Fed says rate hike unlikely

Federal Reserve Chair Jerome Powell said Tuesday that the central bank is unlikely to raise its key interest rate in response to signs of stubborn inflation and underscored his view that price increases would soon start to cool again. Yet Powell, during a panel discussion in Amsterdam, said his confidence that inflation will ease “is not as high as it was” because price increases have been persistently hot in the first three months of this year. Powell stressed that the Fed’s preferred approach was to keep its benchmark rate at its current two-decade peak rather than increase it.

Biden raises tariffs on Chinese EVs, more

President Joe Biden says in defending his new tariffs on Chinese products that China’s government subsidies ensure its companies don’t have to turn a profit, giving them an unfair advantage in global trade. The Democratic president on Tuesday slapped tariffs on Chinese electric vehicles, advanced batteries, solar cells, steel, aluminum and medical equipment — taking potshots at presidential rival Donald Trump along the way as he embraced a strategy that’s increasing friction between the world’s two largest economies. The Chinese foreign ministry lashed out at the announcement. The tariffs come during a heated campaign between Democrat Biden and Republican predecessor Trump, both of them trying to show who’s tougher on China.

U.S. warns Chinese not to make EVs in Mexico

The Biden administration is suggesting the possibility that new penalties could be put in place if the Chinese makers of electric vehicles try to move their production to Mexico to avoid newly announced import taxes. President Joe Biden on Tuesday directed the U.S. Trade Representative to impose a a total tariff in excess of 102% on Chinese EVs. He also directed new tariffs on other products including steel, aluminum, computer chips and solar cells. But Chinese EV company BYD has previously indicated that it was looking at factory sites in Mexico for the Mexican market. That could make Mexico a back door for potentially selling goods into the U.S. U.S. Trade Representative Katherine Tai says to “stay tuned” for the possibility of further action.

Offshore wind energy creates new industry

Researchers around the world are racing to create large wind turbines and floating platforms as upcoming lease auctions bring offshore wind closer to reality. Floating turbines are the only way for some countries and U.S. states to capture a massive amount of offshore wind energy. As the technology advances, it could help the world shift away from fossil fuels to cut planet-warming greenhouse gas emissions. In Maine, researchers are focusing on a simple platform that could be made with materials like concrete readily available around the world. Eventually, they envision turbines rising hundreds of feet tall and capable of producing 15 to 20 megawatts of electricity apiece.