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Southwest Airlines under pressure from a big shareholder shakes up its board

DALLAS (AP) – Southwest Airlines will revamp its board and the chairman will retire next year, but it intends to keep CEO Robert Jordan after a meeting with hedge fund Elliott Investment Management, which has sought a leadership shakeup at the airline including Jordan’s ouster.

Southwest said Tuesday that six directors will leave the board in November and it plans to appoint four new ones, potentially including candidates put forward by Elliott.

Shares of Southwest Airlines Co. rose slightly before the opening bell Tuesday.

Elliott, the fund led by billionaire investor Paul Singer, has built a 10% stake in recent weeks and advocated changes it says will improve Southwest’s financial performance and stock price. The two sides met Monday.

Elliott blames Southwest’s management for the airline’s stock price dropping by more than half over three years. The hedge fund wants to replace Jordan , who has been CEO since early 2022, and Chairman Gary Kelly, the airline’s previous chief executive. Southwest said Tuesday that Kelly has agreed to retire after the company’s annual meeting next year.

Elliott argues that Southwest leaders haven’t adapted to changes in customers’ preferences and failed to modernize Southwest’s technology, contributing to massive flight cancellations in December 2022. That breakdown cost the airline more than $1 billion.

Southwest has improved its operations, and its cancellation rate since the start of 2023 is slightly lower than industry average and better than chief rivals United, American and Delta, according to FlightAware. However, Southwest planes have been involved in a series of troubling incidents this year, including a flight that came within 400 feet of crashing into the Pacific Ocean, leading the Federal Aviation Administration to increase its oversight of the airline.

Southwest was a profit machine for its first 50 years — it never suffered a full-year loss until the pandemic crushed air travel in 2020.

Since then, Southwest has been more profitable than American Airlines but far less so than Delta Air Lines and United Airlines. Through June, Southwest’s operating margin in the previous 12 months was slightly negative compared with 10.3% at Delta, 8.8% at United and 5.3% at American, according to FactSet.

Southwest was a scrappy upstart for much of its history. It operated out of less-crowded secondary airports where it could turn around arriving planes and take off quickly with a new set of passengers. It appealed to budget-conscious travelers by offering low fares and no fees for changing a reservation or checking up to two bags.

Southwest now flies to many of the same big airports as its rivals. With the rise of “ultra-low-cost carriers,” it often gets undercut on price. It added fees for early boarding.

In April, before Elliott disclosed it was buying Southwest shares, Jordan hinted at more changes in the airline’s longstanding boarding and seating policies.

The CEO announced in July that Southwest will drop open seating, in which passengers pick from empty seats after they board the plane, and start assigning passengers to seats, as all other U.S. carriers do. Southwest also will sell premium seats with more legroom.

And while Southwest still lets bags fly free, it has surveyed passengers to gauge their resistance to checked-bag fees.

Ex-officer’s lies led to couple’s death in Houston drug raid, prosecutor tells jurors

HOUSTON (AP) — A former Houston police officer is responsible for the 2019 deaths of a couple during a raid of their home because his lies on a search warrant wrongly portrayed them as dangerous drug dealers, a prosecutor told jurors on Monday.

An attorney for the former officer, Gerald Goines, admitted her client lied to get the search warrant but said his actions do not merit a murder conviction, and placed the blame for the deaths on the couple.

Goines is charged with two counts of murder in the January 2019 deaths of Dennis Tuttle, 59, and his 58-year-old wife Rhogena Nicholas. Goines has pleaded not guilty.

The couple, along with their dog, were killed after officers burst into their home using a “no-knock” warrant that didn’t require them to announce themselves before entering. Goines secured the warrant from a judge.

During opening statements in the trial, prosecutor Keaton Forcht told jurors that Goines, 59, had lied to get the warrant by falsely claiming that an informant had bought heroin at the couple’s home from a man with a gun. Goines would later change his story to claim he had bought the drugs himself but authorities say that was also a lie.

Forcht said authorities were first directed to investigate Tuttle and Nicholas after a neighbor falsely claimed on 911 calls that her daughter was being given heroin by the couple at their home. The neighbor was later convicted in federal court for those false claims.

“It’s based on lie after lie after lie,” said Forcht, with the Harris County District Attorney’s Office.

Authorities found no evidence that Goines, with the narcotics unit, had investigated the neighbor’s claims, sent an informant to buy drugs or had himself gone to the home, Forcht said.

Goines created an environment “clearly dangerous to human life” by claiming the “no-knock” warrant was needed because officers would be in serious danger from the couple, Forcht said. Investigators later said they only found small amounts of marijuana and cocaine in the house.

Forcht said officers immediately fired their guns upon entering the home. Nicholas, who had cancer, had been sitting on her couch watching television while her husband was asleep in a bedroom, he said.

“But for the actions of Gerald Goines, those two homeowners would still be alive,” Forcht said.

The prosecution’s first witness, Sarah Sanchez, a neighbor and friend, portrayed the couple as people who mainly kept to themselves, had various health problems, lived on a fixed income and loved their dogs.

Goines’ lawyer, Nicole DeBorde, admitted to jurors that her client had lied to obtain the search warrant but, she said, prosecutors had overcharged him for his actions.

“He didn’t murder anybody. He is not legally responsible for murder,” DeBorde said. “This is the case of the wrong charges being filed. There are other consequences for him.”

DeBorde said Nicholas and Tuttle were responsible for their own deaths. Tuttle fired at officers who had identified themselves after coming in, wounding four of them, she said. A fifth officer was also injured during the raid.

“Nicholas’ choices to not respond to instructions by police and to try and grab the gun of a fallen officer is the cause of her death,” DeBorde said.

During afternoon testimony, Goines’ lawyers suggested that the couple were aware that it was police officers who had entered their home because they identified themselves as such and wore tactical gear that bore the word “police.”

Forcht said Tuttle might not have been focused on or been able to read the shirt of the person who had entered his home and fatally shot his wife and dog.

DeBorde has accused prosecutors of generating excess publicity in the case, preventing Goines from getting a fair trial.

If convicted, Goines faces up to life in prison.

Testimony in the trial was to resume Tuesday.

Michael Wynne, a Houston-based criminal defense attorney and former prosecutor not connected to the case, said Goines will have too many hurdles to overcome during his trial.

“Mr. Goines has the best counsel you could possibly get,” Wynne said. “But I think they got an uphill battle here.”

The probe into the drug raid also uncovered allegations of systemic corruption.

A dozen officers tied to the narcotics squad that carried out the raid, including Goines, were later indicted on other charges following a corruption probe. A judge in June dismissed charges against some of them.

Since the raid, prosecutors have reviewed thousands of cases handled by the narcotics unit.

The Texas Court of Criminal Appeals has overturned at least 22 convictions linked to Goines, who also faces federal charges.

One of the other cases tied to Goines that remains under scrutiny is his 2004 drug arrest in Houston of George Floyd, whose 2020 death at the hands of a Minnesota police officer sparked a nationwide reckoning on racism in policing. A Texas board in 2022 declined a request that Floyd be granted a posthumous pardon for his drug conviction stemming from his arrest by Goines.

Longview police investigate student’s online threat

Longview police investigate student’s online threatLONGVIEW — The Longview Police Department is investigating the validity of a threat made by a student online, according to Pine Tree Independent School District. On Monday, district officials said they were made aware of a student’s online “threatening remarks” during Friday’s home football game. According to our news partner KETK, the issue was quickly dealt with in cooperation with Longview PD, the district said.

“While our local PD investigates the validity of this threat, we want to remind parents to talk to their students about the seriousness of making any type of threatening comments,” Pine Tree ISD said. “We will always take every threat seriously because nothing is more important than the safety of our students and staff.”

DirecTV files complaint against Disney with FCC as impasse enters 2nd week

LOS ANGELES (AP) – The impasse between DirecTV and Disney over a new carriage agreement has become more heated as it entered its second week.

DirecTV filed a complaint with the Federal Communications Commission on Saturday night accusing Disney of negotiating in bad faith.

Disney channels, including ESPN and ABC-owned stations in nine markets, have been off DirecTV since the evening of Sept. 1. That meant DirecTV customers were blacked out from viewing most college football games and the final week of the U.S. Open tennis tournament, including the women’s and men’s finals.

DirecTV has 11.3 million subscribers, according to Leichtman Research Group, making it the nation’s third-largest pay TV provider.

ABC and ESPN will have the “Monday Night Football” opener between the New York Jets and San Francisco 49ers. ABC will also produce and carry a presidential debate between Kamala Harris and Donald Trump on Tuesday in Philadelphia.

ABC-owned stations in Los Angeles; the San Francisco Bay Area; Fresno, California; New York; Chicago; Philadelphia; Houston; and Raleigh, North Carolina, are off DirecTV.

Besides all ESPN network channels and ABC-owned stations, Disney-branded channels Freeform, FX and National Geographic channel are dark.

DirecTV says in its 10-page complaint that Disney is violating the FCC’s good faith mandates by asking it to waive any legal claims on any anticompetitive actions, including its ongoing packaging and minimum penetration demands.

DirecTV has asked Disney for the option to provide consumers with cheaper and skinnier bundles of programming, instead of bigger bundles that carry programming some viewers might not be interested in watching.

The complaint states: “Along with these anticompetitive demands, Disney has also insisted that DirecTV agree to a ‘clean slate’ provision and a covenant not to sue, both of which are intended to prevent DirecTV from taking legal action regarding Disney’s anticompetitive demands, which would include filing good faith complaints at the Commission. Not three months ago, however, the Media Bureau made clear that such a demand itself constitutes bad faith.”

DirecTV CEO Ray Carpenter said during a conference call with business and media analysts on Tuesday that they would not agree to a new carriage deal with Disney without bundling changes.

“We’re not playing a short-term game,” Carpenter said. “We need something that is going to work for the long-term sustainability of our video customers. The resolve is there.”

Disney has claimed since the blackout began that mutual release of claims is standard practice after licensing agreements are negotiated and agreed upon by the parties. It has also had one with DirecTV under its past renewals.

A Disney spokesperson said: “We continue to negotiate with DirecTV to restore access to our content as quickly as possible. We urge DirecTV to stop creating diversions and instead prioritize their customers by finalizing a deal that would allow their subscribers to watch our strong upcoming lineup of sports, news and entertainment programming, starting with the return of Monday Night Football.”

Last year, Disney and Charter Spectrum — the nation’s second-largest cable TV provider — were involved in a nearly 12-day impasse until coming to an agreement hours before the first Monday night NFL game of the season.

Tropical system expected to strengthen near Mexico and Texas and bring heavy rains

HOUSTON (AP) — A tropical system in the southwestern Gulf of Mexico was expected to strengthen this week into a tropical storm and dump heavy rains onto Mexico and Texas before reaching the U.S. as a potential hurricane, the National Weather Service said Sunday.

The system, about 340 miles south-southeast of the mouth of the Rio Grande, had maximum 50 mph wind speeds  on Sunday and was forecast to drift slowly northwestward. Forecasters said it was too early to pinpoint the exact track of the storm and its potential impacts but warned that the upper Texas and Louisiana coastlines could see damaging winds and storm surges beginning Tuesday evening.

Texas Gov. Greg Abbott put state emergency responders on increased readiness and warned of the potential of flash flooding and heavy rains.

“Texas will continue to closely monitor weather conditions to protect the well-being of Texans,” Abbott said in a statement.

Donald Jones, a meteorologist with the National Weather Service in Lake Charles, Louisiana, said during a weather briefing Saturday night that parts of southeast Texas and southwest Louisiana should expect a “whole lot” of rain in the middle and later part of this week.

The tropical disturbance comes after an unusually quiet August and early September in the current Atlantic hurricane season, which runs through Nov. 30. The season was set to peak on Tuesday, Jones said.

So far, there have been five named storms this hurricane season, including Hurricane Beryl, which knocked out power to nearly 3 million homes and businesses in Texas — mostly in the Houston area — in July. Experts had predicted one of the busiest Atlantic hurricane seasons on record.

The next named storm would be called Francine.

In a report issued last week, researchers at Colorado State University cited several reasons for the lull in activity during the current hurricane season, including extremely warm upper level temperatures resulting in stabilization of the atmosphere and too much easterly wind shear in the eastern Atlantic.

“We still do anticipate an above-normal season overall, however, given that large-scale conditions appear to become more favorable around the middle of September,” according to the report.

Last month, the National Oceanic and Atmospheric Administration updated its outlook but still predicted a highly active Atlantic hurricane season. Forecasters tweaked the number of expected named storms from 17 to 25 to 17 to 24.

Student arrested after loaded gun found on campus

Student arrested after loaded gun found on campusPANOLA COUNTY — An East Texas student was arrested on Wednesday after a loaded .38 caliber handgun was found in their vehicle in the school’s parking lot, according to the Panola County Sheriff’s Office.The sheriff’s office said Panola Charter High School notified them at around 9:30 a.m. that a firearm was found in a students vehicle on campus. Deputies say the 17-year-old student was overheard talking about having a gun in his vehicle.

“During a subsequent search by school staff, a loaded .38 caliber handgun was recovered,” according to the report from the sheriff’s office.

The sheriff’s office said the student was taken into custody for possession of a firearm in a prohibited location and was taken to the Panola County Detention Center. ‘We have no reason to believe that this incident was related to any school-related threat,” PCSO said. “Upon review of the situation we have no reason to believe that any specific student or campus was targeted.” Read the rest of this entry »

Verizon buying Frontier in $20B deal to strengthen its fiber network

DALLAS (AP) – Verizon is buying Frontier Communications in a $20 billion deal to strengthen its fiber network.

Verizon Communications Inc. said Thursday that the transaction will also help it in the areas of artificial intelligence and the Internet of Things.

Frontier has concentrated heavily on its fiber network capabilities over about four years, investing $4.1 billion upgrading and expanding its fiber network. It now gets more than half of its revenue from fiber products.

The price tag for Frontier, based in Dallas, is sizeable given its 2.2 million fiber subscribers across 25 states. Verizon has approximately 7.4 million Fios connections in nine states and Washington, D.C.

Frontier has 7.2 million fiber locations and has plans to build out an additional 2.8 million fiber locations by the end of 2026.

“The acquisition of Frontier is a strategic fit,” Verizon Chairman and CEO Hans Vestberg said in a prepared statement. “It will build on Verizon’s two decades of leadership at the forefront of fiber and is an opportunity to become more competitive in more markets throughout the United States, enhancing our ability to deliver premium offerings to millions more customers across a combined fiber network.”

Verizon, based in New York City, will pay $38.50 for each Frontier share. The deal is expected to close in about 18 months. It still needs approval from Frontier shareholders.

Shares of Frontier Communications Parents Inc., which were halted briefly on Wednesday after a report from the Wall Street Journal about the deal sent the stock up nearly 40%, fell 9% before the market opened on Thursday. Verizon’s stock rose slightly.

Deputy fatally shot at Houston intersection while driving to work

HOUSTON (AP) — A Texas deputy constable who was driving to work in his personal vehicle was fatally shot Tuesday by a man who walked up to his car at a Houston intersection and fired multiple times, police said.

A suspect in the shooting later led authorities on a chase that ended about 60 miles away in the waters off Galveston, where the man tried swimming away to evade arrest before being captured with the help of a marine unit, according to the Port of Galveston Police Department.

The deputy was identified as Maher Husseini, who had worked as a Harris County constable since 2021. Investigators were still trying to determine a motive for the shooting and whether the deputy had been targeted, Houston Police Chief J. Noe Diaz said.

Police were investigating whether it might have been an instance of road rage, he said.

“It’s an awful thing for the community, for someone to lose their life, someone that’s dedicated their life to public service,” Diaz said. “It is absolutely tragic.”

According to preliminary information, Husseini was not in uniform when he was shot, Diaz said. Bullet holes could be seen through the passenger side window of an SUV at the scene.

Husseini was taken to a Houston hospital where he was pronounced dead, Harris County Precinct 4 Constable Mark Herman said.

Authorities did not immediately release the name of the suspect in custody Tuesday evening. In a statement, Port of Galveston police said the man had led police on a pursuit that ended in a crash, followed by him swimming away.

Officers later found the suspect in the water and took him into custody. He was taken to a hospital for evaluation, police said.

“The dangerous criminal who ambushed and murdered Deputy Constable Husseini will have the full weight of the law brought down upon him,” Texas Gov. Greg Abbott said in a statement.

Decision on major policy shift on marijuana won’t come until after the presidential election

WASHINGTON (AP) — A decision on whether to reclassify marijuana as a less dangerous drug in the U.S. won’t come until after the November presidential election, a timeline that raises the chances it could be a potent political issue in the closely contested race.

The U.S. Drug Enforcement Administration last week set a hearing date to take comment on the proposed historic change in federal drug policy for Dec. 2.

The hearing date means a final decision could well come in the next administration. While it’s possible it could precede the end of President Joe Biden’s term, issuing it before Inauguration Day “would be pretty expedited,” said cannabis lawyer Brian Vicente.

That could put a new spotlight on the presidential candidates’ positions on marijuana. Vice President Kamala Harris has backed decriminalizing the drug and said it’s “absurd” to have it in the DEA’s Schedule I category alongside heroin and LSD. The Democratic nominee’s position has shifted over the years; she once oversaw the enforcement of cannabis laws and opposed legalized recreational use for adults in California while running for attorney general in 2010.

Former President Donald Trump, the Republican nominee, signaled support for a Florida legalization measure on Saturday, following earlier comments that he increasingly agrees that people shouldn’t be jailed for the drug now legal in multiple states, “whether that’s a good thing or a bad thing.”

During his run for president in 2016, Trump said that he backed medical marijuana and that pot should be left up to the states. But during his first term, then-Attorney General Jeff Sessions lifted an Obama-era policy that kept federal authorities from cracking down on the pot trade in states where the drug is legal.

Trump’s campaign didn’t immediately respond to a query about his position on rescheduling the drug.

The Justice Department proposed reclassifying it in May, saying the change would recognize marijuana’s medical uses and acknowledge it has less potential for abuse than some of the nation’s most dangerous drugs. The proposal, which would not legalize marijuana for recreational use, came after a call for review from Biden, who has called the change “monumental.”

The DEA has said it doesn’t yet have a position on whether to go through with the change, stating in a memo that it would keep weighing the issue as the federal rulemaking process plays out.

The new classification would be the most significant shift in U.S. drug policy in 50 years and could be a potent political issue, especially with younger voters. But it faces opposition from groups such as Smart Approaches to Marijuana.

Its president, Kevin Sabet, argues there isn’t enough data to move cannabis to the less-dangerous Schedule III category, alongside ketamine and some anabolic steroids. The DEA’s move to hold the hearing is “a huge win in our fight to have this decision guided by medical science, not politics,” he said in a statement, adding that 18 states’ attorneys general are backing his opposition.

The hearing sparked some consternation among pot industry players, though little surprise about the DEA decision to hold one.

“While the result ultimately may be better, I think we’re so used to seeing delays that it’s just a little disappointing,” said Stephen Abraham, chief financial officer at The Blinc Group, supplier of cartridges and other hardware used in pot vapes. “Every time you slow down or hold resources from the legal market, it’s to the benefit of the illicit market.”

The proposal, which was signed by Attorney General Merrick Garland rather than DEA Administrator Anne Milgram, followed a recommendation from the U.S. Department of Health and Human Services.

Federal drug policy has lagged behind that of many states in recent years, with 38 having already legalized medical marijuana and 24 legalizing its recreational use.

Lawmakers from both major political parties have pushed for the change as marijuana has become increasingly decriminalized and accepted. A Gallup poll last year found 70% of adults support legalization, the highest level yet recorded by the polling firm and more than double the roughly three in 10 who backed it in 2000.

The marijuana industry has also grown quickly, and state-licensed pot companies are keen on rescheduling partly because it could enable them to take federal business-expense tax deductions that aren’t available to enterprises involved in “trafficking” any Schedule I or II drug. For some of Vicente’s clients, the change would effectively reduce the tax rate from 75% to 25%.

Some legalization advocates also hope rescheduling could help persuade Congress to pass legislation aimed at opening banks’ doors to cannabis companies. Currently, the drug’s legal status means many federally regulated banks are reluctant to lend to such businesses, or sometimes even provide checking or other basic services.

Rescheduling could also make it easier to research marijuana, since it’s difficult to conduct authorized clinical studies on Schedule I substances. Some medical marijuana patient advocates fear that the discussion has already become deeply politicized and that the focus on rescheduling’s potential effect on the industry has shifted attention from the people who could benefit.

“It was our hope that we could finally take the next step and create the national medical cannabis program that we need,” said Steph Sherer, founder and president of Americans for Safe Access. The organization advocates for putting cannabis in a drug category all its own and for creating a medical cannabis office within DHS.

The immediate effect of rescheduling on the nation’s criminal justice system, though, would likely be more muted, since federal prosecutions for simple possession have been fairly rare in recent years.

Fed welcomes a ‘soft landing’ even if many Americans don’t feel like cheering

WASHINGTON (AP) — When Jerome Powell delivered a high-profile speech last month, the Federal Reserve chair came the closest he ever had to declaring that the inflation surge that gripped the nation for three painful years was now essentially defeated.

And not only that. The Fed’s high interest rates, Powell said, had managed to achieve that goal without causing a widely predicted recession and high unemployment.

Yet most Americans are not in the same celebratory mood about the plummeting of inflation in the face of the high borrowing rates the Fed engineered. Though consumer sentiment is slowly rising, a majority of Americans in some surveys still complain about elevated prices, given that the costs of such necessities as food, gas and housing remain far above where they were before the pandemic erupted in 2020.

The relatively sour mood of the public is creating challenges for Vice President Kamala Harris as she seeks to succeed President Joe Biden. Despite the fall of inflation and strong job growth, many voters say they’re dissatisfied with the Biden-Harris administration’s economic record — and especially frustrated by high prices.

That disparity points to a striking gap between how economists and policymakers assess the past several years of the economy and how many ordinary Americans do.

In his remarks last month, given at an annual economic symposium in Jackson Hole, Wyoming, Powell underscored how the Fed’s sharp rate hikes succeeded much more than most economists had predicted in taming inflation without hammering the economy — a notoriously difficult feat known as a “soft landing.”

“Some argued that getting inflation under control would require a recession and a lengthy period of high unemployment,” Powell said.

Ultimately, though, he noted, “the 4-1/2 percentage point decline in inflation from its peak two years ago has occurred in a context of low unemployment — a welcome and historically unusual result.”

With high inflation now essentially conquered, Powell and other central bank officials are preparing to cut their key interest rate in mid-September for the first time in more than four years. The Fed is becoming more focused on sustaining the job market with the help of lower interest rates than on continuing to fight inflation.

Many consumers, by contrast, are still preoccupied most by today’s price levels.

“From the viewpoint of economists, central bankers, how we think about inflation, it really has been a remarkable success, how inflation went up, has come back, and is around the target,” said Kristin Forbes, an economist at MIT and a former official at the United Kingdom’s central bank, the Bank of England.

“But from the viewpoint of households, it has not been so successful,” she added. “Many have taken a big hit to their wages. Many of them feel like the basket of goods they buy is now much more expensive.”

Two years ago, economists feared that the Fed’s ongoing rate hikes — it ultimately raised its benchmark rate more than 5 percentage points to a 23-year high in the fastest pace in four decades — would hammer the economy and cause millions of job losses. After all, that’s what happened when the Fed under Chair Paul Volcker sent its benchmark rate to nearly 20% in the early 1980s, ultimately throttling a brutal inflationary spell.

In fact, at Jackson Hole two years ago, Powell himself warned that using high interest rates to defeat the inflation spike “would bring some pain to households and businesses.”

Yet now, according to the Fed’s preferred measure, inflation is 2.5%, not far above its 2% target. And while a weaker pace of hiring has caused some concerns, the unemployment rate is at a still-low 4.3%, and the economy expanded at a solid 3% annual rate last quarter.

While no Fed official will outright declare victory, some take satisfaction in defying the predictions of doom and gloom.

“2023 was a historic year for inflation falling,” said Austan Goolsbee, president of the Chicago Fed. “And there wasn’t a recession, and that’s unprecedented. And so we will be studying the mechanics of how that happened for a long time.”

Measures of consumer sentiment, though, indicate that three years of hurtful inflation have dimmed many Americans’ outlook. In addition, high loan rates, along with elevated housing prices, have led many young workers to fear that homeownership is increasingly out of reach.

Last month, the consulting firm McKinsey said that 53% of consumers in its most recent survey “still say that rising prices and inflation are among their concerns.” McKinsey’s analysts attributed the escalated figure to “an ‘inflation overhang.” That’s the belief among analysts that it can take months, if not years, for consumers to adjust emotionally to a much higher level of prices even if their pay is keeping pace.

Economists point to several reasons for the wide gap in perceptions between economists and policymakers on the one hand and everyday consumers and workers on the other.

The first is that the Fed tailors its interest rate policies to manage inflation — the rate of price changes — rather than price levels themselves. So when inflation spikes, the central bank’s goal is to return it to a sustainable level, currently defined as 2%, rather than to reverse the price increases. The Fed’s policymakers expect average wages to catch up and eventually to allow consumers to afford the higher prices.

“Central bankers think even if inflation gets away from 2% for a period, as long as it comes back, that’s fine,” Forbes said. “Victory, mission accomplished. But the amount of time inflation is away from 2% can have a major cost.”

Research by Stefanie Stantcheva, a Harvard economist, and two colleagues found that most people’s views of inflation are very different from those of economists. Economists in general are more likely to regard inflation as a consequence of strong growth. They often describe inflation as a result of an “overheating” economy: Low unemployment, strong job growth and rising wages lead businesses to sharply increase prices without necessarily losing sales.

By contrast, a survey by Stantcheva found, ordinary Americans “view inflation as an unambiguously bad thing and very rarely as a sign of a good economy or as a byproduct of positive developments.”

Her survey respondents also said they believed that inflation stems from excessive government spending or greedy businesses. They “do not believe that (central bank) policymakers face trade-offs, such as having to reduce economic activity or increase unemployment to control inflation.”

As a result, few consumers probably worried about the potential for a downturn as a result of the Fed’s rate hikes. One opinion survey, in fact, found that many consumers believed, incorrectly, that the economy was in a recession because inflation was so high.

At the Jackson Hole conference, Andrew Bailey, governor of the Bank of England, argued that central banks cannot guarantee that high inflation will never appear — only that they will try to drive it back down when it does.

“I get this question quite often in Parliament,” Bailey said. “People say, ‘Well you failed to control inflation.’ I said no.”

The test of a central bank, he continued, “is not that we will never have inflation. The test of the regime is how well, once you get hit by these shocks, you bring it back to target.”

Still, Forbes suggested that there are lessons to be learned from the post-COVID inflation spike, including whether inflation was allowed to stay too high for too long, both in the U.S. and the U.K. The Fed has long been criticized for having taken too long to start raising its benchmark rate. Inflation first spiked in the spring of 2021. Yet the Fed, under the mistaken impression that high inflation would prove “transitory,” didn’t begin raising rates until nearly a year later.

“Maybe should we rethink … where we seem to be now: ‘As long as it comes back four to five years later, that’s fine,’ ” she said. “Maybe four to five years is too long.

“How much unemployment or slowdown in growth should we be willing to accept to shorten the length of time that inflation is too high?”

Suspect arrested in Nacogdoches homicide

Suspect arrested in Nacogdoches homicideNACOGDOCHES — A 23-year-old man has been arrested for murder following an overnight shooting that left one dead. According to our news partner KETK and the Nacogdoches Police Department, officials responded to Fulgham Street after reports of gunshots being heard in the area. While in route, officers received other calls that someone had been shot. The victim was found outside the residence suffering from an apparent gunshot wound. The victim died at a local hospital a short time later. The victim’s name has not been released.

Jalen Boughton, 23, of Nacogdoches, was arrested for murder and remains in the Nacogdoches County Jail. The police department said additional information will be released as it becomes available.

Police officer killed, two officers wounded and shooting suspect killed after chase

DALLAS (AP) — A Dallas police officer died and two other officers were wounded by a suspect who was shot and killed by police north of the city after a vehicle chase, police said.

Police responded to a call for officer assistance shortly after 10 p.m. Thursday and found an officer wounded in a squad car, the Dallas Police Department said in a statement.

The officers who responded to the scene exchanged gunfire with a suspect and two of the officers were shot. The three officers were transported to hospitals, where one died and the other two were listed in critical and stable condition, the police statement said.

The identities of the officers were not immediately released.

The suspect fled the scene and was pursued to Lewisville, Texas, about 25 miles (40.2 kilometers) northwest of Dallas. The suspect then got out of the vehicle with a long gun and was shot by officers. He died at the scene, police said.

The Lewisville Police Department posted on social media that Dallas police were involved in a vehicle pursuit going north on Interstate 35.

“Shots were fired, and the suspect is deceased,” the post said, noting that Lewisville officers were not involved.

The investigation is ongoing, the Dallas police said, adding that flags at city facilities will be flown at half-staff.

”Our department is hurting,” department spokesperson Kristin Lowman told reporters early Friday. “We have officers who are injured, who are in the hospital, and we lost one of our own.”

Two die in early Thursday morning crash

Two die in early Thursday morning crashSMITH COUNTY -DPS has confirmed two are dead after a two-vehicle collision Thursday morning. According to our news partner KETK, DPS Sergeant Adam Albritton said the accident involved an SUV on FM2908 traveling north and a pickup truck going east on CR 384. Albritton said the truck ran a stop sign at the intersection and collided with the SUV. The driver and its passenger in the pickup truck were thrown from the vehicle. They later died. The driver of the SUV was taken to a hospital. As of this time, their identities have not been released.

Juvenile arrested in Tyler homicide

Juvenile arrested in Tyler homicideTYLER — Tyler police are investigating a fatal shooting. It happened around 11:40 Saturday, August 10, on Lorance Street. Arriving officers found a 17-year-old victim suffering from a gunshot wound. He was transported to a local hospital where he died from his injuries. The suspect was identified as a 16-year-old male from Tyler. He was charged with manslaughter and manufacture/delivery of a controlled substance. He was arrested August, 15 and booked into the Smith County Juvenile Attention Center in Tyler.

Tyler man confesses to sexual assault of minor

Tyler man confesses to sexual assault of minorTYLER — An investigation into a Tyler man for child pornography reopened a 2020 “suspended” sexual assault of child case. According to our news partner KETK, Austin Wayne Odell, 38, was arrested on possession of child pornography and sexual assault of a child on Aug. 3. According to an affidavit, a peace officer with the Texas Department of Public Safety obtained 99 videos and four images of child porn that were downloaded in 2023 from devices connected to an IP address that traced back to Odell’s address.

On Aug. 31, 2023, the officer executed a search warrant at Odell’s residence where he seized multiple devices but reportedly did not find any child porn. Later, the officer reportedly learned that Odell went out of town and took his computer with him. Read the rest of this entry »

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Southwest Airlines under pressure from a big shareholder shakes up its board

Posted/updated on: September 11, 2024 at 8:30 am

DALLAS (AP) – Southwest Airlines will revamp its board and the chairman will retire next year, but it intends to keep CEO Robert Jordan after a meeting with hedge fund Elliott Investment Management, which has sought a leadership shakeup at the airline including Jordan’s ouster.

Southwest said Tuesday that six directors will leave the board in November and it plans to appoint four new ones, potentially including candidates put forward by Elliott.

Shares of Southwest Airlines Co. rose slightly before the opening bell Tuesday.

Elliott, the fund led by billionaire investor Paul Singer, has built a 10% stake in recent weeks and advocated changes it says will improve Southwest’s financial performance and stock price. The two sides met Monday.

Elliott blames Southwest’s management for the airline’s stock price dropping by more than half over three years. The hedge fund wants to replace Jordan , who has been CEO since early 2022, and Chairman Gary Kelly, the airline’s previous chief executive. Southwest said Tuesday that Kelly has agreed to retire after the company’s annual meeting next year.

Elliott argues that Southwest leaders haven’t adapted to changes in customers’ preferences and failed to modernize Southwest’s technology, contributing to massive flight cancellations in December 2022. That breakdown cost the airline more than $1 billion.

Southwest has improved its operations, and its cancellation rate since the start of 2023 is slightly lower than industry average and better than chief rivals United, American and Delta, according to FlightAware. However, Southwest planes have been involved in a series of troubling incidents this year, including a flight that came within 400 feet of crashing into the Pacific Ocean, leading the Federal Aviation Administration to increase its oversight of the airline.

Southwest was a profit machine for its first 50 years — it never suffered a full-year loss until the pandemic crushed air travel in 2020.

Since then, Southwest has been more profitable than American Airlines but far less so than Delta Air Lines and United Airlines. Through June, Southwest’s operating margin in the previous 12 months was slightly negative compared with 10.3% at Delta, 8.8% at United and 5.3% at American, according to FactSet.

Southwest was a scrappy upstart for much of its history. It operated out of less-crowded secondary airports where it could turn around arriving planes and take off quickly with a new set of passengers. It appealed to budget-conscious travelers by offering low fares and no fees for changing a reservation or checking up to two bags.

Southwest now flies to many of the same big airports as its rivals. With the rise of “ultra-low-cost carriers,” it often gets undercut on price. It added fees for early boarding.

In April, before Elliott disclosed it was buying Southwest shares, Jordan hinted at more changes in the airline’s longstanding boarding and seating policies.

The CEO announced in July that Southwest will drop open seating, in which passengers pick from empty seats after they board the plane, and start assigning passengers to seats, as all other U.S. carriers do. Southwest also will sell premium seats with more legroom.

And while Southwest still lets bags fly free, it has surveyed passengers to gauge their resistance to checked-bag fees.

Ex-officer’s lies led to couple’s death in Houston drug raid, prosecutor tells jurors

Posted/updated on: September 11, 2024 at 8:30 am

HOUSTON (AP) — A former Houston police officer is responsible for the 2019 deaths of a couple during a raid of their home because his lies on a search warrant wrongly portrayed them as dangerous drug dealers, a prosecutor told jurors on Monday.

An attorney for the former officer, Gerald Goines, admitted her client lied to get the search warrant but said his actions do not merit a murder conviction, and placed the blame for the deaths on the couple.

Goines is charged with two counts of murder in the January 2019 deaths of Dennis Tuttle, 59, and his 58-year-old wife Rhogena Nicholas. Goines has pleaded not guilty.

The couple, along with their dog, were killed after officers burst into their home using a “no-knock” warrant that didn’t require them to announce themselves before entering. Goines secured the warrant from a judge.

During opening statements in the trial, prosecutor Keaton Forcht told jurors that Goines, 59, had lied to get the warrant by falsely claiming that an informant had bought heroin at the couple’s home from a man with a gun. Goines would later change his story to claim he had bought the drugs himself but authorities say that was also a lie.

Forcht said authorities were first directed to investigate Tuttle and Nicholas after a neighbor falsely claimed on 911 calls that her daughter was being given heroin by the couple at their home. The neighbor was later convicted in federal court for those false claims.

“It’s based on lie after lie after lie,” said Forcht, with the Harris County District Attorney’s Office.

Authorities found no evidence that Goines, with the narcotics unit, had investigated the neighbor’s claims, sent an informant to buy drugs or had himself gone to the home, Forcht said.

Goines created an environment “clearly dangerous to human life” by claiming the “no-knock” warrant was needed because officers would be in serious danger from the couple, Forcht said. Investigators later said they only found small amounts of marijuana and cocaine in the house.

Forcht said officers immediately fired their guns upon entering the home. Nicholas, who had cancer, had been sitting on her couch watching television while her husband was asleep in a bedroom, he said.

“But for the actions of Gerald Goines, those two homeowners would still be alive,” Forcht said.

The prosecution’s first witness, Sarah Sanchez, a neighbor and friend, portrayed the couple as people who mainly kept to themselves, had various health problems, lived on a fixed income and loved their dogs.

Goines’ lawyer, Nicole DeBorde, admitted to jurors that her client had lied to obtain the search warrant but, she said, prosecutors had overcharged him for his actions.

“He didn’t murder anybody. He is not legally responsible for murder,” DeBorde said. “This is the case of the wrong charges being filed. There are other consequences for him.”

DeBorde said Nicholas and Tuttle were responsible for their own deaths. Tuttle fired at officers who had identified themselves after coming in, wounding four of them, she said. A fifth officer was also injured during the raid.

“Nicholas’ choices to not respond to instructions by police and to try and grab the gun of a fallen officer is the cause of her death,” DeBorde said.

During afternoon testimony, Goines’ lawyers suggested that the couple were aware that it was police officers who had entered their home because they identified themselves as such and wore tactical gear that bore the word “police.”

Forcht said Tuttle might not have been focused on or been able to read the shirt of the person who had entered his home and fatally shot his wife and dog.

DeBorde has accused prosecutors of generating excess publicity in the case, preventing Goines from getting a fair trial.

If convicted, Goines faces up to life in prison.

Testimony in the trial was to resume Tuesday.

Michael Wynne, a Houston-based criminal defense attorney and former prosecutor not connected to the case, said Goines will have too many hurdles to overcome during his trial.

“Mr. Goines has the best counsel you could possibly get,” Wynne said. “But I think they got an uphill battle here.”

The probe into the drug raid also uncovered allegations of systemic corruption.

A dozen officers tied to the narcotics squad that carried out the raid, including Goines, were later indicted on other charges following a corruption probe. A judge in June dismissed charges against some of them.

Since the raid, prosecutors have reviewed thousands of cases handled by the narcotics unit.

The Texas Court of Criminal Appeals has overturned at least 22 convictions linked to Goines, who also faces federal charges.

One of the other cases tied to Goines that remains under scrutiny is his 2004 drug arrest in Houston of George Floyd, whose 2020 death at the hands of a Minnesota police officer sparked a nationwide reckoning on racism in policing. A Texas board in 2022 declined a request that Floyd be granted a posthumous pardon for his drug conviction stemming from his arrest by Goines.

Longview police investigate student’s online threat

Posted/updated on: September 10, 2024 at 5:54 pm

Longview police investigate student’s online threatLONGVIEW — The Longview Police Department is investigating the validity of a threat made by a student online, according to Pine Tree Independent School District. On Monday, district officials said they were made aware of a student’s online “threatening remarks” during Friday’s home football game. According to our news partner KETK, the issue was quickly dealt with in cooperation with Longview PD, the district said.

“While our local PD investigates the validity of this threat, we want to remind parents to talk to their students about the seriousness of making any type of threatening comments,” Pine Tree ISD said. “We will always take every threat seriously because nothing is more important than the safety of our students and staff.”

DirecTV files complaint against Disney with FCC as impasse enters 2nd week

Posted/updated on: September 10, 2024 at 4:29 am

LOS ANGELES (AP) – The impasse between DirecTV and Disney over a new carriage agreement has become more heated as it entered its second week.

DirecTV filed a complaint with the Federal Communications Commission on Saturday night accusing Disney of negotiating in bad faith.

Disney channels, including ESPN and ABC-owned stations in nine markets, have been off DirecTV since the evening of Sept. 1. That meant DirecTV customers were blacked out from viewing most college football games and the final week of the U.S. Open tennis tournament, including the women’s and men’s finals.

DirecTV has 11.3 million subscribers, according to Leichtman Research Group, making it the nation’s third-largest pay TV provider.

ABC and ESPN will have the “Monday Night Football” opener between the New York Jets and San Francisco 49ers. ABC will also produce and carry a presidential debate between Kamala Harris and Donald Trump on Tuesday in Philadelphia.

ABC-owned stations in Los Angeles; the San Francisco Bay Area; Fresno, California; New York; Chicago; Philadelphia; Houston; and Raleigh, North Carolina, are off DirecTV.

Besides all ESPN network channels and ABC-owned stations, Disney-branded channels Freeform, FX and National Geographic channel are dark.

DirecTV says in its 10-page complaint that Disney is violating the FCC’s good faith mandates by asking it to waive any legal claims on any anticompetitive actions, including its ongoing packaging and minimum penetration demands.

DirecTV has asked Disney for the option to provide consumers with cheaper and skinnier bundles of programming, instead of bigger bundles that carry programming some viewers might not be interested in watching.

The complaint states: “Along with these anticompetitive demands, Disney has also insisted that DirecTV agree to a ‘clean slate’ provision and a covenant not to sue, both of which are intended to prevent DirecTV from taking legal action regarding Disney’s anticompetitive demands, which would include filing good faith complaints at the Commission. Not three months ago, however, the Media Bureau made clear that such a demand itself constitutes bad faith.”

DirecTV CEO Ray Carpenter said during a conference call with business and media analysts on Tuesday that they would not agree to a new carriage deal with Disney without bundling changes.

“We’re not playing a short-term game,” Carpenter said. “We need something that is going to work for the long-term sustainability of our video customers. The resolve is there.”

Disney has claimed since the blackout began that mutual release of claims is standard practice after licensing agreements are negotiated and agreed upon by the parties. It has also had one with DirecTV under its past renewals.

A Disney spokesperson said: “We continue to negotiate with DirecTV to restore access to our content as quickly as possible. We urge DirecTV to stop creating diversions and instead prioritize their customers by finalizing a deal that would allow their subscribers to watch our strong upcoming lineup of sports, news and entertainment programming, starting with the return of Monday Night Football.”

Last year, Disney and Charter Spectrum — the nation’s second-largest cable TV provider — were involved in a nearly 12-day impasse until coming to an agreement hours before the first Monday night NFL game of the season.

Tropical system expected to strengthen near Mexico and Texas and bring heavy rains

Posted/updated on: September 10, 2024 at 4:29 am

HOUSTON (AP) — A tropical system in the southwestern Gulf of Mexico was expected to strengthen this week into a tropical storm and dump heavy rains onto Mexico and Texas before reaching the U.S. as a potential hurricane, the National Weather Service said Sunday.

The system, about 340 miles south-southeast of the mouth of the Rio Grande, had maximum 50 mph wind speeds  on Sunday and was forecast to drift slowly northwestward. Forecasters said it was too early to pinpoint the exact track of the storm and its potential impacts but warned that the upper Texas and Louisiana coastlines could see damaging winds and storm surges beginning Tuesday evening.

Texas Gov. Greg Abbott put state emergency responders on increased readiness and warned of the potential of flash flooding and heavy rains.

“Texas will continue to closely monitor weather conditions to protect the well-being of Texans,” Abbott said in a statement.

Donald Jones, a meteorologist with the National Weather Service in Lake Charles, Louisiana, said during a weather briefing Saturday night that parts of southeast Texas and southwest Louisiana should expect a “whole lot” of rain in the middle and later part of this week.

The tropical disturbance comes after an unusually quiet August and early September in the current Atlantic hurricane season, which runs through Nov. 30. The season was set to peak on Tuesday, Jones said.

So far, there have been five named storms this hurricane season, including Hurricane Beryl, which knocked out power to nearly 3 million homes and businesses in Texas — mostly in the Houston area — in July. Experts had predicted one of the busiest Atlantic hurricane seasons on record.

The next named storm would be called Francine.

In a report issued last week, researchers at Colorado State University cited several reasons for the lull in activity during the current hurricane season, including extremely warm upper level temperatures resulting in stabilization of the atmosphere and too much easterly wind shear in the eastern Atlantic.

“We still do anticipate an above-normal season overall, however, given that large-scale conditions appear to become more favorable around the middle of September,” according to the report.

Last month, the National Oceanic and Atmospheric Administration updated its outlook but still predicted a highly active Atlantic hurricane season. Forecasters tweaked the number of expected named storms from 17 to 25 to 17 to 24.

Student arrested after loaded gun found on campus

Posted/updated on: September 7, 2024 at 5:51 am

Student arrested after loaded gun found on campusPANOLA COUNTY — An East Texas student was arrested on Wednesday after a loaded .38 caliber handgun was found in their vehicle in the school’s parking lot, according to the Panola County Sheriff’s Office.The sheriff’s office said Panola Charter High School notified them at around 9:30 a.m. that a firearm was found in a students vehicle on campus. Deputies say the 17-year-old student was overheard talking about having a gun in his vehicle.

“During a subsequent search by school staff, a loaded .38 caliber handgun was recovered,” according to the report from the sheriff’s office.

The sheriff’s office said the student was taken into custody for possession of a firearm in a prohibited location and was taken to the Panola County Detention Center. ‘We have no reason to believe that this incident was related to any school-related threat,” PCSO said. “Upon review of the situation we have no reason to believe that any specific student or campus was targeted.” (more…)

Verizon buying Frontier in $20B deal to strengthen its fiber network

Posted/updated on: September 6, 2024 at 9:02 am

DALLAS (AP) – Verizon is buying Frontier Communications in a $20 billion deal to strengthen its fiber network.

Verizon Communications Inc. said Thursday that the transaction will also help it in the areas of artificial intelligence and the Internet of Things.

Frontier has concentrated heavily on its fiber network capabilities over about four years, investing $4.1 billion upgrading and expanding its fiber network. It now gets more than half of its revenue from fiber products.

The price tag for Frontier, based in Dallas, is sizeable given its 2.2 million fiber subscribers across 25 states. Verizon has approximately 7.4 million Fios connections in nine states and Washington, D.C.

Frontier has 7.2 million fiber locations and has plans to build out an additional 2.8 million fiber locations by the end of 2026.

“The acquisition of Frontier is a strategic fit,” Verizon Chairman and CEO Hans Vestberg said in a prepared statement. “It will build on Verizon’s two decades of leadership at the forefront of fiber and is an opportunity to become more competitive in more markets throughout the United States, enhancing our ability to deliver premium offerings to millions more customers across a combined fiber network.”

Verizon, based in New York City, will pay $38.50 for each Frontier share. The deal is expected to close in about 18 months. It still needs approval from Frontier shareholders.

Shares of Frontier Communications Parents Inc., which were halted briefly on Wednesday after a report from the Wall Street Journal about the deal sent the stock up nearly 40%, fell 9% before the market opened on Thursday. Verizon’s stock rose slightly.

Deputy fatally shot at Houston intersection while driving to work

Posted/updated on: September 6, 2024 at 2:58 am

HOUSTON (AP) — A Texas deputy constable who was driving to work in his personal vehicle was fatally shot Tuesday by a man who walked up to his car at a Houston intersection and fired multiple times, police said.

A suspect in the shooting later led authorities on a chase that ended about 60 miles away in the waters off Galveston, where the man tried swimming away to evade arrest before being captured with the help of a marine unit, according to the Port of Galveston Police Department.

The deputy was identified as Maher Husseini, who had worked as a Harris County constable since 2021. Investigators were still trying to determine a motive for the shooting and whether the deputy had been targeted, Houston Police Chief J. Noe Diaz said.

Police were investigating whether it might have been an instance of road rage, he said.

“It’s an awful thing for the community, for someone to lose their life, someone that’s dedicated their life to public service,” Diaz said. “It is absolutely tragic.”

According to preliminary information, Husseini was not in uniform when he was shot, Diaz said. Bullet holes could be seen through the passenger side window of an SUV at the scene.

Husseini was taken to a Houston hospital where he was pronounced dead, Harris County Precinct 4 Constable Mark Herman said.

Authorities did not immediately release the name of the suspect in custody Tuesday evening. In a statement, Port of Galveston police said the man had led police on a pursuit that ended in a crash, followed by him swimming away.

Officers later found the suspect in the water and took him into custody. He was taken to a hospital for evaluation, police said.

“The dangerous criminal who ambushed and murdered Deputy Constable Husseini will have the full weight of the law brought down upon him,” Texas Gov. Greg Abbott said in a statement.

Decision on major policy shift on marijuana won’t come until after the presidential election

Posted/updated on: September 5, 2024 at 3:18 am

WASHINGTON (AP) — A decision on whether to reclassify marijuana as a less dangerous drug in the U.S. won’t come until after the November presidential election, a timeline that raises the chances it could be a potent political issue in the closely contested race.

The U.S. Drug Enforcement Administration last week set a hearing date to take comment on the proposed historic change in federal drug policy for Dec. 2.

The hearing date means a final decision could well come in the next administration. While it’s possible it could precede the end of President Joe Biden’s term, issuing it before Inauguration Day “would be pretty expedited,” said cannabis lawyer Brian Vicente.

That could put a new spotlight on the presidential candidates’ positions on marijuana. Vice President Kamala Harris has backed decriminalizing the drug and said it’s “absurd” to have it in the DEA’s Schedule I category alongside heroin and LSD. The Democratic nominee’s position has shifted over the years; she once oversaw the enforcement of cannabis laws and opposed legalized recreational use for adults in California while running for attorney general in 2010.

Former President Donald Trump, the Republican nominee, signaled support for a Florida legalization measure on Saturday, following earlier comments that he increasingly agrees that people shouldn’t be jailed for the drug now legal in multiple states, “whether that’s a good thing or a bad thing.”

During his run for president in 2016, Trump said that he backed medical marijuana and that pot should be left up to the states. But during his first term, then-Attorney General Jeff Sessions lifted an Obama-era policy that kept federal authorities from cracking down on the pot trade in states where the drug is legal.

Trump’s campaign didn’t immediately respond to a query about his position on rescheduling the drug.

The Justice Department proposed reclassifying it in May, saying the change would recognize marijuana’s medical uses and acknowledge it has less potential for abuse than some of the nation’s most dangerous drugs. The proposal, which would not legalize marijuana for recreational use, came after a call for review from Biden, who has called the change “monumental.”

The DEA has said it doesn’t yet have a position on whether to go through with the change, stating in a memo that it would keep weighing the issue as the federal rulemaking process plays out.

The new classification would be the most significant shift in U.S. drug policy in 50 years and could be a potent political issue, especially with younger voters. But it faces opposition from groups such as Smart Approaches to Marijuana.

Its president, Kevin Sabet, argues there isn’t enough data to move cannabis to the less-dangerous Schedule III category, alongside ketamine and some anabolic steroids. The DEA’s move to hold the hearing is “a huge win in our fight to have this decision guided by medical science, not politics,” he said in a statement, adding that 18 states’ attorneys general are backing his opposition.

The hearing sparked some consternation among pot industry players, though little surprise about the DEA decision to hold one.

“While the result ultimately may be better, I think we’re so used to seeing delays that it’s just a little disappointing,” said Stephen Abraham, chief financial officer at The Blinc Group, supplier of cartridges and other hardware used in pot vapes. “Every time you slow down or hold resources from the legal market, it’s to the benefit of the illicit market.”

The proposal, which was signed by Attorney General Merrick Garland rather than DEA Administrator Anne Milgram, followed a recommendation from the U.S. Department of Health and Human Services.

Federal drug policy has lagged behind that of many states in recent years, with 38 having already legalized medical marijuana and 24 legalizing its recreational use.

Lawmakers from both major political parties have pushed for the change as marijuana has become increasingly decriminalized and accepted. A Gallup poll last year found 70% of adults support legalization, the highest level yet recorded by the polling firm and more than double the roughly three in 10 who backed it in 2000.

The marijuana industry has also grown quickly, and state-licensed pot companies are keen on rescheduling partly because it could enable them to take federal business-expense tax deductions that aren’t available to enterprises involved in “trafficking” any Schedule I or II drug. For some of Vicente’s clients, the change would effectively reduce the tax rate from 75% to 25%.

Some legalization advocates also hope rescheduling could help persuade Congress to pass legislation aimed at opening banks’ doors to cannabis companies. Currently, the drug’s legal status means many federally regulated banks are reluctant to lend to such businesses, or sometimes even provide checking or other basic services.

Rescheduling could also make it easier to research marijuana, since it’s difficult to conduct authorized clinical studies on Schedule I substances. Some medical marijuana patient advocates fear that the discussion has already become deeply politicized and that the focus on rescheduling’s potential effect on the industry has shifted attention from the people who could benefit.

“It was our hope that we could finally take the next step and create the national medical cannabis program that we need,” said Steph Sherer, founder and president of Americans for Safe Access. The organization advocates for putting cannabis in a drug category all its own and for creating a medical cannabis office within DHS.

The immediate effect of rescheduling on the nation’s criminal justice system, though, would likely be more muted, since federal prosecutions for simple possession have been fairly rare in recent years.

Fed welcomes a ‘soft landing’ even if many Americans don’t feel like cheering

Posted/updated on: September 4, 2024 at 4:47 am

WASHINGTON (AP) — When Jerome Powell delivered a high-profile speech last month, the Federal Reserve chair came the closest he ever had to declaring that the inflation surge that gripped the nation for three painful years was now essentially defeated.

And not only that. The Fed’s high interest rates, Powell said, had managed to achieve that goal without causing a widely predicted recession and high unemployment.

Yet most Americans are not in the same celebratory mood about the plummeting of inflation in the face of the high borrowing rates the Fed engineered. Though consumer sentiment is slowly rising, a majority of Americans in some surveys still complain about elevated prices, given that the costs of such necessities as food, gas and housing remain far above where they were before the pandemic erupted in 2020.

The relatively sour mood of the public is creating challenges for Vice President Kamala Harris as she seeks to succeed President Joe Biden. Despite the fall of inflation and strong job growth, many voters say they’re dissatisfied with the Biden-Harris administration’s economic record — and especially frustrated by high prices.

That disparity points to a striking gap between how economists and policymakers assess the past several years of the economy and how many ordinary Americans do.

In his remarks last month, given at an annual economic symposium in Jackson Hole, Wyoming, Powell underscored how the Fed’s sharp rate hikes succeeded much more than most economists had predicted in taming inflation without hammering the economy — a notoriously difficult feat known as a “soft landing.”

“Some argued that getting inflation under control would require a recession and a lengthy period of high unemployment,” Powell said.

Ultimately, though, he noted, “the 4-1/2 percentage point decline in inflation from its peak two years ago has occurred in a context of low unemployment — a welcome and historically unusual result.”

With high inflation now essentially conquered, Powell and other central bank officials are preparing to cut their key interest rate in mid-September for the first time in more than four years. The Fed is becoming more focused on sustaining the job market with the help of lower interest rates than on continuing to fight inflation.

Many consumers, by contrast, are still preoccupied most by today’s price levels.

“From the viewpoint of economists, central bankers, how we think about inflation, it really has been a remarkable success, how inflation went up, has come back, and is around the target,” said Kristin Forbes, an economist at MIT and a former official at the United Kingdom’s central bank, the Bank of England.

“But from the viewpoint of households, it has not been so successful,” she added. “Many have taken a big hit to their wages. Many of them feel like the basket of goods they buy is now much more expensive.”

Two years ago, economists feared that the Fed’s ongoing rate hikes — it ultimately raised its benchmark rate more than 5 percentage points to a 23-year high in the fastest pace in four decades — would hammer the economy and cause millions of job losses. After all, that’s what happened when the Fed under Chair Paul Volcker sent its benchmark rate to nearly 20% in the early 1980s, ultimately throttling a brutal inflationary spell.

In fact, at Jackson Hole two years ago, Powell himself warned that using high interest rates to defeat the inflation spike “would bring some pain to households and businesses.”

Yet now, according to the Fed’s preferred measure, inflation is 2.5%, not far above its 2% target. And while a weaker pace of hiring has caused some concerns, the unemployment rate is at a still-low 4.3%, and the economy expanded at a solid 3% annual rate last quarter.

While no Fed official will outright declare victory, some take satisfaction in defying the predictions of doom and gloom.

“2023 was a historic year for inflation falling,” said Austan Goolsbee, president of the Chicago Fed. “And there wasn’t a recession, and that’s unprecedented. And so we will be studying the mechanics of how that happened for a long time.”

Measures of consumer sentiment, though, indicate that three years of hurtful inflation have dimmed many Americans’ outlook. In addition, high loan rates, along with elevated housing prices, have led many young workers to fear that homeownership is increasingly out of reach.

Last month, the consulting firm McKinsey said that 53% of consumers in its most recent survey “still say that rising prices and inflation are among their concerns.” McKinsey’s analysts attributed the escalated figure to “an ‘inflation overhang.” That’s the belief among analysts that it can take months, if not years, for consumers to adjust emotionally to a much higher level of prices even if their pay is keeping pace.

Economists point to several reasons for the wide gap in perceptions between economists and policymakers on the one hand and everyday consumers and workers on the other.

The first is that the Fed tailors its interest rate policies to manage inflation — the rate of price changes — rather than price levels themselves. So when inflation spikes, the central bank’s goal is to return it to a sustainable level, currently defined as 2%, rather than to reverse the price increases. The Fed’s policymakers expect average wages to catch up and eventually to allow consumers to afford the higher prices.

“Central bankers think even if inflation gets away from 2% for a period, as long as it comes back, that’s fine,” Forbes said. “Victory, mission accomplished. But the amount of time inflation is away from 2% can have a major cost.”

Research by Stefanie Stantcheva, a Harvard economist, and two colleagues found that most people’s views of inflation are very different from those of economists. Economists in general are more likely to regard inflation as a consequence of strong growth. They often describe inflation as a result of an “overheating” economy: Low unemployment, strong job growth and rising wages lead businesses to sharply increase prices without necessarily losing sales.

By contrast, a survey by Stantcheva found, ordinary Americans “view inflation as an unambiguously bad thing and very rarely as a sign of a good economy or as a byproduct of positive developments.”

Her survey respondents also said they believed that inflation stems from excessive government spending or greedy businesses. They “do not believe that (central bank) policymakers face trade-offs, such as having to reduce economic activity or increase unemployment to control inflation.”

As a result, few consumers probably worried about the potential for a downturn as a result of the Fed’s rate hikes. One opinion survey, in fact, found that many consumers believed, incorrectly, that the economy was in a recession because inflation was so high.

At the Jackson Hole conference, Andrew Bailey, governor of the Bank of England, argued that central banks cannot guarantee that high inflation will never appear — only that they will try to drive it back down when it does.

“I get this question quite often in Parliament,” Bailey said. “People say, ‘Well you failed to control inflation.’ I said no.”

The test of a central bank, he continued, “is not that we will never have inflation. The test of the regime is how well, once you get hit by these shocks, you bring it back to target.”

Still, Forbes suggested that there are lessons to be learned from the post-COVID inflation spike, including whether inflation was allowed to stay too high for too long, both in the U.S. and the U.K. The Fed has long been criticized for having taken too long to start raising its benchmark rate. Inflation first spiked in the spring of 2021. Yet the Fed, under the mistaken impression that high inflation would prove “transitory,” didn’t begin raising rates until nearly a year later.

“Maybe should we rethink … where we seem to be now: ‘As long as it comes back four to five years later, that’s fine,’ ” she said. “Maybe four to five years is too long.

“How much unemployment or slowdown in growth should we be willing to accept to shorten the length of time that inflation is too high?”

Suspect arrested in Nacogdoches homicide

Posted/updated on: September 4, 2024 at 8:01 am

Suspect arrested in Nacogdoches homicideNACOGDOCHES — A 23-year-old man has been arrested for murder following an overnight shooting that left one dead. According to our news partner KETK and the Nacogdoches Police Department, officials responded to Fulgham Street after reports of gunshots being heard in the area. While in route, officers received other calls that someone had been shot. The victim was found outside the residence suffering from an apparent gunshot wound. The victim died at a local hospital a short time later. The victim’s name has not been released.

Jalen Boughton, 23, of Nacogdoches, was arrested for murder and remains in the Nacogdoches County Jail. The police department said additional information will be released as it becomes available.

Police officer killed, two officers wounded and shooting suspect killed after chase

Posted/updated on: September 1, 2024 at 5:29 am

DALLAS (AP) — A Dallas police officer died and two other officers were wounded by a suspect who was shot and killed by police north of the city after a vehicle chase, police said.

Police responded to a call for officer assistance shortly after 10 p.m. Thursday and found an officer wounded in a squad car, the Dallas Police Department said in a statement.

The officers who responded to the scene exchanged gunfire with a suspect and two of the officers were shot. The three officers were transported to hospitals, where one died and the other two were listed in critical and stable condition, the police statement said.

The identities of the officers were not immediately released.

The suspect fled the scene and was pursued to Lewisville, Texas, about 25 miles (40.2 kilometers) northwest of Dallas. The suspect then got out of the vehicle with a long gun and was shot by officers. He died at the scene, police said.

The Lewisville Police Department posted on social media that Dallas police were involved in a vehicle pursuit going north on Interstate 35.

“Shots were fired, and the suspect is deceased,” the post said, noting that Lewisville officers were not involved.

The investigation is ongoing, the Dallas police said, adding that flags at city facilities will be flown at half-staff.

”Our department is hurting,” department spokesperson Kristin Lowman told reporters early Friday. “We have officers who are injured, who are in the hospital, and we lost one of our own.”

Two die in early Thursday morning crash

Posted/updated on: August 31, 2024 at 5:23 am

Two die in early Thursday morning crashSMITH COUNTY -DPS has confirmed two are dead after a two-vehicle collision Thursday morning. According to our news partner KETK, DPS Sergeant Adam Albritton said the accident involved an SUV on FM2908 traveling north and a pickup truck going east on CR 384. Albritton said the truck ran a stop sign at the intersection and collided with the SUV. The driver and its passenger in the pickup truck were thrown from the vehicle. They later died. The driver of the SUV was taken to a hospital. As of this time, their identities have not been released.

Juvenile arrested in Tyler homicide

Posted/updated on: August 19, 2024 at 7:57 am

Juvenile arrested in Tyler homicideTYLER — Tyler police are investigating a fatal shooting. It happened around 11:40 Saturday, August 10, on Lorance Street. Arriving officers found a 17-year-old victim suffering from a gunshot wound. He was transported to a local hospital where he died from his injuries. The suspect was identified as a 16-year-old male from Tyler. He was charged with manslaughter and manufacture/delivery of a controlled substance. He was arrested August, 15 and booked into the Smith County Juvenile Attention Center in Tyler.

Tyler man confesses to sexual assault of minor

Posted/updated on: August 17, 2024 at 3:10 am

Tyler man confesses to sexual assault of minorTYLER — An investigation into a Tyler man for child pornography reopened a 2020 “suspended” sexual assault of child case. According to our news partner KETK, Austin Wayne Odell, 38, was arrested on possession of child pornography and sexual assault of a child on Aug. 3. According to an affidavit, a peace officer with the Texas Department of Public Safety obtained 99 videos and four images of child porn that were downloaded in 2023 from devices connected to an IP address that traced back to Odell’s address.

On Aug. 31, 2023, the officer executed a search warrant at Odell’s residence where he seized multiple devices but reportedly did not find any child porn. Later, the officer reportedly learned that Odell went out of town and took his computer with him. (more…)

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