Salem News Channel

VP Vance Winning Over Liberals?

Fed Begins Warsh Era By Keeping Rates On Hold, Sees Hike Later This Year

WASHINGTON, June 17 (Reuters) - The Federal Reserve held interest rates steady on Wednesday, but policymakers expect a hike in borrowing costs later this year amid growing concerns about inflation lodged above the U.S. central bank's 2% target. New quarterly projections showed nine Fed officials now anticipate a hike in rates by the end of 2026, and an updated policy statement removed language that had been used to flag the likelihood of further reductions in borrowing costs this year. Indeed, the statement, in an early sign of new Fed Chairman Kevin Warsh's influence, removed any guidance about future rate moves altogether, with a revised format that simply stated the rate decision and reaffirmed the central bank's intent to keep "ample reserves in the banking system." The shortened document, a return to a format similar to that used by former Fed Chairman Alan Greenspan, was approved by a unanimous 12-0 vote by the central bank's Federal Open Market Committee. The statement showed other signs of Warsh's early influence on the debate as he takes over after being appointed earlier this year by President Donald Trump with an expectation that he would deliver the rate cuts the president has demanded. The description of the economy touched on issues Warsh has emphasized, mentioning that "productivity growth and capital investment are strong." While acknowledging that inflation was "elevated relative to the Committee's 2% goal," that development was assigned in part to "supply shocks that have driven price increases in certain sectors, including energy." New projections show inflation slowing sharply next year, allowing rates to return to where they are now by the end of 2027 and easing modestly further in 2028. "The Committee will deliver price stability," the statement said. Treasury yields rose after the release of the policy statement and projections. U.S. stocks fell modestly while the dollar gained ground against a basket of currencies. Short-term interest-rate futures are now pricing a bigger chance of a rate hike by September than a hold. MISSING DOT Only 18 of 19 policymakers submitted rate projections for the so-called "dot-plot" chart released by the Fed, and while the missing "dot" is not identifiable, it was presumably withheld by Warsh, who is only about three weeks into the job and has been critical of the quarterly Summary of Economic Projections. The statement marks a turning point not just in leadership at the central bank but in a monetary policy outlook that since the fall of 2024 had been geared to lower borrowing costs from the elevated rates used to help tame inflation that hit 40-year highs during the COVID-19 pandemic. Projections among officials showed the policy interest rate, which has been set in the 3.50%-3.75% range since last December, would rise by a quarter of a percentage point by the end of this year. The outlook for inflation for the end of 2026 was marked up to 3.6% from 2.7%, before it is seen falling to 2.3% next year, all without a rate increase - consistent with the statement language attributing high prices to supply disruptions that would typically be expected to pass. Economic growth was marked down slightly, with the unemployment rate expected to end the year at 4.4%, the same as in the Fed's March projections.

U.S. Officials Read Memorandum Of Understanding With Iran To Journalists

After days of secrecy, senior U.S. officials on Wednesday briefed journalists on the memorandum of understanding with Iran ahead of a formal signing ceremony scheduled for Friday. The U.S. draft of the agreement includes a new ‘minimum’ standard for diluting Iran’s highly enriched uranium and toll-free passage through the Strait of Hormuz for 60 days. Meanwhile, U.S. President Donald Trump is wrapping up his time with world leaders in Évian-les-Bains, France, for the Group of Seven summit. Trump has blurred the timeline for the Iran deal’s signing, even as he tries to sell the tentative agreement as a pact that will ensure Iran never develops a nuclear weapon. Trump’s last stop in France is a glitzy dinner at the Palace of Versailles outside of Paris.

Military Officials Identify All 8 Victims Of B-52 Crash At California Air Force Base

LOS ANGELES (AP) — Military officials on Wednesday identified all eight men killed in this week's fiery crash of a B-52 during a test flight at Edwards Air Force Base in Southern California. The victims include four active duty airmen, one reservist and three civilians, according to a statement from the base. They were identified as: Col. Gregory Watson, 53; Lt. Col. Gabriel Estrella, 40; Maj. Alexander Davis, 34; Maj. Robert Dee, 40; Maj. Brad Hovey, 35; Jeromy Smith, 32; and Christopher Rischar, 41. “They were dedicated professionals, beloved family members and irreplaceable teammates," Col. Thomas Tauer, commander of the 412th Test Wing at Edwards, said in the statement. The airfield where the crash occurred on Monday was still closed but other base operations have resumed. No cause has been determined. Officials said it could take six months to complete the investigation. The Boeing B-52 Stratofortress was taking part in a test mission as part of a program to keep one of the oldest aircraft in the U.S. fleet flying for decades to come. The bomber had arrived at Edwards in December after having a modernized radar installed at Boeing’s facility in San Antonio. The aircraft took off shortly before noon on a clear day, heading southwest into the prevailing winds. It flew straight and crashed on the same 15,000-foot (4,572-meter) runway. The compact wreckage indicates the plane dropped sharply. Lauren Smith told Eyewitness News KBAK-CBS and FOX58 that her husband, Jeromy Smith, was a flight test engineer for the U.S. Department of Defense and died doing what he loved. “It is such a horrible hurt, and I’m still processing everything that happened,” she said Tuesday. The B-52, a long-range bomber that entered service in 1955, is designed to carry both conventional and nuclear weapons. It has been used in conflicts involving the U.S. military from Vietnam to Iran. . Edwards is home to the 412th Test Wing, which conducts regular developmental testing of all Air Force aircraft, weapons systems, software and components before purchase by the service as well as throughout their life span. Test missions take place at Edwards daily.

Rex Heuermann Sentenced To Life In Prison For Serial Killings

RIVERHEAD, N.Y. (AP) — A Long Island architect who lived a secret life as the Gilgo Beach serial killer has been sentenced to to life in prison without parole. Rex Heuermann had previously admitted in court to killing eight women, many of them sex workers. Police discovered the remains of several of the women along a coastal parkway not far from Long Island’s Gilgo Beach. Family members of victims delivered emotional statements during the court hearing. Jasmine Robinson, a cousin of victim Jessica Taylor, said, “You fill me with so much repugnance, I can’t stand it.”

Tropical Storm Arthur Forms Near Texas Coast, With Life-Threatening Flooding Expected

MIAMI (AP) — Tropical Storm Arthur is the first of the Atlantic season and threatens the southern United States with dangerous flash flooding. The National Hurricane Center announced the storm Wednesday and said Arthur would skirt over the Gulf Coast with heavy rain through Friday. The storm loomed over a World Cup match in Houston between Portugal and the Democratic Republic of Congo. It also formed amid days of heavy rain that has been drenching southern Texas. Authorities near Houston said a teenager appears to have drowned in a retention pond Tuesday following a period of heavy rain.

G7 Leaders Back Trump's Plan To End Iran War

EVIAN-LES-BAINS, France (AP) — Leaders at the Group of Seven summit have backed U.S. President Donald Trump's tentative agreement with Iran to open the Strait of Hormuz and extend a ceasefire. They called it a “historic opportunity” to prevent Iran from acquiring nuclear weapons. The deal, expected to be signed Friday in Switzerland, would allow Iran to sell oil without restrictions if a final agreement is reached. Trump has not released the agreement's text but described it as “very strong.” G7 leaders also pledged support for Ukraine against Russia and vowed to tackle global drug gangs and migrant smugglers.

Mangione Will Use Psychiatric Defense In Murder Case

NEW YORK (AP) — Luigi Mangione will assert a psychiatric defense at his state murder trial in the killing of UnitedHealthcare CEO Brian Thompson. Judge Gregory Carro said Wednesday that Mangione’s lawyers have informed him they will attempt to show that he was suffering from “extreme emotional disturbance at the time of the occurrence.” By asserting a psychiatric defense, Mangione would effectively be admitting that he killed Thompson but did so because of mitigating circumstances. If a jury finds that Mangione was emotionally disturbed at the time of the killing, it could convict him of manslaughter instead of murder, meaning he’d be sentenced to less time in prison.

1 Killed When Small Plane Crashes On Texas Highway

A business jet reporting mechanical problems to a nearby airport crashed and caught fire on a Texas highway, killing one person and sending motorists racing from their cars to help rescue passengers from the burning wreckage. The plane went down late Tuesday in Laredo, Texas, near the Mexican border after its crew radioed the local airport seeking to make an emergency landing. Police said six people were on board and one of them died in the crash. The jet barreled into a car, sending one motorist to a hospital in stable condition. The cause of the crash wasn't immediately known. The FAA and the National Transportation Safety Board are investigating.

Eastern Washington Wildfire Forces Evacuations And Destroys Homes

SPOKANE, Wash. (AP) — High winds drove a wildfire into a Spokane neighborhood, forcing the evacuation of about 1,200 people and potentially damaging or destroying up to 15 structures, according to fire officials. The Upriver Fire started at 12:17 p.m. Tuesday near Upriver Drive in northeast Spokane, said Fire District 9 spokesman Robert Gray. “It moved rapidly up the hill and once it reach the top the wind shifted and it went right into the Northwoods neighborhood,” Gray said. Fire crews from Washington state and Idaho attacked the fire from the ground and air, but it quickly grew to 225 acres (.35 square miles) in an area called Beacon Hill. The blaze was 10 percent contained by Wednesday morning, according to a report by the National Interagency Fire Center. The wind had died down overnight, but the fire was still burning on the ground, so there was potential to expand on Wednesday, said Isabelle Hoygaard, a spokesperson with the Washington state Department of Natural Resources.

Suspect In Fatal Shooting Inside Delaware Hospital Taken Into Custody

WILMINGTON, Del. (AP) — Officials say the suspect in a fatal shooting inside a Delaware hospital has been taken into custody in Philadelphia. The city of Wilmington said in a statement Tuesday that the 23-year-old man is expected to be charged in the shooting at Wilmington Hospital and extradited to Delaware. Officials have declined to release information about the identities of the victims or the condition of a person who was shot and survived. The city said the shooting is believed to have been targeted and isolated.