Federal Reserve signals end to inflation fight with half-point rate cut

WORLD NEWS IN BRIEF

WASHINGTON

The Federal Reserve on Wednesday cut its benchmark interest rate by an unusually large half-point, a dramatic shift after more than two years of high rates that helped tame inflation but also made borrowing painfully expensive for American consumers.

The rate cut, the Fed's first in more than four years, reflects its new focus on bolstering the job market, which has shown clear signs of slowing. Coming just weeks before the presidential election, the Fed's move also has the potential to scramble the economic landscape just as Americans prepare to vote.

The central bank's action lowered its key rate to roughly 4.8 percent, down from a two-decade high of 5.3 percent, where it had stood for 14 months as it struggled to curb the worst inflation streak in four decades. Inflation has tumbled from a peak of 9.1 percent in mid-2022 to a three-year low of 2.5 percent in August, not far above the Fed's 2 percent target.

The Fed's policymakers also signaled that they expect to cut their key rate by an additional half-point in their final two meetings this year, in November and December. And they envision four more rate cuts in 2025 and two in 2026.

BEIRUT

Lebanon is rocked again by exploding devices; Israel stays silent

Walkie-talkies and solar equipment exploded in Beirut and other parts of Lebanon on Wednesday in an apparent second wave of attacks targeting devices a day after pagers used by Hezbollah blew up, state media and officials for the militant group said. At least 20 people were killed and more than 450 wounded in the second wave, the Health Minis-try said.

The attacks - which were widely believed to be carried out by Israel targeting Hezbollah but have also killed civilians - have hiked fears that the two sides' simmering conflict could escalate into all-out war.

Speaking to Israeli troops on Wednesday, Israeli Defense Minister Yoav Gallant said, "We are at the start of a new phase in the war - it requires courage, determination and perseverance." He made no mention of the exploding devices but praised the work of Israel's army and security agencies, saying "the results are very impressive."

In Wednesday's attacks, several blasts were heard at a funeral in Beirut for three Hezbollah members and a child killed by exploding pagers the day before, according to Associated Press journalists at the scene.

NEW YORK

Sean 'Diddy' Combs will stay in jail after second judge denies bail

Sean "Diddy" Combs is staying locked up after a judge Wednesday rejected the hip-hop mogul's proposal that he await his sex trafficking trial in the luxury of his Florida mansion instead of a grim Brooklyn federal jail.

U.S. District Judge Andrew L. Carter ruled that Combs' plan - which included a $50 million bail offer, GPS monitoring and strict limitations on visitors - was "insufficient" to ensure the safety of the community and the integrity of his case.

Carter, agreeing with prosecutors who fought to keep Combs in jail, found that "no condition or set of conditions" governing his release could guard against the risk of him threatening or harming witnesses - a central charge in his case.

- The Associated Press