President takes aim at Fed rate increases
WASHINGTON — President Donald Trump Monday criticized Federal Reserve Chairman Jerome Powell for raising interest rates, breaking with recent presidents’ practice of not commenting on the Fed’s handling of the economy.
“I’m not thrilled with his raising of interest rates, no. I’m not thrilled,” Trump said in an interview with Reuters. He urged the Fed to avoid doing anything that could slow economic growth.
The benchmark U.S. interest rate, which plays a large role in setting borrowing costs for mortgages, credit cards, small business and auto loans, was set at a range of 0.5 percent to 0.75 percent when Trump was sworn in. The benchmark rate is now in a range of 1.75 percent to 2 percent, and the Fed has indicated it is likely to increase rates two more times before the end of the year.
Trump since July has repeatedly criticized the Fed, an independent body that is not controlled by Congress or the president.
Powell, a Republican, has repeatedly said that he believes in the Fed’s independence and that he and his colleagues who set interest rates will not bow to outside pressure.
Pump prices slip in Houston, nation
Gasoline prices in Houston and across the country fell last week alongside crude oil prices amid news of higher inventories and concerns about a global economic slowdown.
The average price in the Houston area fell 1.9 cents to $2.58 a gallon, while the national average dropped by about 3 cents to $2.82 a gallon, according to GasBuddy, which tracks fuel prices nationwide.
In Houston, gasoline costs 48 cents more than it did at this time last year. Nationally, prices have increased by nearly 51 cents during the same period.
Early last week, crude oil prices fell when OPEC reported that it had lowered its expectations for oil demand growth next year. The Energy Department then reported a jump in domestic crude inventories, pushing the U.S. and international benchmarks lower.
Patrick DeHaan, head of petroleum analysis at GasBuddy, said he expects prices to keep falling this summer. Labor Day, he added, could be the season’s least expensive driving holiday.
Shopping center in Garden Oaks sold
The Garden Oaks shopping center housing Pink’s Pizza, Shepherd Park Draught House and other neighborhood retailers has just sold to newly created Fifth Corner, a Houston-based commercial real estate firm. The fully occupied center at the northeast corner of 34th Street and North Shepherd is the company’s fourth acquisition in its first investment fund.
Fifth Corner was formed by the former senior executive team of AmREIT, which was acquired in 2015 by South Carolina-based Edens Investment Trust for more than $500 million. The new company’s strategy is to target retail and mixeduse properties in upscale neighborhoods with dense populations. Its other local properties include 3939 Washington Ave. and Sugarland Plaza in First Colony.
The 14,000-square-foot Garden Oaks property, built in 1950, is next to Graham Park. The seller was an entity affiliated with Bryan Danna, principal of Revive Development.
Factory renovations to idle 120 workers
Renovations to a Houston linen factory will lead to 120 workers losing their jobs, at least temporarily, according to a notice sent to the Texas Workforce Commission.
Alasco, based in Salt Lake City, informed the state in a letter dated Aug. 9, that all workers at the Admiral Linen location will lose their jobs, part of a “temporary closure” related to improvements at the linen processing facility at 8020 Blankenship, in Spring Branch. Company officials said the closure could last “up to 90 days.”
The layoffs are expected to take place Oct. 8.
Bridge collapse costly for Benettons
Fallout from the Genoa bridge disaster has erased about $2 billion of net worth from one of Italy’s richest families.
The billionaire Benettons control 30.25 percent of Atlantia, the construction company and toll-road owner that operated the Morandi Bridge that collapsed last Tuesday, killing at least 43. The Atlantia stake is their single largest asset, comprising more than a third of their $13.3 billion fortune, according to the Bloomberg Billionaires Index.