Business Highlights: Biden loan plan; New labor secretary
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Supreme Court seems ready to reject student loan forgiveness
WASHINGTON (AP) — Conservative justices in the Supreme Court’s majority seem likely to sink President Joe Biden’s plan to wipe away or reduce student loans held by millions of Americans. Chief Justice John Roberts led his conservative colleagues Tuesday in questioning the administration’s authority to broadly cancel federal student loans because of the COVID-19 emergency. The plan has so far been blocked by Republican-appointed judges on lower courts. The Biden administration says 26 million people have applied and 16 million have been approved to have up to $20,000 in federal student loans forgiven. The program is estimated to cost $400 billion over 30 years.
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Railroads urged to examine track detectors after Ohio crash
OMAHA, Neb. (AP) — Federal regulators are urging freight railroads to reexamine the way they use and maintain the detectors along the tracks that are supposed to spot overheating bearings in the wake of the fiery Ohio derailment and several other recent crashes where faulty bearings are suspected to be the cause. The safety advisory the Federal Railroad Administration issued Tuesday stops short of telling the railroads exactly what to do, but it encourages them to make sure these detectors are getting inspected often enough and that the railroads have safe standards for when to stop a train after an overheating bearing triggers a warning. More than three dozen railcars came off the tracks near East Palestine, Ohio, on Feb. 3 and the resulting fire involving toxic chemicals forced evacuations.
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Biden to nominate Julie Su as next US labor secretary
WASHINGTON (AP) — President Joe Biden is nominating Julie Su, the current deputy and former California official, as his next labor secretary. She would replace the departing incumbent, former Boston Mayor Marty Walsh. Su, a civil rights attorney and former head of California’s labor department, was central to negotiations between labor and freight rail companies late last year, working to avert an economically debilitating strike, She has also worked to broaden employee training programs and crack down on wage theft. Biden, in a statement, called her a “champion for workers.” Walsh announced his intention to leave the administration earlier this month to lead the National Hockey League Players’ Association.
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China says TikTok ban reflects US insecurities
BEIJING (AP) — China says U.S. government bans on Chinese-owned video sharing app TikTok reflect Washington’s own insecurities and are an abuse of state power. Foreign Ministry spokesperson Mao Ning said the U.S. should “stop suppressing the company and provide an open, fair and non-discriminatory environment for foreign companies in the United States.” TikTok is used by two-thirds of American teens, but there’s concern in Washington that China could use its legal and regulatory powers to obtain private user data or to try to push misinformation or narratives favoring China. On Monday, Canada announced Monday it is joining the U.S. in banning TikTok from all government-issued mobile devices.
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Computer chip funding to require security, worker benefits
WASHINGTON (AP) — The Commerce Department is opening the application process for computer chip manufacturers to access $39 billion in government support to build new factories and expand production. Companies seeking the funds will need to show how they plan to develop a local workforce, with firms getting $150 million or more also required to provide affordable and accessible child care for workers. The funding is part of the CHIPS and Science Act, which President Joe Biden signed into law last August. The grants, loans and loan guarantees are aimed at sharpening the U.S. edge in military technology and manufacturing while minimizing supply chain disruptions.
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Wall Street closes out a chilling February with another dip
NEW YORK (AP) — A frigid February for Wall Street closed out with more losses. The S&P 500 fell 0.3% Tuesday to lock in a loss of 2.6% for the month. The Dow Jones Industrial Average and Nasdaq also fell to cap losing months. After a hot start to the year bolstered by hopes that inflation was on the way down, the stock market shifted into reverse this month. A stream of data showed that inflation and the overall economy remain more resilient than expected. That forced investors to raise their forecasts for how high the Federal Reserve will take interest rates.
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FDA panel narrowly backs Pfizer RSV vaccine for older adults
WASHINGTON (AP) — Federal health advisers have narrowly backed an experimental vaccine from Pfizer that could become the first shot to protect older adults against the respiratory illness known as RSV. A panel of Food and Drug Administration advisers voted 7-4 in favor of the shot’s safety and effectiveness for people 60 and older. The recommendation is non-binding and the FDA will make its own decision on the vaccine. For most healthy people, RSV is a cold-like nuisance. But the virus can be dangerous for young children and the elderly. Pfizer and GlaxoSmithKline are each seeking FDA approval for two new vaccines to protect older Americans from infections.
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Consumer confidence slips again in February
WASHINGTON (AP) — Consumer confidence dipped for the second straight month as stubborn inflation and anxiety over a potentially slowing economy weighed on Americans. The Conference Board reported Tuesday that its consumer confidence index slipped to 102.9 in February, from a reading of 106 in January. The business research group’s present situation index — which measures consumers’ assessment of current business and labor market conditions — ticked up to 152.8 from 151.1 last month. The board’s expectations index — a measure of consumers’ six-month outlook for income, business and labor conditions — tumbled to 69.7 in February from 76 in January.
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The S&P 500 fell 12.09 points, or 0.3%, to 3,970.15. The Dow Jones Industrial Average fell 232.39 points, or 0.7%, to 32,656.70. The Nasdaq composite fell 11.44 points, or 0.1%, to 11,455.54. The Russell 2000 index of smaller companies rose 0.72 points, or less than 0.1%, to 1,896.99.