DRULAP

Washington — The post-pandemic spike in U.S. inflation eased further last month as year-over-year price increases reached a three-year low, clearing the way for the Federal Reserve to cut interest rates next week.

Wednesday’s report from the Labor Department showed that consumer prices rose 2.5% in August from a year earlier. It was the fifth straight annual drop and the smallest such increase since February 2021. From July to August, prices rose just 0.2%.

Excluding volatile food and energy costs, so-called core prices rose 3.2% in August from 12 months earlier, the same as in July. On a month-to-month basis, core prices rose 0.3% last month, a pickup from July’s 0.2% increase. Economists closely watch core prices, which typically provide a better read of future inflation trends.

For months, cooling inflation has provided gradual relief to America’s consumers, who were stung by the price surges that erupted three years ago, particularly for food, gas, rent and other necessities. Inflation peaked in mid-2022 at 9.1%, the highest rate in four decades.

Fed officials have signaled that they’re increasingly confident that inflation is falling back to their 2% target and are now shifting their focus to supporting the job market, which is steadily cooling. As a result, the policymakers are poised to begin cutting their key rate from its 23-year high in hopes of bolstering growth and hiring.

A modest quarter-point cut is widely expected next week. Over time, a series of rate cuts should reduce the cost of borrowing across the economy, including for mortgages, auto loans and credit cards.

The latest inflation figures could inject themselves into the presidential race in its final weeks. Former President Donald Trump has heaped blame on Vice President Kamala Harris for the jump in inflation, which erupted in early 2021 as global supply chains seized up, causing severe shortages of parts and labor. Harris has proposed subsidies for home buyers and builders in an effort to ease housing costs and backs a federal ban on price-gouging for groceries. Trump has said he would boost energy production to try to reduce overall inflation.

A key reason why inflation eased again in August was that gas prices tumbled by about 10 cents a gallon last month, according to the Energy Inflation Administration, to a national average of about $3.29.

Economists also expect the government’s measures of grocery prices and rents to rise more slowly. Though food prices are roughly 20% more expensive than before the pandemic, they have barely budged over the past year.

Another potential driver of slower inflation is that the cost of new apartment leases has started to cool as a stream of newly built apartments have been completed.

According to the real estate brokerage Redfin, the median rent for a new lease rose just 0.9% in August from a year earlier, to $1,645 a month. But the government’s measure includes all rents, including those for people who have been in their apartments for months or years. It takes time for the slowdown in new rents to show up in the government’s data. In July, rental costs rose 5.1% from a year ago, according to the government’s consumer price index.

Americans’ paychecks are also growing more slowly — an average of about 3.5% annually, still a solid pace — which reduces inflationary pressures. Two years ago, wage growth was topping 5%, a level that can force businesses to sharply raise prices to cover their higher labor costs.

In a high-profile speech last month, Fed Chair Jerome Powell noted that inflation was coming under control and suggested that the job market was unlikely to be a source of inflationary pressure.

Consumers have propelled the economy for the past three years. But they are increasingly turning to debt to maintain their spending and credit card, and auto delinquencies are rising, raising concerns that they may have to rein in their spending soon. Reduced consumer spending could lead more employers to freeze their hiring or even cut jobs.
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BATON ROUGE, La. — Hurricane Francine barreled early Wednesday toward Louisiana and is expected to make landfall in coming hours as forecasters raised threats of potentially deadly storm surge, widespread flooding and destructive winds on the northern U.S. Gulf coast.

Francine drew fuel from exceedingly warm Gulf of Mexico waters to jump from a tropical storm to a Category 1 hurricane on Tuesday night. The National Hurricane Center said Francine might even reach Category 2 strength with winds of 155 to 175 kph before crashing into a fragile coastal region that still hasn’t fully recovered from a series of devastating hurricanes since 2020.

Louisiana Gov. Jeff Landry warned at midday Tuesday — when Francine was still a tropical storm — that residents around south Louisiana and in the heavily populated state capital of Baton Rouge and nearby New Orleans — should “batten down all the hatches” and finish last preparations before a 24-hour window to do so closed.

Once Francine makes landfall, Landry said, residents should stay in place rather than venture out into waterlogged roads and risk blocking first responders or utility crews working to repair power lines.

The governor said the Louisiana National Guard is being deployed to parishes that could be impacted by Francine. They are equipped with food, water, nearly 400 high-water vehicles, about 100 boats and 50 helicopters to respond to the storm, including possible search-and-rescue operations.

Francine was centered Wednesday morning about 395 kilometers southwest of Morgan City, Louisiana, and was moving northeast at 17 kph with maximum sustained winds of 90 150 kmh, the Miami-based hurricane center said. Some additional strengthening is expected Wednesday morning and then Francine is expected to weaken quickly after it moves inland.

A hurricane warning was in effect along the Louisiana coast from Cameron eastward to Grand Isle, about 80 kilometers south of New Orleans, according to the center. A storm surge warning stretched from the Mississippi-Alabama border to the Alabama-Florida border Such a warning means there’s a chance of life-threatening flooding.

In downtown New Orleans, cars and trucks were lined up for blocks on Tuesday to collect sandbags from the parking lot of a local YMCA. CEO Erika Mann said Tuesday that 1,000 bags of sand had already been distributed by volunteers later in the day to people hoping to protect homes from possible flooding.

One resident picking up sandbags was Wayne Grant, 33, who moved to New Orleans last year and was nervous for his first potential hurricane in the city. The low-lying rental apartment he shares with his partner had already flooded out in a storm the year before and he was not taking any chances this time around.

“It was like a kick in the face, we’ve been trying to stay up on the weather ever since,” Grant said. “We’re super invested in the place, even though it’s not ours.”

Francine is the sixth named storm of the Atlantic hurricane season. There’s a danger of life-threatening storm surge as well as damaging hurricane-force winds, said Brad Reinhart, a senior hurricane specialist at the hurricane center.

There’s also the potential for 10 to 20 centimeters of rain with the possibility of 30 centimeters locally across much of Louisiana and Mississippi through Friday morning, Reinhart said.

The hurricane center said parts of Mississippi, Alabama and the Florida Panhandle were at risk of “considerable” flash and urban flooding starting Wednesday, followed by a threat of possible flooding later in the week into the lower Mississippi Valley and lower Tennessee Valley as the soggy remnants of Francine sweep inland.

Francine is taking aim at a Louisiana coastline that has yet to fully recover since hurricanes Laura and Delta decimated Lake Charles in 2020, followed a year later by Hurricane Ida.

A little over three years after Ida trashed his home in the Dulac community of coastal Louisiana’s Terrebonne Parish – and about a month after he finished rebuilding – Coy Verdin was preparing for another hurricane.

“We had to gut the whole house,” he recalled in a telephone interview, rattling off a memorized inventory of the work, including a new roof and new windows.

Verdin, 55, strongly considered moving farther inland, away from the home where he makes his living on nearby Bayou Grand Caillou. After rebuilding, he said he’s there to stay.

“As long as I can. It’s getting rough, though,” he said.

Francine’s storm surge on the Louisiana coast could reach as much as 3 meters from Cameron to Port Fourchon and into Vermilion Bay, forecasters said. They said landfall was likely somewhere between Sabine Pass — on the Texas-Louisiana line — and Morgan City, Louisiana, about 350 kilometers to the east.
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In the U.S. presidential election, the Republican Party’s presidential nominee, Donald Trump, clashed with his Democratic Party rival, Kamala Harris, Tuesday evening over issues such as abortion, immigration and foreign policy. VOA’s chief national correspondent Steve Herman has details from the candidates’ first debate in Philadelphia.
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WASHINGTON — Taylor Swift, one of the music industry’s biggest stars, endorsed Kamala Harris for president shortly after the debate ended on Tuesday night.

“I think she is a steady-handed, gifted leader and I believe we can accomplish so much more in this country if we are led by calm and not chaos,” Swift wrote in an Instagram post.

She included a picture of herself holding a cat and signed the message “Childless Cat Lady,” a reference to comments made by JD Vance, Donald Trump’s running mate.

Swift has a dedicated following among young women, a key demographic in the November election.
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The United States announced new sanctions on Iran Tuesday, over Tehran’s supplying of missiles to Russia for use in Moscow’s invasion of Ukraine. Henry Ridgwell reports from London.
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WASHINGTON — A controversial law on “foreign influence transparency” is heading toward full implementation in Georgia, even though the country aspires to join the European Union and North Atlantic Treaty Organization.

September 2 was the deadline for Georgian nongovernmental organizations and media organizations receiving more than one-fifth of their funding from abroad to register as “organizations serving the interests of a foreign power.” Only 1.6% of the country’s organizations chose to do so. Many organizations expect they will be forced to register and fined for allegedly serving foreign interests.

Georgia’s so-called “foreign agent” law has been labeled a “Russian-style law” and heavily criticized by Georgia’s Western partners, who say it undermines the hope of most Georgians that their country will join European institutions. Georgia’s government, however, insists the law simply seeks to ensure “transparency.”

On October 26, Georgians will head to the polls to elect a new parliament, and the political opposition believes these elections will be a referendum on whether the country will continue to move toward integration with Europe. U.S. Assistant Secretary of State for European and Eurasian Affairs James O’Brien spoke with Voice of America’s Georgian Service about what the Biden administration will be most closely watching.

VOA: The Georgian government is moving ahead with implementation of the Law on Transparency of Foreign Influence, which has triggered criticism and the imposition of travel restrictions against Georgian government officials by the U.S. and a pause in aid by both the U.S. and the EU. What message does the Biden administration have now for the Georgian leadership? Will the process of implementing the law affect whether the October parliamentary election will be seen as free and fair?

U.S.  Assistant Secretary of State James O’Brien: We want the Georgian people to be able to register their votes in a free and fair election. For that to happen, we need to see the whole process work well, all these organizations [being] able to work effectively over the next several months without fear of oppression or violence.

This law, as we’ve said repeatedly, is flawed fundamentally. There are ways that European states protect their election systems. This law does not do that. Having a government agency essentially force a registration and have access to all the data in that organization is at odds with modern European practice. … It’s caused an enormous amount of damage to Georgia’s prospects for joining the EU and NATO.

The elections need to be free and fair. It’s good that the Organization of Security and Cooperation in Europe will be able to have a mission to observe some parts [of the election], but it also depends on the community groups. All of that is one big system, and this law tries to kick one leg out from a three-legged stool. It doesn’t work. And so, I’m worried that it means the elections will not be free and fair, and they certainly won’t be seen as free and fair. Without that, Georgia can’t make the next step forward.

VOA: The U.S. and Georgia have been strategic partners for over three decades. The Biden administration has taken several steps, including visa restrictions, pausing aid and postponing joint military drills. What might the next steps be? What are the options on the table?

O’Brien: We’ve already put in place restriction on travel to the U.S. that’s affected dozens of people. We’re not allowed to say who exactly. But it’s a very significant step.  We have suspended help, assistance to a range of the Georgian society. That’s a shame, but it’s necessary. And the EU’s said that the process of joining the EU is effectively suspended. We do not want to see a return to the kind of violence, harassment and oppression that we saw in the spring, where civil society groups, individuals were visited by often-thuggish groups with Russian accents, they were visited by members of the government. All of those things can’t happen.

VOA: Meanwhile, [ruling party] Georgian Dream leaders have promised to “ban opposition parties” following the elections. How does this sound coming from the leadership of a country aspiring to EU and NATO membership, and what concerns does it raise about the ruling party’s intentions?

O’Brien: It doesn’t sound like a democracy. One party doesn’t get to decide what other party gets to compete. It’s for the citizens to decide what parties take their seats in parliament, according to fair rules that are understood in advance. So, I think that was a very revealing comment. And it suggests that this is not a government capable of bringing Georgia toward Europe.

VOA: Russian intelligence services are accusing the U.S. of plotting “regime change” in Georgia. Some Georgian Dream members also have accused U.S. organizations like the NDI or IRI [the National Democratic Institute and the International Republican Institute, both of which are American nongovernmental organizations funded by the U.S. government] of helping the opposition. What do you make of these accusations, and are you worried about possible Russian interference or malign influence in the Georgian elections?

O’Brien: Well, anyone who believes the Russian security services, I think, is fooling themselves. The American organizations are very transparent. It’s known who we work with, and we work to support the Georgian people so that they can organize themselves inside or outside government. That’s the full goal. We don’t pick winners and losers. We are for the Georgian people, most of whom, almost 90% of whom, want to move toward Europe, and it’s this government with its very bad legal drafting — like it’s just bad lawyering — that has caused this problem. And we would like them to fix it so that the Georgian people can organize themselves and could have a free and fair election.

If the government succeeds in … denying access to resources by all these groups, the only ones left standing will be Russian sources of information. So, whatever the case has been till now, what the government is doing [now] makes it much easier for Russia to dominate Georgia’s information space.

VOA: After so many high-level engagements with the Georgian authorities, and Prime Minister [Irakli] Kobakhidze speaking about the need for “resetting” the relationship, do you have any indication that they might be ready to change course?

O’Brien: No. And they’re in denial. They haven’t noticed we’ve suspended $95 million in assistance. The EU is suspending a proportionate amount: They are saying you don’t get to move toward Europe. And what Georgian Dream tries to tell its voters, and all Georgian citizens, is [that] everything is fine. It is not fine. Georgia wants to join the European Union. There are clear rules. The people responsible for those rules are saying you have made a mistake. You have written a bad law. They are on the verge of writing two new bad laws and those need to stop in order for the people of Georgia to get what they overwhelmingly want.

We’ve said again and again to the Georgian officials: The transparency you say you want is readily available. All the American organizations are transparent. The European organizations are transparent. There are ways to achieve that. But they’ve chosen to do it in a way that lets the [Georgian] Ministry of Justice control your local neighborhood organization. And that’s not democratic, and it’s not part of Europe. We want them to turn back so that the Georgian people can be part of Europe.
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State Department — U.S. Secretary of State Antony Blinken and British Foreign Secretary David Lammy addressed Indo-Pacific security and highlighted the need to maintain the status quo on the Taiwan Strait during their U.S.-U.K. Strategic Dialogue, underscoring its global significance. 

“We also discussed joint efforts to ensure peace and stability across the Taiwan Strait and freedom of navigation and overflight of the South China Sea. For both of us, maintaining peace and stability, preserving the status quo is essential,” Blinken told reporters during a joint press conference with Lammy in London. 

“It’s essential not just to us; it’s, again, essential to countries all around the world,” Blinken added.    

U.S. officials have stressed the need to keep open high-level communication between Washington and Beijing to clear up misperceptions and prevent their competition from escalating into conflict. 

Earlier this week, the United States and China held theater-level commander talks for the first time in an effort to stabilize military relations. 

The video teleconference Monday, between Admiral Samuel Paparo, commander of U.S. Indo-Pacific Command, and General Wu Yanan, commander of the People’s Liberation Army’s Southern Theater Command, was aimed at preventing misunderstandings, particularly in regional hotspots like the South China Sea.  

According to the U.S. Indo-Pacific Command, Admiral Paparo emphasized the Chinese military’s responsibility to adhere to international laws and norms to ensure operational safety.  

“Paparo also urged the PLA to reconsider its use of dangerous, coercive, and potentially escalatory tactics in the South China Sea and beyond.” 

In Beijing, China’s Ministry of National Defense issued a press release Tuesday stating the two commanders exchanged views on matters of mutual concern, but did not provide further details about the discussion. 

Washington has been seeking to establish new channels for regular military communication with Beijing after relations hit a historic low when the U.S. downed a suspected Chinese surveillance balloon last year. 

The theater-level commander talks differ from the broader discussions between U.S. and Chinese defense chiefs, which cover all strategic issues impacting both nations, Ryan Haas, a senior fellow at the Brookings Institution, told VOA. 

The theater-level talks provide a platform for more focused discussions on operational issues, crisis management, and deconfliction at an operator-to-operator level, added Haas, a former senior official on the White House National Security Council from 2013 to 2017. 

The virtual meeting between Paparo and Wu followed a meeting last month in Beijing, where U.S. national security adviser Jake Sullivan and Chinese leader Xi Jinping’s top military adviser agreed to the talks.
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washington — Alabama Senator Tommy Tuberville is blocking the quick promotion of the top military aide to Defense Secretary Lloyd Austin over concerns that he and other senior staff did not immediately notify President Joe Biden when Austin was hospitalized with complications from cancer treatment earlier this year. 

Biden in July nominated Lieutenant General Ronald Clark to become commander of U.S. Army forces in the Pacific. But Clark has faced criticism from Republicans over his role as one of Austin’s top aides when the defense secretary was in the hospital in January and did not tell Biden or other U.S. leaders. 

Republicans said the fact that Biden was kept in the dark about Austin not being in command for days could have meant confusion or delays in military action, even though decision-making authorities had been transferred to the deputy defense secretary. 

Tuberville’s hold comes a year after he came under intense criticism from colleagues in both parties for holding up hundreds of military promotions over a Pentagon abortion policy. The Senate finally approved 425 military promotions and nominations in November after Tuberville relented. 

Republican colleagues said they agreed with Tuberville on the abortion policy but openly pressured him to drop the holds, voicing concern about military readiness and the toll it was taking on service members and their families who had nothing to do with the regulations. 

A spokeswoman for Tuberville, Hannah Eddins, said Tuesday that the senator has concerns about Clark’s role during Austin’s hospitalization, including that he did not inform Biden. She said that Tuberville is waiting on an a report from the Pentagon’s inspector general that will review the matter. 

“As a senior commissioned officer, Lieutenant General Clark’s oath requires him to notify POTUS when the chain of command is compromised,” Eddins said, using an acronym for the president of the United States. 

Majority Democrats could still bring Clark’s nomination up for a vote, but Tuberville’s hold likely delays his confirmation because several days of floor time would be needed to confirm him. The nomination will expire with the end of the congressional session and the next president would have to renominate Clark or someone else to the post if he is not confirmed by early January. 

Pentagon spokesperson James Adams said that Tuberville’s new hold, which was first reported by The Washington Post, “undermines our military readiness.” 

“Lt. Gen. Clark is highly qualified and was nominated for this critical position because of his experience and strategic expertise,” Adams said in a statement. “We urge the Senate to confirm all of our qualified nominees.” 

Austin has come under bipartisan criticism for initially keeping Biden in the dark about his health issues and hospitalization. Austin was admitted to intensive care for complications from prostate cancer surgery on January 1, but the White House was not told until January 4. Austin’s senior staff were notified on January 2. 

The defense secretary later said he takes full responsibility and had apologized to Biden. Still, Austin insisted that there were no gaps in control of the department or the nation’s security because “at all times, either I or the deputy secretary was in a position to conduct the duties of my office.” 

An earlier Pentagon review of the matter blamed privacy restrictions and staff hesitancy for the secrecy, and called for improved procedures, which have been made. 

The White House also laid out a new set of guidelines to ensure it will be informed any time a Cabinet head cannot carry out their job. The new guidelines include a half-dozen instructions for Cabinet agencies to follow when there is a “delegation of authority,” or when secretaries temporarily transfer their authority to a deputy when unreachable due to medical issues, travel or other reasons. 
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