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Federal Reserve chairman Jerome Powell gave investors reason to cheer on Wednesday when he suggested that the Fed may slow down its interest rate hikes.The Dow surged on the news and closed up 600 points, or more than 2%, in midday trading. The S&P 500 and Nasdaq each rose about 2% as well.Powell reassured investors that the Fed wouldn't risk killing off economic growth by continuing to aggressively raise rates next year."Our gradual pace of raising interest rates has been an exercise in balancing risks," Powell said during a speech at the Economic Club of New York. "We know that moving too fast would risk shortening the expansion. We also know that moving too slowly -- keeping interest rates too low for too long -- could risk other distortions in the form of higher inflation."Powell noted that rates remain relatively low and that they are just below what many economists consider "neutral for the economy -- that is, neither speeding up nor slowing down growth."Investors seemed to interpret Powell's comments as a sign that the Fed, which is widely expected to raise rates again at a meeting next month, may now only hike rates once or maybe twice at most in 2019 as opposed to earlier forecasts of three or four hikes.The Dow's most cyclical stocks were among the biggest gainers. Shares of Boeing (BA), Caterpillar (CAT), Microsoft (MSFT) and Apple (AAPL) helping to lead the rally.In fact, only four Dow stocks -- Verizon (VZ), United Technologies (UTX), DowDupont (DWDP) and Procter & Gamble (PG) -- were trading lower Wednesday afternoon.Matthew Cheslock, a trader at Virtu Financial, told CNNMoney editor-at-large Richard Quest on "Markets Now" Wednesday that the market interpreted Powell's comments as meaning that we are "closer to normal rates. I think that was what really sparked the market to go higher."Cheslock added that some of Powell's remarks about the market not being in a bubble were reassuring as well.Powell's comments may assuage concerns about the Fed possibly going too far with rate increases, a criticism leveled by President Donald Trump.But Tobias Levkovich, Citigroup chief US equity strategist, told Quest that the market may be overreacting."I'm not dancing or partying right at the moment," he said, adding that the Fed has talked about gradual rate hikes "for a very long time." "Maybe [the markets] were just worried it would be worse," Levkovich said.To that end, Trump, who chose Powell to replace former Fed chief Janet Yellen, has often bashed him and the Fed on Twitter and in interviews for the rate hikes.In fact, Trump attacked Powell again in a Washington Post interview Tuesday, saying he was "not even a little bit happy" with Powell and that the Fed was making a mistake with so many rate hikes.Trump even added that sometimes decisions he makes with his "gut" matter more than what other people's brains tell him.Whether or not investors were using their guts or brains when deciding to jump back into stocks Wednesday remains to be seen. But it's clear that the bulls were back in charge on Wednesday."Markets Now" streams live from the New York Stock Exchange every Wednesday at 12:45 p.m. ET. Hosted by Quest and CNNMoney's business correspondents, the 15-minute program features incisive commentary from experts.You can watch "Markets Now" at CNNMoney.com/MarketsNow from your desk or on your phone or tablet. If you can't catch the show live, check out highlights online and through the Markets Now newsletter, delivered to your inbox every afternoon.The-CNN-Wire 3545
For the first time in recorded history researchers have not observed sea ice formation along the Siberian Coast of the Arctic Sea this late into the year.The region, according to researchers, usually starts generating thick layers of ice in the later part of September and early parts of October.“It was really hard to find a solid chunk of ice to freeze the ship into,” said Colorado State University researcher Jessie Creamean, who has spent the last six years traveling to the Arctic Sea to study the ice. “It was really astounding that it was so hard to find this thick ice that should be there but isn’t anymore.”In February, Creamean spent time aboard the world’s largest icebreaker ship, Mosaic, and said the changes were visible to the naked eye and not just on satellite imagery.“It’s getting warmer so we’re losing sea ice, but because we lose the sea ice it becomes even warmer,” said Mark Serreze, director of the National Snow and Ice Data Center. “It exacerbates the problem of climate change.”Serreze says the loss of sea ice has started a trend where warmer water from the Atlantic Ocean moves into the Arctic Sea and layers itself under the colder water before permeating to the surface, causing the Arctic Sea to warm at a faster rate.It also allows cargo ships to travel a route that has historically been impassable, creating geopolitical incentives for nations to try and control the region.“We’re seeing issues of tensions between the United States and Russia which, of course, is an Arctic nation starting to arise,” said Serreze. “Russia is strongly militarizing the Artic right now so there are many things that are occurring at that level because of the changes we’re seeing so it’s a great example of how climate change and geopolitics are becoming intertwined.” 1797
Financial fallout from the pandemic is hitting millennials hard — and many will soon turn to their parents for help, if they haven’t already.Before parents ride to the rescue, financial planners urge them to map out a strategy that doesn’t just plug a short-term need but also makes sense in the long run.“Often the heartstrings will get pulled — ‘I really have to help them!’— but it can be detrimental to the parent,” says certified financial planner Jeffrey L. Corliss of Westport, Connecticut.(Of course, financial aid can flow the other way, as many millennials help support their parents. I’m addressing parents here, but most of the advice applies to kids helping their folks as well.)Millennials losing jobs, incomeEven before the pandemic, millennials had lower median incomes, far more debt and a much smaller slice of the nation’s wealth than boomers had at the same age. Millennials — usually defined as those ages 24 to 39 — are more likely than older generations to have lost jobs or household income because of the pandemic, various surveys show.“I’ve already seen clients coming in, worried about their kids,” says CFP Deborah Badillo of Miami. “‘They’re going to lose the house! What can I do to help them?’”Have them explore alternativesEncourage your kids to take full advantage of available financial help before extending yours, Badillo says. They may not know, for example, that unemployment benefits have been dramatically expanded because of the pandemic. Weekly payments are higher and are available to people who normally wouldn’t qualify, including gig workers, the self-employed and people whose hours have been reduced.In addition, there are many more options for people struggling to pay debt. Most mortgages qualify for forbearance programs that allow homeowners to skip payments for up to a year. Hardship programs have been added or expanded by credit card companies and other lenders. Federal student loan payments have been paused until Sept. 30, and income-driven programs can reduce payment amounts after that.Another option is a coronavirus hardship withdrawal, which allows people to tap their IRAs and 401(k)s without penalty if they were physically or financially affected by COVID-19. The withdrawals are taxable, but if the money is paid back within three years those taxes are refundable. Raiding retirement funds isn’t ideal, of course, but your kids have many more years to replenish their retirement savings than you do.Assess your own situationWhile your kids are filing for unemployment and calling their lenders, take a moment to assess your own finances. Where will the cash for your kids come from? It’s one thing to give away money you’ve been saving for a vacation, since you’re unlikely to travel soon anyway. It’s quite another to undermine your own ability to retire or handle a layoff or other setback.Some parents make a conscious decision to operate with a smaller cushion, or to delay their retirements, to help their children, says CFP Lazetta Rainey Braxton in New York. Just keep in mind that you may not get to decide when you retire. Many workers retire earlier than expected, often because of a health problem or job loss. Helping your children now could mean you have to lean on them later, Braxton says. If you’re not sure how this financial aid will impact your future finances, a consultation with a fee-only financial advisor could bring you some clarity.Set some boundariesFinancial planners typically recommend deciding how much to give, and then setting clear boundaries about when the financial help will end. That’s tricky now, of course, because no one knows how long the current economic crisis will last.But parents can still set expectations in other ways, financial planners say. If the child didn’t have an emergency fund, for example, parents can discuss the importance of saving money out of every future paycheck, so the child won’t have to rely on family help again, Braxton says.“Some parents will just put on a Band-Aid and give them money, but they really haven’t helped in terms of their financial capacity,” Braxton says.If an adult child is moving back home, Corliss suggests a written contract outlining chores and responsibilities, such as how soon they’ll be expected to move out after finding a job. A similar end date can be set for any cash the parents hand out. Corliss says the message should be clear: “We expect you to get on your feet as soon as you can.”This article was written by NerdWallet and was originally published by The Associated Press.More From NerdWalletMortgage Relief Programs for Homeowners Hit by the Coronavirus CrisisWhat Is a Credit Card Hardship Program?Cashing Out a 401(k) Due to COVID-19? Consider These Things FirstLiz Weston is a writer at NerdWallet. Email: lweston@nerdwallet.com. Twitter: @lizweston. 4841
Former President Barack Obama is cautioning activists against using slogans like “defund the police” to achieve policy changes.Obama spoke with Peter Hamby on Snapchat’s “Good Luck America” and was responding to a question about activists who use “defund the police” as a rallying cry."If you believe, as I do, that we should be able to reform the criminal justice system so that it's not biased and treats everybody fairly, I guess you can use a snappy slogan like 'Defund The Police,' but, you know, you lost a big audience the minute you say it, which makes it a lot less likely that you're actually going to get the changes you want done," Obama said.Instead, Obama encouraged them to have a more inclusive discussion with all stakeholders.“If you instead say, 'Let's reform the police department so that everybody's being treated fairly, you know, divert young people from getting into crime, and if there was a homeless guy, can maybe we send a mental health worker there instead of an armed unit that could end up resulting in a tragedy?' Suddenly, a whole bunch of folks who might not otherwise listen to you are listening to you,” Obama said.Top elected Democrats, including president-elect Joe Biden and House Majority Whip Jim Clyburn of South Carolina, have said publicly they support changes to policing practices but warned the phrase “defund the police” -- which calls for redirecting some municipal funds from police departments toward social welfare programs -- could be harmful.Many progressives, however, including New York Rep. Alexandria Ocasio-Cortez, have often repeated the phrase.In response to Obama’s interview, Rep. Ilhan Omar, a close ally of Ocasio-Cortez, tweeted a sharp rebuke.“We lose people in the hands of police. It’s not a slogan but a policy demand. And centering the demand for equitable investments and budgets for communities across the country gets us progress and safety,” Rep. Omar’s tweet reads. 1949
FORT LAUDERDALE, Fla. — A family is suing over the fatal December shooting of a Florida UPS driver who was taken hostage by two robbers and killed in a torrent of gunfire after he and the suspects got stuck in rush-hour traffic. Attorneys representing the two young daughters of driver Frank Ordonez filed the lawsuit in Broward County on Wednesday. They say officers from several agencies acted negligently when they opened fire on the van when he got stuck in traffic. The Dec. 5 gun battle happened on national television after a long chase. Ordonez, the two robbers and a nearby driver all died. The police agencies declined comment Wednesday. 655