Category: Raleigh-Durham, North Carolina Local News

In a sign of how unusual this week’s Federal Reserve meeting is, the decision it will make on interest rates – usually the main event – is just one of the key unknowns to be resolved when officials gather Tuesday and Wednesday.

For now, it’s not even clear who will be there. The meeting will likely include Lisa Cook, an embattled governor, unless an appeals court or the Supreme Court rules in favor of an effort by President Donald Trump to remove her from office. And it will probably include Stephen Miran, a top White House economic aide whom Trump has nominated to fill an empty seat on the Fed’s board. But those questions may not be resolved until late Monday.

Meanwhile, the U.S. economy is mired in uncertainty. Hiring has slowed sharply, while inflation remains stubbornly high.

So a key question for the Fed is: Do they worry more about people who are out of work and struggling to find jobs, or do they focus more on the struggles many Americans face in keeping up with rising costs for groceries and other items? The Fed’s mandate from Congress requires it to seek both stable prices and full employment.

For now, Fed Chair Jerome Powell and other Fed policymakers have signaled the Fed is more concerned about weaker hiring, a key reason investors expect the central bank will reduce its benchmark interest rate by a quarter point on Wednesday to about 4.1%.

Still, stubbornly high inflation may force them to proceed slowly and limit how many reductions they make. The central bank will also release its quarterly economic projections Wednesday, and economists project they will show that policymakers expect one or two additional cuts this year, plus several more next year.

Ellen Meade, an economics professor at Duke University and former senior economist at the Fed, said it’s a stark contrast to the early pandemic, when it was clear the Fed had to rapidly reduce rates to boost the economy. And when inflation surged in 2021 and 2022, it was also a straightforward call for the Fed, which moved quickly to raise borrowing costs to combat higher prices.

But now, “it’s a tough time,” Meade said. “It would be a tough time, even if the politics and the whole thing weren’t going on the way they are, it would be a tough time. Some people would want to cut, some people would not want to cut.”

Amid all the economic uncertainty, Trump is applying unprecedented political pressure on the Fed, demanding sharply lower rates, seeking to fire Cook, and insulting Powell, whom he has called a “numbskull,” “fool,” and “moron.”

Loretta Mester, a former president of the Federal Reserve Bank of Cleveland and finance professor at the University of Pennsylvania’s Wharton School, said that Fed officials won’t let the criticisms sway their decisions on policy. Still, the attacks are unfortunate, she said, because they threaten to undermine the Fed’s credibility with the public.

“Added to their list of the difficulty of making policy because of how the economy is performing, they also have to contend with the fact that there may be some of the public that’s skeptical about how they’ve gone about making their decisions,” she said.

David Andolfatto, an economics professor at the University of Miami and former top economist at the Federal Reserve Bank of St. Louis, said that presidents have pressured Fed chairs before, but never as personally or publicly.

“What’s unusual about this is the level of open disrespect and just childishness,” Andolfatto said. “I mean, this is just beyond the pale.”

There are typically 12 officials who vote on the Fed’s policies at each meeting – the seven members of the Fed’s board of governors, as well as five of the 12 regional bank presidents, who vote on a rotating basis.

If a court rules that Cook can be fired, or Miran isn’t approved in time, then just 11 officials will vote on Wednesday. Either way, there ought to be enough votes to approve a quarter-point cut, but there could be an unusual amount of division.

Miran, if he is on the board, and Governor Michelle Bowman may dissent in opposition to a quarter-point reduction in favor of a steeper half-point cut.

There could be additional dissenting votes in the other direction, potentially from regional bank presidents who might oppose any cuts at all. Beth Hammack, president of the Fed’s Cleveland branch, and Jeffrey Schmid, president of the Federal Reserve Bank of Kansas City, have both expressed concern that inflation has topped the Fed’s 2% target for more than four years and is still elevated. If either votes against a cut, it would be the first time there were dissents in both directions from a Fed decision since 2019.

“This degree of division is unusual, but the circumstances are unusual, too,” Andolfatto said. “This is a situation central banks really don’t like: The combination of inflationary pressure and labor market weakness.”

Hiring has slowed in recent months, with employers shedding 13,000 jobs in June and adding just 22,000 in August, the government reported earlier this month. And last week a preliminary report from the Labor Department showed that companies added far fewer jobs in the year ending in March than previously estimated.

At the same time, inflation picked up a bit last month and remains above the Fed’s 2% target. According to the consumer price index, core prices – excluding food and energy – rose 3.1% in August compared with a year earlier..

With inflation still elevated, the Fed may have to proceed slowly with any further cuts, which would likely further frustrate the Trump White House.

“When you get to turning points, people can reasonably disagree about when to go,” Meade said.

President Donald Trump said Saturday he believes the Russia-Ukraine war would end if all NATO countries stopped buying oil from Russia and placed tariffs on China of 50% to 100% for its purchases of Russian petroleum.

Trump posted on his social media site that NATO’S commitment to winning the war “has been far less than 100%” and the purchase of Russian oil by some members of the alliance is “shocking.” As if speaking with NATO members, he said: “It greatly weakens your negotiating position, and bargaining power, over Russia.”

Since 2023, NATO member Turkey has been the third largest buyer of Russian oil, after China and India. according to the Centre for Research on Energy and Clean Air. Other members of the 32-state alliance involved in purchasing Russian oil include Hungary and Slovakia. It’s unclear whether Trump would want to directly confront Turkish President Recep Tayyip Erdogan or Hungarian Prime Minister Viktor Orbán. That leaves uncertain whether the threats might actually lead to new tariffs or a ban on Russian oil purchases.

Trump’s post arrives after the Wednesday flight of multiple Russian drones into Poland, an escalatory move by Russia as it was entering the airspace of a NATO ally. Poland shot down the drones, yet Trump played down the severity of the incursion and Russia’s motives by saying it “could have been a mistake.”

U.S. Secretary of State Marco Rubio said Saturday that the drone incursion was “unacceptable and unfortunate and dangerous” as he judged NATO’s response so far to be appropriate. Still, Rubio said it was unclear if the drones were intentionally sent to Poland.

“The question is whether the drones were targeted to go into Poland specifically,” Rubio said. “If that’s the case, that the evidence leads us there, then obviously that would be a highly escalatory move.”

While Trump as a candidate promised to end the war quickly, he has yet to hit the pressure points needed to end the violence and has at times been seen as reluctant to confront Russian President Vladimir Putin. Congress is currently trying to get the U.S. president to back a bill toughening sanctions, after Trump last month hosted Putin in Alaska for talks that failed to deliver on progress toward peace.

The U.S. and its allies are seeking to show a firmer degree of resolve against Russia. At an emergency U.N. Security Council meeting Friday, acting U.S. Ambassador Dorothy Shea said America “will defend every inch of NATO territory” and that the drones entering Poland “intentionally or otherwise show immense disrespect for good-faith U.S. efforts to bring an end to this conflict.”

Britain on Friday also took steps to penalize the trading of Russian oil, including a ban on 70 vessels allegedly used in its transportation. The United Kingdom also sanctioned 30 individuals and companies, included businesses based in China and Turkey, that have supplied Russia with electronics, chemicals, explosives and other weapons components.

Trump in his post Saturday said a NATO ban on Russian oil plus tariffs on China would “also be of great help in ENDING this deadly, but RIDICULOUS, WAR.”

The president said that NATO members should put the 50% to 100% tariffs on China and withdraw them if the war that launched with Russia’s 2022 invasion of Ukraine ends.

“China has a strong control, and even grip, over Russia,” he posted, and powerful tariffs “will break that grip.”

The U.S. president has already imposed a 25% import tax on goods from India, specifically for its buying of Russian energy products. He has placed in total a 50% tariff on India, though Trump has indicated that negotiations with Indian Prime Minister Narendra Modi could help settle differences.

The prospect of further import tax hikes on China and its retaliation could carry collateral damage for the U.S. and European economies.

Earlier this year, Trump hit Chinese goods with new tariffs totaling 145%, prompting China to respond with 125% import taxes on American goods. Taxes at that level were essentially a blockade on commerce between the world’s two largest economies, causing worries about global growth that led to negotiations that ratcheted down the tariffs being levied by both nations.

So that trade talks could proceed, America lowered its tariffs against China to a still-high 30%, while China took its rate to 10%.

In his post, the Republican president said responsibility for the war fell on his predecessor, Democrat Joe Biden, and Ukrainian President Volodymyr Zelenskyy. He did not include in that list Putin, who launched the invasion.

Trump’s post builds on a call Friday with finance ministers in the Group of Seven, a forum of industrialized democracies. During the call, U.S. Trade Representative Jamieson Greer and Treasury Secretary Scott Bessent called on their counterparts to have a “unified front” to cut off “the revenues funding Putin’s war machine,” according to Greer’s office.

FAYETTEVILLE, N.C. (WTVD) — A driver is facing charges after a crash that killed one person on Sunday.

According to Fayetteville police, officers responded to calls about a crash just after 11:09 a.m. in the area of Morganton Road near Heartstone Drive.

Police said an investigation found that a Dodge Ram was traveling westbound at a high rate of speed on Morganton Road toward Ruritan Drive and hit a Volkswagen that was also traveling westbound. The Volkswagen was then pushed into a utility pole.

The driver of the Volkswagen, 64-year-old Luz E. Arroyo of Fayetteville, was pronounced dead at the scene.

The driver of the Dodge Ram was identified as 41-year-old Richard B. Goodyear of Fayetteville. He was taken to Cape Fear Valley Medical Center, where he is listed as “in stable condition.”

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Authorities said Goodyear was charged with misdemeanor death by motor vehicle, careless & reckless driving, driving on the wrong side of the road, and failure to reduce speed to avoid colliding with a vehicle.

Anyone with information regarding this incident is asked to contact Officer C. Lewis at (910) 818-1872

Anonymous tips can also be submitted to Fayetteville / Cumberland County Crime Stoppers by calling (910) 483-TIPS (8477). Crimestoppers information can also be submitted electronically, by visiting http://fay-nccrimestoppers.org and completing the anonymous online tip sheet, or by downloading the FREE “P3 Tips” app available for Apple devices in the Apple App Store and available for Android devices in Google Play.

RALEIGH, N.C. (WTVD) — As the North Carolina Department of Health and Human Services prepares to vacate several buildings at Dorothea Dix Park, the City of Raleigh is taking full control of the 308-acre property. City leaders say the future of the park is just beginning

Dix Park welcomed over 600,000 visitors between June and August, with guests from 42 states. It was the second most visited destination in North Carolina this summer, trailing only Wrightsville Beach.

City officials and the Dix Park Conservancy are now focused on the next phase of park improvements.

“During COVID, we learned that our parks became our sanctuaries of sanity,” said Raleigh City Council Member Mitchell Silver. “It’s where people go to feel mentally and physically healthy. We want that for our city.”

One of the park’s most notable additions this year was the opening of Gipson Play Plaza, now the largest adventure playground in the Southeast.

More upgrades are planned, including new public art installations and renovations to existing structures.

Ruffin Hall, president and CEO of the Dix Park Conservancy, outlined some of the upcoming enhancements.

“There’s lots of fun things going on at the park: House of Many Porches where you can go and grab a snack, renovating the Flowers Cottage next to Flowers Field,” Hall said. “We’re also looking at renovating the dog park and the trolls.“

With DHHS preparing to vacate state-owned buildings on the property, some structures will be demolished, while others may be retrofitted for new uses.

“To me, that’s a great opportunity, having a nice enclave of some market rate residential buildings,” Silver said. “Long-term leases or sales could generate money to reinvest in the park.”

Silver has seen this model succeed in other cities, where revenue from residential developments fully funded park improvements without relying on taxpayer dollars.

Plans also include a new entrance on South Saunders Street, and the city is exploring expanded public transportation options to better connect the park with downtown Raleigh.

Many of the park’s improvements have been made possible by a $75 million fundraising campaign led by the Conservancy.

“The City of Raleigh has some tremendous donors, civic-minded folks who made generous contributions,” Hall said. “That partnership with the city is what really made this happen — and that’s what makes Raleigh so special.”