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The Fed is prodding Americans to buy more on credit

A sign advertises homes for sale in a new housing development in Dickinson
FILE PHOTO: A sign advertises homes for sale in a new housing development in Dickinson, North Dakota January 21, 2016. REUTERS/Andrew Cullen

March 21, 2019

By Jason Lange

WASHINGTON (Reuters) – The Federal Reserve’s decisive statement this week that interest rates are unlikely to rise this year sends a signal to U.S. households: keep buying stuff.

The Fed tries to guide the U.S. economy by controlling the interest rate banks charge one another for overnight loans. Moving this rate up lifts other rates in the economy, making it costlier for people to use their credit cards or to buy homes and cars. Higher rates also make companies rethink investments.

A solid majority of Fed policymakers on Wednesday said higher rates are unlikely this year, leading investors to bet the economy might slowing enough for the Fed to actually cut rates.

The following are some possible consequences for American households:

EASY CREDIT

The Fed’s signal on its interest rate outlook led key market rates to fall, including the yield on 10-year Treasury bonds. That is a sign that rates are also falling for loans used to buy houses and cars. Interest rates for credit cards may also drift lower. Mortgage rates have been falling since November when Fed policymakers made clear they would be patient about rate decisions.

GRAPHIC-Falling mortgage rates: https://tmsnrt.rs/2UOhJvq

SAVING DISCOURAGED

Lower rates also encourage spending by taking the shine off some common ways to save money. Low yields reduce the return on money in savings accounts as well as in funds made up of safe-haven government bonds. This poses a problem for retirees who depend more on their income from savings and who take a hit from lower rates on Treasury bonds. The Fed has argued that retirees benefit from actions taken to support the broader economy.

GRAPHIC-Weak returns on deposits: https://tmsnrt.rs/2HwPA9n

RETIREMENT BOOST

Rising stock prices comprise the flip side of lower bond yields. That boosts the value of private retirement accounts, such as 401(k)s, particularly those of young people whose accounts tend to be weighted toward stocks.

The benchmark S&P 500 stock index surged after the Fed’s decision, reflecting the view that cheaper borrowing costs would help company profits. It is possible that stock market gains could boost consumer spending because people sometimes loosen their purse strings after a rise in perceived wealth.

GRAPHIC-Rate pressure: https://tmsnrt.rs/2UNxaEj

BUOYANT LABOR MARKET

The U.S. jobless rate is near its lowest level in 50 years although lately there have been signs of softening in the labor market. Hiring slowed sharply in February and the number of new jobless claims every week has also been ticking higher. The Fed’s action aims to keep the labor market solid. That could help encourage more people to rekindle job searches they had given up when the economy was still weak following the 2007-09 financial crisis.

GRAPHIC-U.S. employment picture: https://tmsnrt.rs/2HAXkad

(Reporting by Jason Lange, editing by G Crosse)

Source: OANN

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Linda McMahon on possible Trump-Bernie matchup: ‘I would love to see that’

The former head of the Small Business Association, Linda McMahon, said Monday that for the economy to continue to grow President Trump must be reelected.

"We need to re-elect President Donald Trump because he put all of these policies in place. I mean, do we really want to stop this economy and the growth that is going?" McMahon said on "The Story with Martha MacCallum."

SOME SANDERS BACKERS UPSET WITH BUTTIGIEG

McMahon, who last month left the administration, is the chair of the pro-Trump America First Action PAC.

"I'm just a very practical, common sense person, when I'm out looking across the country and I see the positive impact that the president's policies have had, I'm going 'why do we want the stop this?" McMahon added saying she was 100 percent behind the president.

McMahon didn't seem too worried about a matchup with Democratic presidential candidate frontrunner Sen. Bernie Sanders, I-Vt., and was asked by guest host Ed Henry about a possible general election featuring pro-capitalist Trump versus Democratic socialist Sanders.

"I would love to see that," McMahon said.

"Because I really do believe Americans, and polls show, that most Americans do believe in capitalism and not socialism. It's where our country has been founded on, what made our country so successful."

SANDERS NABS TOP SPOT IN NEW DEMS POLL AS PETE BUTTIGIEG GAINS MOMENTUM

McMahon also touted Trump's vision for America and the economy.

"I think the president certainly touts that experience as an entrepreneur who built a business and has watched the economy grow here as being president. He's known what to do. He's been a bit disruptive doing it and I think that's why he was elected, " McMahon told Henry.

Source: Fox News Politics

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2 church leaders admit to operating tax fraud scheme

Two high-ranking members of a New York-based church pleaded guilty Wednesday to a scheme to siphon millions of dollars from church members for personal use and not pay taxes on the money.

Jermaine Grant and Lincoln Warrington, both of New Jersey, each pleaded guilty to one count of conspiracy to defraud the United States. An indictment alleged Grant, leader of the Israelite Church of God in Jesus Christ, took nearly $3 million in church money with the help of Warrington, the church's primary treasurer.

According to the indictment, the men funneled money through Black Icon Entertainment, a company with offices in Hackensack, New Jersey, New York and Beverly Hills, among other locations. The company was allegedly created to give the impression that Grant was a successful entertainment mogul.

Grant used the money for real estate, a Kawasaki recreational vehicle, a $32,000 trip to Disneyland and various luxury items. He also used it to pay for some of his children to attend private school, to which they were driven in a chauffeured Mercedes, according to the indictment.

The U.S. Attorney's office estimated the duo failed pay at least $250,000 in taxes on the money.

The fraud conspiracy charge carries a maximum prison sentence of five years, but both defendants are expected to receive a term of no more than 30 months under their plea agreement when they are sentenced in July.

The plea agreement also requires the church to develop a plan to comply with federal tax laws in the future.

The Southern Poverty Law Center, which monitors extremist groups in the U.S., lists the church as a black nationalist hate group. A phone number listed for the church in New York wasn't in service Wednesday.

Source: Fox News National

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Algeria's ruling coalition party calls for president to quit

Algeria's ruling coalition party has called for the resignation of ailing, 82-year-old President Abdelaziz Bouteflika.

The RND party's secretary general and former prime minister Ahmed Ouyahia said in a statement Wednesday it "recommends" Bouteflika's resignation in order to facilitate the transition of power.

The move comes one day after Algeria's powerful army chief called for starting the constitutional process to have Bouteflika declared unfit for office, possibly paving the way for the president's ouster after 20 years in power.

The country's presidential coalition is formed by an alliance of the RND with the FLN party.

Bouteflika, who has barely been seen in public since a 2013 stroke, has faced weeks of protests. He canceled this month an April national election and overhauled the government.

Source: Fox News World

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The Latest: Mormon scholar: LGBTQ policy repeal marks reset

The Latest on Mormons repealing rules banning baptisms for children of gay parents (all times local):

10:55 a.m.

A religious scholar says the decision by The Church of Jesus Christ of Latter-day Saints to repeal rules banning baptisms for children of gay parents and making gay marriage a sin eligible for expulsion marks a complete reset for the faith on LGBTQ issues.

Patrick Mason of Claremont Graduate University in California says the policy unveiled in 2015 was deeply unpopular among members of the faith, triggering displeasure and protests from many liberal and conservative members.

He says the policy hurt the church's image and relationship with many members.

Mason says the repeal erases the one major detour from a decade-long path by the faith to carve out a more open and compassionate position on LGBTQ issues while sticking to doctrinal opposition of gay marriage and intimacy between people in same-sex relationships.

___

9:50 a.m.

The Church of Jesus Christ of Latter-day Saints is repealing rules unveiled in 2015 that banned baptisms for children of gay parents and made gay marriage a sin worthy of expulsion.

The surprise announcement Thursday by the faith widely known as the Mormon church reverses rules that triggered widespread condemnations from LGBTQ members and their allies.

The church in a statement says it isn't changing its doctrinal opposition to gay marriage and still considers same-sex relationships to be a "serious transgression."

But people in same-sex relationships will no longer be considered "apostates" who must be kicked out of the religion.

The change also marks the biggest move yet by church President Russell M. Nelson, who has made a flurry of changes since taking over the faith in January 2018.

Source: Fox News National

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Prosecutors: Wisconsin teen typed plan to kill grandparents

Prosecutors say a 17-year-old accused of killing his grandparents in eastern Wisconsin typed out plans for the shootings.

Alexander M. Kraus was charged Tuesday with two counts of first-degree intentional homicide for the deaths of 74-year-old Dennis Kraus and 73-year-old Letha Kraus Sunday at their home in Grand Chute. Each charge carries a life sentence.

The complaint says the plans for the killings were found in a backpack along with a book about an executioner. The document does not indicate a motive.

Police said Alexander Kraus told investigators he also was planning to cause harm at his eastern Wisconsin high school, which is not mentioned in the complaint.

Grand Chute, a city of 22,000, is about 110 miles (177 kilometers) northwest of Milwaukee.

Source: Fox News National

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Bernie Sanders' hiring of non-American campaign advisers may violate federal election laws, complaint says

Bernie Sanders was hit a complaint this week, claiming his presidential campaign violated federal election laws by employing non-Americans in advisery positions.

A new complaint by the Coolidge Reagan Foundation filed with the Federal Election Commission (FEC) notes that three members of the Sanders campaign are foreign nationals, which appears to be a violation of federal election laws that prohibit foreign interference.

NEW SPOKESWOMAN FOR BERNIE SANDERS WON'T BE ABLE TO VOTE FOR HIM IN 2020 -- SHE'S AN ILLEGAL IMMIGRANT

Maria Belén Sisa, Sanders’ deputy national press secretary who joined the campaign last month, was among the staffers named in the complaint, as first reported by the Washington Free Beacon. Sisa claims to be an illegal immigrant whose residency is protected under Deferred Action for Childhood Arrivals (DACA), an Obama-era program for assisting illegal immigrants who came to the U.S. as children.

Sisa recently caused an uproar after invoking an anti-Semitic “dual allegiance” trope of Jewish Americans while defending Rep. Ilhan Omar, D-Minn., and questioning whether American Jews, including Sanders, were loyal to the United States.

The complaint notes that Sisa not only got a salary from Sanders’ 2016 presidential campaign, she also contributed money to it and is now serving in “an advisory position” in the 2020 campaign – all of which are “direct and serious violations” of federal election laws.

“Senator Sanders and Bernie 2020 is permitting a foreign national, Ms. Sisa, to serve in an advisory position which allows her to directly or indirectly participate in the decision-making process of persons with regard to election-related activities in violation of FEC regulations,” the complaint reads.

“Senator Sanders and Bernie 2020 is permitting a foreign national, Ms. Sisa, to serve in an advisory position which allows her to directly or indirectly participate in the decision-making process of persons with regard to election-related activities in violation of FEC regulations."

— The complaint

BERNIE SANDERS AIDE DEFENDS OMAR WITH TERM SEEN AS ANTI-SEMITIC, APOLOGIZES

According to the FEC rules, foreign nationals, who aren’t lawfully admitted permanent residents, cannot directly or indirectly participate in political campaigns. Such individuals are also barred from making political contributions.

The complaint also names two other foreign nationals on the Sanders’ 2016 campaign, immigration activists Erika Andiola and Cesar Vargas, who worked as the campaign's national Latino outreach strategist and press secretary for Latino outreach, respectively.

“Due to the high profile of Cesar Vargas, Erika Andiola, and Maria Belén Sisa as leading activists in the undocumented community, there is reason to believe that respondents are ‘foreign nationals' within the meaning of 52 U.S.C. § 301219b)(2), and in violation of 11 C.F.R. § 110.20 (i) and A.O. 2004-26, directly or indirectly participated in the decision-making process of persons with regard to the election-related activities of Bernie 2016," the complaint continued.

“There is reason to believe, having previously employed Ms. Sisa, that Bernie 2020 is currently, and knowingly, permitting a ‘foreign national' … to directly or indirectly participate in the decision-making process of persons with regard to the election-related activities of Bernie 2020.”

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The complaint calls on the FEC to investigate both the 2016 and the current presidential campaigns and take action to curb the violations.

“The Commission should determine and impose appropriate sanctions for any and all violations,” the complaint read. “Further, the Commission should enjoin respondents from any future violations and impose any necessary and appropriate remedies to ensure respondents' future compliance with the Federal Election Campaign Act.”

Source: Fox News Politics

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Police secure the area where the body of a woman was discovered near the village of Orounta
Police secure the area where the body of a woman was discovered near the village of Orounta, Cyprus, April 25, 2019. REUTERS/Stefanos Kouratzis

April 26, 2019

NICOSIA (Reuters) – Cypriot police searched on Friday for more victims of a suspected serial killer, in a case which has shocked the Mediterranean island and exposed the authorities to charges of “criminal indifference” because the dead women were foreigners.

The main opposition party, the left-wing AKEL, called for the resignation of Cyprus’s justice minister and police chief.

Police were combing three different locations west of the capital Nicosia for victims of the suspected killer, a 35-year-old army officer who has been in detention for a week.

The bodies of three women, including two thought to be from the Philippines, have been recovered. Police sources said the suspect had indicated the location of the third body, found on Thursday, and had said the person was “either Indian or Nepali”.

Police said they were searching for a further four people, including two children, based on the suspect’s testimony.

“These women came here to earn a living, to help their families. They lived away from their families. And the earth swallowed them, nobody was interested,” AKEL lawmaker Irene Charalambides told Reuters.

“This killer will be judged by the court but the other big question is the criminal indifference shown by the others when the reports first surfaced. I believe, as does my party, that the justice minister and the police chief should resign. They are irrevocably exposed.”

Police have said they will investigate any perceived shortcomings in their handling of the case.

One person who did attempt to alert the authorities over the disappearances, a 70-year-old Cypriot citizen, said his motives were questioned by police.

The bodies of the two Filipino women reported missing in May and August 2018 were found in an abandoned mine shaft this month. Police discovered the body of the third woman at an army firing range about 14 km (9 miles) from the mine shaft.

Police are now searching for the six-year-old daughter of the first victim found, a Romanian mother who disappeared with her eight-year-old child in 2016, and a woman from the Phillipines who vanished in Dec. 2017.

The suspect has not been publicly named, in line with Cypriot legal practice.

A public vigil for the missing was planned later on Friday.

(Reporting By Michele Kambas; Editing by Gareth Jones)

Source: OANN

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An employee looks up at goods at the Miniclipper Logistics warehouse in Leighton Buzzard
FILE PHOTO: An employee looks up at goods at the Miniclipper Logistics warehouse in Leighton Buzzard, Britain December 3, 2018. REUTERS/Simon Dawson

April 26, 2019

LONDON, April 26 – British factories stockpiled raw materials and goods ahead of Brexit at the fastest pace since records began in the 1950s, and they were increasingly downbeat about their prospects, a survey showed on Friday.

The Confederation of British Industry’s (CBI) quarterly survey of the manufacturing industry showed expectations for export orders in the next three months fell to their lowest level since mid-2009, when Britain was reeling from the global financial crisis.

The record pace of stockpiling recorded by the CBI was mirrored by the closely-watched IHS Markit/CIPS purchasing managers’ index published earlier this month.

(Reporting by Andy Bruce, editing by David Milliken)

Source: OANN

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Malaysian Prime Minister Mahathir Mohamad speaks at the opening ceremony for the second Belt and Road Forum in Beijing
Malaysian Prime Minister Mahathir Mohamad speaks at the opening ceremony for the second Belt and Road Forum in Beijing, China April 26, 2019. REUTERS/Florence Lo

April 26, 2019

KUALA LUMPUR (Reuters) – Fewer than half of Malaysians approve of Prime Minister Mahathir Mohamad, an opinion poll showed on Friday, as concerns over rising costs and racial matters plague his administration nearly a year after taking office.

The survey, conducted in March by independent pollster Merdeka Center, showed that only 46 percent of voters surveyed were satisfied with Mahathir, a sharp drop from the 71 percent approval rating he received in August 2018.

Mahathir’s Pakatan Harapan coalition won a stunning election victory in May 2018, ending the previous government’s more than 60-year rule.

But his administration has since been criticized for failing to deliver on promised reforms and protecting the rights of majority ethnic Malay Muslims.

Of 1,204 survey respondents, 46 percent felt that the “country was headed in the wrong direction”, up from 24 percent in August 2018, the Merdeka Center said in a statement. Just 39 percent said they approved of the ruling government.

High living costs remained the top most concern among Malaysians, with just 40 percent satisfied with the government’s management of the economy, the survey showed.

It also showed mixed responses to Pakatan Harapan’s proposed reforms.

Some 69 percent opposed plans to abolish the death penalty, while respondents were sharply divided over proposals to lower the minimum voting age to 18, or to implement a sugar tax.

“In our opinion, the results appear to indicate a public that favors the status quo, and thus requires a robust and coordinated advocacy efforts in order to garner their acceptance of new measures,” Merdeka Center said.

The survey also found 23 percent of Malaysians were concerned over ethnic and religious matters.

Some groups representing Malays have expressed fear that affirmative-action policies favoring them in business, education and housing could be taken away and criticized the appointments of non-Muslims to key government posts.

Last November, the government reversed its pledge to ratify a UN convention against racial discrimination, after a backlash from Malay groups.

Earlier this month, Pakatan Harapan suffered its third successive loss in local elections since taking power, which has been seen as a further sign of waning public support.

Despite the decline, most Malaysians – 67 percent – agreed that Mahathir’s government should be given more time to fulfill its election promises, Merdeka Center said.

This included a majority of Malay voters who were largely more critical of the new administration, it added.

(Reporting by Rozanna Latiff; Editing by Nick Macfie)

Source: OANN

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The German share price index DAX graph at the stock exchange in Frankfurt
The German share price index DAX graph is pictured at the stock exchange in Frankfurt, Germany, April 25, 2019. REUTERS/Staff

April 26, 2019

By Medha Singh and Agamoni Ghosh

(Reuters) – European shares slipped on Friday after losses in heavyweight banks and Glencore outweighed gains in healthcare and auto stocks, while investors remained on the sidelines ahead of U.S. economic data for the first quarter.

The pan-European STOXX 600 index was down 0.1 percent by 0935 GMT, eyeing a modest loss at the end of a holiday-shortened week. Banks-heavy Italian and Spanish indices were laggards.

The banking index fell for a fourth day, at the end of a heavy earnings week for lenders.

Britain’s Royal Bank of Scotland tumbled after posting lower first quarter profit, hurt by intensifying competition and Brexit uncertainty, while its investment bank also registered poor returns.

Weakness in investment banking also dented Deutsche Bank’s quarterly trading revenue and sent its shares lower a day after the German bank abandoned merger talks with smaller rival Commerzbank.

“The current interest rate environment makes it challenging for banks to make proper earnings because of their intermediary function,” said Teeuwe Mevissen, senior market economist eurozone, at Rabobank.

Since the start of April, all country indexes were on pace to rise between 1.8 percent and 3.4 percent, their fourth month of gains, while Germany was strongly outperforming with 6 percent growth.

“For now the current sentiment is very cautious as markets wait for the first estimates of the U.S. GDP growth which could see a surprise,” Mevissen said.

U.S. economic data for the first-quarter is due at 1230 GMT. Growth worries outside the United States resurfaced this week after South Korea’s economy unexpectedly contracted at the start of the year and weak German business sentiment data for April also disappointed.

Among the biggest drags on the benchmark index in Europe were the basic resources sector and the oil and gas sector, weighed down by Britain’s Glencore and France’s Total, respectively.

Glencore dropped after reports that U.S authorities were investigating whether the company and its subsidiaries violated certain provisions of the commodity exchange act.

Energy major Total said its net profit for the first three months of the year fell compared with a year ago due to volatile oil prices and debt costs.

Chip stocks in the region including Siltronic, Ams and STMicroelectronics lost more than 1 percent after Intel Corp reduced its full-year revenue forecast, adding to concerns that an industry-wide slowdown could persist until the end of 2019.

Meanwhile, healthcare, which is also seen as a defensive sector, was a bright spot. It was helped by French drugmaker Sanofi after it returned to growth with higher profits and revenues for the first-quarter.

Luxembourg-based satellite operator SES led media stocks higher after it maintained its full-year outlook on the back of the company’s Networks division.

Automakers in the region rose 0.4 percent, led by Valeo’s 6 percent jump as the French parts maker said its performance would improve in the second half of the year.

Continental AG advanced after it backed its outlook for the year despite reporting a fall in first-quarter earnings.

Renault rose more than 3 percent as it clung to full-year targets and pursues merger talks with its Japanese partner Nissan.

(Reporting by Medha Singh and Agamoni Ghosh in Bengaluru; Editing by Gareth Jones and Elaine Hardcastle)

Source: OANN

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U.S. President Donald Trump hosts Take Our Daughters and Sons to Work Day at the White House in Washington
U.S. President Donald Trump gives a thumbs up to his audience as he hosts Take Our Daughters and Sons to Work Day at the White House in Washington, U.S., April 25, 2019. REUTERS/Kevin Lamarque

April 26, 2019

By Jan Wolfe and Richard Cowan

(Reuters) – The “i word” – impeachment – is swirling around the U.S. Congress since the release of Special Counsel Robert Mueller’s redacted Russia report, which painted a picture of lies, threats and confusion in Donald Trump’s White House.

Some Democrats say trying to remove Trump from office would be a waste of time because his fellow Republicans still have majority control of the Senate. Other Democrats argue they have a moral obligation at least to try to impeach, even though Mueller did not charge Trump with conspiring with Russia in the 2016 U.S. election or with obstruction of justice.

Whether or not the Democrats decide to go down this risky path, here is how the impeachment process works.

WHAT ARE GROUNDS FOR IMPEACHMENT?

The U.S. Constitution says the president can be removed from office by Congress for “treason, bribery, or other high crimes and misdemeanors.” Exactly what that means is unclear.

Before he became president in 1974, replacing Republican Richard Nixon who resigned over the Watergate scandal, Gerald Ford said: “An impeachable offense is whatever a majority of the House of Representatives considers it to be at a given moment in history.”

Frank Bowman, a University of Missouri law professor and author of a forthcoming book on the history of impeachment, said Congress could look beyond criminal laws in defining “high crimes and misdemeanors.” Historically, it can encompass corruption and other abuses, including trying to obstruct judicial proceedings.

HOW DOES IMPEACHMENT PLAY OUT?

The term impeachment is often interpreted as simply removing a president from office, but that is not strictly accurate.

Impeachment technically refers to the 435-member House of Representatives approving formal charges against a president.

The House effectively acts as accuser – voting on whether to bring specific charges. An impeachment resolution, known as “articles of impeachment,” is like an indictment in a criminal case. A simple majority vote is needed in the House to impeach.

The Senate then conducts a trial. House members act as the prosecutors, with senators as the jurors. The chief justice of the U.S. Supreme Court presides over the trial. A two-thirds majority vote is required in the 100-member Senate to convict and remove a president from office.

No president has ever been removed from office as a direct result of an impeachment and conviction by Congress.

Nixon quit in 1974 rather than face impeachment. Presidents Andrew Johnson in 1868 and Bill Clinton in 1998 were impeached by the House, but both stayed in office after the Senate acquitted them.

Obstruction of justice was one charge against Clinton, who faced allegations of lying under oath about his relationship with White House intern Monica Lewinsky. Obstruction was also included in the articles of impeachment against Nixon.

CAN THE SUPREME COURT OVERTURN?

No.

Trump said on Twitter on Wednesday that he would ask the Supreme Court to intervene if Democrats tried to impeach him. But America’s founders explicitly rejected making a Senate conviction appealable to the federal judiciary, Bowman said.

“They quite plainly decided this is a political process and it is ultimately a political judgment,” Bowman said.

“So when Trump suggests there is any judicial remedy for impeachment, he is just wrong.”

PROOF OF WRONGDOING?

In a typical criminal court case, jurors are told to convict only if there is “proof beyond a reasonable doubt,” a fairly stringent standard.

Impeachment proceedings are different. The House and Senate “can decide on whatever burden of proof they want,” Bowman said. “There is no agreement on what the burden should be.”

PARTY BREAKDOWN IN CONGRESS?

Right now, there are 235 Democrats, 197 Republicans and three vacancies in the House. As a result, the Democratic majority could vote to impeach Trump without any Republican votes.

In 1998, when Republicans had a House majority, the chamber voted largely along party lines to impeach Clinton, a Democrat.

The Senate now has 53 Republicans, 45 Democrats and two independents who usually vote with Democrats. Conviction and removal of a president would requires 67 votes. So that means for Trump to be impeached, at least 20 Republicans and all the Democrats and independents would have to vote against him.

WHO BECOMES PRESIDENT IF TRUMP IS REMOVED?

A Senate conviction removing Trump from office would elevate Vice President Mike Pence to the presidency to fill out Trump’s term, which ends on Jan. 20, 2021.

(Reporting by Jan Wolfe and Richard Cowan; Editing by Kevin Drawbaugh and Peter Cooney)

Source: OANN

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