News Wrap: Federal Reserve holds interest rates steady, but some vote for increase

Geoff Bennett:

In the day's other headlines: The Federal Reserve held interest rates steady for a fifth straight time, but not without disagreement. Three Fed officials voted in favor of raising rates amid ongoing inflation concerns and the spike in energy prices due to the Iran war.

Speaking at a press conference, Fed Chair Kevin Warsh characterized the divisions as a good family fight. Some economists believe the Fed could raise rates at its next meeting in September, but Warsh said the Central Bank will let the data dictate its actions.

Kevin Warsh, Federal Reserve Chairman:

We will be watching inflation data over the period ahead, but I also don't want you to leave the misimpression that we're sort of breathlessly waiting that. My own judgment is this is a period of watchful thinking, not watchful waiting.

Geoff Bennett:

For his part, President Trump stood behind the Fed chair today, calling Warsh a -- quote -- "brilliant guy." Mr. Trump has frequently pushed the Fed to lower rates and today blamed what he called a political board for keeping rates where they are.

Also, today President Trump unveiled a $22 billion overhaul of Washington Dulles International Airport in his latest effort to remake the D.C. region.

President Donald Trump:

Within a few years, it'll be rated the best airport in the country.

Geoff Bennett:

In the Oval Office this afternoon, Mr. Trump and Transportation Secretary Sean Duffy laid out plans for new passenger terminals and a parking garage. The plan would also eliminate those people movers, the shuttles used for decades to transport passengers to and from the main terminal.

The White House says the price tag would largely be split between the airport's authority and the airlines operating there. Secretary Duffy says construction could start as soon as next spring.

In Japan, this week's 6.8-magnitude earthquake has killed at least 18 people and rescue workers are scrambling to find survivors. Entire houses were leveled in the hard-hit city of Kumamoto. Officials say five people were killed, and others are believed trapped in the debris of a nearby paper factory.

Some of the worst damage was at a shopping mall that suffered a gas explosion. At least three people remain missing there. Japan's military and even firefighters from Taiwan have joined the rescue effort, which the country's prime minister says is urgent.

Sanae Takaichi, Japanese Prime Minister (through translator):

Even now, there are people waiting to be rescued, and this is a race against time. We will marshal all available resources on the ground to save and rescue as many people as possible.

Geoff Bennett:

Sweltering heat is adding to the challenges facing rescue workers and raising further concerns for anyone still trapped. This is the second deadly quake to hit Kumamoto in the last 10 years.

Russian authorities today charge the founder of the social media platform Telegram with aiding terrorism. They accuse Pavel Durov of failing to remove content from Telegram's platform, which Ukraine has used to carry out attacks. The Russian-born billionaire lives overseas and could face life in prison in Russia if convicted. He has previously accused Moscow of trying to suppress free speech.

Meantime, in Western Russia, columns of thick smoke could be seen after Ukraine says it struck a logistics facility and two major oil refineries. Ukraine has stepped up its long-range attacks on Russian energy targets in an effort to damage Russia's war effort and its economy.

In entertainment news, the K-pop group BTS announced today they will not submit their music for consideration at next year's Grammy Awards. It comes one month after the recording academy unveiled a new category for Asian pop set to debut at next year's ceremony.

In a statement, the group's seven members said -- quote -- "We hope our music can be heard and loved for what it is, rather than being divided by region or language." Critics of the new category say it echoes a long pattern at the Grammys of steering artists into racially and ethnically defined lanes from the decades-long siloing of Black artists into R&B and rap categories while they were passed over for top honors.

On Wall Street today, stocks sank following that Fed rate decision. The Dow Jones industrial average lost more than 1,100 points by the close. The Nasdaq dropped more than 400 points, or nearly 2 percent. The S&P 500 also ended sharply lower.

And Irish singer-songwriter Glen Hansard has died. Hansard won an Oscar for "Falling Slowly" from the film "Once," in which he also starred. He also had a role in the hit 1991 movie "The Commitments" and performed in bands as a solo artist, earning a Grammy nomination in 2016. He started out as a busker on the streets of Dublin before building his musical and acting career.

His management team says he died in a motorcycle crash in Dublin early this morning. Glen Hansard was 56 years old.