn-out trade war with China and other nations.

  • Jerome Powell:

    I think, if this, perhaps inadvertently, goes to a place where we have widespread tariffs that remain in place for a long time, a more protectionist world, that's going to be bad for the United States economy.

  • Judy Woodruff:

    Fed policy-makers also signaled that one more rate hike is likely this year and three next year.

    President Trump now says that he will sign a sweeping spending bill to prevent a government shutdown come Monday. The Senate already approved the bill totaling $854 billion. And the House followed suit today. It funds the military and many domestic agencies for the fiscal year that begins October 1. It doesn't fund the president's border wall.

    There are small signs of hope tonight for towns in South Carolina facing floodwaters from Hurricane Florence. Officials today lowered their flood predictions for Conway and Georgetown, where several rivers converge, but acknowledge things could change again.

  • Gov. Henry McMaster, R-S.C.:

    All three river systems were flooded, not only from water from South Carolina, but that that came in the second wave from North Carolina. So this is unprecedented, and we are still in full battle mode in Georgetown County, in Horry County.

  • Judy Woodruff:

    The hurricane is blamed for 47 deaths in the Carolinas and Virginia.

    Pope Francis urged China's Roman Catholics today to trust him after reaching an agreement with Beijing on naming Chinese bishops. He acknowledged that some Chinese Catholics feel abandoned by any deal with China's communist government. But he said the goal is to unify the Chinese church after decades of division.

  • Pope Francis (through translator):

    I decided to address the Chinese Catholics and all the universal church with a message of fraternal encouragement. With that, I'm hoping that China can open a new phase, one that helps to heal the wounds of the past and reestablish and maintain the full communion of all Chinese Catholics to take up with new conviction the message of the Gospel.

  • Judy Woodruff:

    China's underground Catholics have long been persecuted for refusing to join a state-run Catholic association.

    And on Wall Street, stocks sagged late in the day, after the Federal Reserve raised rates. The Dow Jones industrial average loss nearly 107 points to close at 26385. The Nasdaq fell 17, and the S&P 500 slipped nine.

    Still to come on the "NewsHour", a conversation with Turkey's president at the United Nations; inside the innovative efforts to combat the world's plastics problem; and a Brief But Spectacular take on writing about other people's lives.

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