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The Federal Reserve says economic activity has picked up in most regions of the country but still remains well below pre-pandemic levels with the country facing high levels of uncertainty.The Fed reported Wednesday that its latest survey of economic conditions around the country found improvements in consumer spending and other areas but said the gains were from very low levels seen when widespread lockdowns push the country into a deep recession.And the report said that business contacts in the Fed’s 12 regions remained wary about the future.“Outlooks remained highly uncertain as contacts grappled with how long the COVID-19 pandemic would continue and the magnitude of its economic implications,” the Fed said in its latest Beige Book.Economists said the Fed survey underscored how uncertain the outlook was at present.“Last month’s optimism as businesses were reopening has since given way to concerns over reinforced shutdowns, announced delays in school openings and growing consumer fears,” said Curt Long, chief economist of the National Association of Federally-Insured Credit Unions. “A smooth path back to normal was never likely, but it will still leave consumers and businesses more cautious until a vaccine is ready and widely available.”The information in the report will provide guidance for Fed officials at their next meeting on July 28-29. Economists expect the central bank to keep its benchmark interest rate at a record low as it tries to cushion the economy from the pandemic downturn.The Beige Book found only modest signs of improvement in most areas, noting that consumer spending had picked up as many nonessential businesses were allowed to reopen, helping to boost retail sales in all 12 Fed districts but construction remained subdued.Manufacturing activity moved up, the report said, ’but from a very low level.”The economy entered a recession in February, ending a nearly 11-year long economic expansion, the longest in U.S. history. Millions of people were thrown out of work and while 7.3 million jobs were created in May and June that represented only about one-third of the jobs lost in March and April.And now, in recent weeks with virus cases surging in many states, there are concerns that the fledgling recovery could be in danger of stalling out.The Beige Book reported that employment had increased in almost all districts in the latest survey, which was based on responses received by July 6, but layoffs had continued as well.“Contacts in nearly every district noted difficulty in bringing back workers because of health and safety concerns, child care needs and generous unemployment insurance benefits,” the Fed said.The report said that many businesses who had been able to retain workers because of the government’s Paycheck Protection Program said they might still be forced to lay off staff if their businesses do not see a pickup in demand.The Fed in March cut its benchmark interest rate to a record low of 0 to 0.25% and purchased billions of dollars of Treasury and mortgage-backed bonds to stabilize financial markets.But Fed officials have recently expressed concerns that a resurgence of the virus in many states may require more support from the central bank and from Congress.Fed board member Lael Brainard said in a speech Tuesday that the economy was likely to “ face headwinds for some time ” and that continued support from the government will remain “vital.”The Trump administration has said it plans to negotiate another support package once Congress returns from recess next week. Republicans and Democrats remain far apart on what should be in the new package with Democrats pushing for a package of around trillion while GOP lawmakers have called for smaller support of around trillion.Congress will only have two weeks to reach a compromise before two of the most popular programs providing paycheck protection for workers and expanded unemployment benefits expire. The unemployment support provided an extra 0 per week but many Republicans say that amount was too high and kept some people from returning to work. 4106
The Food and Drug Administration (FDA) released a key report Tuesday that said a COVID-19 vaccine made by Moderna is safe and effective — the latest in a series of rubber stamp approvals that could allow the vaccine to be distributed by the end of the month.The FDA report on Tuesday upheld the clinical trials, which have shown the vaccine to be 95% effective with no severe side-effects. The FDA report says that the data is "consistent with the recommendations set forth in FDA’s Guidance on Emergency Use Authorization for Vaccines to Prevent COVID-19.""FDA has determined that the Sponsor has provided adequate information to ensure the vaccine’s quality and consistency for authorization of the product under an EUA,” the report reads.The next step in approval for the Moderna vaccine will come on Thursday when the FDA's Vaccines and Related Biological Products Advisory Committee will meet and vote on whether to approve the Moderna vaccine for Emergency Use Authorization.The vaccine would then need approval from the FDA as a whole, and then a recommendation from the CDC before health care professionals can begin injections.The release of the FDA report comes a day after the first Americans received initial doses of a COVID-19 vaccine made by Pfizer.Should Moderna's vaccine follow the same approval schedule as the Pfizer vaccine, health care professionals should begin injections by Monday.The U.S. purchased 100 million doses of the Moderna vaccine earlier this year, and Moderna will have millions of doses ready to ship as soon as it receives Emergency Use Authorization.Late last week, the federal government purchased an additional 100 million doses of the vaccine, meaning it expects to have 200 million doses by spring 2021.The decision to purchase more doses of Moderna's vaccine came days after the New York Times reported that the U.S. government chose not to purchase more doses of the Pfizer vaccine when it had the chance earlier this year. 1977
The fourth nor'easter in three weeks already is closing schools and canceling thousands of flights Wednesday as it's expected to dump record springtime snow in the Northeast.A day after the official beginning of spring, the storm will bring heavy snow, strong winds and even coastal flooding to some areas. It has potential to be one of the most significant and most disruptive snowstorms this late in the season, CNN meteorologists said."If the current forecast pans out, this nor'easter will dump more snow on Washington, Philadelphia and New York than the three earlier storms combined," CNN meteorologist Brandon Miller said.More than 70 million people are under a winter storm watch, warning or advisory from the southern Appalachians to Boston.The storm will move away from the region by Thursday but not without first hitting coastal New England and Maine.Latest developments? More than 4,100 flights are canceled Wednesday due to the storm, according to the tracking site Flightaware.com.? Public schools in New York City, Philadelphia and the District of Columbia are closed Wednesday.? The storm already dumped 13 inches of snow in Greencastle, Pennsylvania, and blanketed Smith Crossroads in West Virginia with 9.2 inches.Snow disrupting nation's capitalWashington will likely see 4 to 6 inches of snow, with some models hinting at much higher totals for the District. Areas west and north of the city are likely to see close to a foot of snow."It's been 75 years since Washington has had 5 inches of snowfall or greater this late in the season," Miller says.Track the storm with high resolution auto-updating graphicsThe inclement weather caused closures for much of the federal government. The White House and State Department canceled all public events for the day. However, the House and Senate are planning to work Wednesday as Congress tries to finalize a spending deal.Philadelphia could see up to a foot of snow. The City of Brotherly Love may get its biggest snowfall after the first day of spring in more than 100 years.For those in other parts of Pennsylvania, the storm was already well underway Wednesday morning. Thile Kreider posted an Instagram video of the snow blanketing her yard in Manheim.New York could break 1958 recordWind gusts and snow reached New Jersey and New York City on Wednesday morning. Ten inches to more than a foot is forecast in the New York City area before the storm departs early Thursday.But Central Park in Manhattan may only receive 4 to 6 inches of snow, CNN meteorologist Chad Myers said, explaining it's more likely snow will accumulate in areas at higher elevations."If New York gets 12 inches of snow -- the National Weather Service currently has a high-end potential of 13 to 21 inches -- it would be its largest snowfall ever recorded after the first day of spring," Miller says.The current record is 11.8 inches, set on March 21, 1958.With these late winter storms, it is difficult to predict snowfall amounts because of the mixing of warmer air. In some of the earlier nor'easters, the air near the ground has stayed warm enough that places like New York have seen lots of snow fall from the sky but had little accumulation. An urban heat island effect is plausible once again with this spring storm.Boston stayed on the warmer side in the first two nor'easters but then got walloped with snow during the third storm this month. The city is likely to see another 6 to 8 inches of snow, adding to the 20-plus inches it has already received in March.If Boston gets 10 inches, the city would have its third snowiest March on record.These late winter storms are likely to become more frequent with climate change. A study last week in the scientific journal Nature Communications ties extreme winter weather, specifically major snowstorms in the Northeast, to warming Arctic temperatures.Blizzard conditions likelyWith a forecast of heavy snow and winds more than 45 mph, blizzard conditions are possible.New York City could see sustained winds of 20 to 30 mph Wednesday, and coastal areas such as Cape Cod in Massachusetts are predicted to receive gusts up to 60 mph from midmorning Wednesday to Thursday.What is makes a snow storm a blizzardFlooding is a threat along the coast from Virginia to Massachusetts. Some of the worst coastal flooding could occur along the Jersey Shore, with high tides of 2 to 3 feet above normal possible.This will put a strain on already vulnerable coastal areas, which saw dramatic storm surges from the nor'easters over the last three weeks.The-CNN-Wire 4555
The Florida State Senate passed a bill Monday that would raise the age to buy a firearm from 18 to 21, require a three-day waiting period for most gun purchases and ban the sale or possession of bump fire stocks, which can make it easier for a semi-automatic weapon to function like an automatic rifle.The "Marjory Stoneman Douglas High School Public Safety Act" (SB 7026) would also give law enforcement more power to seize weapons and ammunition from those deemed mentally unfit or otherwise a threat and provide additional funding for armed school resource officers and for mental health services.The Senate measure comes more than two weeks after a gunman killed 17 students and teachers at Marjory Stoneman Douglas High School. Stoneman Douglas students and parents have lobbied lawmakers to pass stricter gun control measures.The bill now moves to the Florida House. It's not immediately clear when the House will take up the measure. 948
The collective mourning of a community shaken by a brazen act of violence in a synagogue will continue Tuesday as funerals are held for three of the victims of what the Anti-Defamation League said was the deadliest attack against Jews in US history.On Monday night, blue light washed over the night sky as buildings across Pittsburgh were illuminated in tribute to the 11 worshippers killed Saturday when a gunman stormed the Tree of Life synagogue there.The close-knit community of Squirrel Hill, where the shootings took place, will first bid farewell to brothers Cecil and David Rosenthal and Dr. Jerry Rabinowitz, according to CNN affiliate WTAE.The funerals coincide with a visit from President Donald Trump, who will travel to Pittsburgh Tuesday despite a request from the city's mayor to hold off on visiting. 830