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Thursday, 5 May 2022

Bird flu takes unheard-of toll on bald eagles, other birds

 Bird flu takes unheard-of toll on bald eagles, other birds

Bird flu is killing an alarming number of bald eagles and other wild birds, with many sick birds arriving at rehabilitation centers unsteady on their talons and unable to fly

OMAHA, Neb. -- Bird flu is killing an alarming number of bald eagles and other wild birds, with many sick birds arriving at rehabilitation centers unsteady on their talons and unable to fly.

“It’s quite a sight to see an eagle with a six-foot wingspan having uncontrollable seizures because of highly pathogenic avian influenza,” said Victoria Hall, executive director of the University of Minnesota's Raptor Center. “At that point, they’re so far into the disease there’s no treatment options left.”

The latest outbreak of the highly contagious virus has led to the culling of about 37 million chickens and turkeys in U.S. farms since February, and the U.S. Department of Agriculture has confirmed 956 cases of bird flu in wild birds, including at least 54 bald eagles. But the actual number is likely significantly higher because not every wild bird that dies is tested and the federal tally doesn't include cases recorded by wildlife rehabilitation centers.

The latest reported toll is nearly 10 times higher than the 99 confirmed cases in wild birds during the last bird flu outbreak in 2015. This time, the virus has been detected in birds in 34 states, indicating it is far more widespread than seven years ago.

The U.S. Geological Survey’s National Wildlife Health Center also collects data from wildlife officials on suspected and confirmed bird flu deaths. It lists 8,536 recent wild bird deaths from avian influenza.

“This is definitely an unprecedented event,” said researcher Rebecca Poulson, who has been studying avian influenza for 15 years at the University of Georgia's Southeastern Cooperative Wildlife Disease Study. “The number of birds and species and states already in which it has been detected is pretty alarming.”

Water fowl including ducks and geese, which typically carry the virus, and the raptors and scavengers that feed on them are the most commonly sickened birds, but cases have been confirmed in more than three dozen species. Ducks and geese are usually able to live with the virus without getting sick, but latest variant is proving more contagious and more deadly.

“We are seeing a tremendous impact from this virus,” said Hall, whose Raptor Center in St. Paul, Minnesota, treats roughly 1,000 birds a year. “We are seeing birds coming in suffering from this virus every single day.”

Nearly 61% of the 188 birds the rehabilitation center has tested since late March have had bird flu and all but one of those died. Hall said the center had to set up an area where workers wearing protective gear test sick and injured birds for avian influenza and quarantine them before bringing them into the center, to avoid infecting other birds.

None of the 114 positive cases the center has recorded, including 28 bald eagles, are included in the USDA count, Hall said. She said a great horned owl recovered from the virus, giving her hope that some wild birds may be able to fight it off.

USDA officials haven't responded to questions about why they are excluding the data from rehabilitation centers.

Scientists estimated in a study published three years ago that the number of wild birds in North America had fallen by nearly 3 billion since 1970 as humans continue to encroach on their habitat. But it's too soon to know what impact the bird flu will have on bird populations because the outbreak is ongoing and there hasn’t been enough time to study it, according to U.S. Fish and Wildlife Service veterinarian Samantha Gibbs, and other experts.

“We’re quite concerned. I think that we’re going to be watching very carefully what the mortality rates are throughout the spring and summer,” Gibbs said.

Gibbs and Poulson said they fear the virus could survive the summer, when it usually dies off, leading to fall infections when migratory birds return south. That happened in Europe, where the virus is circulating first.

Bald eagles — the U.S. national symbol since the 1700s — are among America’s most celebrated conservation success stories. With an estimated 300,000 bald eagles in the country today — a population that quadrupled between 2009 and 2021 — the bird was removed from the U.S. Endangered Species List in 2007. Given that, experts believe the species should weather the impact of this virus.

State and federal officials will track the success of nesting eagles this spring and summer to gauge the impact of the virus.

In Georgia, where three bald eagles that died tested positive for bird flu, the state Department of Natural Resources has documented a sharp drop in bald eagle reproduction this year in six coastal counties where many migratory birds spend the winter. Fewer than half of the 73 nests found there produced offspring, while nests elsewhere in the state had a success rate close to the average of 78% recorded in recent years.

Some experts, including Hall, suggest that residential bird feeders should be removed to avoid further spread of the virus, but the USDA and the U.S. Fish and Wildlife Service haven't recommended that because bird flu isn't common among the songbirds that frequent backyards. Still, they say it's important to regularly clean bird feeders to help limit the spread of other diseases.

“Wild birds could use all the help they can get right now,” Hall said.

When the virus is found on poultry farms, officials slaughter entire flocks to curb the spread, even when most birds have no symptoms. So far, 37.36 million birds have been killed in 32 states.

USDA officials stress that bird flu doesn't jeopardize food safety because infected birds aren't allowed to enter the food supply, and properly cooking poultry and eggs to 165 degrees Fahrenheit will kill any viruses or bacteria.

Health officials also say bird flu doesn't represent a significant health risk to people, even though one human case of the disease was confirmed in Colorado last month. Officials say people are unlikely to catch the virus unless they have prolonged direct exposure to infected birds.

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Associated Press writers Carrie Antlfinger in Milwaukee and Doug Glass in Minneapolis contributed to this story.

NTSB: Teenage driver in deadly crash had cannabis in system

 NTSB: Teenage driver in deadly crash had cannabis in system

A preliminary report says the teenage driver of a small car that collided with a large truck in Oklahoma had cannabis in her system, according to toxicology tests conducted after her death

TISHOMINGO, Okla. -- The teenage driver of a small car that collided with a large truck in Oklahoma, killing all six occupants in the car, tested negative for alcohol but positive for cannabis after her death, according to a preliminary report released Thursday.

The National Transportation Safety Board also said the 16-year-old driver had been issued an intermediate driver's license six months before the crash. Under that license, she was only legally permitted to have one passenger from outside her household unless there was someone who was at least 21 years old in the car.

According to the report, the teen driver turned left at a stop sign when her car was struck by an oncoming truck. The truck's driver was not injured and tested negative for alcohol and drugs, the NTSB report said.

The six girls who died ranged in age from 15 to 17. Only two of them were wearing seat belts, according to an earlier report from the Oklahoma Highway Patrol. Their names have not been released.

$61 million in refunds for customers in SC nuclear debacle

 $61 million in refunds for customers in SC nuclear debacle

A South Carolina judge has approved a second round of refunds for customers of a utility that poured billions of dollars into two nuclear power plants that never produced a watt of power

COLUMBIA, S.C. -- A South Carolina judge has approved a second round of refunds for customers of a utility that poured billions of dollars into two nuclear power plants that never produced a watt of power.

About $61 million is being set aside for Dominion Energy South Carolina after the utility sold a number of properties as part of the settlement of a class-action lawsuit by 1.1 million of its customers over the never completed plants at the V.C. Summer Nuclear Station near Columbia.

Wednesday's agreement will split the $61 million based on power use by residential, business and industrial customers during a decade of planning and construction for the nuclear station, media outlets reported.

The checks will be similar in amount to a first round of refunds made in the lawsuit in 2019, which was based on $60 million from Dominion Energy.

The nuclear project was run by South Carolina Electric & Gas. It was bought by Virginia-based Dominion in 2019 after the local utility ran out of money to finish the reactors two years earlier.

Four executives of the utility or the company that was building the reactors have been indicted or have pleaded guilty to criminal charges in the failure.

One remaining question is how will the refunds be issued. The 2019 refunds were all checks, and more than 10% of the money went unclaimed as checks as small as 4 cents weren't cashed or people who were supposed to get refunds couldn't be found.

Lawyers suggested power bill credits for amounts under $50 and former South Carolina Chief Justice Jean Toal, who was put in charge of the settlement negotiations, said she would think about it.

Fed raises key rate by a half-point in bid to tame inflation

 Fed raises key rate by a half-point in bid to tame inflation

The Federal Reserve intensified its fight against the worst inflation in 40 years by raising its benchmark interest rate by a half-percentage point — its most aggressive move since 2000 — and signaling further large rate hikes to come

WASHINGTON -- The Federal Reserve intensified its fight against the worst inflation in 40 years by raising its benchmark interest rate by a half-percentage point Wednesday — its most aggressive move since 2000 — and signaling further large rate hikes to come.

The increase in the Fed’s key short-term rate raised it to a range of 0.75% to 1%, the highest point since the pandemic struck two years ago.

The Fed also announced that it will start reducing its huge $9 trillion balance sheet, made up mainly of Treasury and mortgage bonds. Reducing those holdings will have the effect of further raising borrowing costs throughout the economy.

Speaking at a news conference after the Fed's latest meeting, Chair Jerome Powell took the unusual step of saying the central bank's officials understood the financial pain that high inflation is causing ordinary Americans. But Powell stressed that the Fed is sharply raising rates for that very reason — to rein in high inflation, sustain the economy's health and ease the stress that millions of households are facing.

“Inflation is much too high," he said, “and we understand the hardship it is causing.”

With prices for food, energy and consumer goods accelerating, the Fed’s goal is to cool spending — and economic growth — by making it more expensive for individuals and businesses to borrow. The central bank hopes that higher costs for mortgages, credit cards and auto loans will slow spending enough to tame inflation yet not so much as to cause a recession.

It will be a delicate balancing act. The Fed has endured widespread criticism that it was too slow to start tightening credit, and many economists are skeptical that it can avoid causing a recession.

At his news conference, Powell said he was confident that the economy is resilient enough to withstand higher borrowing rates. Job openings are at a record high. There are two available jobs, on average, for each unemployed person. Wages are rising at a historically rapid pace, and businesses are continuing to invest in equipment and software.

“I see a strong economy," he said. “Nothing about it says it's close to or vulnerable to a recession."

Powell also made clear that further large rate hikes are coming. He said that additional half-point increases in the Fed's key rate “should be on the table in the next couple of meetings” in June and July.

But he also sought to downplay any speculation that the Fed might be considering a rate hike as high as three-quarters of a percentage point.

“A (three-quarters of a point) hike is not something that the committee is actively considering,” he said — a remark that caused stock indexes to jump. Before he spoke, the Dow Jones Industrial Average was up only modestly. By the close of trading, the Dow had soared 930 points, or 2.8% — its best single-day gain since May 2020.

In their statement, the central bank's policymakers noted that Russia’s invasion of Ukraine is worsening inflation pressures by raising oil and food prices. It added that “COVID-related lockdowns in China are likely to exacerbate supply chain disruptions,” which could further boost prices.

Inflation, according to the Fed's preferred gauge, reached 6.6% last month, the highest in four decades. It has been accelerated by a combination of robust consumer spending, chronic supply bottlenecks and sharply higher gas and food prices.

Starting June 1, the Fed said it would allow up to $48 billion in bonds to mature without replacing them for three months, then shift to $95 billion by September. At September's pace, its balance sheet would shrink by about $1 trillion a year. The balance sheet more than doubled after the pandemic recession hit as the Fed bought trillions in bonds to try to hold down long-term borrowing rates.

At the news conference, Powell said the Fed wants to “expeditiously" raise its key rate to a level that neither stimulates nor restrains economic growth, which the Fed has said is about 2.4%. The central bank's policymakers have suggested that they will reach that point by year's end.

Once the rate reaches that level, Powell said that “if we do believe that it's appropriate” to raise their short-term rate further, to a level that would restrict growth, “we won't hesitate.”

Economists warn that some of the factors fueling inflation — notably, shortages of supplies and workers — are outside the Fed's ability to solve.

“The Fed can’t fix supply-side challenges with higher interest rates,’’ said Jim Baird, chief investment officer at Plante Moran Financial Advisors. "Fed tightening doesn’t re-open Chinese factories, increase grain shipments from Ukraine, re-position container ships to where they are needed or hire truckers to move goods.’’

Powell said, however, that he thinks the Fed can cool booming demand and thereby help slow inflation.

The Fed’s credit tightening is already having some effect on the economy. Sales of existing homes sank 2.7% from February to March, reflecting a surge in mortgage rates related, in part, to the Fed’s planned rate hikes. The average rate on a 30-year mortgage has jumped 2 percentage points just since the start of the year, to 5.1%.

Powell has pointed to the widespread availability of jobs as evidence that the labor market is tight “to an unhealthy level” and that fuels inflation. The Fed chair is betting that higher rates can reduce those openings, which would presumably slow wage increases and ease inflationary pressures, without triggering mass layoffs.

For now, with hiring robust — the economy has added at least 400,000 jobs for 11 straight months — and employers grappling with labor shortages, wages are rising at a roughly 5% annual pace. Those pay raises are driving steady consumer spending despite spiking prices. In March, consumers increased their spending 0.2% even after adjusting for inflation.

Financial markets are pricing in a Fed rate as high as 3.6% by mid-2023, which would be the highest in 15 years. Shrinking the Fed’s balance sheet will add another layer of uncertainty surrounding how much the Fed’s actions may weaken the economy.

Complicating the Fed’s task is a slowdown in global growth. COVID-19 lockdowns in China are threatening to cause a recession in the world’s second-largest economy. And the European Union is facing higher energy prices and supply chain disruptions after Russia’s invasion of Ukraine.

What’s more, other central banks around the world are also raising rates, a trend that could further imperil global growth. On Thursday, the Bank of England is expected to raise its key rate for the fourth straight time. The Reserve Bank of Australia increased its rate Tuesday for the first time in 11 years.

And the European Central Bank, which is grappling with slower growth than in the United States or the United Kingdom, may raise rates in July, economists expect.

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AP Economics Writer Paul Wiseman contributed to this report.

Text of the Federal Reserve's statement after its meeting

 Text of the Federal Reserve's statement after its meeting

WASHINGTON -- Below is the statement the Fed released Wednesday after its policy meeting ended:

Although overall economic activity edged down in the first quarter, household spending and business fixed investment remained strong. Job gains have been robust in recent months, and the unemployment rate has declined substantially. Inflation remains elevated, reflecting supply and demand imbalances related to the pandemic, higher energy prices, and broader price pressures.

The invasion of Ukraine by Russia is causing tremendous human and economic hardship. The implications for the U.S. economy are highly uncertain. The invasion and related events are creating additional upward pressure on inflation and are likely to weigh on economic activity. In addition, COVID-related lockdowns in China are likely to exacerbate supply chain disruptions. The Committee is highly attentive to inflation risks.

The Committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run. With appropriate firming in the stance of monetary policy, the Committee expects inflation to return to its 2 percent objective and the labor market to remain strong. In support of these goals, the Committee decided to raise the target range for the federal funds rate to 3/4 to 1 percent and anticipates that ongoing increases in the target range will be appropriate.

In addition, the Committee decided to begin reducing its holdings of Treasury securities and agency debt and agency mortgage-backed securities on June 1, as described in the Plans for Reducing the Size of the Federal Reserve’s Balance Sheet that were issued in conjunction with this statement.

Voting for the monetary policy action were Jerome H. Powell, Chair; John C. Williams, Vice Chair; Michelle W. Bowman; Lael Brainard; James Bullard; Esther L. George; Patrick Harker; Loretta J. Mester; and Christopher J. Waller. Patrick Harker voted as an alternate member at this meeting.

How higher Fed rates stand to affect Americans' finances

 How higher Fed rates stand to affect Americans' finances

Record-low mortgages below 3% are long gone

WASHINGTON -- Record-low mortgages below 3% are long gone. Credit card rates will likely rise. So will the cost of an auto loan. Savers may finally receive a yield high enough to top inflation.

The substantial half-point hike in its benchmark short-term rate that the Federal Reserve announced Wednesday won't, by itself, have much immediate effect on most Americans’ finances. But additional large hikes are expected to be announced at the Fed's next two meetings, in June and July, and economists and investors foresee the fastest pace of rate increases since 1989.

The result could be much higher borrowing costs for households well into the future as the Fed fights the most painfully high inflation in four decades and ends a decades-long era of historically low rates.

Chair Jerome Powell hopes that by making borrowing more expensive, the Fed will succeed in cooling demand for homes, cars and other goods and services and thereby slow inflation.

Yet the risks are high. With inflation likely to stay elevated, the Fed may have to drive borrowing costs even higher than it now expects. Doing so could tip the U.S. economy into recession.

Here are some questions and answers about what the rate hikes could mean for consumers and businesses:

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I’M CONSIDERING BUYING A HOUSE. WILL MORTGAGE RATES KEEP GOING UP?

Rates on home loans have soared in the past few months, mostly in anticipation of the Fed’s moves, and will probably keep rising.

Mortgage rates don’t necessarily move up in tandem with the Fed’s rate increases. Sometimes, they even move in the opposite direction. Long-term mortgages tend to track the yield on the 10-year Treasury note, which, in turn, is influenced by a variety of factors. These include investors’ expectations for future inflation and global demand for U.S. Treasurys.

For now, though, faster inflation and strong U.S. economic growth are sending the 10-year Treasury rate up sharply. As a consequence, mortgage rates have jumped 2 full percentage points just since the year began, to 5.1% on average for a 30-year fixed mortgage, according to Freddie Mac.

In part, the jump in mortgage rates reflects expectations that the Fed will keep raising its key rate. But its forthcoming hikes aren't likely fully priced in yet. If the Fed jacks up its key rate to as high as 3.5% by mid-2023, as many economists expect, the 10-year Treasury yield will go much higher, too, and mortgages will become more expensive.

HOW WILL THAT AFFECT THE HOUSING MARKET?

If you’re looking to buy a home and are frustrated by the lack of available houses, which has triggered bidding wars and eye-watering prices, that’s unlikely to change anytime soon.

Economists say that higher mortgage rates will discourage some would-be purchasers. And average home prices, which have been soaring at about a 20% annual rate, could at least rise at a slower pace.

The surge in mortgage rates “will temper the pace of home price appreciation as more would-be homebuyers are priced out,” said Greg McBride, chief financial analyst for Bankrate.

Still, the number of available homes remains historically low, a trend that will likely frustrate buyers and keep prices high.

WHAT ABOUT AUTO LOANS?

Fed rate hikes can make auto loans more expensive. But other factors also affect these rates, including competition among car makers that can sometimes lower borrowing costs.

Rates for buyers with lower credit ratings are most likely to rise as a result of the Fed’s hikes, said Alex Yurchenko, chief data officer for Black Book, which monitors U.S. vehicle prices. Because used vehicle prices, on average, are rising, monthly payments will rise too.

For now, new-vehicle loans average about 4.5%. Used-vehicle rates are about 5%.

WHAT ABOUT OTHER RATES?

For users of credit cards, home equity lines of credit and other variable-interest debt, rates would rise by roughly the same amount as the Fed hike, usually within one or two billing cycles. That’s because those rates are based in part on banks’ prime rate, which moves in tandem with the Fed.

Those who don’t qualify for low-rate credit cards might be stuck paying higher interest on their balances. The rates on their cards would rise as the prime rate does.

Should the Fed decide to raise rates by 2 percentage points or more over the next two years — a distinct possibility — that would significantly enlarge interest payments.

WILL I BE ABLE TO EARN MORE ON MY SAVINGS?

Probably, though not likely by very much. And it depends on where your savings, if you have any, are parked.

Savings, certificates of deposit and money market accounts don’t typically track the Fed’s changes. Instead, banks tend to capitalize on a higher-rate environment to try to increase their profits. They do so by imposing higher rates on borrowers, without necessarily offering any juicer rates to savers.

This is particularly true for large banks now. They’ve been flooded with savings as a result of government financial aid and reduced spending by many wealthier Americans during the pandemic. They won’t need to raise savings rates to attract more deposits or CD buyers.

But online banks and others with high-yield savings accounts could be an exception. These accounts are known for aggressively competing for depositors. The only catch is that they typically require significant deposits.

Still, savers are starting to see some better potential returns from Treasurys. On Tuesday, the yield on the 10-year note was 2.96%, after having briefly topped 3% for the first time since 2018.

Financial markets expect inflation to average 2.83% over 10 years. That level would give investors a positive, if very small, return of about 0.13%.

“All of a sudden, we end up in this position where fixed income is way more competitive than it was before," said Jason Pride, chief investment officer for Private Wealth at Glenmede.

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AP Auto Writer Tom Krisher in Detroit contributed to this report.

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This story has been updated to correct the spelling of the Jason Pride's firm. It's Glenmede, not Glendmede.