Today’s Headlines: Another rate hike by the Fed

By Laura Blasey and Amy Hubbard

Hello, it’s Thursday, July 28, and here are the stories you shouldn’t miss today:

TOP STORIES

The Fed announced another big interest rate hike to thwart inflation

In the most aggressive back-to-back interest rate increases since the early 1980s economic crisis, the Federal Reserve announced another three-quarters of a percentage point hike and signaled more to come in its effort to beat back inflation despite the risk of a recession.

The Fed’s hefty increase in its benchmark rate, which will mean higher interest rates on credit cards, home and auto loans and other such purchases, seeks to curb the strong consumer demand and spending that have been a major factor in driving up prices. Fed Chairman Jerome H. Powell noted still-robust job growth and maintained the U.S. was not in a recession.

The Fed’s moves intensify political problems for Democrats and Republicans ahead of the November congressional elections. Yet a bright spot for President Biden is that gas prices have come down off June highs. And a decline in import prices, along with companies such as Walmart starting to mark down merchandise because of excess inventory and slowing demand, should provide some relief from inflation.

Manchin and Schumer have reached a health, energy and tax deal

Sen. Joe Manchin III (D-W.Va.) and Senate Majority Leader Charles E. Schumer (D-N.Y.) said they’d cut a surprise agreement on an expansive plan to reduce healthcare and energy costs, cut down on carbon emissions, fight inflation and allow Medicare to negotiate drug prices. It marks a breakthrough on a bill that Democrats have tried for months to agree on.

The deal could give Democrats an opportunity to make progress on some of their key policy priorities ahead of the midterm election. But it is uncertain how the plan will go over with Manchin’s fellow Democrats, many of whom have expressed frustration with the West Virginian, saying he hasn’t negotiated in good faith.

More politics

• After months of wavering, the Senate approved a sweeping $280-billion plan to subsidize domestic semiconductor manufacturers and fund research that a bipartisan group of lawmakers hopes will shore up U.S. competitiveness, particularly against China.
  

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To mask or not to mask?

Despite L.A. County Public Health Director Barbara Ferrer’s plans to reinstate a mask mandate as soon as Friday if coronavirus conditions don’t improve, others say the value of widespread masking isn’t what it used to be.

A number of medical experts say — with COVID vaccines conferring solid protection against hospitalization and death, more effective treatments and a more benign virus — masking isn’t necessary at this stage: “We’re in a very different place in the pandemic.”

More top coronavirus headlines

• Should you wait for the Omicron booster? Why experts say you should “get it now!”
• Pasadena, Long Beach and Beverly Hills have come out against a new mask mandate.

Stay up to date on variant developments, case counts and vaccine news with Coronavirus Today.

California officially has shrunk a delta water diversion plan from two tunnels to one

Gov. Gavin Newsom unveiled plans for tunneling around the Sacramento-San Joaquin River Delta to deliver water more easily to Southern California. They call for a single gigantic tunnel aimed at making water exports more reliable but with significant costs to the delta farm economy and possibly its ecosystem.

The proposed tunnel would grab excess water delivered by big storms and divert some of those Sacramento River flows to the south. But there would be “unavoidable” impacts to delta farming, and environmentalists fear harm to imperiled fish.

PHOTO OF THE DAY

The sun sets over the Oak fire as the blaze burned on Tuesday near Mariposa.

(Luis Sinco / Los Angeles Times)

CALIFORNIA

An LAPD officer’s autopsy ruled his training death an accident. Officer Houston Tipping was serving as a class instructor when he fell to the ground while holding another officer in a “bear hug.” He suffered a fatal spinal cord injury. The report’s findings contradicted allegations made by Tipping’s mother that her son had been beaten by a group of overzealous officers attempting to “simulate a mob.”

The chief justice of California’s Supreme Court won’t seek a second term. Chief Justice Tani Cantil-Sakauye will not seek reelection to a second 12-year term after her current term concludes next year, she confirmed Wednesday. The departure means a third appointment to the state’s high court for Gov. Gavin Newsom if he wins reelection in November.

Elon Musk abandoned plans for a four-mile tunnel at Ontario airport. Locals are picking it up. Musk’s Boring Co. submitted an unsolicited proposal in 2019 for a $100-million project, then backed out. But the San Bernardino County Transportation Authority is moving ahead with a $492-million plan for two tunnels whisking riders between Rancho Cucamonga Metrolink station and Ontario International Airport.

There’s no culture of violence in SWAT, an LAPD review has found. After reports of misconduct, Police Chief Michel Moore ordered the report, which examined all of the incidents over the last decade in which teams from the specially trained platoon were deployed.

A new poll shows that Black and Latino Californians were hit hardest by high gas prices. One in four Latino adults in California said high gas prices caused severe financial hardship. Among Black adults, 23% reported severe financial hardship. More than half of all adults in the state reported suffering at least moderate economic hardship.

NATION-WORLD

An offer was made to Russia for the release of Brittney Griner and Paul Whelan. The U.S. offered a deal to Russia aimed at bringing home WNBA star Griner and Whelan, another jailed American, said Secretary of State Antony J. Blinken. The statement marked the first time the U.S. government had publicly revealed any concrete action on Griner’s arrest.

The last two former police officers convicted of violating George Floyd’s civil rights were sentenced in federal court. The judge sentenced the former Minneapolis officers to lighter terms than recommended in sentencing guidelines, calling one “truly a rookie officer” and the other “a good police officer, father and husband.” J. Alexander Kueng got a three-year prison term and Tou Thao was sentenced to 3½ years for violating Floyd’s rights in the May 25, 2020, killing. The pair still face a state court trial.

The Taliban crackdown on rights is “suffocating” women, Amnesty International has found. Initially, Taliban officials spoke of allowing women to continue to work and girls to continue their education. Instead, they formed an all-male government stacked with veterans of the group’s hard-line rule that has banned girls from attending school from seventh grade, imposed all-covering dress that leaves only the eyes visible and restricted women’s access to work.

The suspect in the mass shooting at a July 4 parade in a Chicago suburb was indicted on 117 counts. Robert E. Crimo III was indicted by a grand jury on 21 counts of first-degree murder, 48 counts of attempted murder and 48 counts of aggravated battery in the attack that left seven people dead and dozens wounded.

HOLLYWOOD AND THE ARTS

Beyoncé’s new album, “Renaissance,” was leaked less than two days before its release. You won’t break Beyoncé’s soul. But someone apparently broke the embargo on her new album. On social media, the Beyhive is buzzing about the breach and urging people to resist the temptation to spread and listen to the record early.

Guillermo del Toro’s “Pinocchio” trailer shows off the “story of the wooden boy.” And it looks and feels exactly like what you might expect the twisted and fantastical mind of the “Pan’s Labyrinth” creator would conjure up. Netflix released the latest trailer for the stop-motion take on the fairy tale.

Disney changed Hulu’s policy to accept issue-based political ads after a Democratic backlash. Hulu had a longstanding policy against running ads focused on controversial topics, though the company did run spots about individual candidates. Disney said in a statement that it had decided to expand Hulu’s political advertising guidelines after “a thorough review of ad policies.”

One L.A. restaurant created the “perfect fish sandwich” for Jordan Peele’s “Nope.” At seafood spot Holbox, a request came in without any context: Could the chef make a fish sandwich? Yes, he could. Clarity came after several weeks and a number of more fish sandwiches: Jordan Peele wanted to set up a meeting about those sandwiches.

BUSINESS

This ad agency received millions from Netflix and abruptly closed. What happened? Employees remain stunned by the abrupt closure of Palisades Media Group, a business that had been a fixture of the studio advertising business for more than two decades. Former employees and vendors told The Times the company’s sudden demise followed a series of what they described as poor business decisions.

These buses are transporting electrons. A fleet of electric-powered school buses in El Cajon, Calif., can send electricity back to California’s grid, thanks to a first-of-its kind technology. Discharging electricity from the buses is expected to put some money into the school district’s pocket.

It’s not just big companies that fall victim to ransomware attacks. Columnist Michael Hiltzik tells the story of the one-man shop that almost got wrecked by one.

OPINION

Editorial: Close the 6th Street bridge to cars. Put aside the street takeovers, the cars spinning doughnuts and the thrill seekers scaling the arches. Focus on the pedestrians, cyclists, skateboarders and Instagrammers who’ve flocked to the bridge and made it their own. This is no mere roadway connecting Boyle Heights and downtown. It’s an opportunity to rethink L.A. transportation infrastructure and public space.

The recent passing of a Mexican food legend sparked grief across the world. Is columnist Gustavo Arellano talking about Diana Kennedy, who died Sunday at age 99 and whose cookbooks are credited with popularizing regional Mexican food in the United States? Sure. But he’s also talking about the Choco Taco, the frozen treat that parent company Klondike announced would be discontinued after 39 years.

Editorial: Congress failed the nation on family policy. Will California show the way? California provides a vital counterpoint to Washington’s failure to support families. But there’s an embarrassing weak spot: Low-wage workers are paying into the state’s paid family leave program, but it’s a benefit they can’t afford to use. They’re subsidizing payments for people who earn more and can afford to take time off. The ball is in Gavin Newsom’s court.

SPORTS

Mike Trout and doctors share their thoughts on the Angels star’s back injury. Specifically it is called costovertebral dysfunction, the team said. The condition, as sports injuries go, isn’t common. But Trout insisted “every day it’s improving.” And although he appreciates “all the prayer requests ... my career isn’t over.”

The Florida legacy of Derwin James Jr., once called “Pooh Bear,” began with his famous father. The Chargers standout is one of the NFL’s top safeties. Derwin Sr. passed his athletic qualities on to his son. Former coaches in Florida extol Derwin Sr.: “His father was faster. ... His father would knock your face off. His daddy was unreal.”

ONLY IN CALIFORNIA

P-22, pictured on Dec. 19, 2021, in Griffith Park.

(Miguel Ordenana / Natural History Museum)

California used to pay people to hunt mountain lions. Now we spend millions to protect them. Whoever drove the vehicle that killed mountain lion P-89 last week in Woodland Hills would have been, about 60 years ago, in line for a reward of as much as $75 (more than $730 today), writes columnist Patt Morrison. The state was essentially at war with cougars.

In the 30 years between 1960 and 1990, the mountain lion went from being a “predator” with a bounty on its head to a permit-only trophy-hunting animal to a special protected mammal. In sum, the fewer mountain lions that were left, the more protections they began to get, she writes.

FROM THE ARCHIVES

July 28, 1984: The opening ceremonies.

(Ken Hively / Los Angeles Times)

Thirty-eight years ago today, on July 28, 1984, the Summer Olympics opened in Los Angeles with a ceremony at the Coliseum that involved 84 baby grand pianos “and a cast of thousands,” wrote sports columnist Helene Elliott in 2014. They were an Olympics nobody wanted except L.A., she wrote, and which nobody in L.A. wanted to pay for with public money.

They were also “the riskiest of all Games,” said one L.A. organizing committee official. President Carter in 1980 had ordered a U.S. boycott of the Moscow Games; in return, the Soviets and some allies shunned the 1984 Los Angeles Olympics “and predicted doom.” But the Games proved successful in a number of ways, including by generating a $225-million surplus, which went on to support elite as well as amateur athletes.

Now, Los Angeles is preparing to host its third Olympics, in 2028, becoming the first city in the U.S. to host the Games three times. Paris — the site of the 2024 Summer Olympics — and London are the only other three-time host cities of the modern Games. Read more pre-Olympics coverage here and power up for the Games!

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