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  • Shipments of contaminated waste to resume from Ohio train derailment site | CNN

    Shipments of contaminated waste to resume from Ohio train derailment site | CNN

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    CNN
     — 

    The Environmental Protection Agency has approved resuming shipments of contaminated liquid and soil out of East Palestine, Ohio, where a train carrying toxic chemicals derailed earlier this month.

    The EPA on Friday ordered the train’s operator, Norfolk Southern, to halt the shipments so that it could review the company’s plans for disposal, adding to the controversy surrounding the crash that has also left residents of the town worried about potential long-term health effects.

    That’s as officials in Texas and Michigan complained they didn’t receive any warning that hazardous waste from the crash would be shipped into their jurisdictions for disposal.

    Shipments now will be going to two EPA-certified facilities in Ohio, and Norfolk Southern will start shipments to these locations Monday, EPA regional administrator Debra Shore said at a news conference Sunday.

    “Some of the liquid wastes will be sent to a facility in Vickery, Ohio, where it will be disposed of in an underground injection well,” Shore said. “Norfolk Southern will also beghin shipping solid waste to the Heritage Incinerator in East Liverpool, Ohio.”

    Until Friday, Norfolk Southern was “solely responsible” for disposing of waste from the train derailment, Shore said Saturday, but waste disposal plans “will be subject to EPA review and approval moving forward.”

    All rail cars, except for those held by the National Transportation Safety Board (NTSB), have been removed from the site of the derailment, Ohio Environmental Protection Agency (EPA) Director Anne Vogel said in an update Sunday.

    The NTSB is currently holding 11 railcars as part of its investigation into the derailment, Ohio Gov. Mike DeWine said in a statement Sunday.

    “This is so critically important to moving on to next steps. We can now excavate additional contaminated soil and began installing monitoring wells,” Vogel said. The Ohio EPA will oversee the installation of water monitoring wells at the site of the derailment that will measure contaminant levels in the groundwater below.

    Every aspect of transporting and disposing of the hazardous waste material “from the moment trucks and rail cars are loaded until the waste is safely disposed of” will be closely regulated and overseen by federal, state, and local governments, Shore said Sunday.

    Shore detailed the federal, state, and local compliance requirements expected from Norfolk Southern.

    “These extensive requirements cover everything from waste labeling, packaging, and handling, as well as requirements for shipping documents that provide information about the wastes and where they’re going,” Shore said.

    The hazardous waste material previously sent to facilities in Michigan and Texas is now being processed at those facilities, Shore said.

    About 2 million gallons of firefighting water from the train derailment site were expected to be disposed in Harris County, Texas, with about half a million gallons already there, according to the county’s chief executive.

    Also, contaminated soil from the derailment site was being taken to the US Ecology Wayne Disposal in Belleville, Michigan, US Rep. Debbie Dingell of Michigan said Friday.

    The Michigan and Ohio facilities were, in fact, EPA approved sites, but they are not currently accepting any more shipments at this time, and the EPA is “exploring to see whether they have the capacity” to accept shipments in the future, Shore said.

    A spokesperson Gov. DeWine told CNN the governor was not briefed on where in the country the shipments would be sent. But this is typical, as the train company is responsible for the transport of material and the EPA is responsible for regulating that transport, DeWine spokesman Daniel Tierney said Saturday.

    The February 3 derailment of the Norfolk Southern train and subsequent intentional release of vinyl chloride it was hauling first forced East Palestine residents out of their homes, then left them with anxiety about health effects as reports of symptoms like rashes and headaches emerged after they returned.

    Officials have repeatedly sought to assure residents that continued air and water monitoring has found no concerns. The EPA reported last week that they have conducted indoor air testing at a total of 574 homes and detected no contaminants associated with the derailment.

    Federal teams in East Palestine have begun going door-to-door to check in with residents, conduct health surveys and provide informational flyers after President Joe Biden directed the move, a White House official told CNN.

    Also, a 19-person scientific team from the Centers for Disease Control and Prevention has been collecting information from residents about symptoms they have experienced since the derailment, said Jill Shugart, a senior environmental health specialist for the CDC.

    The EPA also installed “sentinel wells” near the city’s municipal well field to monitor contaminants in well water as part of the agency’s long-term early detection system “to protect the city for years to come,” Vogel, head of the Ohio EPA, said Saturday.

    In a Saturday update on the removal of contaminated waste, DeWine said 20 truckloads of hazardous solid waste had been hauled away from the Ohio derailment site. Fifteen of those truckloads were disposed of at a licensed hazardous waste treatment and disposal facility in Michigan and five truckloads were returned to East Palestine.

    About 102,000 gallons of liquid waste and 4,500 cubic yards of solid waste remained Saturday in storage on site in East Palestine – not including the five truckloads returned, according to DeWine. Additional solid and liquid wastes are being generated as the cleanup progresses, he added.

    Dingell told CNN on Saturday that neither she nor Michigan Gov. Gretchen Whitmer were aware of plans for toxic waste to be delivered to disposal sites in her district.

    “I called everybody,” Dingell said. “Nobody had really been given a heads up that they were coming here.”

    Across the country, Texas Chief Executive Lina Hidalgo expressed frustration that she first learned about the expected water shipments to her state from the news media – not from a government agency or Texas Molecular, the company hired to dispose of the water.

    She added that although there’s no legal requirement for her office to be notified, “it doesn’t quite seem right.”

    Hidalgo said Texas Molecular told her office Thursday that half a million gallons of the water was already in the county and the shipments began arriving around last Wednesday.

    On Thursday, Texas Molecular told CNN it had been hired to dispose of potentially dangerous water from the Ohio train derailment. The company said they had experts with more than four decades of experience in managing water safely and that all shipments, so far, had come by truck for the entire trip.

    Hidalgo’s office had been seeking information about the disposal, including the chemical composition of the firefighting water, the precautions that were being taken, and why Harris County was the chosen site, she said.

    According to a Thursday news release from Ohio Emergency Management Agency, more than 1.7 million gallons of contaminated liquid had been removed from the immediate site of the derailment. Of that, more than 1.1 million gallons of “contaminated liquid” from East Palestine had been transported off-site, with the majority going to Texas Molecular and the rest going to a facility in Vickery, Ohio.

    CNN asked the Ohio agency the location of the remaining 581,500 gallons which had been “removed” but not “hauled off-site” and has yet to receive a response.

    Regarding the causes of the accident, a National Transportation Safety Board preliminary report found that one of the train’s cars carrying plastic pellets was heated by a hot axle that sparked the initial fire, said Jennifer Homendy, the chair of the safety board. So far, the investigation found the three crew members on board the train did not do anything wrong prior to the derailment, though the crash was “100% preventable,” she said.

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  • US Energy Department assesses Covid-19 likely resulted from lab leak, furthering US intel divide over virus origin | CNN Politics

    US Energy Department assesses Covid-19 likely resulted from lab leak, furthering US intel divide over virus origin | CNN Politics

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    CNN
     — 

    The US Department of Energy has assessed that the Covid-19 pandemic most likely came from a laboratory leak in China, according to a newly updated classified intelligence report.

    Two sources said that the Department of Energy assessed in the intelligence report that it had “low confidence” the Covid-19 virus accidentally escaped from a lab in Wuhan.

    Intelligence agencies can make assessments with either low, medium or high confidence. A low confidence assessment generally means that the information obtained is not reliable enough or too fragmented to make a more definitive analytic judgment or that there is not enough information available to draw a more robust conclusion.

    The latest assessment further adds to the divide in the US government over whether the Covid-19 pandemic began in China in 2019 as the result of a lab leak or whether it emerged naturally. The various intelligence agencies have been split on the matter for years. In 2021, the intelligence community declassified a report that showed four agencies in the intelligence community had assessed with low confidence that the virus likely jumped from animals to humans naturally in the wild, while one assessed with moderate confidence that the pandemic was the result of a laboratory accident.

    Three other intelligence community elements were unable to coalesce around either explanation without additional information, the report said.

    The Wall Street Journal first reported on the new assessment from the Department of Energy. A senior US intelligence official told the Journal that the update to the intelligence assessment was conducted in light of new intelligence, further study of academic literature and in consultation with experts outside government.

    A Department of Energy spokesperson told CNN in a statement: “The Department of Energy continues to support the thorough, careful, and objective work of our intelligence professionals in investigating the origins of COVID-19, as the President directed.”

    The Department of Energy’s Office of Intelligence and Counterintelligence is one of 18 government agencies that make up the intelligence community, which are under the umbrella of the Office of the Director of National Intelligence.

    The Office of the Director of National Intelligence declined to comment.

    The latest intelligence assessment was provided to Congress as Republicans on Capitol Hill have been pushing for further investigation into the lab leak theory, while accusing the Biden administration of playing down its possibility.

    A spokesperson for House Oversight Chairman James Comer, a Kentucky Republican, said in a statement that the committee was “reviewing the classified information provided” by the Office of the Director of National Intelligence in response to a letter requesting information earlier this month.

    One of the sources said that the new assessment from the Department of Energy is similar to information from a House Republican Intelligence Committee report released last year on the origins of the virus.

    National security adviser Jake Sullivan said on CNN’s “State of the Union” on Sunday that the intelligence community remains divided on the matter, while noting that President Joe Biden has put resources into getting to the bottom of the origin question.

    “Right now, there is not a definitive answer that has emerged from the intelligence community on this question,” Sullivan told CNN’s Dana Bash. “Some elements of the intelligence community have reached conclusions on one side, some on the other. A number of them have said they just don’t have enough information to be sure.”

    Sullivan said Biden had directed the national laboratories, which are part of the Department of Energy, to be brought into the assessment.

    In May 2020, researchers at the government-backed Lawrence Livermore National Laboratory issued a classified report that found it was possible that the coronavirus escaped from a lab in Wuhan, which came at a time when that line of inquiry was considered taboo.

    The US began exploring the possibility that Covid-19 spread in a laboratory as early as April 2020, though the intelligence community has noted repeatedly that a lack of cooperation from Beijing has made it difficult to get to the bottom of the question.

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  • Inflation is doing a crab walk and Fed officials fear its pinch | CNN Business

    Inflation is doing a crab walk and Fed officials fear its pinch | CNN Business

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    A version of this story first appeared in CNN Business’ Before the Bell newsletter. Not a subscriber? You can sign up right here. You can listen to an audio version of the newsletter by clicking the same link.


    New York
    CNN
     — 

    The possibility of a 2023 market rally ground to a halt last week amid an onslaught of unfortunate inflation and economic data that spooked investors and increased the likelihood that the Federal Reserve will continue its economically painful rate hikes campaign for longer than Wall Street hoped.

    All major indexes notched their largest weekly losses of 2023 on Friday. The S&P 500 fell by 2.7%. The Dow Jones Industrial Average sank 3%, and the tech-heavy Nasdaq fell 3.3%.

    What’s happening: It appears that after months of steady decline, the pace of inflation is going sideways. January’s Personal Consumption Expenditures price index – the Fed’s favored inflation gauge – came in hotter than expected on Friday.

    Prices rose a whopping 5.4% in January from a year earlier, the Commerce Department’s Bureau of Economic Analysis reported. In December, prices rose 5.3% annually.

    In January alone, prices were up 0.6% from the prior month, a higher monthly gain from December’s increase of 0.2%.

    This inflationary crab walk is almost certainly causing Fed officials to rethink their policy.

    A paper presented Friday at the Booth School of Business Monetary Policy Forum in New York argued that disinflation will likely be slower and more painful than markets anticipate.

    “Significant disinflations induced by monetary policy tightening are associated with recessions,” said the paper. “An ‘immaculate disinflation’ would be unprecedented.” (Immaculate, in this instance, refers to the possibility of inflation falling quickly to the Fed’s 2% goal without any serious economic damage).

    Several Fed presidents, governors and top economists were on hand at the Booth School forum to discuss the paper and monetary policy on Friday. The majority of those speaking expressed deep concern about the stubbornness of inflation and general market reaction.

    Inflation won’t quit: Cleveland Fed President Loretta Mester said that while price growth has moderated from its recent high, the overall pace of inflation remains too high and could be more persistent than her colleagues currently anticipate.

    “I anticipate further rate increases to reach a sufficiently restrictive level, then holding there for some, perhaps extended, time,” echoed Boston Fed President Susan Collins at the conference.

    Collins referred to inflation as “recalcitrant,” a loaded million-dollar word that means uncooperative, or defiant to authority.

    Fed Governor Philip Jefferson struck a more befuddled stance on Friday, observing that inflation continues to baffle economists. “The inflationary forces impinging on the US economy at present represent a complex mixture of temporary and more long-lasting elements that defy simple, parsimonious explanation,” he said. Parsimonious being another million-dollar word for frugal.

    Economists stressed that more pain lies ahead. “It’s important that markets understand that ‘no landing’ is not an option,” said Peter Hooper, vice chair of research at Deutsche Bank, an author of the report.

    While recent data has signaled that the US economy remains strong, “by the time we get to the middle of this year we expect to see some bad news coming and the sooner the markets get that message the more helpful it will be to the Fed,” he said.

    The final word: Former Bank of England Governor Lord Mervyn King summed up what many were thinking on Friday: Given the complexity of the current monetary situation, he said, “I wouldn’t want to give advice to any central banks about what we should do.”

    Researchers at the Federal Reserve Bank of New York have issued a dire warning: If President Joe Biden’s student loan forgiveness plan doesn’t come to fruition, the US could face another credit crisis.

    Some background: The Covid-19 crisis triggered a sudden shift in student loan policy and a new openness to forgiveness. In March 2020, Congress passed the CARES Act, which automatically paused required payments on all federally held student loans.

    That forbearance has since been extended eight times and is set to end as late as August, 40 months after it began.

    The Biden Administration had announced an unprecedented debt cancellation proposal which would provide relief to more than 40 million borrowers. An analysis by the New York Fed found that roughly $441 billion of federal student loans are eligible for forgiveness under the proposal, canceling about 30% of all outstanding federal student loan debt.

    That forgiveness proposal is now on hold after an injunction by the 8th US Circuit Court of Appeals. On Tuesday, The Supreme Court of the United States will hear the case with its decision expected by June 2023.

    What’s on the line: If the Biden Administration’s forgiveness plan survives the court challenge, it will mark the largest mass discharge of consumer debt in modern history, according to the New York Fed. About 40% of those with federal student loan debt would have a zero balance; even more would have a much smaller monthly payment.

    But, “if payments resume without debt relief, we expect both student loan default and delinquencies to rise and potentially surpass pre-pandemic levels,” warned Fed researchers.

    “We note a stark increase in new credit card and auto loan delinquency for borrowers with eligible student loans over the past few quarters, growing at a faster pace than those without student loans and those with ineligible loans,” they wrote.

    Those missed payments suggest that some federal student loan borrowers are having trouble meeting their monthly debt obligations. “We expect these delinquency patterns to worsen if federal student loan payments resume without relief,” said the report.

    The data “may be suggestive of problems to come, a sign of economic distress that may appear particularly concerning when the burden of student loan payments resumes.”

    Future concerns: If student loan borrowers expect future debt cancellation, they may borrow even more, said researchers, which would increase debt balances even more sharply. “Absent direct policies to address this growing burden, taxpayers may be again called to for relief in the future,” they concluded.

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  • A first report on the Ohio toxic train wreck was released. Here’s what it found — and what investigators are still looking into | CNN

    A first report on the Ohio toxic train wreck was released. Here’s what it found — and what investigators are still looking into | CNN

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    CNN
     — 

    After federal officials released an initial report concluding that this month’s toxic train wreck in Ohio was completely preventable, investigators will begin examining procedures, practices and design prior to the derailment that has sparked long-term concerns among hundreds of frustrated residents.

    The National Transportation Safety Board on Thursday released its preliminary report on the investigation into the February 3 train crash in East Palestine, Ohio, where residents have been complaining about feeling sick after hazardous chemicals seeped into the air, water and soil.

    Ohio environmental officials made a civil referral this week asking the state attorney general’s office to begin “legal and/or equitable civil actions” against Norfolk Southern, which could result in a civil complaint if negotiations with the company were to fail.

    The NTSB report found that one of the train’s cars carrying plastic pellets was heated by a hot axle that sparked the initial fire, according to Jennifer Homendy, the chair of the safety board. As the temperature of the bearing got hotter, the train passed by two wayside defect detectors that did not trigger an audible alarm message because the heat threshold was not met at that point, Homendy explained. A third detector eventually picked up the high temperature, but it was already too late by then.

    “This was 100% preventable. … There is no accident. Every single event that we investigate is preventable,” Homendy said during a news conference Thursday. “The NTSB has one goal, and that is safety and ensuring that this never happens again.”

    The next phase of the investigation will examine the train’s wheelset and bearing as well as the damage from the derailment, the NTSB report noted. The agency will also focus on the designs of tank cars and railcars along with maintenance procedures and practices.

    Plus, investigators will review the train operator’s use of wayside defect detectors and the company’s railcar inspection practices. More specifically, determining what caused the wheel bearing failure will be key to the investigation, Homendy said.

    On Friday, Homendy said on “CNN This Morning” that she’s concerned politics could cloud the investigation and prevent safety improvements. Former President Donald Trump visited the site of the train derailment on Wednesday where he criticized President Joe Biden’s administration’s handling of the railway disaster.

    “This is not a time for politics,” Homendy said. “There is a time for politics. It is not this.”

    On Thursday, Transportation Secretary Pete Buttigieg also visited the derailment site, and when asked how political figures like Trump could help, Buttigieg addressed the former president directly saying he could “express support for reversing the deregulation that happened on his watch.”

    Another key aspect of the investigation will focus on the response to the chemical disaster, particularly the manual detonations of tanks carrying toxic chemicals.

    Five of the 38 derailed train cars were carrying more than 115,000 gallons of vinyl chloride, according to the NTSB’s report. Exposure to high levels of vinyl chloride can increase cancer risk or cause death.

    Those five cars “continued to concern authorities because the temperature inside one tank car was still rising,” indicating a polymerization reaction which could have resulted in an explosion, the report said. To help prevent a potentially deadly blast of vinyl chloride, crews released the toxic chemical into a trench and burned it off on February 6 — three days after the derailment.

    Since then, some East Palestine residents have said they are experiencing headaches, dizziness, nausea and bloody noses — a host of health issues they say they did not have prior to the crash.

    At the same time, officials have been adamant in reassuring residents of the air’s safety and the municipal water supply.

    Around 2 million gallons of firefighting water from the train derailment site are expected to be disposed in Harris County, Texas, according to the county’s chief executive.

    Harris County Judge Lina Hidalgo said her office was told by Texas Molecular on Thursday that the shipments began arriving around last Wednesday, she said.

    Texas Molecular was hired to dispose of the potentially dangerous water from the train derailment, the company, which said it has more than four decades of experience in managing water safely, has told CNN.

    The company told Hidalgo’s office Thursday that half a million gallons was already in the county.

    Hidalgo expressed frustration that she first learned about the water shipments from the news media – not from a government agency or Texas Molecular,

    “It’s a very real problem we were told yesterday the materials were coming only to learn today they’ve been here for a week,” Hidalgo said.

    She added that although there’s no legal requirement for her office to be notified, “It doesn’t quite seem right.”

    Texas Molecular is receiving the water from trucks, but it’s unclear if trucks are used for the entire trip, Hidalgo said. The company told her office they’re receiving about 30 trucks of water a day, she said.

    CNN is seeking comment from Texas Molecular about how the water is being transported.

    Hidalgo said her office is looking for information about the disposal, including the chemical composition of the firefighting water, the precautions that are being taken, and why Harris County was the chosen site.

    “There’s nothing right now to tell me – to tell us – there’s going to be an accident in transport, that this is being done in such a way that is not compatible with the well, that there’s a nefarious reason why the water is coming here and not to a closer site,” Hidalgo said. “But it is our job to do basic due diligence on that information.”

    A total of 1.7 million gallons of contaminated liquid has been removed from the immediate site of the derailment, according to a Thursday news release from the Ohio Emergency Management Agency.

    More than 1.1 million gallons of “contaminated liquid” from East Palestine has been transported off-site so far, with the majority going to Texas Molecular and the rest going to a facility in Vickery, Ohio.

    CNN has asked the Ohio agency the location of the remaining 581,500 gallons which have been “removed” but not “hauled off-site.”

    Congresswoman Debbie Dingell of Michigan said she was “not given a heads up” that contaminated soil from East Palestine would be transported to the US Ecology Wayne Disposal in Belleville, Michigan.

    “We were not given a heads up on this reported action,” Dingell said in a press release on Friday, “Our priority is to always keep the people we represent safe.”

    Dingell said inquires to the EPA, Department of Transportation, Norfolk Southern, US Ecology, the state of Ohio and others involved are in the process.

    On Friday afternoon, Ohio Gov. Mike DeWine released an update on the removal of the contaminated site in East Palestine, saying that soil would be transported to Michigan.

    So far, 4,832 cubic yards of soil have been removed from the ground in East Palestine. Approximately six truckloads of that contaminated soil are on their way to the hazardous waste disposal facility in Michigan, according to a press release from DeWine.

    The 149-car train operated by Norfolk Southern on February 3 had three employees on board: a locomotive engineer, a conductor and a trainee who were all in the head end of the locomotive, Homendy told CNN’s Jake Tapper on Thursday.

    So far, the investigation found the crew did not do anything wrong prior to the derailment, though the crash was “100% preventable,” Homendy said.

    Video of the train before the derailment showed what appeared to be an overheated wheel bearing, according to the NTSB report. Footage showed sparks flying from underneath the train.

    NTSB investigators are now focusing on one train car’s wheel set and bearing to figure out what may have caused the overheating, Homendy said.

    “We have a lot of questions about that,” she said Friday, including the “thresholds and why they vary so much between railroads.”

    Ultimately, it’s the railroads that set the temperature thresholds for the detectors, Homendy said.

    Releasing publicly a probable cause or causes for the derailment could take 12 to 18 months, Homendy said during the news conference.

    “We are very deliberative. We are the gold standard when it comes to investigations globally, and we are methodical in our approach,” Homendy said. “But if we see a safety issue that we need to be addressed immediately, something systemic, we will not hesitate to issue an urgent safety recommendation.”

    In the meantime, here’s what the NTSB preliminary report found so far:

    • One wheel bearing’s temperature reached a “critical” level — 253 degrees Fahrenheit above the ambient temperature — and prompted an audible alarm that instructed “the crew to slow and stop the train to inspect a hot axle,” the report says.
    • The train’s engineer applied the train’s brakes and additional braking after the alert of an overheating axle, the report states. “During this deceleration, the wheel bearing failed,” Homendy explained. “Car 23 derailed, and the train initiated an emergency brake application and came to a stop.”

    Even after reading the preliminary NTSB report, Ohio Attorney General Dave Yost told “CNN This Morning” that there’s still a lot of facts he doesn’t know.

    Among his biggest questions are: “Had the train been shorter, had there been additional staff, could this have been averted? Based on the alerts that occurred, how long is the reaction time and how is that influenced by the size of the train?” Yost told CNN.

    The US Environmental Protection Agency has ordered Norfolk Southern to cover the full cost of cleaning up the aftermath of the train crash.

    “EPA has special authority for situations just like this where we can compel companies who inflict trauma and cause environmental and health damage to communities, like Norfolk Southern has done, to completely clean up the mess that they’ve caused and pay for it,” EPA administrator Michael Regan said.

    Norfolk Southern will be required to:

    • Provide a descriptive work plan on how they intend to clean up the water, soil and debris
    • Reimburse the EPA for providing residents a cleaning service of their homes and businesses
    • Show up to public meetings and explain their progress

    If the company does not follow the order, the EPA will step in to complete the duties, while fining Norfolk Southern up to $70,000 a day, Regan said Wednesday during a CNN town hall.

    “And the law gives us the authority to charge Norfolk Southern up to three times the amount that the cleanup will cost us,” he said.

    The company plans to take a series of measures moving forward to minimize the long-term impacts of chemicals on the land and groundwater, including ripping up the tracks where the train derailed and removing soil underneath, Norfolk Southern CEO Alan Shaw said.

    Shaw added his company is working with the Environmental Protection Agency on a “long-term remediation plan.”

    Yost, who received the referral from the Ohio EPA to initiate necessary legal civil actions against Norfolk Southern this week, told CNN any criminal referral in Ohio regarding the derailment would be a decision made by local prosecutors.

    “We’ve been in contact with the local county prosecutor, and … we may be assisting him, but at this point, he has not empaneled a grand jury, to my understanding,” he said Friday on “CNN This Morning.”

    Ohio environmental officials made a civil referral Tuesday asking Yost’s office to “initiate all necessary legal and/or equitable civil actions” and “seek appropriate penalties” against Norfolk Southern, according to a copy of the referral provided by the attorney general’s office.

    “I respectfully request that this referral result in the filing of a civil complaint in the appropriate court if efforts on your part to resolve this matter through negotiation fail,” Ohio Environmental Protection Agency Director Anne Vogel wrote in a letter to Yost.

    Vogel cited potential violations of state laws regarding air and water pollution and solid and hazardous waste.

    Expanding the definition of a high-hazard flammable train – a standard the derailed train did not meet, despite sparking a major fire – is among the changes NTSB advocated for in the past, Homendy said Friday.

    NTSB urged regulators to include in the classification “a broad array of flammable materials,” rather than focusing on crude oil, she said.

    Additionally, NTSB will look at whether vinyl chloride needs to be carried in more fortified cars, Homendy said.

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  • Russia to launch replacement spacecraft for astronauts stranded by coolant leak | CNN

    Russia to launch replacement spacecraft for astronauts stranded by coolant leak | CNN

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    Sign up for CNN’s Wonder Theory science newsletter. Explore the universe with news on fascinating discoveries, scientific advancements and more.



    CNN
     — 

    Russia is gearing up to launch a Soyuz spacecraft to the International Space Station that will replace a capsule that sprang a coolant leak in December, leaving two cosmonauts and one NASA astronaut without a ride home.

    Liftoff of the capsule, called the Soyuz MS-23, is expected to occur out of Russia’s Baikonur Cosmodrome launch site in Kazakhstan on Thursday at 7:24 p.m. ET, which is 5:24 a.m. Friday local time. NASA will air coverage of the event beginning at 7 p.m. ET Thursday.

    The uncrewed spacecraft will spend two days in orbit, maneuvering toward the orbiting laboratory. It’s expected to dock with the Poisk module — which is on the space station’s Russian-run portion — just after 8 p.m. ET Saturday.

    The Soyuz MS-23 will be the return vehicle for cosmonauts Sergey Prokopyev and Dmitri Petelin and NASA astronaut Frank Rubio, all of whom traveled to the space station aboard the Soyuz MS-22 capsule in September.

    About two months into the three men’s journey, the MS-22 experienced a coolant leak, leaving the cabin at temperatures deemed unsafe for the crewmates. The Russian space agency Roscosmos and NASA quickly worked to establish plans to send a replacement vehicle. Roscosmos officials said they had determined that the leak resulted from a small hole caused by an impact with a micrometeoroid.

    Plans to launch the rescue vehicle, however, were drawn into question when a Russian cargo ship, called Progress, experienced a similar coolant leak after docking with the space station on February 11. Three days later, Roscosmos had said in a post on the social media site Telegram, that it would delay the Soyuz MS-23 launch until at least March while the agency investigated the cause of the Progress vehicle’s coolant leak.

    On Tuesday, however, Roscosmos said in an updated Telegram post that it had determined the cause of the Progress spacecraft leak was “external influences.”

    “The Russians are continuing to take a very close look at both the Soyuz and the Progress coolant leaks,” Dana Weigel, the space station’s deputy manager for NASA, said during a Wednesday briefing.

    “They formed a state commission that is assessing the anomalies,” she added, noting that the team is analyzing potential causes from the time the capsules launched through their journey in orbit.

    Originally, Roscosmos cosmonauts Oleg Kononenko and Nikolai Chub and NASA astronaut Loral O’Hara were expected to launch to the space station on March 16 aboard MS-23.

    Instead, Prokopyev, Petelin and Rubio’s time will be extended on the space station until they can return to Earth aboard Soyuz MS-23 later this year. That return could happen in September, according to a report from Russia state-run media outlet TASS.

    If that timeline holds, the three crewmates will have extended their expected six-month stay in space to about one year.

    When asked about the extended stay, Joel Montalbano, the space station’s program manager for NASA, said the crew remains in good health and there is no reason to expedite their journey home.

    The crew is “willing to help wherever we ask,” Montalbano said during a January 11 news conference. “They’re excited to be in space, excited to work and excited to do the research that we do on orbit. So they are ready to go with whatever decision that we give them.”

    He added, “I may have to fly some more ice cream to reward them.”

    The launch of the Soyuz MS-23 spacecraft comes just days before NASA and SpaceX will launch their Crew-6 mission. Expected to lift off early Monday morning, Crew-6 will carry NASA astronauts Stephen Bowen and Warren “Woody” Hoburg as well as Sultan Alneyadi, an astronaut with the United Arab Emirates, and Roscosmos cosmonaut Andrey Fedyaev.

    Shortly after those four arrive at the space station, NASA’s Crew-5 astronauts will return home from their five-month stay there aboard the SpaceX Crew Dragon capsule. NASA officials said this week that the coolant leaks experienced on the Soyuz and Progress vehicles would not have any impact on the SpaceX missions and that no similar issues were discovered on Crew Dragon vehicles.

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  • Amazon closes its acquisition of One Medical, but scrutiny of the deal is not over | CNN Business

    Amazon closes its acquisition of One Medical, but scrutiny of the deal is not over | CNN Business

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    Washington, DC
    CNN
     — 

    Amazon closed its acquisition of health care provider One Medical and its parent in a $3.9 billion deal on Wednesday, hours after the Federal Trade Commission said it would not challenge the purchase but that regulators were still investigating potential competitive and consumer harms of the transaction.

    The landmark deal will turn the e-commerce giant into a provider of primary medical care with access to more than 200 brick-and-mortar doctors’ offices, along with roughly 815,000 One Medical members, according to that company’s latest financial statement.

    The One Medical deal would also allow Amazon to expand its telehealth services and acquire valuable relationships with hospital systems, industry analysts have said.

    On Wednesday, Amazon said One Medical will offer new customers a $55 discount on annual memberships for a limited time.

    “We’re on a mission to make it dramatically easier for people to find, choose, afford, and engage with the services, products, and professionals they need to get and stay healthy, and coming together with One Medical is a big step on that journey,” said Neil Lindsay, senior vice president of Amazon Health Services, in a release. “One Medical has set the bar for what a quality, convenient, and affordable primary care experience should be like. We’re inspired by their human-centered, technology-forward approach and excited to help them continue to grow and serve more patients.”

    But while Amazon can consummate the deal without the immediate threat of an FTC antitrust suit, the agency is still investigating the acquisition and can still challenge the deal after the fact.

    “The FTC’s investigation of Amazon’s acquisition of One Medical continues,” said FTC spokesman Douglas Farrar. “The commission will continue to look at possible harms to competition created by this merger, as well as possible harms to consumers that may result from Amazon’s control and use of sensitive consumer health information held by One Medical.”

    The FTC plans to warn Amazon it may close the deal at its own risk, an agency official said. Known as a “pre-consummation warning,” the FTC began sending such letters to merging companies in 2021 in response to a surge in proposed deals that threatened to overwhelm regulators’ investigative capacity.

    The warning highlights the continued legal risk for Amazon and the potential concerns driving the FTC probe. Worries include not only the potential for Amazon to entrench its economic dominance but also fears that its acquisition of valuable health data could lead to the misuse of that information for other purposes, such as targeted advertising or e-commerce, the agency official said.

    Amazon’s deal to acquire One Medical follows its 2018 purchase of the online pharmacy service PillPack, which later became Amazon Pharmacy. Separately, Amazon partnered with JPMorgan Chase and Berkshire Hathaway on an effort to provide better health care services and insurance at a lower cost to workers and families at the three companies, and possibly other businesses, too. That effort, called Haven, shut down in 2021.

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  • Ohio governor drinks the tap water as the EPA demands Norfolk Southern manage all cleanup of a toxic train wreck — or face consequences | CNN

    Ohio governor drinks the tap water as the EPA demands Norfolk Southern manage all cleanup of a toxic train wreck — or face consequences | CNN

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    CNN
     — 

    The US Environmental Protection Agency is ordering Norfolk Southern to handle and pay for all necessary cleanup after a train carrying toxic chemicals derailed in East Palestine, Ohio.

    The EPA announced its legally binding order Tuesday, 18 days after the freight train derailed. The disaster ignited a dayslong inferno, shot plumes of black smoke into the air and led to the intentional release of vinyl chloride to help avert a more catastrophic blast.

    Some residents have reported health problems, and about 3,500 fish have died in Ohio waterways since the wreck.

    “Norfolk Southern will pay for cleaning the mess that they created and the trauma that they inflicted on this community,” EPA Administrator Michael Regan said Tuesday.

    As part of the EPA’s legally binding order, Norfolk Southern will be required to:

    • Identify and clean up any contaminated soil and water resources,

    • Reimburse the EPA for cleaning services to be offered to residents and businesses to provide an additional layer of reassurance, which will be conducted by EPA staff and contractors,

    • Attend and participate in public meetings at the EPA’s request and post information online, and

    • Pay for the EPA’s costs for work performed under the order.

    The order will take effect Thursday. The EPA said it will exercise its strongest authority against the train’s operator under CERCLA – the Comprehensive Environmental Response, Compensation, and Liability Act.

    “In no way, shape or form will Norfolk Southern get off the hook for the mess that they created,” Regan said.

    If the rail company fails to meet the demands, the EPA said it will immediately step in, conduct the necessary work and then seek to compel Norfolk Southern to pay triple the cost.

    In response to the EPA’s announcement, Norfolk Southern said it has been working to clean up the site and will continue helping residents.

    “We recognize that we have a responsibility, and we have committed to doing what’s right for the residents of East Palestine,” Norfolk Southern said in a statement to CNN.

    “We have been paying for the clean-up activities to date and will continue to do so. We are committed to thoroughly and safely cleaning the site, and we are reimbursing residents for the disruption this has caused in their lives. We are investing in helping East Palestine thrive for the long-term, and we will continue to be in the community for as long as it takes. We are going to learn from this terrible accident and work with regulators and elected officials to improve railroad safety.”

    Hours before the EPA’s announcement, Regan and Gov. Mike DeWine visited an East Palestine home and tried to reassure residents that the municipal water supply is safe.

    They raised two glasses filled with water straight from the tap and toasted before drinking.

    The municipal water supply comes from five wells deep underground that are encased in steel, state officials have said. But residents with private well water should get that water tested before using it, since that water may be sourced closer to the ground’s surface.

    “State and local authorities will continue the water sampling efforts, and EPA will continue indoor air screenings to residents within the evacuation zone,” Regan said Tuesday.

    But “I recognize that no matter how much data we collect or provide, it will not be enough to completely reassure everybody,” the EPA chief said.

    “It may not be enough to restore the sense of safety and security that this community once had. But we’re going to work together, day by day, for as long as it takes to make sure that this community feels at home once again.”

    The soil under the railroad track at the site of the wreck is still contaminated, and the tracks need to be lifted to remove that soil, the director of Ohio’s Environmental Protection Agency said Tuesday.

    The governor acknowledged residents’ concerns about the contaminated soil and said 4,588 cubic yards of soil and 1.1 million gallons of contaminated water have been removed from East Palestine.

    “The railroad got the tracks back on and started running and the soil under the tracks had not been dealt with,” DeWine said. “The tracks will have to be taken up, and that soil will have to be removed.”

    To address the growing reports of rashes, headaches, nausea and other symptoms in East Palestine, the state opened a new health clinic for residents.

    The health clinic will have registered nurses, mental health specialists and – at times – a toxicologist, the Ohio Department of Health said.

    Medical teams from the US Centers for Diseases Control and Prevention and the US Department of Health are expected to arrive in the community as early as this week to help assess what dangers might remain.

    Authorities have repeatedly assured residents that the air and municipal water supply in the town are safe. Crews have checked hundreds of homes and have not detected any dangerous levels of contaminants, the EPA said.

    Still, life in East Palestine has been uprooted as residents question the findings and wonder whether it’s really safe to drink the water or breathe the air.

    “It will be important to monitor people’s health and the environment around the train derailment for some time to come since health impacts may not emerge until later,” said Dr. Erin Haynes, an environmental health scientist at the University of Kentucky.

    “We should never say we’re done looking at this community for potential exposures and health impacts.”

    Petroleum based chemicals float on the top of the water in Leslie Run creek after being agitated from the sediment on Monday in East Palestine.

    Some waterways were contaminated after the crash, killing an estimated 3,500 fish. But officials have said they believe those contaminants have been contained.

    Norfolk Southern installed booms and dams to restrict the flow of contaminated water from Sulphur Run and Leslie Run – two streams where fish were found dead, the EPA said.

    “The spill did flow to the Ohio River during that initial slug, but the Ohio River is very large, and it’s a water body that’s able to dilute the pollutants pretty quickly,” Ohio Environmental Protection Agency official Tiffani Kavalec said last week.

    Kavalec said the agency is pretty confident that the “low levels” of contaminants that remain are not getting passed on to water customers.

    A series of pumps have been placed upstream to reroute Sulphur Run around the derailment site, Norfolk Southern said Monday.

    “Environmental teams are treating the impacted portions of Sulphur Run with booms, aeration, and carbon filtration units,” Norfolk Southern added. “Those teams are also working with stream experts to collect soil and groundwater samples to develop a comprehensive plan to address any contamination that remains in the stream banks and sediment.”

    Water intakes from the Ohio River that were shut off Sunday “as a precautionary measure” were reopened after sampling found “no detections of the specific chemicals from the train derailment,” the Greater Cincinnati Water Works and Northern Kentucky Water District said Monday.

    A third utility provider – Maysville utility in Kentucky – announced that it temporarily shut off water intakes from the Ohio River on Saturday, when the toxic chemicals released into the river from the derailment were expected to arrive at the water treatment intake in Kentucky, utility general manager Mark Julian said.

    Water measurements have been below the level of concern, Julian said, and Maysville took precautionary measures in temporarily shutting down their Ohio River intake valve due to the public concern.

    “The takeaway is that anyone along the Ohio River where the contaminants made their way can breathe a sigh of relief,” he said.

    A member of Ohio EPA Emergency Response looks for fish at Leslie Run creek and checks for chemicals in East Palestine on Monday.

    Meanwhile, the majority of the hazardous rail cars remain at the crash site as investigators continue to probe the wreck. But about 15,000 pounds of contaminated soil and 1.1 million gallons of contaminated water have been removed from the scene, Norfolk Southern announced Monday.

    The contaminated soil became a point of contention last week after a public document sent to the EPA on February 10 did not list soil removal among completed cleanup activities. It is not yet known what significance or impact the soil that was not removed before the railroad reopened on February 8 will have had on the surrounding areas.

    As skepticism spreads about the safety of the air and water, some local businesses say they’ve seen fewer customers.

    “Everybody’s afraid … They don’t want to come in and drink the water,” Teresa Sprowls, a restaurant owner in East Palestine, told CNN affiliate WOIO.

    A stylist at a hair salon told WOIO there’s no doubt the salon lost business and that customers may be worried about what may be in the water washing their hair.

    “I know a lot of our businesses are already suffering greatly because people don’t want to come here,” local greenhouse owner Dianna Elzer told CNN affiliate WPXI.

    Her husband, Donald Elzer, echoed her concerns, saying, “It’s devastating. The longer it goes on, the worse it gets.”

    Dianna Elzer also worried about longer-term economic impacts to the community.

    “Our property values – who is going to want to buy a house here now?” she told WPXI. “It’s going to be a long struggle to get back to where we were.”

    As residents call for accountability from both Norfolk Southern and government officials, US Transportation Secretary Pete Buttigieg said he plans to visit East Palestine “when the time is right” – but did not announce a date.

    He did announce Monday new efforts by the Department of Transportation to improve rail safety.

    “We are accelerating and augmenting our ongoing lines of effort on rail regulation and inspection here at the US DOT, including further regulation on high hazard flammable trains and electronically controlled pneumatic brakes – rules that were clawed back under the previous administration – to the full extent of that we are allowed to under current law, and we will continue using resources from the Bipartisan Infrastructure Law to fund projects that improve rail safety,” Buttigieg said.

    A DOT news release said the agency will continue to press for the “Train Crew Staffing Rule,” which would require a minimum of two crew members during most railroad operations. Norfolk Southern has opposed the proposed rule.

    Norfolk Southern has committed millions of dollars’ worth of financial assistance to East Palestine, including $3.4 million in direct financial assistance to families and a $1 million community assistance fund, among other aid, the company said.

    Norfolk Southern CEO Alan Shaw posted an open letter telling East Palestine residents, “I hear you” and “we are here and will stay here for as long as it takes to ensure your safety and to help East Palestine recover and thrive.”

    “Together with local health officials,” Shaw said, “we have implemented a comprehensive testing program to ensure the safety of East Palestine’s water, air, and soil.”

    Correction: An earlier version of this story misspelled the first name of Ohio Environmental Protection Agency official Tiffani Kavalec.

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  • As residents near the toxic train wreck in Ohio worry about rashes, sore throats and nausea, the state sets up a health clinic | CNN

    As residents near the toxic train wreck in Ohio worry about rashes, sore throats and nausea, the state sets up a health clinic | CNN

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    CNN
     — 

    While officials have repeatedly sought to assure residents that the water and air in East Palestine, Ohio, are safe after the derailment of a train carrying hazardous materials earlier this month, anxiety has permeated the community amid reports of rashes, nausea and headaches.

    The state now plans to open a health clinic in East Palestine Tuesday for residents concerned about possible symptoms related to the derailment and the Biden administration announced it deployed experts to help assess what dangers remain in the area after Ohio Gov. Mike DeWine requested medical teams from the US Centers for Diseases Control and Prevention and the US Department of Health.

    It’s been over two weeks since a train carrying vinyl chloride derailed in the small community of less than 5,000 people, igniting a dayslong inferno and prompting crews to carry out detonations to the toxic chemical to prevent a potentially deadly explosion.

    The detonations unleashed a black cloud of smoke over the area, where a chemical stench lingered for days. While it was deemed safe for evacuated residents to return home on February 8, community members have questioned how safe their village is and the validity of the air and water tests.

    US Sen. Sherrod Brown said residents are “right to be skeptical.”

    “We think the water’s safe,” Brown told CNN, citing comments made by the administrators of the state and federal Environmental Protection Agencies. “But when you return to your home, you should be tested again for your water and your soil and your air, not to mention those that have their own wells.”

    Testing of air quality in more than 530 homes has shown no detection of contaminants, the US Environmental Protection Agency said Sunday.

    As for the water, no vinyl chloride has been detected in any down-gradient waterways near the train derailment, EPA official Tiffani Kavalec told CNN last week.

    And while some waterways in the area were contaminated – killing thousands of fish downstream – officials have said they believe those contaminants to be contained.

    After crews discovered the contaminated runoff on two surface water streams, Sulphur Run and Leslie Run, Norfolk Southern installed booms and dams to restrict the flow of contaminated water, according to the EPA.

    Still, despite the assurances from officials that the water is safe, some residents are too afraid to drink from their taps and the town has been distributing bottled water.

    Desiree Walker – a 19-year resident of the town who lives just 900 feet from the derailment site – told CNN affiliate WOIO that she refuses to let her children drink the water, fearing it could have long-term health effects.

    “There’s a big concern because they’re young. They’ve got their whole life ahead of them,” Walker said. “I don’t want this to impact them down the road. I want them to have a long, happy life.”

    Walker said her family is feeling symptoms, but doctors tell them they don’t know what to test for.

    “At nighttime especially is when we smell it the most,” she told the station. “Our throats are sore, we’re coughing a lot now. My son, his eyes matted shut.”

    As anger and frustration bubbled in the small town, hundreds of East Palestine residents attended a town hall last week to express concerns over air and water safety in their community.

    Residents reported a variety of issues – including rashes, sore throats, nausea and headaches – and shared worries that the symptoms could potentially be related to chemicals released after a train derailment.

    “Why are people getting sick if there’s nothing in the air or in the water,” one resident yelled during the gathering.

    Ayla Antoniazzi and her family returned to their house less than a mile from the crash site the day after evacuation orders were lifted. The mother made sure to air the house out and wash all the linen before bringing her children home.

    “But the next day when they woke up, they weren’t themselves,” Antoniazzi said. “My oldest had a rash on her face. The youngest did too but not as bad. The 2-year-old was holding her eye and complaining that her eye was hurting. She was very lethargic, so I took them back to my parents’ home.”

    The Ohio Department of Health’s clinic opening Tuesday is meant to help East Palestine recover from the incident, officials said. The clinic will have registered nurses, mental health specialists and, at times, a toxicologist, the agency said.

    “I heard you, the state heard you, and now the Ohio Department of Health and many of our partner agencies are providing this clinic, where people can come and discuss these vital issues with medical providers,” said the department’s director, Dr. Bruce Vanderhoff.

    The decision to conduct controlled detonations at the derailment site on February 6 has also fueled skepticism and questions about safety.

    Ayla Antoniazzi's 4-year-old daughter developed a rash after going back to school in East Palestine.

    Officials said the move was meant to avert an explosion at the site of the derailment by venting the toxic vinyl chloride gas and burning it in a pit, a move that shot up a thick plume of smoke over the town.

    Vinyl chloride – a man-made substance used to make PVC – can cause dizziness, sleepiness and headaches and has also been linked to an increased risk of cancer in the liver, brain, lungs and blood.

    The burning vinyl chloride gas could break down into compounds including hydrogen chloride and phosgene, a chemical weapon used during World War I as a choking agent, according to the US Environmental Protection Agency and CDC.

    After the detonation, crews checked the air for chemicals of concern, including phosgene and hydrogen chloride, as well as butyl acrylate, ethylene glycol monobutyl ether acetate, and 2-ethylhexyl acrylate, according to the EPA, and reported that the data was normal.

    Work now continues to clear the crash site.

    The train’s operator, Norfolk Southern, is “scrapping and removing rail cars at the derailment location, excavating contaminated areas, removing contaminated liquids from affected storm drains, and staging recovered waste for transportation to an approved disposal facility,” the EPA said Sunday.

    “Air monitoring and sampling will continue until removal of heavily contaminated soil in the derailment area is complete and odors subside in the community,” the agency said.

    US Transportation Secretary Pete Buttigieg sent a letter Sunday to Norfolk Southern CEO Alan Shaw, demanding accountability and calling for greater safety regulations.

    “The people of East Palestine cannot be forgotten, nor can their pain be simply considered the cost of doing business,” Buttigieg wrote to the railway’s chief executive.

    “You have previously indicated to me that you are committed to meeting your responsibilities to this community, but it is clear that area residents are not satisfied with the information, presence, and support they are getting from NorfolkSouthern in the aftermath and recovery,” Buttigieg added.

    Brown also pledged to hold the rail company accountable for the impacts on the community, saying in a news conference he would “make sure Norfolk Southern does what it says it’s going to do, what it’s promised.”

    “All the cleanup, all the drilling, all the testing, all the hotel stays, all of that is on Norfolk Southern. They caused it, there’s no question they caused it,” Brown said, adding the total cost could amount to either tens or hundreds of millions of dollars.

    Norfolk Southern’s CEO posted an open letter Saturday telling East Palestine residents, “I hear you” and “we are here and will stay here for as long as it takes to ensure your safety and to help East Palestine recover and thrive.”

    “Together with local health officials, we have implemented a comprehensive testing program to ensure the safety of East Palestine’s water, air, and soil,” Shaw said in the letter, adding that the company also started a $1 million fund “as a down payment on our commitment to help rebuild.”

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  • Biden administration restores Obama-era mercury rules for power plants, eyes more regulations in coming months | CNN Politics

    Biden administration restores Obama-era mercury rules for power plants, eyes more regulations in coming months | CNN Politics

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    CNN
     — 

    The Biden administration on Friday finalized a decision to reestablish Obama-era rules that require coal and oil-fired power plants to reduce toxic pollutants, including mercury and acid gas, that come out of their smokestacks.

    Mercury is a neurotoxin with several health impacts, including harmful effects on children’s brain development. And while the updated rule significantly benefits public health for communities around these kinds of power plants, it also has the effect of requiring plants to cut down on planet-warming pollution that comes from burning coal to generate electricity.

    President Joe Biden’s Environmental Protection Agency announced early last year that it intended to undo a Trump-era rollback of the 2012 mercury pollution rules, one of many Trump-era environmental decisions it has reversed.

    “This is a really good day for public health in this country,” EPA Deputy Administrator Janet McCabe told CNN. “We’re talking about mercury, arsenic, acid gases; these are dangerous pollutants that impact people’s health.”

    The EPA estimates the 2012 rule brought down mercury emissions from power plants by 86% by 2017, while acid gas emissions were reduced by 96%.

    McCabe said the EPA is currently working on its own, stronger mercury standard that it expects to propose “not too long from now” and finalize before the end of Biden’s first term.

    The Mercury and Air Toxics Standards rules are part of a larger tranche of regulations the agency is expected to roll out this spring that would cut down on coal-fired power plant pollution, including rules on proper disposal of coal ash.

    It also plans to release a much-anticipated rule that would regulate planet-warming pollution like carbon dioxide and methane. That rule is expected to be more limited than climate advocates desire, after the US Supreme Court limited the EPA’s ability to broadly regulate carbon pollution in a ruling last year.

    “We’re very mindful of the Supreme Court precedent,” McCabe told CNN. “We’ve been working very, very carefully to craft a rule that will be in the four corners of the direction that the Supreme Court has laid down.”

    McCabe said the agency will propose that rule “in the relatively near future,” but did not share specifics about what the rule would do to limit pollution.

    Many of the nation’s coal-fired power plants are aging and new ones are not being built – especially as it’s getting more expensive operate existing plans. If the EPA implements stronger federal regulations on mercury, coal ash and greenhouse gas emissions, it could have the impact of more utilities shuttering coal-fired plants, as many are already doing.

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  • Feds are sending medical experts to Ohio toxic train wreck site as residents’ safety concerns simmer | CNN

    Feds are sending medical experts to Ohio toxic train wreck site as residents’ safety concerns simmer | CNN

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    CNN
     — 

    The Biden administration said it has deployed federal medical experts to help assess what dangers remain at an Ohio village where a train carrying hazardous materials derailed this month, a ramp-up of federal support at the governor’s request as anxious residents point to signs of adverse effects.

    Ohio Gov. Mike DeWine on Thursday asked the US Centers for Disease Control and Prevention and the US Department of Health and Human Services to send teams to East Palestine, where the train derailed February 3 and sparked a dayslong blaze.

    “This request for medical experts includes, but is not limited to, physicians and behavioral health specialists,” DeWine wrote in a letter to the CDC. “Some community members have already seen physicians in the area but remain concerned about their condition and possible health effects – both short- and long-term.”

    The Biden administration approved the request and began deploying teams from both federal agencies in part for public health testing and assessments, White House press secretary Karine Jean-Pierre said Thursday.

    That is in addition to aid the Federal Emergency Management Agency is providing, according to Jean-Pierre, who noted Thursday that the train derailment situation is “much more expansive” than what FEMA can offer.

    The federal support boost to a community of some 5,000 people along the Ohio-Pennsylvania state line comes amid some residents’ growing concerns that some areas may not be safe to live in.

    An evacuation order that was in place for areas near the crash site was lifted February 8 after officials said air and water sample results led them to deem the area safe, officials said.

    But a chemical stench lingered in areas, with some residents saying the odor left them with headaches and pains in their throat. Plus, officials estimate thousands of fish were killed by contamination washing down streams and rivers.

    Further spurring residents’ questions about safety – some of which were expressed at an emotional community meeting Wednesday – were crews’ decision to conduct controlled detonations February 6 of some tanks carrying toxic chemicals to prevent a more dangerous explosion. Though a larger blast was averted, the detonations essentially released chemicals into the air, including vinyl chloride that at high levels could kill and increase cancer risk.

    On Thursday, the head of the federal Environmental Agency Administration visited East Palestine and vowed to use the agency’s enforcement authority to hold the train operator, Norfolk Southern, accountable.

    “I want the community to know that we hear you, we see you, and that we will get to the bottom of this,” EPA Administrator Michael S. Regan said Thursday during a news conference. “We are testing for all volatile organic chemicals. We’re testing for everything. We’re testing for everything that was on that train. So, we feel comfortable that we are casting a net wide enough to present a picture that will protect the community.”

    During the visit, Regan observed some of the ongoing remediation efforts following the hazardous train derailment. While the state EPA has the primary responsibility over the scene, Regan noted the federal arm is ready to provide aid when needed.

    Regan also noted that Norfolk Southern has signed a notice of accountability, acknowledging the company will be responsible for the cleanup.

    Meanwhile, another train operated by Norfolk Southern derailed Thursday morning in Michigan’s Van Buren Charter Township, and local officials said there was no evidence the area was exposed to hazardous materials.

    First responders arrived at the crash location around 8:30 a.m. and found around 30 rail cars had derailed. One of the overturned rail cars contained agricultural grain while the other overturned cars were empty, Van Buren Township Public Safety said.

    One rail car contained liquid chlorine, but it was not part of the overturned section and was removed from the scene, officials added.

    CNN has reached out to Norfolk Southern for comment on the train derailment in Michigan.

    Federal transportation investigators are working vigorously to determine what caused the 100-car freight train to crash in Ohio, the head of the National Transportation Safety Board said Thursday in a thread of tweets.

    “You have my personal commitment that the NTSB will CONTINUE to share all information publicly as soon as possible following our analysis,” board chairwoman Jennifer Homendy wrote. “Next: NTSB investigators will thoroughly examine the tank cars once decontaminated. As always, we’ll issue urgent safety recommendations as needed.”

    One of the elements under scrutiny is an apparent overheated wheel bearing seen on video before the derailment, the NTSB has said. The apparent overheating began at least 43 minutes before the train derailed, according to a CNN analysis of surveillance videos the network obtained.

    At around 8:12 p.m. on February 3, sparks from an apparent wheel bearing overheating were visible as the train passed through Salem, Ohio, two surveillance videos obtained by CNN show. Bright light and sparks are seen emanating from one of the rail cars.

    No sparks were seen in surveillance video taken 14 minutes earlier as the train passed through Alliance, Ohio.

    The train derailed in East Palestine around 8:55 p.m., about 43 minutes after the sparks were seen in Salem.

    It remains unclear what caused the overheating and whether it is linked to the derailment.

    Homendy, whose agency is responsible for investigating various transportation crashes from aviation to railways, implored the public on Twitter not to speculate about the cause of the crash.

    The train was carrying a range of toxic materials, including vinyl chloride, ethylene glycol monobutyl ether, ethylhexyl acrylate, isobutylene and butyl acrylate, the US Environmental Protection Agency has said.

    Of those, the vinyl chloride gas that caught fire could break down into compounds including hydrogen chloride and phosgene, a chemical weapon used during World War I as a choking agent, according to the EPA and the CDC. Vinyl chloride – a volatile organic compound, or VOC, and the most toxic chemical involved in the derailment – is known to cause cancer, attacking the liver, and can also affect the brain, Maria Doa of the Environmental Defense Fund told CNN.

    It’s the dangers these chemicals pose that has put East Palestine residents on edge over the past two weeks.

    During an intense community town hall meeting Wednesday in a high school gym, East Palestine Mayor Trent Conaway addressed the February 6 controlled detonations, saying the only option was to release the chemicals manually or risk greater danger to residents.

    “There (were) two options: We either detonate those tanks, or they detonate themselves,” Conaway told a group of reporters at Wednesday’s meeting.

    “Yes, harmful chemicals went into the air. I am truly sorry, but that is the only option we had. If we didn’t do that, then they were going to blow up, and we were going to have shrapnel all across this town.”

    Jami Cozza, an East Palestine resident who attended the meeting and was vocal about the issues her family have been facing since the train derailed, said she will not return home until it’s safe. Cozza told CNN she’s staying at a hotel paid for by the train company due to toxicity in her home cause by the derailment.

    Cozza explained the train company told her it was safe to return home after conducting air testing. However, she insisted the company run soil and water tests, and only then did a toxicologist deem her house unsafe.

    “Had I not used my voice, had I not thrown a fit, I would be sitting in that house right now, when they told me that it was safe,” Cozza said Thursday, adding she’s worried that not all residents are receiving the proper level of testing.

    Cozza noted the company has also offered to pay all of her moving expenses. “It’s not about the money. It’s about our house,” she said.

    Representatives of the train’s operator, Norfolk Southern, did not attend the community meeting Wednesday, citing safety concerns after it said employees were threatened, further escalating tensions.

    Despite the company’s absence, the mayor said the operator has been collaborating with local officials “tremendously.”

    Earlier this week, Norfolk Southern said it plans to create a $1 million charitable fund to support the East Palestine community.

    The company initially said it would make $1,000 payments to residents who lived within a mile of the spill evacuation zone. But the company has since decided to pay each resident in the entire 44413 ZIP code that money, a spokesman for the company told CNN.

    As of Tuesday evening, Norfolk Southern has distributed more than $1.5 million in direct financial assistance to more than 1,000 families and some businesses to cover costs related to the evacuation, the company said Wednesday in a news release.

    Those payments are in addition to the company’s offer to reimburse expenses related to residents evacuating during the incident, which includes the costs of hotels stays, food and more, company spokesperson Connor Spielmaker said.

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  • Inflation pushes up mortgage rates for second week in a row | CNN Business

    Inflation pushes up mortgage rates for second week in a row | CNN Business

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    Washington, DC
    CNN
     — 

    Mortgage rates climbed higher for the second consecutive week, following four weeks of declines. Inflation is running hotter, making rates more volatile, with the expectation that they will move in the 6% to 7% range over the next few weeks.

    The 30-year fixed-rate mortgage averaged 6.32% in the week ending February 16, up from 6.12% the week before, according to data from Freddie Mac released Thursday. A year ago, the 30-year fixed-rate was 3.92%.

    After climbing for most of 2022, mortgage rates had been trending downward since November, as various economic indicators indicated inflation may have peaked. But a stronger-than-expected jobs report and a Consumer Price Index report that showed inflation is only moderately easing suggest the Federal Reserve could continue hiking its benchmark lending rate in its battle against inflation.

    Inflation is keeping mortgage rates volatile, said Sam Khater, Freddie Mac’s chief economist.

    “The economy is showing signs of resilience, mainly due to consumer spending, and rates are increasing,” said Khater. “Overall housing costs are also increasing and therefore impacting inflation, which continues to persist.”

    The average mortgage rate is based on mortgage applications that Freddie Mac receives from thousands of lenders across the country. The survey includes only borrowers who put 20% down and have excellent credit. Many buyers who put down less money upfront or have less than ideal credit will pay more than the average rate.

    Investors are digesting the latest economic data, said George Ratiu, Realtor.com manager of economic research.

    The Fed does not set the interest rates that borrowers pay on mortgages directly, but its actions influence them. Mortgage rates tend to track the yield on 10-year US Treasury bonds, which move based on a combination of anticipation about the Fed’s actions, what the Fed actually does and investors’ reactions. When Treasury yields go up, so do mortgage rates; when they go down, mortgage rates tend to follow.

    “While the Fed signaled that it will continue to raise rates this year, the moves are expected to come in 25 basis point increments, a less aggressive tightening than what we saw in 2022,” said Ratiu. “The central bank is acknowledging that it sees its monetary actions having a tangible effect on inflation. The CPI data out this week seems to confirm the bank’s views.”

    At the same time, he said, many companies expect the economy will enter a recession as a result of the Fed’s rate hikes, even in the face of data pointing to continued resilience.

    “This expectation is becoming more visible in the growing number of companies resorting to layoffs as a hedge against a potential economic slowdown,” he said. “People who are laid off pull back on spending, and even those who are still employed may begin to do the same due to worries about losing their job, thus potentially sending consumer spending into a downward spiral.”

    For home buyers, the cost of financing a home is expected to go up.

    Already, rates have been climbing in recent weeks, leading to a drop in mortgage applications. Last week, applications fell 7.7% from one week earlier, according to the Mortgage Bankers Association.

    Buyers are proving to be interest rate sensitive, according to MBA.

    “Purchase applications dropped to their lowest level since the beginning of this year and were more than 40% lower than a year ago,” said Joel Kan, MBA’s vice president and deputy chief economist. “Potential buyers remain quite sensitive to the current level of mortgage rates, which are more than two percentage points above last year’s levels and have significantly reduced buyers’ purchasing power.”

    Mortgage rates are expected to move in the 6% to 7% range over the next few weeks, said Ratiu.

    For housing markets, he said, “the rebound in rates translates into higher mortgage payments, adding pressure on homebuyers.”

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  • The evacuation order was lifted a week ago near the toxic train wreck in Ohio, but some aren’t comfortable going home | CNN

    The evacuation order was lifted a week ago near the toxic train wreck in Ohio, but some aren’t comfortable going home | CNN

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    CNN
     — 

    An overwhelming stench of chlorine filled the air this week where Nathen Velez and his wife had been raising their two children, quickly burning his throat and eyes.

    The odor has lingered nearly two weeks after a Norfolk Southern train carrying hazardous materials derailed near the Ohio-Pennsylvania line, igniting an inferno that burned for days and prompted evacuations in surrounding areas while crews managed detonations to release vinyl chloride, which can kill quickly at high levels and increase cancer risk.

    The stay-away order was lifted five days after the derailment, after air and water sample results led officials to deem the area safe, the East Palestine, Ohio, fire chief said at the time. Governors of both states that day said air quality samples had “consistently showed readings at points below safety screening levels for contaminants of concern” – but also advised private well users to opt for bottled water and offered free well testing.

    Now, a week after residents were allowed to return, bottled water should remain the rule until more test results are back, Ohio Gov. Mike DeWine told “CNN This Morning” on Wednesday, noting water in the first well tested “was fine.”

    Still, he said, “Don’t take a chance. Wait until you get the tests back.”

    As that warning echoes and other worrying signs emerge, many in East Palestine remain plagued with anxiety – and some refuse to return amid fears the water, air, soil and surfaces in the village of 5,000 are not safe from fallout from the freight wreck. Some, like Velez, even are spending small fortunes to try to keep their families safely away from the place they used to call home.

    Plaintiffs’ attorneys have invited residents to meet Wednesday afternoon to discuss the derailment’s impact ahead of an evening town hall meeting hosted by East Palestine officials.

    The 100-car freight train that derailed February 3 was carrying hazardous materials including vinyl chloride, ethylene glycol monobutyl ether, ethylhexyl acrylate, isobutylene and butyl acrylate, the US Environmental Protection Agency said. Of those, the vinyl chloride gas that caught fire could break down into compounds including hydrogen chloride and phosgene, a chemical weapon used during World War I as a choking agent, according to the EPA and US Centers for Disease Control and Prevention.

    Vinyl chloride – a volatile organic compound, or VOC, and the most toxic chemical involved in the derailment – is known to cause cancer, attacking the liver, and can also affect the brain, Maria Doa of the Environmental Defense Fund told CNN.

    Cleanup and monitoring of the site could take years, Kurt Kohler of the Ohio EPA’s Office of Emergency Response said February 8, vowing that after the emergency response, “Ohio EPA is going to remain involved through our other divisions that oversee the long-term cleanup of these kinds of spill.” The federal EPA, too, will “continue to do everything in our power to help protect the community,” Administrator Michael Regan said Tuesday.

    Norfolk Southern, the company that operated the train, said Wednesday it was creating a $1 million charitable fund to support East Palestine.

    “We are committed to East Palestine today and in the future,” Norfolk Southern President and CEO Alan Shaw said in a statement. “We will be judged by our actions. We are cleaning up the site in an environmentally responsible way, reimbursing residents affected by the derailment, and working with members of the community to identify what is needed to help East Palestine recover and thrive.”

    But that’s slim consolation to Ben Ratner, whose family worries about longer-term risks that environmental officials are only beginning to assess, he told CNN this week.

    The Ratner home, for instance, was tested and cleared for VOCs, he said. And so far, no chemical detections were identified in the air of 291 homes screened by the EPA for hazardous chemicals including vinyl chloride and hydrogen chloride, it said in a Monday news update, with schools and a library also screened and 181 more homes to go.

    But the Ratners – who played extras in a Netflix disaster film with eerie similarities to the derailment crisis – still are feeling “an ever-changing mix of emotions and feelings just right from the outset, just the amount of unknown that was there,” said Ben, who owns a cafe a few towns over and isn’t sure he still wants to open another in East Palestine.

    “It’s hard to make an investment in something like that or even feel good about paying our mortgage whenever there might not be any value to those things in the future,” he said. “That’s something tough to come to grips with.”

    The Ratner family celebrates Halloween in 2022 their home in East Palestine, Ohio.

    The EPA, with the Ohio National Guard and a Norfolk Southern contractor, also has collected air samples – checking for vinyl chloride, hydrogen chloride, carbon monoxide, phosgene and other compounds – in the East Palestine community, it had said. Air monitoring results posted Tuesday at the EPA’s website include more than a dozen instruments, each with four types of measures – and each stating its “screening level” had not been exceeded.

    But when Velez returned Monday for a short visit to the neighborhood where his family has lived since 2014 to check his home and his business, he developed a nagging headache that, he said, stayed with him through the night – and left him with a nagging fear.

    “If it’s safe and habitable, then why does it hurt?” he told CNN. “Why does it hurt me to breathe?”

    Despite Velez’s experience, air quality does not appear to be the source of headaches and sore throats among people or deaths of animals such as cats and chickens in and around the derailment zone, Ohio Health Director Dr. Bruce Vanderhoff said Tuesday.

    “In terms of some of the symptoms of headache, et cetera, unfortunately volatile organic compounds share, with a host of other things, the ability to cause very common symptoms at the lower levels – so headache, eye irritation, nose irritation, et cetera,” he said. “I think that we have to look at the measured facts – and the measured facts include the fact that the air sampling in that area really is not pointing toward an air source for this.”

    “Anecdotes are challenging because they’re anecdotes,” Vanderhoff said. “Everything that we’ve gathered thus far is really pointing toward very low measurements, if at all.”

    As to odor, residents “in the area and tens of miles away may smell odors coming from the site,” Ohio EPA spokesperson James Lee told CNN on Wednesday. “This is because some of the substances involved have a low odor threshold. This means people may smell these contaminants at levels much lower than what is considered hazardous.”

    “If you experience symptoms, Columbiana County Health Department recommends calling your medical provider,” the EPA said.

    The Ratner family is limiting its water use because of unknown affects, Ben Ratner said. And Velez worries “every time we turn the water on or give my daughter a bath could potentially be hazardous,” he wrote on Facebook.

    Some waterways indeed have been contaminated – but the Ohio Environmental Protection Agency is confident contaminants are contained, said Tiffany Kavalec, the agency’s division chief of surface water.

    No vinyl chloride has been detected in any down-gradient waterways near the train derailment, she said Tuesday. But an estimated 3,500 fish across 12 species are estimated to have been killed by the derailment and spillage, said Mary Mertz, director of Ohio’s Department of Natural Resources.

    “Fire combustion chemicals” flowed to the Ohio River, “but the Ohio River is very large, and it’s a water body that’s able to dilute the pollutants pretty quickly,” Kavalec said. The chemicals are a “contaminant plume” the Ohio EPA and other agencies have tracked in real time and is believed to be moving about a mile an hour, she said.

    The “tracking allows for potential closing of drinking water intakes to allow the majority of the chemicals to pass. This strategy, along with drinking water treatment … are both effective at addressing these contaminants and helps ensure the safety of the drinking water supplies,” Kavalec said, adding they’re pretty confident “low levels” of contaminants that remain are not getting to customers.

    Even so, authorities strongly recommend people in the area drink bottled water, especially if their water is from a private source, such as a well.

    Velez also worries about unknown long-term effects of the burned train contents, he said.

    “My wife is a nurse and is not taking any chances exposing us and our two young children to whatever is now in our town,” he wrote on Facebook. “The risk and anxiety of trying to live in our own home again is not worth it.”

    Velez and his family have been Airbnb-hopping 30 minutes from their home since they evacuated, but rental options and their finances are running out, he said, and a friend set up a GoFundMe to help the family.

    “Unfortunately, many of us residents are stuck in the same situation and the sad truth is that there is no answer,” he wrote. “There is no viable solution other than to leave and pay a mortgage on a potentially worthless home.”

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  • Federal Reserve vice chair to become top Biden economist | CNN Politics

    Federal Reserve vice chair to become top Biden economist | CNN Politics

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    CNN
     — 

    President Joe Biden will name Federal Reserve Vice Chair Lael Brainard as his top economic adviser, according to two sources familiar with the matter, with an announcement expected as soon as Tuesday.

    The White House had been considering a number of senior officials in the federal government to replace National Economic Council Director Brian Deese, including Brainard and deputy Treasury Secretary Wally Adeyemo, a person familiar with the matter told CNN last month.

    Brainard, a former Treasury official in the Obama administration and a Fed governor since 2014, was seen as a leading contender, two people familiar with the matter previously told CNN.

    She was also viewed as a leading contender to become Fed chair before Biden ultimately decided to renominate Jerome Powell. Brainard was instead elevated to vice chair, the central bank’s No. 2 official.

    Bloomberg first reported on Brainard’s pending selection.

    The White House declined to comment to CNN on the matter.

    Deese, whose departure Biden announced at the start of the month, has long planned to depart in the first few months of the year and, as CNN previously reported, played a role in selecting his replacement.

    As head of Biden’s economic council, he has been the driving force behind the administration’s economic policy and legislative agenda for two years and has been one of the most powerful NEC directors in recent memory.

    Biden, when confirming Deese would step down, touted his “critical” role in the passage of key legislation including the bipartisan infrastructure law, the Covid-19 relief bill, the CHIPS and Science Act and the health care and climate package.

    The personnel shakeups are among a pattern of shifts across the White House and the administration, as staff and Cabinet officials mull a potential change midway through Biden’s first term.

    The announcement of Deese’s impending exit came a day after the White House held an emotional event to mark the departure of Biden’s first chief of staff, Ron Klain. Biden’s former Covid-19 coordinator Jeff Zients was tapped to fill that vacancy. The president will also be looking to fill the February exit of Labor Secretary Marty Walsh. Earlier this month, the White House also announced that communications director Kate Bedingfield would be leaving the administration and would be replaced by Democratic communications professional Ben LaBolt.

    This story has been updated with additional details.

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  • Toddler’s death prompts new warning for a popular baby stroller | CNN Business

    Toddler’s death prompts new warning for a popular baby stroller | CNN Business

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    New York
    CNN
     — 

    The Consumer Product Safety Commission reiterated its warning about the hazards of some popular Baby Trend-brand strollers and sharply criticized the stroller manufacturer for issuing “a clearly inaccurate statement” about the safety of its products and the agency’s position on them.

    On Thursday, the CPSC and Baby Trend warned consumers about a head or neck entrapment risk on the Sit N’ Stand Double and Ultra strollers (model numbers beginning with “SS76” or “SS66”). The statement said a life-threatening injury could happen between the pivoting front canopy and the armrest or seat back.

    The joint notice came after the asphyxiation death of a 14-month-old whose neck became trapped between the canopy tube and the armrest of a Baby Trend Sit N’ Stand double stroller. The toddler’s father was nearby but unable to see the armrest and canopy clearly.

    A 17-month-old child was also left with neck bruises in a separate incident.

    But in a statement Friday Baby Trend said the strollers are “completely safe when used as intended.” (Baby Trend also said it had joined with the CPSC “out of an abundance of caution.”)

    “This tragic and exceedingly rare accident could have been altogether avoided if the young toddler had not been permitted to climb and play on the stroller, which was not being used as intended at the time,” the company’s statement read.

    In response, the CPSC doubled down on its warning, which had noted that,”The space in front of and behind the strollers’ pivoting front canopy can entrap a child’s head or neck if a non-occupant child climbs on the exterior of the stroller or when a child in the front seat of the stroller is not securely restrained in the seat using all five points of the harness.”

    The warning added: “Entrapment could lead to a loss of consciousness, serious injury, or death.”

    The CPSC and Baby Trend warned consumers to remove and separately store the canopy when not in use, not allow children to play on the stroller, and to secure children in the strollers with the harness.

    The Sit N’ Stand strollers have been sold since 2009, and Baby Trend said over a million have been sold nationwide. They’re found at Baby Trend, Amazon, Bed Bath & Beyond, Walmart, Target, Kohl’s, and buybuy BABY.

    Consumers are encouraged to report incidents to the CPSC or to Baby Trend at 800-328-7363 or info@babytrend.com.

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  • In a market that’s gone mad, investors can embrace these dependable stocks | CNN Business

    In a market that’s gone mad, investors can embrace these dependable stocks | CNN Business

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    A version of this story first appeared in CNN Business’ Before the Bell newsletter. Not a subscriber? You can sign up right here.


    New York
    CNN
     — 

    Many people don’t have the time or inclination to do deep research on stocks.

    It’s often easier to buy an exchange-traded fund that owns a basket of the top blue chips, like Apple

    (AAPL)    , Microsoft

    (MSFT)     and Amazon

    (AMZN)    . Other investors like to bet on themes and memes instead of poring over a company’s financial statements and regulatory filings. Hence the recent craze for momentum stocks like GameStop

    (GME)     and AMC

    (AMC)    .

    But for old-fashioned investors with a little gray in their hair (and veteran business journalists like yours truly) there are other ways to find winning stocks for the long haul.

    I’ve been running stock screens using market data software, first from FactSet and now from Refinitiv, on and off during the more than 20 years I’ve worked at CNN Business. (It was CNNMoney when I first started.)

    I’ve typically done this stock picking feature in early to mid February as a Stocks We Love type of story, pegging it to Valentine’s Day. (Here’s the first one I did in 2002!) So they’ve often been littered with cheesy references to how romantic it is to find a reliable company you can count on for a long-term relationship.

    Well, investing trends have changed a bit in the past two decades. Some would argue that active investing (actually choosing individual companies) is no longer in vogue thanks to the rise of passively run index funds.

    And to be fair, the experts are right, mostly. Investors usually are better off owning an index ETF. If the goal is saving for retirement in particular, a diversified mix of companies is safer than trying the riskier strategy of identifying individual winners and losers.

    But you know what they say about not being able to teach an old dog new tricks? I still believe there’s value in looking for quality stocks at bargain prices. Legendary investors like Warren Buffett and Peter Lynch of Fidelity fame would likely agree.

    With that in mind, I ran one final stock screen for this Valentine’s Day. Like my past screens, I tried to find companies with strong fundamentals (solid sales and earnings growth), low levels of debt and high returns on equity. And perhaps most importantly, I screened for companies trading at a reasonable price based on their estimated earnings.

    This screen wound up identifying 33 companies that could make sense as a buy-and-hold investment. All of them generated double-digit sales growth annually over the past five years and they are all expected to report profit growth of at least 10% a year for the next few years.

    Some of the more prominent companies on the list? IT services/consulting giant Accenture

    (ACN)     made the cut. So did software leader Adobe

    (ADBE)    , semiconductor manufacturer Analog Devices

    (ADI)    , chip equipment juggernaut Applied Materials

    (AMAT)     and Venmo owner PayPal

    (PYPL)    .

    That’s a fair amount of exposure to the tech sector. But several other non-techs made my list too.

    Auto insurer Progressive

    (PGR)     (hi Flo!), health insurer Humana

    (HUM)    , cosmetics retailer Ulta Beauty

    (ULTA)    , UGG boots and Hoka sneakers maker Deckers Outdoor

    (DECK)     and trucker JB Hunt

    (JBHT)     met my criteria.

    As did financial services firm Raymond James

    (RJF)    , perhaps most famous for having its name on the Tampa Bay Buccaneers stadium Tom Brady briefly called home.

    None of these stocks are likely to be moonshots that will surge because of comments that someone makes on Reddit. But they might offer a little more in the way of security and dependability. And after all, isn’t that what we all want from a long-term partner on Valentine’s Day?

    The broader market has continued to rally, in large part due to hopes that inflation pressures (and more Federal Reserve rate hikes) will soon be things of the past. But consumers are still skittish when it comes to buying more costly items.

    Meat processing giant Tyson Foods

    (TSN)     reported disappointing results last week, largely due to a pullback in consumer demand for pricier beef. Luxury apparel retailer Capri Holdings

    (CPRI)    , which owns the Versace, Jimmy Choo and Michael Kors brands, also posted lousy numbers.

    But shoppers still seem to be spending on more affordable goods. Pepsi

    (PEP)     reported sales and earnings last week that topped Wall Street’s targets. Fast food giant Yum! Brands

    (YUM)    , the owner of Taco Bell, KFC and Pizza Hut, issued solid results too.

    That could bode well for several leading consumer companies that are on tap to report earnings this week, including Pepsi competitor Coca-Cola

    (KO)     as well as Restaurant Brands

    (QSR)    , the parent company of Burger King, Popeyes, Tim Horton and Firehouse Subs.

    Kraft Heinz

    (KHC)    , restaurant owner Bloomin’ Brands

    (BLMN)    , Sam Adams brewer Boston Beer

    (SAM)     and food delivery service DoorDash are also scheduled to release their latest results this week.

    The restaurant stocks in particular could do well.

    “Consumers continue to trade goods for services,” said Jharonne Martis, director of consumer research for Refinitiv, in a report. Martis noted that the restaurant and broader leisure sector has continued to outperform other consumer-related industries this year.

    Inflation is obviously still a concern for big consumer brands. Companies have to deal with the challenge of trying to pass on higher costs to customers without driving them away.

    That could become less of a problem though.

    The US government will report both its Consumer Price Index and Producer Price Index for January this week and economists are hoping for a further slowdown in year-over-year prices. Consumer prices rose 6.5% over the past 12 months through December, down from a 7.1% pace in November.

    “There are positive signs. Inflation has passed the peak so there is a little bit of a respite,” said Kathryn Kaminski. chief research strategist with AlphaSimplex.

    Higher prices were a problem for retailers during the holidays. Retail sales fell 1.1% in December from November, according to figures from the US government, following a 0.6% drop in November.

    But retail sales are expected to bounce back as inflation becomes less of an issue. Economists are forecasting a 0.9% increase in retail sales for January when those numbers come out later this week.

    Monday: Earnings from TreeHouse Foods

    (THS)    , Avis Budget

    (CAR)    , FirstEnergy

    (FE)    , IAC

    (IAC)     and Palantir

    Tuesday: US CPI; Japan GDP; UK employment report; earnings from Coca-Cola, Asahi Group, Marriott

    (MAR)    . Cleveland-Cliffs

    (CLF)    , Restaurant Brands, Suncor Energy

    (SU)    , Airbnb, Herbalife

    (HLF)    , GoDaddy

    (GDDY)     and TripAdvisor

    (TRIP)

    Wednesday: US retail sales; UK inflation; weekly crude oil inventories; annual meeting of Charlie Munger’s Daily Journal Co

    (DJCO)    ; earnings from Kraft Heinz, Lithia Motors

    (LAD)    , Sunoco

    (SUN)    , Sonic Automotive

    (SAH)    , Ryder

    (R)    , Barrick Gold

    (GOLD)    , Biogen

    (BIIB)    , Owens Corning

    (OC)    , Krispy Kreme, Cisco

    (CSCO)    , AIG

    (AIG)    , Shopify

    (SHOP)     and Boston Beer

    Thursday: US PPI; US weekly jobless claims: US housing starts and building permits; China housing prices; earnings from US Foods

    (USFD)    , Lenovo

    (LNVGF)    , Nestle

    (NSRGF)    , Paramount Global, Southern

    (SO)    , Hasbro

    (HAS)    , Hyatt

    (H)    , Bloomin’ Brands, WeWork, Applied Materials

    (AMAT)    , DoorDash, DraftKings and Redfin

    (RDFN)

    Friday: Earnings from Deere

    (DE)    , AutoNation

    (AN)    , Sands China

    (SCHYF)     and AMC Networks

    (AMCX)

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  • Here’s what keeps Jerome Powell up at night and interest rates high | CNN Business

    Here’s what keeps Jerome Powell up at night and interest rates high | CNN Business

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    A version of this story first appeared in CNN Business’ Before the Bell newsletter. Not a subscriber? You can sign up right here. You can listen to an audio version of the newsletter by clicking the same link.


    New York
    CNN
     — 

    Federal Reserve Chairman Jerome Powell threw markets into a tizzy on Tuesday as he spoke about the economy alongside his former boss, Carlyle Group co-founder David Rubenstein, at the Economic Club of Washington.

    Stocks struggled for direction as investors tried to get a read on Powell’s economic outlook, attitude towards inflation and on future interest rate hikes. Wall Street cheered as the Fed chair said the disinflationary process has begun, then soured when he said the road to reaching 2% inflation will be “bumpy” and “long” with more rate hikes ahead.

    Markets soared to new highs, before quickly falling to session lows and then recovering to close the day in the green.

    “Powell doesn’t want to play games with financial markets,” said EY Parthenon chief economist Gregory Daco after the conversation. But at the same time, he said Powell wanted to communicate that the Fed’s “base case was not for inflation to come down as quickly and painlessly as some market participants appear to expect.”

    Here’s why Powell thinks bringing down prices will be more difficult than investors anticipate.

    Structural changes in the labor market: The US economy added an astonishing 517,000 jobs in January, blowing economists’ expectations out of the water. The unemployment rate fell to 3.4% from 3.5%, hitting a level not seen since May 1969.

    The current labor market imbalance is a reflection of the pandemic’s lasting effect on the US economy and on labor supply, said Powell on Tuesday in answer to a question about the report. “The labor market is extraordinarily strong,” he said. Demand exceeds supply by 5 million people, and the labor force participation rate has declined. “It feels almost more structural than cyclical.”

    “If we continue to get, for example, strong labor market reports or higher inflation reports, it may well be the case that we have to do more and raise rates more,” he said.

    Core services inflation: Powell noted that he’s seeing disinflation in the goods sector and expects to soon see declining inflation in housing. But prices remain stubborn for services. Service-sector inflation, which is more sensitive to a strong labor market, is up 7.5% from the year prior through the end of 2022, and has not abated, he said.

    “That sector is not showing any disinflation yet,” Powell said. “There has been an expectation that [higher prices] will go away quickly and painlessly and I don’t think that’s at all guaranteed.”

    Geopolitical uncertainties: Powell also cited concerns that the reopening of China’s economy after the sudden end of Covid-Zero restrictions, plus uncertainty about Russia’s war on Ukraine could also affect the inflation path in ways that remain unclear.

    ▸ The labor market is strong, but tech layoffs keep coming. There were around  50,000 tech jobs cut in January, and the trend has continued into February.

    Video conferencing service Zoom is one of the latest to announce layoffs. The company said Tuesday that it’s cutting 1,300 jobs or 15% of its workforce. 

    Zoom CEO Eric Yuan said in a blog post on Tuesday that Zoom ramped up employment  quickly due to increased demand during the pandemic. The company grew three times in size within 24 months, he said and now it must  adapt to changing demand for its services.

    “The uncertainty of the global economy, and its effect on our customers, means we need to take a hard — yet important — look inward to reset ourselves so we can weather the economic environment, deliver for our customers and achieve Zoom’s long-term vision,” he wrote.

    Yuan added that he plans to lower his own salary by 98% and forgo his 2023 bonus. Shares of Zoom closed nearly 10% higher on Tuesday. 

    The announcement comes just one day after Dell said it would lay off more than 6,500 employees.

    Amazon

    (AMZN)    , Microsoft

    (MSFT)    , Google and other tech giants have also recently announced plans to cut thousands of workers as the companies adapt to shifting pandemic demand and fears of a looming recession.

    ▸ Neel Kashkari, president of the Federal Reserve Bank of Minneapolis told CNN that he is starting to think that the US economy could avoid a recession and achieve a so-called soft landing.

    It’s hard to have a recession when the job market is still so robust, he told CNN’s Poppy Harlow on Tuesday on CNN This Morning.

    Still, “we have more work to do,” Kashkari told Harlow, adding that the labor market is “too hot” and that is a key reason why it is “harder to bring inflation back down.”

    Although many investors are starting to think the Fed may pause after just two more similarly small hikes, to a level of around 5%, Kashkari said he believes the Fed may have to raise rates further. Kashkari has a vote this year on the Federal Open Market Committee, the Fed’s interest-rate setting group.

    ▸ It’s a good time to be in the oil business. BP’s annual profit more than doubled last year to an all-time high of nearly $28 billion.

    The British energy company said in a statement that underlying replacement cost profit rose to $27.7 billion in 2022 from $12.8 billion the previous year. The metric is a key indicator of oil companies’ profitability.

    BP

    (BP)     also unveiled a further $2.75 billion in share buybacks and hiked its dividend for the fourth quarter by around 10% to 6.61 cents per share.

    BP’s shares rose 6% in Tuesday trading following the news. Over the past 12 months, its shares have soared 24%.

    The earnings are the latest in a string of record-setting results by the world’s biggest energy companies, which have enjoyed bumper profits off the back of skyrocketing oil and gas prices.

    Last week, another energy major Shell reported a record profit of almost $40 billion for 2022, more than double what it raked in the previous year after oil and gas prices jumped following Russia’s invasion of Ukraine.

    On Wednesday it was TotalEnergie

    (TTFNF)    s turn. The French company posted annual profit of $36.2 billion for 2022, double the previous year’s earnings.

    Disney has found itself in the middle of a culture war battle that could end up transferring Disney World’s governance to a board appointed by Florida Gov. Ron DeSantis. And that may be the least of Disney’s problems, writes my colleague Chris Isidore.

    The company faces a media industry in turmoil, plunging cable subscriptions, a still-recovering box office, massive streaming losses, activist shareholders, possible reorganization and layoffs and growing labor disputes with employees. That’s a lot for CEO Bob Iger to handle.

    Iger, who retired as CEO in 2020 only to be brought back in November, has been mostly quiet about his plans for the company since his return. That ends at 4:30 p.m. ET Wednesday when he is set to begin an earnings call with Wall Street investors.

    Click here to read more about what to look for on what is certain to be a closely-followed call.

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  • 5 derailed train cars carrying hazardous material at risk of exploding are no longer burning, official says | CNN

    5 derailed train cars carrying hazardous material at risk of exploding are no longer burning, official says | CNN

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    CNN
     — 

    Five train cars that contained vinyl chloride, a potentially explosive chemical, are no longer burning after a train derailment in Ohio, a Norfolk Southern official said Tuesday.

    The burning stopped after a controlled release of the unstable, toxic chemical Monday at the train derailment site in East Palestine, near the Pennsylvania border.

    Four of those five cars have been cleared from the wreckage, and crews are working to remove the fifth car, Norfolk Southern official Scott Deutsch said Tuesday.

    The train, which partially derailed Friday, had more than 100 cars. About 20 of those cars were carrying hazardous materials, said the National Transportation Safety Board, which is investigating the incident.

    “There have been no reports of significant injuries – either in the initial derailment or in the controlled detonation last night,” Ohio Department of Public Safety Director Andy Wilson said Tuesday.

    But it’s not yet clear when residents who were ordered to evacuate can return home, East Palestine Fire Chief Keith Drabick said Tuesday.

    “Once the Ohio Department of Health, the United States Environmental Protection Agency in conjunction with the East Palestine Fire Department and Norfolk Southern Railroad have determined that this is safe for East Palestine residents to return to their homes – and, quite frankly, once I feel safe for my family to return – we will lift that evacuation order and start returning people home,” Drabick said.

    Three days of anxiety about a potentially deadly explosion culminated in a loud boom Monday, when crews started the controlled release of vinyl chloride into a pit to burn it away.

    A large plume of black smoke shot up toward the sky and the operation went as planned.

    “The detonation went perfect,” Deutsch said. “We’re already to the point where the cars became safe. They were not safe prior to this.”

    Vinyl chloride is a man-made chemical used to make PVC and it burns easily at room temperature.

    It can cause dizziness, sleepiness and headaches; and has been linked to an increased risk of cancer in the liver, brain, lungs and blood.

    Breathing high levels of vinyl chloride can make someone pass out or die if they don’t get fresh air, the Ohio Department of Health said.

    The train derailment Friday led to a massive inferno and increased pressure inside the hot steel.

    By Sunday evening, the burning wreckage threatened a catastrophic explosion capable of spewing toxic fumes and firing shrapnel up to a mile away, officials said.

    Mandatory evacuations were ordered over several square miles straddling the Ohio-Pennsylvania border.

    After the breach, officials detected “slightly elevated” readings of the phosgene and hydrogen chloride in the burn area and “only one minor hit for the hydrogen chloride downwind of the burn area” within the exclusion zone, the EPA’s James Justice said Monday evening.

    Such readings were expected after the controlled release, Justice said.

    As for East Palestine’s water supply, no impacts to the waterway were detected as of Monday evening, an Ohio Environmental Protection Agency official said.

    A team will continue to monitor the air and water quality in the area, officials said.

    Pennsylvania Gov. Josh Shapiro, who had also called for evacuations, said Monday evening that air and water quality is being monitored closely and no concerning readings had been detected so far.

    But he told Pennsylvanians who live within 2 miles of the East Palestine derailment to keep sheltering in place with their windows and doors closed Monday evening.

    Derailed train cars smoldered Monday in East Palestine, Ohio.

    The derailment has upended life in East Palestine, a village of about 5,000 people. Schools have been closed for the rest of the week, and some residents haven’t been home since the initial evacuation orders Friday.

    When the Norfolk Southern train crashed in East Palestine, about 10 of 20 cars carrying hazardous materials derailed.

    One rail car carrying vinyl chloride became a focus of concern when its malfunctioning safety valves prevented the release of the chemical inside, a Columbiana County Emergency Management Agency official said.

    That meant “the car’s just building pressure inside the steel shell, and that’s a problem,” Deutsch said Monday.

    But after the controlled release, “There’s no pressure now in the cars,” he said.

    On Monday afternoon, charges were used to blow small holes in each rail car, allowing the vinyl chloride to spill into a flare-lined trench.

    While the cause of the derailment remains under investigation, National Transportation Safety Board Member Michael Graham said Sunday that there was a mechanical failure warning before the crash.

    “The crew did receive an alarm from a wayside defect detector shortly before the derailment, indicating a mechanical issue,” Graham said. “Then an emergency brake application initiated.”

    Investigators also identified the point of derailment and found video showing “preliminary indications of mechanical issues” on one of the railcar axles, he said.

    The NTSB has requested records from Norfolk Southern and is investigating when the potential defect happened and the response from the train’s crew, which included an engineer, conductor and conductor trainee.

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  • A freight train derailment in Ohio puts US infrastructure back in a bruising spotlight | CNN Politics

    A freight train derailment in Ohio puts US infrastructure back in a bruising spotlight | CNN Politics

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    A version of this story appears in CNN’s What Matters newsletter. To get it in your inbox, sign up for free here.


    Washington
    CNN
     — 

    On the eve of President Joe Biden’s State of the Union address, American infrastructure is back in the worst kind of spotlight.

    The fiery derailment of train cars carrying hazardous chemicals on the eastern edge of Ohio has led to an evacuation zone across both Ohio and Pennsylvania.

    Five of the derailed train cars are carrying vinyl chloride – a chemical that is currently unstable and could explode, hurling toxic fumes into the air and shooting deadly shrapnel as far as a mile away, officials said.

    “There is a high probability of a toxic gas release and/or explosion,” Columbiana County Sheriff Brian McLaughlin warned. “Please, for your own safety, remove your families from danger.”

    The derailment is, of course, felt most acutely in the surrounding community, where residents who don’t evacuate face arrest. But the incident also highlights the exact kind of concern that led to a considerable investment in rail projects as part of the $1.2 trillion bipartisan Infrastructure law passed in late 2021.

    To better understand the derailment in Ohio, and how current or future legislation could help avoid similar situations, we turned to Najmedin Meshkati, a professor of civil and environmental engineering at the University of Southern California.

    Our conversation, conducted over the phone and lightly edited for flow and brevity, is below.

    Since the fire in Ohio is still burning, investigators haven’t been able to walk around the crash site.

    But officials have identified the point of derailment and found video showing “preliminary indications of mechanical issues” on one of the railcar axles. The National Transportation Safety Board is still investigating when the potential defect happened and the response from the crew.

    LEBLANC: What are the investigators going to be looking into here?

    MESHKATI: This accident will be investigated by the National Transportation Safety Board, which is an independent federal safety investigation organization. They do a very good job and thorough job, independently.

    They will look at this accident from an interdisciplinary standpoint. They’ll look for equipment failure, they’ll look for mental fatigue, the signaling electronics, and also they will look at the human factors and organizational safety culture.

    The other organization that most probably will do an investigation is the Federal Railroad Administration, which is a regulatory agency, part of the Department of Transportation.

    NTSB typically does an excellent job, and the FRA. Hopefully they will come up with some recommendations to proactively address this issue.

    LEBLANC: How often do these recommendations actually turn into new policies or guidance?

    MESHKATI: That’s an excellent question without an excellent answer.

    The National Transportation Safety Board, they issue a report at the end of the year. They have something which is called the “most wanted list” that they put their recommendations for safety improvement for railroads on based on accident investigations.

    And then it’s up to these different organizations or private sector regulatory agencies to implement recommendations. Again, NTSB doesn’t have enforcement power. They can make recommendations.

    Rail travel is recognized as the safest method of transporting hazardous materials in the US, according to the US Department of Transportation’s Federal Railroad Administration.

    “The vast majority of hazardous materials shipped by rail tank car every year arrive safely and without incident, and railroads generally have an outstanding record in moving shipments of hazardous materials safely,” FRA says on its website.

    LEBLANC: How common is it for freight trains to carry hazardous material? Is it unusual?

    MESHKATI: No. They do that, and they do it fairly safely. Unfortunately, this type of thing happens, but they’re preventable because these are the types of accidents, if it’s a derailment – the causes of derailment are fairly understandable.

    It could be due to the mental fatigue or the tracks or it could be the speed or not following the procedures.

    Passenger and freight rail received $66 billion in the sprawling bipartisan infrastructure bill passed in 2021. Implementation, however, will take years.

    LEBLANC: Once fully implemented, will the $1.2 trillion infrastructure package help prevent derailments similar to this one? Is there other legislation that could help?

    MESHKATI: I think money and funding is important, but what we need – this is my personal opinion based on my 38 years of research – what we need in the railroad industry is dedicated, committed leadership to safety.

    You can throw around as much money as much as you want. But see, here is the thing – technological systems are composed of three subsystems: a human subsystem, organizational subsystem and technological subsystem.

    And they are like the three links in a chain. A chain breaks at its weakest link. We can put all the money that we have on the technological subsystems, get the better tracks, get better computers, get better positive train control and everything.

    But what about the human and organizational subsystems? We need to give adequate attention to them. And that’s where a committed, informed leadership comes into play.

    When a freight train travels across the country, two people are in the cab of the locomotive working to keep the train, its often hazardous and flammable contents, and the communities they are passing through, all safe.

    Now the railroads are saying that, given today’s modern technology, just one person is enough. But the rail unions say single-person crews pose a tremendous safety risk, not just to the engineer working alone in the cab for hours on end, but to all the communities the trains pass through.

    LEBLANC: What are your thoughts on this proposal to staff freight trains with just one person?

    MESHKATI: I have studied this issue for many, many years.

    I’ve seen the disastrous impact that the consolidation and crew reduction could have on the safety of technological systems. This is something that we need to learn from other industries and just curb our irrational exuberance for this because the technology is available.

    Yes, there is an AI technology that can monitor the routine pattern.

    “That’s why we don’t need a human” – this is a very simple-minded, irrational exuberance.

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  • Judge reportedly allows Meta to move forward with VR startup acquisition, in blow to FTC | CNN Business

    Judge reportedly allows Meta to move forward with VR startup acquisition, in blow to FTC | CNN Business

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    CNN
     — 

    A federal judge will not block Meta from buying a virtual reality tech startup, according to multiple reports, in a setback for the US government, which had alleged the deal would threaten competition in a nascent market.

    Tuesday’s decision, issued by the US District Court for the Northern District of California, is sealed. But according to The Wall Street Journal and The New York Times, the contents of the decision dealt Meta a victory by denying the US government’s request for a preliminary injunction that would have prevented the acquisition from closing. The New York Times cited two people with knowledge of the matter and the Wall Street Journal cited one person familiar with the ruling.

    CNN has not independently confirmed the contents of the court’s decision. The Federal Trade Commission, which had sued to block the deal last summer, declined to comment. Meta declined to comment, and several outside attorneys for the company didn’t immediately respond to requests for comment.

    The closely watched case involves Meta’s purchase of Within Unlimited, a virtual reality company and maker of a VR fitness app called “Supernatural.” The FTC’s suit had been seen as a major test for Chair Lina Khan, a critic of large tech platforms, as well as of the FTC’s unusual legal theory alleging that Meta’s deal would harm future competition in a rapidly evolving industry.

    According to the reports, the judge in the case also issued a separate order that delays Meta’s ability to close its deal for another week to allow the FTC to decide whether to appeal the ruling.

    A separate challenge to Meta’s deal is ongoing before an in-house administrative law judge at the FTC. That proceeding could continue despite Tuesday’s ruling, but whether agency officials intend to press ahead is unclear.

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  • Larry Summers: More likely the Fed can pull off a soft landing, but don’t get hopes up | CNN Business

    Larry Summers: More likely the Fed can pull off a soft landing, but don’t get hopes up | CNN Business

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    New York
    CNN
     — 

    After a shocking jobs report, Larry Summers, treasury secretary under Bill Clinton, said he is more encouraged the Fed can pull off a soft landing, but cautioned it is a “big mistake” to think the economy is “out of the woods” on Fareed Zakaria GPS Sunday.

    Friday’s job’s report saw an astonishing 517,000 jobs added in January and unemployment tick down to 3.4%, the lowest since 1969. Economists had predicted 185,000 jobs, expecting a slower jobs market after almost a year of aggressive rate hikes from the Federal Reserve.

    The Fed once hiked interest rates less aggressively this week, reflecting a sense inflation is cooling. It brings up the question: Can the United States pull off a soft landing, bringing down inflation without triggering a recession?

    Summers said it “looks more possible that we’ll have a soft landing than it did a few months ago,” but he has continued fears about inflation indicators that have come back to earth, but are still too high for his liking.

    “They’re still unimaginably high from the perspective of two or three years ago, and that getting the rest of the way back to target inflation may still prove to be quite difficult,” Summers said.

    Zakaria asked if triggering a recession was worth it to bring down inflation, if 3 to 3.5% inflation rates could become the norm.

    Summers said it’s a trade-off between short run reductions in unemployment, and permanent changes in inflation.

    “The benefit we can get from pushing unemployment low is on almost all economic theories and likely not to be a permanent one,” Summers said. “But if we push inflation up and those issues become entrenched, we’re going to live with that inflation for a long time.”

    The US has about 3 million people who have just stopped looking for work. Summers attributed it to older people who decided to retire earlier than normal patterns would suggest during COVID.

    He said there is a “grand reassessment” of the workplace post-COVID.

    “You don’t get to be a CEO if you don’t love being in the office,” Summers said. “And so CEOs want all their people to come back and be working, but lots of people like their dens better than they like their cubicles.”

    Summers also had advice for President Joe Biden as a debt ceiling crisis brews in Washington.

    “I would advise him that it’s not a viable strategy for the country to default on obligations,” Summers said. “That’s the stuff of banana republics, and that he’s not going to engage in any of that stuff.”

    The United States has an “utterly bizarre system” where Congress votes on budgets and then separately has to authorize paying the bills incurred by those budgets, Zakaria pointed out, adding a crisis could be on the horizon because House Republicans don’t want to pay the bills until President Biden agrees to spending cuts, even though budgets were set by both parties.

    Biden should insist “Congress do its job and approve the borrowing to finance the spending.”

    Summers noted it only takes a few responsible Republicans to raise the debt limit.

    “That some in the Republican Party may bow to the demands of the extremists does not mean that the President of the United States should do that.”

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