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Social Security payments set for big increase
Tens of millions of older Americans are about to get what may be the biggest raise of their lifetimes. On Thursday, the U.S. government is set to announce what's virtually certain to be the largest increase in Social Security benefits in 40 years.
The boost is meant to allow beneficiaries to keep up with inflation, and how it's generated stirs plenty of controversy.
Critics say the data used to set the increase doesn't reflect what older Americans are actually spending. It's also a one-size-fits-all increase, which means beneficiaries get the same raise regardless of where they live or how big a nest egg they have.
Fed voiced determination to curb inflation
Federal Reserve officials at their last meeting stressed their commitment to taming "unacceptably high'' inflation before announcing that they were raising their benchmark interest rate by a substantial three-quarters of a point for a third straight time and signaling more large rate hikes ahead.
In minutes from their Sept. 20-21 meeting released Wednesday, the Fed policymakers judged that a "softening of the labor market'' -- likely including higher unemployment -- would be needed to curb the nation's inflationary pressures. They noted that hiring remained "robust," which itself fuels high inflation as wages rise sharply.
Wall Street slides lower in more uncertain trading
Stocks ended a wobbly day lower on Wall Street after a late-afternoon drop erased the tentative gains major indexes had been clinging to for much of the day. The S&P 500 gave back 0.3% Wednesday, its sixth consecutive loss. The Dow and Nasdaq ended with smaller losses.
Yields on the 2-year and 10-year Treasury notes ended lower. Stocks had waffled between gains and losses for much of the day as traders parsed a report from the government that showed inflation at the wholesale level eased last month, though it was a bit worse than expected. Crude oil prices fell.
Europe turns to Africa in bid to replace natural gas
European leaders are turning to Africa for more natural gas as they try to replace Russian energy amid the war in Ukraine. While Africa's natural gas reserves are vast and North African countries like Algeria have pipelines already linked to Europe, a lack of infrastructure and security challenges have long stymied producers in other parts of the continent from scaling up exports.
Nigeria has the continent's largest natural gas reserves but only accounts for 14% of the European Union's liquefied natural gas imports that arrive by ship. Algeria and Egypt accounted for 60% of Africa's natural gas production in 2020 and don't export enough to replace Russian supplies of the fuel that powers factories, generates electricity and heats homes.
Judge approves plan to reduce agency's debt
A federal judge has approved a plan to restructure some $6 billion of debt held by Puerto Rico's Highways and Transportation Authority as the U.S. territory emerges from bankruptcy. The plan approved Wednesday saves Puerto Rico more than $3 billion in debt service payments, according to a federal control board that oversees the island's finances.
It has previously noted that 13% of the island's highways are in good condition, compared with a median of 84% in the U.S. mainland. Only one government agency on the island has yet to restructure its debt: Puerto Rico's Electric Power Authority, which holds some $9 billion in debt.