News Highlights: US Fed holds interest rates steady, sees only one rate cut this year

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“We’ll need to see more good data to bolster our confidence that inflation is moving sustainably toward 2%,” Jerome Powell said.

The US Federal Reserve, according to Fed Chair Jerome Powell, requires more positive data, particularly regarding "good inflation readings," before considering a reduction in interest rates.

Powell noted: "If the labor market were to weaken unexpectedly or if inflation were to fall more quickly than anticipated, we're prepared to respond."

The US Federal Reserve, as indicated by Fed Chair Jerome Powell, is ready to maintain interest rates at an elevated level if the economy "remains solid and inflation persists".

"We're prepared to maintain the current target range for the federal funds rate as long as appropriate," Powell said at the press briefing.

Fed officials raised the median forecast for headline inflation this year to 2.6 percent, a 0.2 percentage point increase.

The growth outlook remains unchanged at 2.1 percent according to Fed officials' economic forecasts.

Fed officials also raised their inflation forecasts for 2024 and kept their growth outlook unchanged.

The US Federal Reserve revised its rate cut projections, indicating only one rate reduction for this year compared to the three expected in March.

FOMC participants foresee only one 0.25 percentage point rate cut before the end of the year.

The Fed's decision suggests caution among central bank officials regarding early rate cuts, despite recent consumer inflation data showing a slowdown in price increases for May.

The annual Consumer Price Index (CPI) for May stood at 3.3 percent, down 0.1 percentage point from April and unchanged on a monthly basis.

The central bank held steady its benchmark federal-funds rate in a range between 5.25% and 5.5%, a two-decade high, at their policy meeting on Wednesday.

US Fed penciled in just one rate cut this year, down from the three expected in March.

The dollar experienced a significant drop on Wednesday following lower-than-expected consumer price data for May.

Headline inflation remained flat for the month, falling short of economists' expectations for a 0.1% increase. Core prices saw a modest rise of 0.2%, below the projected 0.3% increase.

The release of the inflation data led to increased speculation that the Federal Reserve may initiate interest rate cuts as early as September.

Traders in Fed funds futures markets are now pricing in a 73% probability of an interest rate cut by September, up from 53% on the previous day, according to the CME Group's FedWatch Tool.

U.S. stocks rallied following cooler-than-expected inflation data.

The dollar declined as the inflation data fueled optimism for potential rate cuts.

The inflation data was released hours before the conclusion of the U.S. Federal Reserve's monetary policy meeting.

Benchmark U.S. Treasury yields dropped significantly after the Labor Department's CPI report.

The CPI report indicated that core prices grew at their slowest annual pace in over three years.

Fed officials are expected to leave the central bank's benchmark overnight interest rate unchanged at 5.25%-5.50% during their meeting, a range maintained since July.

Many economists believe Fed officials will keep the possibility of two rate cuts this year on the table.

The release of the CPI statistics came at a pivotal time, as the FOMC wrapped up its two-day policy meeting. The FOMC is widely expected to keep the key federal funds rate between 5.25 per cent and 5.5%, the highest level in more than two decades.

The rate-setting panel concluded its third policy-setting meeting of the year on May 1 and unanimously opted to keep the policy rate at its 23 year high, stating that "there has been a lack of further progress towards the Committee's two percent inflation objective."

Officials are anticipated to keep interest rates constant in the 5.25 to 5.5 percent range, where they have stood since July 2023. This is the highest rate setting in more than two decades.

On the Kuwait fire incident, MoS MEA Kirti Vardhan Singh said, "...We stand with the victims of the Kuwait fire incident, we express our sympathy to them. We had a meeting with PM Modi and tomorrow morning we are travelling to Kuwait. We will take stock of the situation and those who are admitted to the hospital. The identification process of those who have died is underway...The maximum people are from Kerala and other parts of South India..."

NORCA ROOTS (Non-Resident Keralites Affairs) established a Help Desk in response to the fire incident in Kuwait.

The HELPLINE NUMBERS: +965 90039594, +965 66893942, +965 60615153, +965 66015200, +965 51714124, +965 55575492, +965 99861103, +965 60311882, +965 65589453, +96 555464554, + 96599122984

Non-resident Keralites can contact the 24-hour NORCA Global Contact Center on toll-free numbers 1800 425 3939 (from India) +91-8802 012 345 (from abroad, missed call service).

PM Modi held a meeting to evaluate the situation after the fire incident in Kuwait. A major fire overtook a multi-story building in Kuwait that housed foreign workers, largely Indians, early Wednesday, killing at least 49 and wounding more than 50 more. According to officials, the majority of deaths were caused by smoke inhalation while people were asleep, and many occupants were evacuated.

Congo's president says more than 80 people perished after their boat capsized on a river near the city, Kinshasa. It is the latest fatal boat disaster in the Central African country, where overloading is frequently blamed. According to President Felix Tshisekedi, the locally manufactured boat capsized late Monday in the Maï-Ndombe region while carrying over 100 passengers along the Kwa River.

At least 49 people died in Kuwait today when a fire broke out in a building housing international workers. A government organisation for Keralites residing outside the state claimed it was informed by the Indian community in Kuwait that 41 Indians, including 11 from Kerala, had died in the fire.

The National Testing Agency (NTA) will move Supreme Court for the transfer of petitions filed by NEET-UG candidates in various high courts over alleged random grant of grace marks, paper leaks, and anomalies in evaluating answers to specific questions, the Delhi High Court was informed on Wednesday. The high court, like the Supreme Court, refused to suspend the counselling process.
Meanwhile, a vacation bench led by Justice Neena Bansal Krishna issued a notice to the NTA to answer to four petitions filed by National Eligibility-cum-Entrance Test-Undergraduate (NEET-UG), 2024 contestants citing these concerns.

PM Narendra Modi congratulated Odisha's CM Mohan after he took oath today. "It’s a historic day in Odisha! With the blessings of my sisters and brothers of Odisha, @BJP4Odisha is forming its first-ever government in the state. I attended the swearing-in ceremony in Bhubaneswar. Congratulations to Shri Mohan Charan Majhi on taking oath as CM and to Shri Kanak Vardhan Singh Deo as well as Smt. Pravati Parida on taking oath as Deputy CMs. Congratulations also to the others who took oath as Ministers. With the blessings of Mahaprabhu Jagannath, I am confident this team will usher in record development in Odisha and improve the lives of countless people," PM Modi posted on X.

Kerala Chief Minister Pinarayi Vijayan expressed condolences for the casualties caused by the fire at the apartment complex in Mangaf, Kuwait saying, "The news of over 40 deaths and numerous injuries due to the fire is deeply saddening. Initial reports indicate that a Malayali is among those who lost their lives. We share in the grief of the families and friends of the deceased."

According to an official, Mumbai Police recorded statements from Bollywood star Salman Khan and his actor brother Arbaaz Khan on Wednesday in connection with the April firing incident outside the family's property. A four-member crime branch team went to Galaxy Apartments in Bandra, where the family lives, he said.
Salman's statement lasted nearly four hours, while his brother's took more than two hours, according to the official.

Delhi Water Minister Atishi wrote to LG VK Saxena concerning the 'tanker mafia' issue. She wrote, “There is a need for an enquiry into potential collusion by senior officers in the Delhi Government with the tanker mafia…In January 2023, 1179 tankers were deployed by DJB and in June 2023 this number was 1203. However, this number was reduced to 888 in January 2024, without any approval from me; in fact, without any consultation with me.” Atishi further urged that an ACP-level police officer be sent to guard the Munak Canal in Delhi to ensure that no unlawful water-filling activities occurs.

India's ambassador to Italy Vani Rao stated the importance of PM Narendra Modi's visit to Italy for the G7 Summit saying, "It is an important visit. Firstly, it is an opportunity for the prime minister to play an important role in one of the global platforms. It also marks continuity because he had participated in the G7 summit last year. It gives an opportunity to the prime minister to also follow up on some of the key issues that we had in the G-20 presidency, which he had chaired last year. It's an invitation to the prime minister from the Italian prime minister. India has been selected as a partner for the G7 summit. If I'm not mistaken, India is the only Asian country to be selected as a partner. It is an opportunity also to speak on some of the issues like food security, energy, clean technologies, AI and other aspects, which are very important to the global south."

Foreign Secretary Vinay Mohan Kwatra further spoke about the G7 summit and said, "India will be participating at the Peace Summit which is to be held in Switzerland, at an appropriate level. That consideration is currently going on in the system. As and when we have a decision on the representative from India who will be participating, we will be very happy to share it with you."

Addressing a press conference, Foreign Secretary Vinay Mohan Kwatra said, "On the sidelines of the G7 Summit in Italy, Prime Minister is also expected to hold bilateral meetings and discussions with the leaders of the G7 as also the Outreach Countries and the International Organisations. As per the information that we have, besides India - Italy, as G7 presidency, has also invited Algeria, Argentina, Brazil, Egypt, Kenya, Mauritania, Saudi Arabia, South Africa, Tunisia, Turkey, UAE and some international organisation, including The United Nations."

Speaking about India's participation Foreign Secretary Vinay Mohan Kwatra said, "This will be India's 11th participation in G7 Summit and PM Modi's 5th consecutive participation of the G7 Summit. On 14th June, Prime Minister will participate in the Outreach session along with the other countries invited for the Outreach Summit. At this Session, the focus would be on Artificial Intelligence, Energy, Africa and the Mediterranean. It will be a block agenda item where the G7 and the Outreach Countries will share their views and perspectives...

In order to give a boost to the growing Indian toy sector, DPIIT organised a "Workshop with Flipkart and Indian Toy Industry" today in New Delhi, which played an important role in laying the groundwork for further toy sector growth, scaling domestic consumption, and upskilling/reskilling the workforce. The discussions concentrated on how increasing prospects in the e-commerce marketplace may be used to boost the expansion of the Indian toy industry.

The Workshop, which was held in conjunction with Flipkart and the Indian Toy Industry, assisted domestic toy manufacturers in grasping the complexities of online retailing, allowing them to go one step closer to creating a "Toyconomy". Flipkart employees and representatives from the domestic toy sector attended the Workshop.

A large cache of rifles and ammunition was seized from two terrorists killed in an encounter with security personnel in the Hiranagar area of Jammu & Kashmir's Kathua.

The Maharashtra Congress has suspended former MLC Naraynrao Munde from the party for six years. According to the MPCC, Narayan Munde has been suspended for six years for participating in anti-party activities during the recently concluded Lok Sabha elections.

The fire mishap in Kuwait City is saddening. My thoughts are with all those who have lost their near and dear ones. I pray that the injured recover at the earliest. The Indian Embassy in Kuwait is closely monitoring the situation and working with the authorities there to assist the affected.

CPI inflation for May inches lower at 4.75% as against 4.83% in April. IIP grows 5% in April.

BJP leaders K V Singh Deo, Pravati Parida took oath as the Deputy Chief Ministers of Odisha after Mohan Majhi becomes the CM.

Mohan Majhi takes oath as the Chief Minister of Odisha in the presence PM Narendra Modi, Home Minister Amit Shah and other important leaders. Majhi became the first-ever BJP Chief Minister in Odisha. Governor Raghubar Das administered him the oath to office.

Besides CM-designate Mohan Charan Majhi and Deputy CMs-designate Kanak Vardhan Singh Deo & Pravati Parida, 8 BJP MLAs - Suresh Pujari, Rabinarayan Naik, Nityanand Gond, Krushna Chandra Patra, Prithviraj Harichandan, Mukesh Mahaling, Bibhuti Bhusan Jena, Krushna Chandra Mohapatra are likely to be sworn-in as cabinet ministers. 5 MLAs - Ganesh Ram Singh Khuntia, Suryabanshi Suraj, Pradeep Balasamanta, Gokula Nanda Mallick and Sampad Kumar Swain are also likely to take the oath.

Odisha CM-designate Mohan Charan Majhi, Deputy CMs-designate Kanak Vardhan Singh Deo & Pravati Parida and other leaders greet the people from the stage at Janata Maidan, in Bhubaneswar as they are all set to take oath today.

Former Odisha CM and BJD chief Naveen Patnaik met and greeted other dignitaries Home Minister Amit Shah, BJP National President JP Nadda, UP Chief Minister Yogi Adityanath, BJP Minister Dharmendra Pradhan on stage as the swearing-in ceremony of Odisha's new CM Mohan Majhi will begin shortly.

Adarsh Swaika, India's Ambassador to Kuwait, paid a visit to the Al-Adan hospital, where more than 30 Indian workers were injured in today's fire. He met with several patients and promised them that the Embassy would provide them with all necessary help. Hospital authorities have indicated that almost all are stable, stated the Indian Embassy. He also visited Farwaniya Hospital, where six workers, most of whom are presumed to be Indians, were admitted after being injured in today's fire. Hospital authorities stated that four of them have been discharged, one has been transferred to Jahra Hospital, and one in the ward is reportedly stable.

President Droupadi Murmu has rejected Mohammed Arif alias Ashfaq's mercy petition, a Pakistani terrorist convicted in the Red Fort attack over 24 years ago. This is the second mercy plea rejected by the President after assuming office on July 25, 2022. The Supreme Court had dismissed a review petition by Arif on November 3, 2022.

Indian Embassy in Kuwait informed that Adarsh Swaika, India's Ambassador to Kuwait, visited the unfortunate fire incident site in Mangaf to assess the situation. The Embassy is in close contact with relevant Kuwaiti law enforcement, fire service, and health authorities to take appropriate action and provide emergency medical health treatment.

In connection with today's horrific fire disaster involving Indian labourers in Kuwait, the Embassy has established an emergency helpline number: +965-65505246.

The Indian Embassy in Kuwait requested everyone concerned to contact this helpline for updates. "The Embassy remains dedicated to providing all feasible support," stated India in Kuwait.

EAM Dr S Jaishankar reacted to the Kuwait fire incident and tweeted, "Deeply shocked by the news of the fire incident in Kuwait City. There are reportedly over 40 deaths and over 50 have been hospitalized. Our Ambassador has gone to the camp. We are awaiting further information. Deepest condolences to the families of those who tragically lost their lives. Wish early and full recovery to those who have been injured. Our Embassy will render the fullest assistance to all concerned in this regard."

The deputy prime minister accused real estate owners of violations and greed, claiming that these reasons contributed to the catastrophe. "Unfortunately, the greed of real estate owners is what leads to these matters," said Sheikh Fahad, who also controls the interior and defence ministries.

"The building in which the fire occurred was used to house workers, and there was a large number of workers there. Dozens were rescued, but unfortunately there were many deaths as a result of inhaling smoke from the fire," said another senior police commander on Kuwait's state TV.

The Ministry of Health stated that all injured people, including several in serious condition, had been sent to numerous local hospitals for medical care.
Medical staff are doing everything they can to provide proper medical care to those injured in the building fire, said officials.

According to reports from Kuwait, a massive fire at a block housing workers on Wednesday killed 41 people, including several Indians. The fire broke out in a kitchen of a six-story structure in the Mangaf region of Kuwait's southern Ahmadi Governorate early Wednesday, as per officials. Major General Eid Rashed Hamad said that the fire was reported to authorities at 6:00 am local time (0300 GMT).

While addressing the water shortage issue, Delhi Minister Gopal Rai said, "Due to heatwave conditions, the water demand has increased. We are trying to get extra water from Himachal Pradesh and Haryana. I am sure there will be a solution to this soon." He further remarked about tanker mafias saying "ADMs and SDMs have been ordered to take action if any such thing is happening."

Uttar Pradesh CM Yogi Adityanath, Chhattisgarh CM Vishnu Deo Sai, Gujarat CM Bhupendra Patel and Uttarakhand CM Pushkar Singh Dhami also reached Bhubaneswar for the swearing-in ceremony of Odisha CM-designate Mohan Charan Majhi today at Janta Maidan in Bhubaneswar.

Prime Minister Narendra Modi arrived in Bhubaneswar to attend the oath ceremony of Odisha CM-designate Mohan Charan Majhi. He was welcomed by Governor Raghubar Das and CM-designate Mohan Charan Majhi.

Police officials reported a bomb threat received via email at the Rail Museum in Chanakyapuri, Delhi. The threat, sent on Tuesday, was discovered by museum officials on Wednesday morning, who immediately notified local police around 11 am. A thorough search was conducted by the bomb detection team, bomb disposal squad, fire officials, and local police. After a comprehensive check, nothing suspicious was found, and the threat was declared a hoax.

Assam CM Himanta Biswa Sarma announced a unique scheme to combat early marriage and encourage girls' education up to the Post Graduate level. Under the scheme, girl students in Higher Secondary (classes 11 and 12) will receive a monthly stipend of Rs 1,000. Those admitted to degree courses will get Rs 1,250 per month, and Post Graduate students will receive Rs 2,500 per month. Sarma emphasized that the initiative aims to reduce the financial burden on parents and ensure girls can continue their education, thereby preventing child marriage.

Congress MP from Odisha's Koraput, Saptagiri Ulaka, congratulated Mohan Majhi and the Deputy Chief Ministers, stating, "People have high expectations from their government after all the promises they made. I hope they stand up to the expectations of the people." Ulaka acknowledged the anti-incumbency sentiment in the state and the people's desire for change after 25 years. He expressed regret that the Congress did not form the government, attributing it to insufficient effort, and emphasized the party's commitment to fulfilling its duties as the opposition. Criticizing Naveen Patnaik's governance, Ulaka said, "Naveen Patnaik was running the government through the bureaucracy. His ministers could not reach him. Through their vote, the people of Odisha have told everyone that you cannot delegate a delegated power."

A bomb threat was received via email at a mental hospital in Chandigarh's Sector 32, prompting the evacuation of the building. Deputy Medical Superintendent Dr. Aprajita Lubana confirmed the threat and stated that police investigations are underway, with a bomb disposal squad on-site. Similar threats have been sent to multiple hospitals across the country.

Congress leader Ghulam Ahmad Mir expressed sadness over the recent terror attacks in Jammu and Kashmir. Referring to the major incident near Shiv Khori, Reasi, when devotees were traveling to the Vaishno Devi shrine, Mir stated that subsequent incidents have occurred, emphasizing that these events are not sudden. He attributed the escalation in attacks to decisions made regarding Jammu and Kashmir over the past five years, during which the central government assumed control over the region.

Congress leader Ajay Rai expressed concern over the NEET-UG 2024 results controversy, citing past incidents of paper leaks in Uttar Pradesh. Rai highlighted that 19 papers had been leaked in Uttar Pradesh previously, deeming the situation in NEET as unfortunate. He raised questions on the organization conducting these exams and the government's role in addressing such issues.

Congress MP from Wayanad, Rahul Gandhi, conducted a roadshow in Edavanna, Malappuram district, Kerala. He is scheduled to address a public gathering in Edavanna shortly.

Harish Rawat, a Congress leader, highlighted contradictions within the BJP-led NDA government. He pointed out discrepancies between the BJP and TDP regarding reservation policies, with the TDP advocating for 4% reservation while the BJP opposes reservation based on religion. Rawat noted emerging differences within the government, citing voices raised by factions led by Eknath Shinde and Ajit Pawar. Additionally, he mentioned TDP's demand for the post of Speaker and expressed concerns within Nitish Kumar's party regarding ministries. Rawat suggested that these issues signify the beginning of potential challenges for the government.

The Supreme Court has criticized the Delhi government, questioning its actions against the tanker mafia exacerbating water scarcity in the city. The court has directed the government to file an affidavit detailing measures taken to combat water wastage.

Odisha Chief Minister-designate Mohan Charan Majhi offered garlands to the idols of Odia great icons in Bhubaneswar. The Bharatiya Janata Party (BJP) secured a majority on June 4 by winning 78 out of 147 seats in the state assembly.

Union Minister Kiren Rijiju announced that the first session of the 18th Lok Sabha will be held from June 24 to July 3, 2024. The session will include the oath-taking and affirmation of newly elected Members, the election of the Speaker, and the President’s Address, followed by a discussion. Additionally, the 264th session of the Rajya Sabha is scheduled to begin on June 27, 2024, and will conclude on July 3, 2024.

Nitin Gadkari has taken charge as the Minister of Road Transport and Highways in Delhi, alongside Ministers of State Ajay Tamta and Harsh Malhotra. Gadkari expressed his gratitude, stating, "Heartfelt gratitude to PM Modi for reassigning me this role in Modi 3.0. Under your visionary leadership, India will be equipped with world-class infrastructure and road networks."

The USA will play against India today in the T20 World Cup at Nassau County International Cricket Stadium. Both teams are tied at 4 points, occupying the top two spots in Group A. USA Vice Captain Aaron Jones expressed excitement ahead of the match, saying, "We're excited to play against India. We want to play fearless, smart, and hard cricket. The guys are thrilled to face players like Virat Kohli and Rohit Sharma."

Jones highlighted the significance of the tournament for cricket in the USA, adding, "The tournament will raise attention here. People will cheer both teams, and we expect a full house. The stadium was built quickly, and whoever plays well will come out on top. It will definitely be good to play India in India."

Security forces have deployed a drone as search and combing operations continue in Kathua following yesterday's encounter. A suspected Pakistani terrorist was killed by security forces after the ultras attacked a village near the International Border (IB) in Kathua on Tuesday night.

The movement of traffic has been suspended on the Bhadarwah-Pathankot Highway as a search and cordon operation continues in the wake of a terror attack in Doda. Security forces are actively searching the region to ensure safety and apprehend any remaining threats.

The Biden administration is sending Ukraine another Patriot missile system, according to two US officials, as Kyiv urgently requests more air defences. This move comes in response to increasing pressure to support Ukraine’s efforts to protect its airspace amidst ongoing conflict. The Associated Press reports that this additional missile system aims to bolster Ukraine's defence capabilities against aerial threats.

On three terror attacks in Jammu and Kashmir, ADGP Anand Jain stated, "It is our hostile neighbour who always tries to damage the peaceful environment in our country. This (Hiranagar Terror attack) appears to be a fresh infiltration. One terrorist has been killed, the search for the other is also underway..."

Prime Minister Narendra Modi will attend the swearing-in ceremony of Odisha's new Chief Minister, Mohan Charan Majhi, on Wednesday. The Bharatiya Janata Party (BJP) has ended the 24-year rule of the Biju Janata Dal (BJD) led by Naveen Patnaik. Majhi, a four-time MLA and a prominent tribal leader, is taking over after senior state leaders Dharmendra Pradhan and Jual Oram joined the Union government. The party has also selected KV Singh Deo and Pravati Parida as Deputy Chief Ministers.

Odisha BJP President Manmohan Samal said, “PM Modi will reach on 12th June by 2:30 pm for the oath-taking ceremony. The swearing-in ceremony will take place at 5:00 pm.”

Two days after a terror attack on a passenger bus in Reasi district, the Jammu and Kashmir Police released a sketch of a suspected terrorist and announced a ₹20 lakh reward for information about him. The attack occurred on Sunday when terrorists targeted a 53-seater bus carrying pilgrims from the Shiv Khori temple to the Mata Vaishno Devi shrine. The bus, with passengers from Uttar Pradesh, Rajasthan, and Delhi, veered into a deep gorge near Teryath village in the Poni area following the gunfire. The attack resulted in nine deaths and 41 injuries.

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