Thursday, June 21, 2018

The Latest: Fed uncertain on banking for marijuana firms

WASHINGTON (AP) — The Latest on the Federal Reserve policy meeting (all times local):

3:20 p.m.

Federal Reserve Chair Jerome Powell says the U.S. central bank has not resolved how financial institutions should deal with marijuana businesses.

Marijuana usage is permitted in some states, but not by federal law. Powell says the disparity puts Fed regulators in a very difficult position and that the Fed would love to see the hazy issue clarified.

He made the comments at a news conference following a Fed meeting at which the central bank raised its benchmark interest rate for the second time this year.

___

3:10 p.m.

Federal Reserve Chairman Jerome Powell says the central bank is hearing growing concerns from business executives about the Trump administration's trade policies, including anecdotal cases where companies have postponed larger purchases or new hires.

But those trends have yet to impact an economy that Powell says "is in great shape."

"You're beginning to hear reports of companies holding off on investments and hiring people," Powell said in a news conference Wednesday following the Fed's move to raise its benchmark interest rate. "For now, we don't see that in the numbers at all."

Trump has slapped tariffs on steel and aluminum imports, has threatened additional tariffs on $50 billion of Chinese imports, and has directed his administration to consider further duties on imported cars. Those moves have lifted steel and aluminum costs.

___

2:45 p.m.

Federal Reserve Chair Jerome Powell says the U.S. central bank will double the number of news conferences it holds each year to eight from four.

The Fed holds news conferences after the meetings of its open markets committee in order to explain its policy decisions and views on the U.S. economy. Former Fed Chairman Ben Bernanke started the practice of having four news conferences a year in 2011.

But Powell says he didn't want to create the impression that policies only change after meetings with news conferences, so they'll now follow all eight meetings.

The additional conferences will begin in January.

___

2:10 p.m.

Federal Reserve policymakers expect to raise their benchmark interest rate four times this year, up from a March projection of three, reflecting their forecast that the unemployment rate will fall to a 50-year low later this year and inflation will rise more quickly.

The Fed also decided Wednesday to lift short-term rates for the second time this year, to between 1.75 and 2 percent. That suggests they will hike rates twice more this year to between 2.25 and 2.5 percent. Fed policymakers also expect three hikes next year, the same number they forecast in March, and one in 2020.

Fed officials expect unemployment to reach 3.6 percent by the end of this year, the lowest since 1969, down from an earlier forecast of 3.8 percent. Inflation will reach 2.1 percent late this year, slightly above the Fed's target, up from 1.9 percent previously forecast.

___

2 p.m.

As widely anticipated, the Federal Reserve has raised its short-term federal fund rate — what banks charge each other— by 0.25 points to a range of 1.75 to 2 percent.

Fed officials voted unanimously on Wednesday to increase this key rate, which influences the flow and supply of money in the U.S. economy. The statement by Fed officials explaining the vote also hinted at a slightly faster pace for future rate increases. They removed previous language that the rate "is likely to remain, for some time, below levels that are expected to prevail in the longer run."

It's the second rate increase of this year and Fed officials anticipate one or two additional hikes before 2019.

Fed Chair Jerome Powell will discuss the decision at a 2:30 p.m. Eastern time news conference.

___

12:30 p.m.

Homebuilders are taking a beating on Wall Street ahead of Wednesday afternoon's Federal Reserve meeting, where analysts are expecting a rate increase.

The Fed's rate hikes can translate into higher interest rates for credit card holders and homeowners with adjustable-rate mortgages or home-equity lines of credit.

The construction industry is already wrestling with rising costs for labor, material and available land. External factors, like rising gasoline prices, may also be putting the squeeze on potential buyers.

Fewer Americans signed contracts to buy homes in April due to a shortage of inventory. Mortgage rates had ticked down the past couple weeks, providing some relief for potential homebuyers.

But with a quarter-point hike expected from the Fed, that relief may be short-lived.

KB Home shares fell 6 percent. Meritage Homes Corp., PulteGroup, Lennar Corp. and Dr. Horton all slid around 5 percent. Materials companies and home improvement stores like Lowe's are also being pressured.

Mortgage rates remain historically low, but a combination of rising costs is weighing on the sector broadly.

-----

6:30 a.m.

Stocks are edging up ahead of an interest rate meeting by the Federal Reserve.

Futures for the Dow are up 0.1 percent and those for the S&P 500 are 0.2 percent higher. European indexes are up, with Germany's DAX gaining 0.2 percent and Britain's FTSE 100 0.3 percent higher.

The dollar, meanwhile, is edging up as well, gaining 0.1 percent against the yen, to 110.52 yen.

Traders widely predict the Fed will raise its main rate by a quarter point on Wednesday. They also expect its chairman, Jerome Powell, to hint during a news conference that the central bank might accelerate the pace of rate hikes slightly in coming months.

___

4:50 a.m.

Financial markets are steady as investors look ahead to an expected interest rate increase from the Federal Reserve later Wednesday.

Dow and S&P 500 futures are flat and European indexes are mixed. Britain's FTSE 100 is down 0.1 percent and France's CAC 40 is 0.2 percent higher.

While traders widely expect the quarter point rate increase, they will be paying close attention to a news conference by Fed Chair Jerome Powell for hints on whether the central bank might accelerate the pace of rate hikes in coming months.

The U.S. economy is adding jobs at a strong pace and inflation has risen, leading some economists to think that the Fed will indicate that it may raise rates four times this year, up from its current forecast of three hikes.

___

12:05 a.m.

The Federal Reserve is set to modestly raise its key short-term interest rate on Wednesday for the second time this year. But attention will be focused mainly on any hints that the Fed might accelerate its rate hikes in the coming months.

Some economists think the Fed will signal that it expects to raise rates four times this year, up from its current projection of three hikes. Others believe the central bank will stick with its projection of three rate increases, partly out of concern that rising trade tensions triggered by President Donald Trump's aggressive policies might slow global growth.

The policymakers will reveal their action in a policy statement and in updated economic forecasts, followed by a news conference by Chairman Jerome Powell.

Comments
Kevin Knox to Knicks makes NBA history locally

Kevin Knox to Knicks makes NBA history locally

More than a year ago, Kevin Knox stepped across the stage at the Straz Center to receive his high school diploma.On Thursday, the former Tampa Catholic star was on basketball's biggest stage as he fulfilled his lifelong goal of making the NBA.Knox wa...
Updated: 1 minute ago
2018-19 schedule unveiled: Lightning opens with five straight at home

2018-19 schedule unveiled: Lightning opens with five straight at home

NHL schedules all balance out at the end, but the Lightning will open 2018-19 with five straight home games and end the season with its last four on the road.The Lightning released its schedule Thursday evening for the upcoming season, with all sorts...
Updated: 7 minutes ago
Without a first-rounder, Lightning still could have busy draft weekend

Without a first-rounder, Lightning still could have busy draft weekend

The Lightning doesn't have a first-round pick in this weekend's draft, but that's not to say the weekend couldn't be busy for general manager Steve Yzerman and his front office.The Lightning sent its top draft pick to the Rangers in February as part ...
Updated: 8 minutes ago
Next move is simple for the Bucs: Get rid of Jameis Winston

Next move is simple for the Bucs: Get rid of Jameis Winston

Trade him. Waive him. Cut him.Whatever.Just get rid of him.Jameis Winston should never play another game for the Tampa Bay Bucs.Plain and simple, he's a bad guy and the Bucs should have nothing more to do with him.He already will miss the first three...
Updated: 11 minutes ago

Sports on TV/radio for Friday, June 22

TODAYBaseballYankees at Rays7 p.m.Fox Sun; 620-AMDodgers at Mets7 p.m.MLBMarlins at Rockies8:30 p.m.FSFCFLWinnipeg at Montreal7 p.m.ESPN2College baseball, World SeriesMississippi State vs. Oregon State3 p.m.ESPNArkansas vs. Florida-Texas Tech winner8...
Updated: 1 hour ago
Yankees finish off sweep of Mariners with 4-3 victory

Yankees finish off sweep of Mariners with 4-3 victory

Baseball Capsules
Updated: 1 hour ago

AP Top News at 11:26 p.m. EDT

AP Top News at 11:26 p.m. EDT
Updated: 1 hour ago
Official: Some 500 children reunited with families since May

Official: Some 500 children reunited with families since May

About 500 of the more than 2,300 children separated from their families at the border have been reunited since May, a senior Trump administration official says
Updated: 1 hour ago
Charles Krauthammer, Pulitzer Prize-winning columnist and intellectual provocateur, dies at 68

Charles Krauthammer, Pulitzer Prize-winning columnist and intellectual provocateur, dies at 68

Charles Krauthammer, a Pulitzer Prize-winning Washington Post columnist and intellectual provocateur who championed the muscular foreign policy of neoconservatism that helped lay the ideological groundwork for the 2003 U.S.-led invasion of Iraq, died...
Updated: 1 hour ago
The Latest: ACC leads the way with 6 first-round draft picks

The Latest: ACC leads the way with 6 first-round draft picks

ACC leads the way with 6 first-round NBA draft picks
Updated: 2 hours ago