Are interest rates high enough to beat inflation? The Fed will take its time to find out

WASHINGTON (AP) — The sharp interest rate hikes of the past two years will likely take longer than previously expected to bring down inflation, several Federal Reserve officials have said in recent comments, suggesting there may be few, if any, rate cuts this year. A major concern expressed by both Fed policymakers and some economists is that higher borrowing costs aren’t having as much of an impact as economics textbooks would suggest. Americans, for example, aren’t spending much more of their incomes on interest than they were a few years ago, despite the Fed’s rate increases. That means higher rates may not be doing much to limit Americans’ spending, or cool inflation.

Melinda French Gates resigns as Gates Foundation co-chair, 3 years after her divorce from Bill Gates

NEW YORK (AP) — Melinda French Gates announced Monday that she will step down as co-chair of the Bill & Melinda Gates Foundation. She helped found the foundation more than 20 years ago with her ex-husband Bill Gates. It’s now one of the largest philanthropic foundations in the world. In a post on X, French Gates wrote, “This is not a decision I came to lightly.” Bill Gates thanked French Gates for her “critical” contributions to the foundations in a statement, saying, “I am sorry to see her leave.” French Gates will receive $12.5 billion as part of her agreement with Gates, which she said would commit to future work focused on women and families.

US energy panel approves rule to expand transmission of renewable power

WASHINGTON (AP) — Federal energy regulators have approved a rule to expand the amount of renewable energy such as wind and solar power that is transmitted to the electric grid. Transmission of clean energy is a key part of President Joe Biden’s goal to eliminate carbon emissions economy-wide by 2050. Monday’s rule approval by the Federal Energy Regulatory Commission is intended to boost the nation’s aging power grid to meet surging demand fueled by huge data centers, electrification of vehicles and buildings, artificial intelligence and other uses. The increased demand comes as coal-fired power plants continue to retire and the grid is increasingly tested by extreme weather events driven by climate change.

US airlines are suing the Biden administration over a new rule to make certain fees easier to spot

WASHINGTON (AP) — U.S. airlines are trying to kill a new rule requiring them to disclose fees more quickly when consumers shop for flights. The airlines asked a federal appeals court to block the rule, which the Transportation Department issued last month. The rule requires better disclosure of fees on baggage and changing or canceling a reservation. The airlines say the new rule will confuse consumers by giving them too much information during the ticket-buying process. The Transportation Department said Monday it will defend the rule to crack down on what it calls “hidden junk fees.”