ECONOMY

FED APPROVES 0.25% HIKE, SOFTENING RATE INCREASES AGAIN

PHOTO: Federal Reserve Board Chairman Jerome Powell speaks during a news conference at the Federal Reserve Board Building in Washington, DC, on Nov. 2, 2022.

Photo Credit:AP

The Federal Reserve said Wednesday it was raising its short-term borrowing rate another 0.25%, the central bank's second consecutive decision to slow rate increases while extending an effort to cool the economy and dial back inflation.

The Fed has put forward a string of borrowing cost increases as it tries to slash price hikes by slowing the economy and choking off demand. The approach, however, risks tipping the U.S. economy into a recession and putting millions out of work.

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SUPPLY CHAIN WOES CAUSED US AUTO SALES TO FALL 8% LAST YEAR

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Photo Credit: Matt Rourke

Shortages of computer chips and other parts continued to hobble the U.S. auto industry last year, contributing to vehicle sales dropping 8% from 2021 to their lowest level in more than a decade.

But there's good news for consumers in the gloomy numbers: Vehicle supplies on dealer lots are growing, albeit slowly, and automakers expect at least a small easing in prices this year as inventories grow.

Automakers reported Wednesday that they sold 13.9 million cars, trucks, SUVs and vans last year as the parts shortage limited factory output amid high demand for new vehicles. It was the lowest sales number since 2011 when the economy was recovering from the Great Recession.

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STORM CUTS U.S. OIL, GAS, POWER OUTPUT, SENDING PRICES HIGHER

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Photo Credit:Reuters

Frigid cold and blowing winds on Friday knocked out power and cut energy production across the United States, driving up heating and electricity prices as people prepared for holiday celebrations.

Winter Storm Elliott brought sub-freezing temperatures and extreme weather alerts to about two-thirds of the United States, with cold and snow in some areas to linger through the Christmas holiday.

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US BUYING 3M BARRELS OF OIL TO START REPLENISHING RESERVES

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Photo Credit:AP

The Biden administration said Friday it is buying 3 million barrels of oil to begin to replenish U.S. strategic reserves that officials drained earlier this year in a bid to stop gasoline prices from rising amid production cuts by OPEC and a ban on Russian oil imports.

President Joe Biden withdrew 180 million barrels from the Strategic Petroleum Reserve starting in March, bringing the stockpile to its lowest level since the 1980s. The purchase, to begin in January, will start to replenish the reserve and is likely to be followed by additional purchases, officials said.

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ASIAN SHARES DECLINE AFTER RETREATS ON WALL STREET, EUROPE

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Photo Credit:AP

Asian shares followed Wall Street and Europe lower on Friday, with markets jittery over the risk that the Federal Reserve and other central banks may end up bringing on recessions to get inflation under control.

Oil prices and U.S. futures edged higher.

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