Business Highlights: Fed Pain, Student Loans

TECHNOLOGY
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How much is “pain”?Federal Reserve Suggests Postponing Further Rate Hikes

WASHINGTON (AP) — Federal Reserve Chairman Jerome Powell bluntly warned in a speech last month that the Fed’s move to curb inflation by aggressively raising interest rates would “cause some pain.” On Wednesday, Americans may get a better sense of how much pain awaits as the Fed, at its latest meeting, slashed key short-term interest rates by three points in a row. expected to rise significantly. Another big rate hike would lift the benchmark interest rate, which affects many consumer and business loans, to the 3% to 3.25% range, the highest level in 14 years.

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How to Get Reimbursed for Student Loans Paid During the Pandemic

NEW YORK (AP) — When President Joe Biden announced plans to forgive student loan debt, many borrowers who continued to pay during the pandemic wondered if they made the right choice. Borrowers who paid off their debts during the pandemic freeze that began in March 2019 can actually get refunds and then apply for forgiveness. However, the process of doing so is not always clear. Borrowers who hold eligible federal student loans and have made voluntary payments after March 13, 2020 will be eligible for reimbursement, the Department of Education said.

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US stocks rise ahead of expected Fed rate hike

NEW YORK (AP) — Stocks closed higher on Wall Street after oscillating between small gains and losses for much of the day as investors brace for a big rate hike by the Federal Reserve this week. . The S&P 500 rose 0.7% on Monday. The Dow Jones Industrial Average and Nasdaq also rose. Government bond yields rose. Markets were looking forward to Wednesday when the Federal Reserve will announce its latest decision on interest rates. It is expected to raise the base rate, which affects interest rates across the economy, by another three-quarters, helping to fight inflation.

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Ford cuts third-quarter earnings forecasts due to parts shortage

DEARBORN, Mich. (AP) — As thousands of Ford’s most profitable vehicles wait to be fully assembled, parts shortages have forced the automaker to lower its third-quarter earnings forecasts. lost. Ford said Monday it expects to run out of parts needed for as many as 45,000 vehicles. Most of them are his SUVs and popular truck models, some of Ford’s biggest moneymakers. The Dearborn, Michigan-based company now expects pre-interest and tax earnings in the third quarter to be $1.7 billion from his $1.4 billion. Adjusted interest rate and pre-tax income for the second quarter was $3.7 billion.

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Volkswagen sets Porsche IPO at up to €9.4 billion

FRANKFURT, Germany (AP) — Volkswagen has set a price point to sell a minority stake in luxury brand Porsche for billions of euros. The deal will raise billions of dollars to fund the German automaker’s investments in new technologies and businesses such as electric vehicles, software and services. The company said it aims to list on the Frankfurt Stock Exchange on Sept. 29 after placing minority stakes in it with investors including the Qatar Investment Authority. The price range of the preferred shares is equivalent to EUR 8.71 billion to EUR 9.39 billion. Volkswagen is making a major foray into electric vehicles, and with a small market share of traditional internal combustion engine vehicles, there will be increasing future benefits from investments in electric vehicles, software and services. said.

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Stolen Grand Theft Auto video leaked online by hacking

NEW YORK (AP) — Video game producer Rockstar Games says early development footage for the upcoming version of its popular title Grand Theft Auto has been stolen in a network hack. The person claiming to be the hacker claimed that he had posted 90 videos of the theft online and that he also had the source code. They were trying to sell hacked data. In a statement, the company said it did not expect any disruption to its live gaming service or impact on ongoing projects.The hacker claimed he was involved in the recent Uber hack, but did not provide evidence. did not.

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OECD: Russia’s War, Virus and Climate Hit World’s Poorest Countries

WASHINGTON (AP) — Russia’s war on Ukraine, the lingering coronavirus pandemic and the toll of climate change are putting intense pressure on the world’s poorest countries, the Organization for Economic Co-operation and Development warns. The Paris-based OECD reported last year that 60 states, territories and places fell into the “vulnerable situation” category. This meant that they were exposed to economic, environmental, social and political risks they did not have the capacity to absorb. And that was before Russia invaded Ukraine and increased their burden. Monday’s report named the most places in such dire straits since the OECD began issuing vulnerability reports in 2015.

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FAA rejects airline’s request to hire inexperienced pilots

WASHINGTON (AP) — The federal government has turned down requests from regional airlines to hire pilots with half the generally required flying experience. The Federal Aviation Administration says it is in the public interest to maintain current standards. Republic Airlines has petitioned to hire a copilot (or copilot) with 750 hours of flight time if they complete Republic’s training program. Most often, he needs 1,500 hours of flight time to get his aviation pilot license, but a pilot with military experience can qualify with her 750 hours. The Republic claimed that its training was similar to that of the military.

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European Central Bank to use climate scores when buying bonds

FRANKFURT, Germany (AP) — The European Central Bank says it will give companies a climate score before they buy bonds, and companies are doing more to reveal and reduce their greenhouse gas emissions. Monday’s announcement details the bank’s efforts to help Europe meet its environmental goals. Germany’s Frankfurt-based central bank said it was taking steps to support the European Union’s climate goals. A company’s score measures the completeness of its reporting of past emissions reduction progress, future reduction plans, and the amount of greenhouse gases it emits. Both the ECB and the Bank of England are taking climate change into account more than the US Federal Reserve.

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The S&P 500 rose 26.56 points (0.7%) to 3,899.89. The Dow Jones Industrial Average rose 197.26 points (0.6%) to 31,019.68. Nasdaq rose 86.62 points (0.8%) to 11,535.02. The Russell 2000 Index of Small Businesses rose 14.65 points (0.8%) to 1,812.84.

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