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Dec. 08, 2024 10:04PM EST
May. 12, 2021 05:03AM EST
In photos: Long lines and fuel shortages amid Colonial Pipeline shutdown
Reports of fuel shortages across the U.S. emerged on Tuesday as the national average for gasoline prices soared to its highest level since 2014 amid a key fuel pipeline shut down, per Bloomberg.
What's happening: Operator Colonial Pipeline aims to have service restored by the week's end following last Friday's ransomware attack that shut down some 5,500 miles of pipeline from Texas to New Jersey. Florida Gov. Ron DeSantis (R) declared a state of emergency after panic-buying created a fuel shortage.
Vehicles line up to get fuel at a Sunoco gas station in Sumter, South Carolina, on May 11. The Federal Motor Carrier Safety Administration issued a regional emergency declaration on May 9 for 17 states and D.C., to keep fuel supply lines open. Photo: Micah Green/Bloomberg via Getty Images
Signs about limiting gas purchases displayed at a Marathon gas station in Smyrna on May 11. Colonial said in a statement Tuesday it started a segment of the pipeline and delivered some 41 million gallons of fuel to locations including the Carolinas, Georgia and New Jersey. Photo: Elijah Nouvelage/AFP via Getty Images
Cars line up at a COSTCO at Tyvola Road in Charlotte, North Carolina on May 11. Photo: Logan Cyrus/AFP via Getty Images
A "fuel out" sign posted on an entrance at a Marathon gas station in Elizabethtown, North Carolina, on May 10. Photo: Andrew Sherman/Bloomberg via Getty Images
Cars line up at a QuickTrip in Atlanta, Georgia, on May 11. Photo: Megan Varner/Getty Images
Cars line up at a Chevron Corp. gas station in San Francisco, California, on March 11. Photo: David Paul Morris/Bloomberg via Getty Images
Editor's note: This article has been updated with more photos.
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Mar. 18, 2021 11:56AM EST
Fed chair Jerome Powell attempts a high-wire circus act on inflation
Fed chair Jerome Powell is attempting something of a high-wire circus act as the central bank pushes forward with its average inflation targeting regime.
The big picture: He's trying to simultaneously raise inflation while keeping short-term interest rates low and stimulate the economy through unprecedented and extraordinary measures while convincing Americans the economy is doing well.
Driving the news: The Fed kept its policy rate unchanged on Wednesday but sharply ramped up its expectations for economic growth — while affirming that it does not plan to raise interest rates until after 2023.
- The central bank also curiously reworded the public statement accompanying its decision.
Why it matters: U.S. inflation expectations have shot up in recent months while unemployment remains incredibly high, a potentially devastating combination for the economy.
What we're hearing: "The Fed released its new framework last year and it’s showing that it means it," former Fed economist Claudia Sahm tells Axios.
- "Always in the past, expected inflation was what drove the Fed to say, 'Whoa, we’re going to ease up here and in fact might tap on the brakes.' That’s always been how the Fed worked."
- Now the Fed is "showing that it's not all about inflation, and it’s not about expected inflation. It’s about jobs and inflation and with the inflation, we have to see a sustained period of inflation above 2% before we’re going to pull back."
What's happening: That new framework is pushing investors and they're pushing market gauges of inflation like the 10-year Treasury yield to 1.74%, its highest in more than a year, and 5-year breakeven rates to their highest level in nearly 13 years.
- Consumers, seeing consistently higher food, gas and auto prices, as well as increasing mortgage and loan rates also are predicting rising inflation, with a recent New York Fed survey showing the highest consumer inflation expectations in seven years.
- Google searches for inflation have jumped to their highest since record-keeping began in 2008, according to Deutsche Bank research.
Yes, but: While Powell has been content to let longer-term interest rates, which correspond with consumer products like mortgages, rise higher, he has fixated on keeping short-term rates, which correspond with the cost of borrowing for banks and large financial institutions, low.
- By insisting that the Fed isn't even thinking about thinking about raising rates, yields on short-dated Treasuries fall because they are closely tied to Fed policy.
The bottom line: "They’ve masterfully navigated this meeting by sounding somewhat optimistic on the economy but staying dovish on the policy path," Subadra Rajappa, interest rates strategist at Société Générale, tells Axios.
- "If the Fed were to even suggest they’re hiking soon the market will quickly price in multiple hikes and that would be much more negative for the economy."
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Jan. 07, 2021 03:07PM EST
Scoop: Netanyahu demands full control over Israel's Iran policy, sparking pushback
Prime Minister Benjamin Netanyahu is demanding full control of Israel's Iran policy as Joe Biden prepares to assume the Oval Office, setting off a fierce fight at the highest echelons of Israel's government, senior Israeli officials tell me.
Why it matters: Prime Minister Benjamin Netanyahu is preparing to take a very hard line over Biden's plan to return to the 2015 nuclear deal, in contrast with the more moderate approach favored by Defense Minister Benny Gantz, Foreign Minister Gabi Ashkenazi and the heads of Israel's security services.
Driving the news: On Dec. 29, under orders from Netanyahu, Israeli national security adviser Meir Ben Shabbat sent a one-sentence letter to Gantz:
“According to the Prime Minister’s instructions the Israeli government position regarding the Iran nuclear deal will be finalized exclusively by the Prime Minister on the basis of analysis done by the national security council in the Prime Minister’s office."
Axios obtained the contents of the letter, which was also sent to Ashkenazi, Israeli ambassador to Washington Ron Dermer, Mossad director Yossi Cohen and IDF chief of staff General Aviv Kochavi. No explanation was provided as to the timing of the letter or why it was sent, Israeli officials tell me.
Behind the scenes: Gantz was stunned by Netanyahu’s letter and replied two days later with a letter of his own. Gantz wrote that the prime minister does indeed have the authority to finalize Israel's position, but not to disregard almost the entire security establishment and intelligence community while also bypassing Israel's security cabinet.
“The issue of security and mainly the Iranian file are not the personal business of just one person."
From Gantz's letter
Gantz added that Israeli policy on the Iran deal must be the result of a broad analysis involving all of Israel’s national security and foreign policy agencies, rather than just the national security council, which reports directly to Netanyahu.
- Gantz also wrote that any such policy must be approved after a serious discussion in the security cabinet.
- Before today, the confrontation between Netanyahu and Gantz was known only to a small group of very senior national security officials.
Between the lines: The timing of the argument — a few weeks before Biden assumes office, and in the midst of Israel's election campaign — makes it even more sensitive and dangerous.
- While all of the key players agree on the strategic goal of preventing Biden from agreeing to a deal that harms Israeli security, they disagree on tactics.
Hanging over the process is the fact that Netanyahu's emphatic rejection of any deal in 2015 effectively sidelined Israel as Barack Obama sealed the previous deal. That's led some senior officials to seek a a more collaborative approach with the U.S. this time.
- One Netanyahu adviser tells me Netanyahu was motivated to send the letter by an interview in the Israeli press in which the retiring head of Israel's military intelligence research department said there was no proof that President Trump’s withdrawal from the deal served Israel’s interests.
- Netanyahu was also upset by rumors that during the visit of U.S. Joint Chiefs Chairman Gen. Mark Milley, Gantz and several senior Israel Defense Forces generals voiced a more moderate position on the Iran deal.
Worth noting: Netanyahu and Gantz declined to comment for this story.
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