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Michael Whatley, RNC chairman endorsed by Trump, launches Senate bid in North Carolina

Michael Whatley, RNC chairman endorsed by Trump, launches Senate bid in North Carolina

By GARY D. ROBERTSON, ERIK VERDUZCO and THOMAS BEAUMONT Associated Press

GASTONIA, N.C. (AP) — Republican National Committee Chairman Michael Whatley launched his campaign for North Carolina’s open U.S. Senate seat Thursday, equipped with President Donald Trump’s endorsement and a large fundraising network for a potential general election bid against formidable Democrat Roy Cooper.

A Whatley-Cooper contest is expected to be one of the most competitive and expensive 2026 races. Speaking at an event held at an old textile mill near Charlotte, Whatley pledged his allegiance to the president, who will be a major focus for both sides in a swing state where Trump had one of his smallest margins of victory last year.

“I am proud to stand with him and fight every single day for every family in every community,” Whatley said. “President Trump deserves an ally and North Carolina deserves a strong conservative voice in the Senate. I will be that voice.”

Whatley led the state Republican Party for almost five years before being elected Republican National Committee chairman 17 months ago with Trump’s backing. He seeks to succeed GOP Sen. Thom Tillis, who barely a month ago announced that he would not run for a third term after clashing with Trump.

Whatley’s plan to run became public a week ago, after which Trump said on social media that Whatley would “make an unbelievable Senator from North Carolina” and that he would have ”my Complete and Total Endorsement.” Whatley got in the race after Lara Trump — the president’s daughter-in-law, a former RNC co-chair with Whatley and a North Carolina native — passed on her own bid.

Democrats optimistic about Cooper, Whatley calls his views extreme

The Democratic side of the race took shape earlier this week as Cooper, a former two-term governor, announced Monday that he would run. The next day ex-U.S. Rep. Wiley Nickel ended his campaign and endorsed Cooper.

Cooper’s entry brings optimism to a party aiming to take back the Senate in 2026 with a net gain of four seats — a tall task in a year when many Senate races are in states Trump won easily in 2024.

National Republican campaign strategists say that Cooper’s entry makes North Carolina a more difficult seat for the party to hold, though a Democrat hasn’t won a Senate race in usually competitive North Carolina since 2008.

Senate Majority Leader John Thune and National Republican Senatorial Committee Chairman Tim Scott endorsed Whatley immediately. At least two lesser-known Republican candidates are seeking the GOP nomination. Candidate filing begins in December, with any primaries held in March.

But Whatley spent his launch speech targeting Cooper, accusing him of “offering North Carolina voters an extreme radical-left ideology — open borders, inflationary spending and a weak America.”

“I believe in a better North Carolina and a stronger America,” he added.

Whatley will leave RNC post

Trump, who narrowly won North Carolina’s electoral votes all three times that he ran for president, also supported Whatley to replace national party chair Ronna McDaniel early last year. Whatley joked in April to an Iowa audience that Trump was so pleased with his work as chair that he offered Whatley any job that he wanted in Trump’s administration, as long as he stayed on as chair.

But with his campaign bid, Whatley will leave the chairman’s post. RNC members are expected to vote on his successor next month in Atlanta. Trump has endorsed Florida state Sen. Joe Gruters, a former Florida Republican Party chairman who is now the RNC’s treasurer and was co-chair of Trump’s 2016 campaign in Florida.

While never elected to government office and without a voting record, Whatley has promoted the president’s agenda and led the party apparatus that helped him get elected in 2024. So he’ll be asked repeatedly to defend a host of Trump initiatives.

Whatley, 56, grew up in the western North Carolina mountains. His first major foray into politics came in high school when he volunteered for the 1984 reelection campaign of U.S. Sen. Jesse Helms. He earned law and theology degrees from the University of Notre Dame.

Whatley was on a team of lawyers working on George W. Bush’s behalf to dispute the outcome of the 2000 presidential contest. He landed a job in Bush’s administration with the Department of Energy, followed by a two-year stint working for then-North Carolina Sen. Elizabeth Dole. He later lobbied for oil and gas companies.

Medicaid cuts will be an issue

Whatley spent time during Thursday’s speech highlighting what he considers Trump’s many accomplishments, including recent Hurricane Helene recovery efforts in the state and a remake of the Republican Party.

But Whatley also will have to defend portions of Trump’s new law that includes pulling back on Medicaid, which North Carolina officials say threatens expansion coverage for hundreds of thousands of people. It was Cooper who reached a bipartisan agreement with state Republicans in 2023 to offer Medicaid expansion.

Cooper’s campaign criticized Whatley as “a D.C. insider and big oil lobbyist who supports policies that are ripping health care away from North Carolinians and raising costs for middle class families.” In a news release, Cooper campaign manager Jeff Allen added that Cooper has a “record of putting partisanship aside to get results for North Carolina.”

At the close of his tenure as state chairman, Whatley highlighted his efforts to encourage early voting and protect “election integrity,” as well as online fundraising and volunteer training. He cited electoral victories for Republicans on North Carolina’s appeals courts and within the General Assembly. But Democrats continued to control the governor’s mansion, as Cooper won a second term in 2020.

__

Robertson reported from Raleigh, N.C., Beaumont reported from Des Moines, Iowa.

Trump announces 90-day negotiating period with Mexico as 25% tariff rates stay in place

Trump announces 90-day negotiating period with Mexico as 25% tariff rates stay in place

By JOSH BOAK Associated Press

WASHINGTON (AP) — The United States will enter a 90-day negotiating period with Mexico over trade as 25% tariff rates stay in place, President Donald Trump said Thursday.

Trump, posting on his Truth Social platform, said a phone conversation he had with Mexican leader Claudia Sheinbaum was “very successful in that, more and more, we are getting to know and understand each other.”

US Treasury Secretary Scott Bessent on Thursday said he was confident the U.S. and China could strike a trade deal as a key tariff deadline nears. “I believe that we have the makings of a deal,” Bessent said during an interview on CNBC’s “Squawk Box.” (AP Video)

The Republican president said that goods from Mexico imported into the U.S. would continue to face a 25% tariff that he has ostensibly linked to fentanyl trafficking. He said that autos would face a 25% tariff, while copper, aluminum and steel would be taxed at 50%.

He said that Mexico would end its “Non Tariff Trade Barriers,” but he didn’t provide specifics.

Trump had threatened tariffs of 30% on goods from Mexico in a July letter, something that Sheinbaum said Mexico gets to stave off for the next three months.

“We avoided the tariff increase announced for tomorrow and we got 90 days to build a long-term agreement through dialogue,” Sheinbaum wrote on X.

Some goods continue to be protected from the tariffs by the 2020 U.S. Mexico Canada Agreement, or USMCA, which Trump negotiated during his first term.

But Trump appeared to have soured on that deal, which is up for renegotiation next year. One of his first significant moves as president was to tariff goods from both Mexico and Canada earlier this year.

Census Bureau figures show that the U.S. ran a $171.5 billion trade imbalance with Mexico last year. That means the U.S. bought more goods from Mexico than it sold to the country.

The imbalance with Mexico has grown in the aftermath of the USMCA as it was only $63.3 billion in 2016, the year before Trump started his first term in office.

Besides addressing fentanyl trafficking, Trump has made it a goal to close the trade gap.

Roger Penske sells a third of Indianapolis Motor Speedway and IndyCar to Fox

Roger Penske sells a third of Indianapolis Motor Speedway and IndyCar to Fox

By JENNA FRYER AP Auto Racing Writer

Penske Entertainment, the Roger Penske-owned entity that holds Indianapolis Motor Speedway and IndyCar among its assets, said Thursday it has sold one-third interest in the company to FOX.

The sale was described as a strategic investment and partnership designed to launch new growth for IndyCar and it includes a multi-year contract extension for Fox Sports’ media rights deal with the open-wheel series. Fox Sports is in its first season broadcasting IndyCar.

Penske Entertainment expects the sale of part of the company to spearhead innovative and industry-leading racing and entertainment events, heightened digital strategy and immersive content focus, as well as enhanced promotion and star-building opportunities for IndyCar drivers.

“This partnership is built on long-standing trust and a shared vision for the future,” Roger Penske said in a statement. “Fox sees the incredible potential across our sport and wants to play an active role in building our growth trajectory.

“Lachlan Murdoch and his team, starting with Eric Shanks, are committed to our success and will bring incredible energy and innovation to IndyCar.”

Shanks is an Indiana native who grew up attending the Indianapolis 500 and has an affinity for IndyCar racing. He desperately wanted to add IndyCar to Fox Sports’ properties and snagged the TV deal away from NBC Sports ahead of this season.

All races are broadcast on Fox making IndyCar the only series in the United States that does not air any of its events on cable. This year’s Indianapolis 500 on Fox averaged 7.01 million viewers — a 41% increase over last year and a 17-year high.

This season, IndyCar is averaging a 31% increase in viewership year-over-year.

“We’re thrilled to join the IndyCar ownership group at such a pivotal time for the sport,” said Eric Shanks, CEO & Executive Producer, FOX Sports. “IndyCar represents everything we value in live sports — passionate fans, iconic venues, elite competition and year-round storytelling potential.

“This investment underscores our commitment to motorsports and our belief in IndyCar’s continued growth on and off the track. We’re excited to help elevate the sport to new heights across all platforms.”

The sale to Fox gives some clarity to the succession plan for Penske, who bought IndyCar and the speedway ahead of the 2020 season. He has long declined to discuss his succession plans although sons Roger Jr. and Greg are involved in the racing entities of the Penske Entertainment.

The sale of a portion of Penske Entertainment creates more seats at its leadership table moving forward, but Penske has remained steadfast in his determination that IndyCar and Indianapolis Motor Speedway will be generational assets for his family.

Penske, who is 88, still runs the day-to-day operations of all of his businesses, which includes racing teams in NASCAR, IndyCar, and IMSA and WEC sports car racing, as well as his billion-dollar transportation empire at Penske Corp.

Penske Automotive also owns multiple car dealerships and Penske is one of the largest BMW dealers in the United States. His race teams, the transportation business and his dealerships are not part of the Fox transaction.

Fireflies are lighting up summer skies. But the glowing bugs are still on the decline

Fireflies are lighting up summer skies. But the glowing bugs are still on the decline

By ADITHI RAMAKRISHNAN and SHELBY LUM Associated Press

NEW YORK (AP) — Fireflies are lighting up summer evenings across the U.S. Northeast, putting on dazzling shows in backyards and city parks.

There’s no official count, but experts say a particularly wet spring may have created the ideal conditions for young fireflies to grow into adults to set summer nights aglow.

More fireflies than usual are lighting up summer evenings in New York and the Northeast. But scientists say the lightning bugs are still on the decline. (AP Video: Shelby Lum)

Fireflies light the night everywhere: There are over 2,000 known species across the globe. They use their characteristic flashes to communicate and find the perfect mate.

In New York City, the lightning bugs are out in the five boroughs, sparkling once the sun goes down in places like Central Park and Prospect Park. The summer months are ideal to spot them as they start to dwindle throughout the month of August.

While northeastern nights may seem brighter this summer, the bugs are still on the decline and they’re waning at a faster rate than ever before.

“It would be a mistake to say firefly populations are high this year, therefore there’s no decline,” said Matt Schlesinger with the New York Natural Heritage Program, who is part of an effort to count fireflies in state parks.

Some firefly species could be doing well this year, Schlesinger said, while others are still on the decline.

Habitat loss, pesticide use and light pollution are responsible. In cities, blaring lights from billboards, cars and storefronts can drown out the bugs’ glow, making it harder for them to find their kin and pass their genes onto the next generation.

Fireflies are part of the story of summer, said entomologist Jessica Ware with the American Museum of Natural History. Her children grew up seeing them flash in her backyard, but the bugs started to disappear once her kids hit their teenage years.

In the past few months, her family has seen the fireflies come back. Their return made her think about all the kids who are glimpsing the glowing bugs for the very first time.

“It shouldn’t be new,” Ware said. “It should be something that is a universal part of summer.”

To look out for fireflies, consider turning the lights off at night and avoid spraying front lawns with insecticides.

“We still need to do some work ourselves, to change our behavior, to really make sure that large populations can continue to stay large,” Ware said.

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The Associated Press Health and Science Department receives support from the Howard Hughes Medical Institute’s Department of Science Education and the Robert Wood Johnson Foundation. The AP is solely responsible for all content.

Quick and Easy Cornbread

Quick and Easy Cornbread

Preparation Time: 10 minutes

Cooking time: 20 minutes

Serving Size: 10 servings

Ingredients

  • 1 cup all-purpose flour
  • 1 cup yellow cornmeal
  • ⅔ cup sugar
  • 3 ½ teaspoons baking powder
  • 1 tsp. salt
  • 1 egg
  • 1 cup milk
  • ⅓ cup vegetable oil
  • 1 tbsp butter
  • optional: 2 tbsp. honey

Directions

  1. Preheat oven to 400 degrees f and lightly grease a 9-inch round baking pan with butter.
  2. In a large bowl, combine flour, cornmeal, sugar, baking powder and salt together with a whisk.
  3. Add milk, vegetable oil and egg to the dry ingredients and whisk to combine.
  4. Pour mixture into the pan and bake for 20-25 minutes, or until a toothpick inserted into the center comes out clean.
  5. (Optional) Drizzle with honey and enjoy!
July 31st 2025

July 31st 2025

Thought of the Day

July 31st 2024
Photo by Getty Image

“Don’t cry because it is over. Smile because it happened.” – Dr. Suess

Trump administration freezes $108M at Duke amid inquiry into alleged racial preferences

Trump administration freezes $108M at Duke amid inquiry into alleged racial preferences

By COLLIN BINKLEY AP Education Writer

WASHINGTON (AP) — The Trump administration is freezing $108 million in research funding to Duke University as the federal government accuses the school of racial discrimination in the form of affirmative action, according to a person familiar with the matter.

The National Institutes of Health halted the funding to the private university in North Carolina, said the person who spoke Wednesday on the condition of anonymity to discuss internal deliberations. Earlier this week, the Department of Health and Human Services and the Education Department sent a joint letter alleging racial preferences in Duke’s hiring and admissions.

Duke is the latest institution to have its federal funding held up as the government investigates allegations of antisemitism and diversity, equity and inclusion policies the administration says are unlawful. It follows other probes including at Harvard, Columbia, and Cornell.

Duke did not immediately comment.

In Monday’s letter to Duke, leaders of HHS and the Education Department accused the university of “vile racism.” It alludes to allegations of racial preferences at Duke, its medical school and its health system that, if substantiated, would make Duke “unfit for any further financial relationship with the federal government.”

The letter accuses Duke of providing racial preferences in recruiting, admissions, scholarships, hiring and more. It refers to allegations of discrimination without offering specific examples.

“Racism is a scourge when practiced by individuals, but it is especially corrosive when enshrined in the nation’s most eminent and respected institutions,” according to the letter, signed by Health Secretary Robert F. Kennedy Jr. and Education Secretary Linda McMahon.

It’s part of a broader campaign to eradicate DEI practices the Trump administration describes as discrimination against white and Asian American people.

In their letter, the agencies order Duke to end any practices at its health system that give “benefits or advantages” based on race.

Saying Duke is unlikely to be capable of an “honest and trustworthy review,” the letter takes the unusual step of requesting a new Merit and Civil Rights Committee that would be approved by the government and authorized by the school’s board of trustees. The panel would be tasked with identifying and ending any racial preferences. If problems remained after six months, the administration would pursue legal enforcement, the letter said.

The Education Department separately opened an investigation into the Duke Law Journal on Monday over allegations that it gave advantages to prospective editors from underrepresented groups.

The Trump administration has used federal research funding as leverage in its effort to reshape universities that President Donald Trump has described as hotbeds of liberalism. It has presented a crisis for universities that rely on federal grants as a major source of revenue, spurring some to take on debt and find other ways to self-fund research.

Duke University spent $1.5 billion on research last year, with nearly 60% coming from federal sources, according to the university’s website.

Even before the latest funding freeze, Duke faced financial turmoil. Last week, university leaders said almost 600 employees had accepted voluntary buyouts but that layoffs would still be needed. Officials said they needed to reduce costs amid uncertainty around federal research funding and a hike to the university’s federal endowment tax.

The Trump administration has been ratcheting up pressure on universities in hopes of striking deals like one that Columbia University signed last week. The Ivy League school agreed to pay $200 million and make changes to admissions, hiring, student discipline and more in exchange for regaining access to federal funding. The administration has described it as a template for other universities including Harvard, which has been in talks with the administration even as it battles the White House in court.

___

The Associated Press’ education coverage receives financial support from multiple private foundations. AP is solely responsible for all content. Find AP’s standards for working with philanthropies, a list of supporters and funded coverage areas at AP.org.

American Eagle’s ‘good jeans’ ads with Sydney Sweeney spark a debate on race and beauty standards

American Eagle’s ‘good jeans’ ads with Sydney Sweeney spark a debate on race and beauty standards

By ANNE D’INNOCENZIO AP Retail Writer

NEW YORK (AP) — U.S. fashion retailer American Eagle Outfitters wanted to make a splash with its new advertising campaign starring 27-year-old actor Sydney Sweeney. The ad blitz included “clever, even provocative language” and was “definitely going to push buttons,” the company’s chief marketing officer told trade media outlets.

It has. The question now is whether some of the public reactions the fall denim campaign produced is what American Eagle intended.

Titled “Sydney Sweeney has great jeans,” the campaign sparked a debate about race, Western beauty standards, and the backlash to “woke” American politics and culture. Most of the negative reception focused on videos that used the word “genes” instead of “jeans” when discussing the blonde-haired, blue-eyed actor known for the HBO series “Euphoria” and “White Lotus.”

Some critics saw the wordplay as a nod, either unintentional or deliberate, to eugenics, a discredited theory that held humanity could be improved through selective breeding for certain traits.

Marcus Collins, an assistant professor of marketing at the University of Michigan’s Ross School of Business, said the criticism could have been avoided if the ads showed models of various races making the “genes” pun.

“You can either say this was ignorance, or this was laziness, or say that this is intentional,” Collins said. “Either one of the three aren’t good.”

Other commenters on social media accused detractors of reading too much into the campaign’s message.

“I love how the leftist meltdown over the Sydney Sweeney ad has only resulted in a beautiful white blonde girl with blue eyes getting 1000x the exposure for her ‘good genes,’” former Fox News host Megyn Kelly wrote Tuesday on X.

American Eagle didn’t respond to queries from AP for comment.

A snapshot of American Eagle

The ad blitz comes as the teen retailer, like many merchants, wrestles with sluggish consumer spending and higher costs from tariffs. American Eagle reported in late May that total sales were down 5% for its February-April quarter compared to a year earlier.

A day after Sweeney was announced as the company’s latest celebrity collaborator, American Eagle’s stock closed more than 4% up. The company’s shares were trading nearly 2% on Wednesday.

Like many trendy clothing brands, American Eagle has to differentiate itself from other mid-priced chains with a famous face or by saying something edgy, according to Alan Adamson, co-founder of marketing consultancy Metaforce.

Adamson said the Sweeney campaign shares a lineage with Calvin Klein jeans ads from 1980 that featured a 15-year-old Brooke Shields saying, “You want to know what comes in between me and my Calvins? Nothing.” Some TV networks declined to air the spots because of its suggestive double entendre and Shields’ age.

“It’s the same playbook: a very hot model saying provocative things shot in an interesting way,” he said.

Billboards, Instagram and Snapchat

Chief Marketing Officer Craig Brommers told industry news website Retail Brew last week that “Sydney is the biggest get in the history of American Eagle,” and the company planned to promote the partnership in a way that matched.

The campaign features videos of Sweeney wearing slouchy jeans in various settings. Her image will appear on 3-D billboards in Times Square and elsewhere, on Snapchat speaking to users, and in an AI-enabled try-on feature.

American Eagle also plans to launch a limited edition Sydney jean to raise awareness of domestic violence and to donate the sales proceeds to the nonprofit Crisis Text Line.

In a news release about the ads, the company noted “Sweeney’s girl next door charm and main character energy – paired with her ability to not take herself too seriously – is the hallmark of this bold, playful campaign.”

Jeans, genes and their many meanings

In one video, Sweeney walks toward an American Eagle billboard of her and the tagline “Sydney Sweeney has great genes.” She crosses out “genes” and replaces it with “jeans.”

But what critics found the most troubling was a teaser video in which Sweeney says, “Genes are passed down from parents to offspring, often determining traits like hair color, personality and even eye color. My jeans are blue.”

The video appeared on American Eagle’s Facebook page and other social media channels but is not part of the official campaign.

While remarking that someone has good genes is sometimes used as a compliment, the phrase also has sinister connotations. Eugenics gained popularity in early 20th century America, and Nazi Germany embraced it to carry out Adolf Hitler’s plan for an Aryan master race.

Civil rights activists have noted signs of eugenics regaining a foothold through the far right’s promotion of the “great replacement theory,” a racist ideology that alleges a conspiracy to diminish the influence of white people.

Shalini Shankar, a cultural and linguistic anthropologist at Northwestern University in Evanston, Illinois, said she had problems with American Eagle’s “genes” versus “jeans” because it exacerbates a limited concept of beauty.

“American Eagle, I guess, wants to rebrand itself for a particular kind of white privileged American,” Shankar said. “And that is the kind of aspirational image they want to circulate for people who want to wear their denim.”

A cultural shift in advertising

Many critics compared the American Eagle ad to a misstep by Pepsi in 2017, when it released a TV ad that showed model Kendall Jenner offer a can of soda to a police officer while ostensibly stepping away from a photo shoot to join a crowd of protesters.

Viewers mocked the spot for appearing to trivialize protests of police killings of Black people. Pepsi apologed and pulled the ad.

The demonstrations that followed the 2020 killing of George Floyd by a white police officer in Minneapolis pushed many U.S. companies to make their advertising better reflect consumers of all races.

Some marketers say they’ve observed another shift since President Donald Trump returned to office and moved to abolish all federal DEI programs and policies.

Jazmin Burrell, founder of brand consulting agency Lizzie Della Creative Strategies, said she’s noticed while shopping with her teenage daughter more ads and signs that prominently feature white models.

“I can see us going back to a world where diversity is not really the standard expectation in advertising,” Burrell said.

American Eagle’s past and future

American Eagle has been praised for diverse marketing in the past, including creating a denim hijab in 2017 for customers who wore the traditional Muslim head scarves. Its Aerie lingerie brand was recognized for creating a wide range of sizes. A year ago, the company released a limited edition denim collection with tennis player Coco Gauff.

The retailer has an ongoing diversity, equity and inclusion program that is primarily geared toward employees. Two days before announcing the Sweeney campaign, American Eagle named the latest recipients of its scholarship award for employees who are driving anti-racism, equality and social justice initiatives.

Marketing experts offer mixed opinions on whether the attention surrounding “good jeans” will be good for business.

“They were probably thinking that this is going to be their moment,” Myles Worthington, the founder and CEO of marketing and creative agency WORTHI. “But this is doing the opposite and deeply distorting their brand.”

Melissa Murphy, a marketing professor at Carnegie Mellon University’s Tepper School of Business, said she liked certain parts of the campaign but hoped it would be expanded to showcase people besides Sweeney for the “sake of the brand.”

Other experts say the buzz is good even if it’s not uniformly positive.

“If you try to follow all the rules, you’ll make lots of people happy, but you’ll fail,” Adamson said. “The rocket won’t take off. ”

Federal Reserve leaves interest rates unchanged even as Trump demands cuts

Federal Reserve leaves interest rates unchanged even as Trump demands cuts

By CHRISTOPHER RUGABER AP Economics Writer

WASHINGTON (AP) — The Federal Reserve left its key short-term interest rate unchanged for the fifth time this year, brushing off repeated calls from President Donald Trump for a cut.

The Fed’s decision Wednesday leaves its key short-term rate at about 4.3%, where it has stood after the central bank made three cuts last year. During a news conference, Chair Jerome Powell said that Trump’s sweeping tariffs are starting to push up inflation and it will take time for the Fed to determine whether the uptick in prices will be a one-time effect or something more persistent.

“That is a risk to be assessed and managed,” he told reporters.

There were some signs of splits in the Fed’s ranks: Governors Christopher Waller and Michelle Bowman voted to reduce borrowing costs, while nine officials, including Powell, favored standing pat. It is the first time in more than three decades that two of the seven Washington-based governors have dissented. One official, Governor Adriana Kugler, was absent and didn’t vote.

The choice to hold off on a rate cut will almost certainly result in further conflict between the Fed and White House, as Trump has repeatedly demanded that the central bank reduce borrowing costs as part of his effort to assert control over one of the few remaining independent federal agencies.

Powell said that while tariffs are starting to push up the cost of goods — and he expects more of that to happen in the coming months — the price of services — rents, insurance, and hotel rooms — has continued to cool.

He suggested it could take some time to determine whether the impact of the tariffs will be short-lived or more persistent.

“We think we have a long way to go to really understand exactly how” the tariffs and prices will play out, Powell said.

Many economists and Wall Street investors have expected the Fed to cut its rate at its next meeting in September, but Powell’s remarks suggest there may not be enough data before September to support a cut.

“We have made no decisions about September,” Powell said. The chair acknowledged that if the Fed cut its rate too soon, inflation could move higher, and if it cut too late, then the job market could suffer.

Major U.S. indexes, which had been trading slightly higher Wednesday, went negative after Powell’s comments.

“The markets seem to think that Powell pushed back on a September rate cut,” said Lauren Goodwin, chief market strategist at New York Life Investments.

Powell also underscored that the vast majority of the committee agreed with a basic framework: Infation is still above the Fed’s target of 2%, while the job market is still mostly healthy, so the Fed should keep rates elevated. On Thursday, the government will release the latest reading of the Fed’s preferred inflation gauge, and it is expected to show that core prices, excluding energy and food, rose 2.7% from a year earlier.

Gus Faucher, chief economist at PNC Financial, says he expects the tariffs will only temporarily raise inflation, but that it will take most of the rest of this year for that to become apparent. He doesn’t expect the Fed to cut till December.

Trump argues that because the U.S. economy is doing well, rates should be lowered. But unlike a blue-chip company that usually pays lower rates than a troubled startup, the Fed adjusts rates to either slow or speed growth, and would be more likely to keep them high if the economy is strong to prevent an inflationary outbreak.

Earlier Wednesday, the government said the economy expanded at a healthy 3% annual rate in the second quarter, though that figure followed a negative reading for the first three months of the year, when the economy shrank 0.5% at an annual rate. Most economists averaged the two figures to get a growth rate of about 1.2% for the first half of this year.

Some of the disagreement likely reflects jockeying to replace Powell, whose term ends in May 2026. Waller in particular has been mentioned as a potential future Fed chair.

Bowman, meanwhile, last dissented in September 2024, when the Fed cut its key rate by a half-point. She said she preferred a quarter point cut instead, and cited the fact that inflation was still above 2.5% as a reason for caution.

Waller also said earlier this month that he favored cutting rates, but for very different reasons than Trump has cited: Waller thinks that growth and hiring are slowing, and that the Fed should reduce borrowing costs to forestall a weaker economy and a rise in unemployment.

There are other camps on the Fed’s 19-member rate-setting committee (only 12 of the 19 actually vote on rate decisions). In June, seven members signaled that they supported leaving rates unchanged through the end of this year, while two suggested they preferred a single rate cut this year. The other half supported more reductions, with eight officials backing two cuts, and two — widely thought to be Waller and Bowman — supporting three reductions.

The dissents could be a preview of what might happen after Powell steps down, if President Donald Trump appoints a replacement who pushes for the much lower interest rates the White House desires. Other Fed officials could push back if a future chair sought to cut rates by more than economic conditions would otherwise support.

Overall, the committee’s quarterly forecasts in June suggested the Fed would cut twice this year. There are only three more Fed policy meetings — in September, October, and December.

When the Fed cuts its rate, it often — but not always — results in lower borrowing costs for mortgages, auto loans and credit cards.

Some economists agree with Waller’s concerns about the job market. Excluding government hiring, the economy added just 74,000 jobs in June, with most of those gains occurring in health care.

“We are in a much slower job hiring backdrop than most people appreciate,” said Tom Porcelli, chief U.S. economist at PGIM Fixed Income.

Michael Feroli, an economist at JPMorgan Chase, said in a note to clients this week if the pair were to dissent, “it would say more about auditioning for the Fed chair appointment than about economic conditions.”

Former Vice President Kamala Harris says she will not run for California governor in 2026

Former Vice President Kamala Harris says she will not run for California governor in 2026

By MICHAEL R. BLOOD AP Political Writer

LOS ANGELES (AP) — Former Vice President Kamala Harris will not run for California governor next year, leaving open the possibility that she could mount a third run for the White House in 2028.

“Over the past six months, I have spent time reflecting on this moment in our nation’s history and the best way for me to continue fighting for the American people and advancing the values and ideals I hold dear,” Harris said in a statement released by her office Wednesday.

“I have given serious thought to asking the people of California for the privilege to serve as their governor. I love this state, its people and its promise. It is my home. But after deep reflection, I’ve decided that I will not run for Governor in this election,” she said.

Harris’ decision extends a guessing game about her political future that started after she lost last year’s presidential election to Donald Trump. Harris spent months privately considering whether to run for governor, stage another run for the White House or step away from electoral politics altogether after her bruising defeat by Trump.

She has not ruled out another run for president, after unsuccessful bids in 2020 and 2024. It’s not known when she will make that decision.

In her statement, Harris never mentions Trump directly but said “our politics, our government, and our institutions have too often failed the American people, culminating in this moment of crisis.”

“For now, my leadership — and public service — will not be in elected office. I look forward to getting back out and listening to the American people, helping elect Democrats across the nation who will fight fearlessly, and sharing more details in the months ahead about my own plans,” Harris added.

“In the United States of America, power must lie with the people. And We, the People must use our power to fight for freedom, opportunity, fairness and the dignity of all. I will remain in that fight,” the statement said.

Harris would have entered the crowded contest to replace term-limited Gov. Gavin Newsom as a front-runner given her widespread name recognition, fundraising prowess and track record of winning statewide elections. Before serving as U.S. senator and vice president, she was elected state attorney general and district attorney in San Francisco.

But after years in Washington on the national and international stage, it was never clear if Harris was interested in returning to the less-glamorous world of statehouse politics in Sacramento.

Outside California, Harris’ political career has been marked by historic firsts but also disappointments.

Harris sought the 2020 Democratic presidential nomination, but dropped out of the race before the leadoff Iowa caucuses — the first defeat of her political career. After Joe Biden chose her as his running mate, she made history as the first woman, Black person or person of South Asian descent to serve as vice president. In 2024, Harris became the Democratic presidential nominee after Biden left the race months before Election Day and endorsed her. She lost that race to Trump, who won every swing state.

Harris faces some uncertainty if she chooses to make another White House run.

Harris would have to convince national Democrats that she’s the face of the party’s future, despite losing to Trump last fall. She also carries the baggage of being tied to Biden, whom Democrats have increasingly criticized for seeking a second term rather than stepping aside. Biden’s legacy was tarnished as he left office, and since then new questions have swirled about his physical and mental abilities as his term ended.

The 2028 presidential contest is expected to attract a large field, which could potentially include Newsom. Any candidate will have to unify a fractious Democratic Party with low approval ratings that is struggling to slow Trump’s agenda in Washington.

In her most extensive public remarks since leaving office in January, Harris said in a San Francisco speech that Trump’s leadership represented a “ wholesale abandonment ” of American ideals.

Harris’ decision not to seek the governorship keeps the contest to replace Newsom wide open. The Democratic field includes former U.S. Rep. Katie Porter, former Los Angeles Mayor Antonio Villaraigosa, former Biden administration health secretary Xavier Becerra and a handful of state officeholders.

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