Thursday morning news: June 15, 2023

Fed rates » The Federal Reserve kept its key interest rate unchanged Wednesday after 10 straight hikes. Fed Chairman Jerome Powell:

JEROME POWELL: The committee thought, overall, that it was appropriate to moderate the pace, if only slightly.

The pace of rate hikes, that is.

Inflation was down last month from April, but at 4%, it was still twice as high as the Fed would like to see. And the Fed pays closer attention to core inflation, which excludes the volatile food and energy sectors and core inflation actually rose four-tenths of a percent last month. And with that in mind:

POWELL: Nearly all committee participants view it as likely that some further rate increases will be appropriate this year to bring inflation down to 2% over time.

Each rate hike increases the odds of a recession. But the Fed says getting costs under control is critical for a healthy economy.

Garland defends special counsel » Attorney General Merrick Garland has broken his silence on Donald Trump’s indictment without actually talking about the case itself. Garland defended both the special counsel, Jack Smith, who pursued charges against Trump, and his decision to appoint him.

MERRICK GARLAND: Mr. Smith is a veteran career prosecutor. He has assembled a group of experienced and talented prosecutors and agents who share his commitment to integrity and the rule of law.

Former Vice President Mike Pence this week called on Garland to—quote—“stop hiding behind the special counsel” and explain the indictment to the American people.

Trump pleaded not guilty on Tuesday to nearly 40 felony charges related to storing classified documents.

Europe AI » Lawmakers in Europe made history on Wednesday signing off on the world’s first regulations on artificial intelligence. WORLD’s Anna Johansen Brown has more.

ANNA JOHANSEN BROWN: The European Parliament vote is one of the last steps before the rules become law, which could act as a model for other places working on similar regulations.

A yearslong effort by Brussels to draw up guardrails for AI has taken on more urgency with rapid, recent advances in chatbots like ChatGPT.

The measure will govern any product or service that uses an artificial intelligence system. The act will classify AI systems according to four levels of risk, from minimal to unacceptable.

Riskier applications, such as hiring workers or targeting tech to children, will face tougher requirements.

It will be up to the EU’s 27 member states to enforce the rules.

For WORLD, I’m Anna Johansen Brown.

Ukraine/Russia » Russia has stepped up airstrikes on Ukraine amid Kyiv’s counteroffensive.

Moscow’s forces fired cruise missiles at the southern city of Odesa and shelled the eastern Donetsk region on Wednesday, killing at least six people.

NATO Secretary-General Jens Stoltenberg:

JENS STOLTENBERG: The Ukrainians are making gains, and they have proven extremely professional in the way to conduct this offensive, and also in handling the equipment they have received from the NATO allies.

Ukraine’s Deputy Defense Minister Hanna Maliar said the counteroffensive is pressing slowly ahead.

Western analysts say the effort to dislodge entrenched, powerfully armed and large numbers of Russian troops could take years.

SBC Vote » The Southern Baptist Convention voted overwhelmingly yesterday to uphold a decision to split with two churches that appointed women as pastors.

Earlier this year, the SBC Executive Committee broke fellowship with Saddleback Church in California and Fern Creek Baptist in Kentucky.

Pastor Rick Warren founded Saddleback.

RICK WARREN: I am asking you to act like a Southern Baptist who have historically agreed to disagree on dozens of doctrines in order to share a common mission.

The convention’s statement of faith limits the office of pastor to men, citing instructions from the Bible.

About 90 percent of the delegates at the meeting voted that the churches are not, quote, “in friendly cooperation” with the SBC.

UK Doctor strike » Thousands of junior doctors are on strike in the U.K. today, calling for 35 percent pay raise.

The physicians walked out yesterday and won’t return to work until Saturday morning.

It is their third strike this year.

Junior doctors are clinicians with up to eight years hospital experience. They make up about 40 percent of England’s medical workforce.

Hundreds of thousands of medical appointments have been canceled due to previous walkouts.

I’m Kent Covington.

Straight ahead: Helping nursing home residents get the care they need. Plus, the birth of a denomination committed to reformed theology.

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