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    Vaccine mandates for travel are legal in the U.S. — and more are probably coming

    CNBC Travel

    Vaccine mandates trickled into the U.S. travel sphere last winter, picked up steam in the spring and hit fever pitch over the summer.
    Vaccine shots are now necessary to eat in cafes in France, to see a Broadway show in New York City and soon, to fly commercially in Canada.

    Though mandates were expected for cruises and international travel, the pace and scope of activities that they now cover —  from booking group tours to staying in hotels —  has surprised industry experts.
    “It has been interesting to watch the striking acceleration of vaccine mandates,” said Harry Nelson, founder of health-care law firm Nelson Hardiman.
    He said that while the U.S. Food and Drug Administration’s full approval of the Pfizer-BioNTech vaccine last month has prompted some mandates, they’re also being “driven by increasingly supportive public opinion of the vaccinated majority.”

    Are vaccine mandates legal?

    Yes, said Lawrence O. Gostin, professor at Georgetown Law and the faculty director of the O’Neill Institute for National and Global Health Law.
    “Businesses have full power to require reasonable safety standards for customers,” he told CNBC. “Just as many businesses have required masking, they could also ask for proof of vaccination.”

    That’s true whether mandates come from private businesses or government-owned attractions, such as the Grand Canyon or tours at the White House, he said.

    We felt strongly that it was the right thing to do, and sometimes doing the right thing is hard.

    Kelly Sanders
    senior vice president of operations, Highgate Hawaii

    “For some high-risk businesses, such as cruise lines and hotels, it is very much in their economic interests to make their customers feel safe and secure — they have every right to do so,” said Gostin. “Similarly, President Biden, who oversees federal properties, could require proof of vaccination for entry to… national parks and federal buildings.”   
    Nelson agrees, adding that there is a long history of courts upholding vaccine mandates, though those have mostly been in the context of school requirements.
    “I expect that, for the most part, the vaccine mandates will stand up,” he said.

    Vaccine exemptions

    The next great debate could be the diluting effect that vaccine exemptions may have on vaccine mandates.
    Gostin said public and private companies “probably have to allow both medical and religious exemptions” but they can be “narrow and hard to get.”
    United Airlines seems to be taking that approach. Staff granted religious exemptions to the airline’s recently-announced workforce vaccine mandate will be placed on temporary unpaid leave starting next month.  

    Unvaccinated tourists who travel to New York City can walk down the streets near Broadway, but they can’t attend shows without an exemption.
    Spencer Platt | Getty Images News | Getty Images

    The government has an “easy case” to refuse religious exemptions for vaccines against infectious disease, wrote Douglas Laycock, a professor at the University of Virginia School of Law, in an article published last week on Australia-based news site The Conversation.  
    “Even when religious objections are sincere, the government has a compelling interest in overriding them and insisting that everyone be vaccinated,” he wrote. “And that overrides any claim under state or federal constitutions or religious liberty legislation.” 
    As for how far challenges to vaccine mandates can go, Laycock wrote: “Unless governments mandating vaccines do not defend their rules, or the Supreme Court changes the law, the answer is likely, ‘Not far.'”
    Nelson said he believes a majority of the U.S. Supreme Court would welcome the opportunity to articulate broader personal religious freedoms if given the chance.

    What’s next?

    Expect more companies to announce vaccine mandates, said Nelson, especially after vaccines are approved by the FDA for kids aged 5-12, and eventually those even younger.
    Hotels have been slow to enter the vaccine mandate fray, but that’s starting to change. Elite Island Resorts, which operates nine resorts in the Caribbean, and Highgate Hawaii, which operates seven hotels in Hawaii, both announced mandatory vaccine policies, as have others.
    “We felt strongly that it was the right thing to do, and sometimes doing the right thing is hard,” said Kelly Sanders, senior vice president of operations for Highgate Hawaii. “I expect that more (hotels) will eventually follow.”

    Starting Oct. 15, guests aged 12 and older must be vaccinated to stay at Highgate Hawaii’s ‘Alohilani Resort Waikiki Beach.
    Courtesy of ‘Alohilani Resort Waikiki Beach

    Flights may be next, if airlines follow the lead of Qantas’ CEO Alan Joyce, who indicated earlier this month that passengers will be required to be vaccinated on its international flights.  
    U.S. officials are debating whether to require vaccinations to fly both domestically and internationally, as reported last week by The Washington Post. Dr. Anthony Fauci, the White House’s chief medical advisor, said this month he would likely support a vaccine mandate for air travel.
    Georgetown’s Gostin said he could foresee President Biden issuing a vaccine mandate for interstate or international travel, similar to the one his administration announced earlier this week for foreigners traveling into the U.S.
    “But airlines themselves could also set this requirement,” said.  
    To date, no major U.S. airline has announced such a policy.

    Vaccine passports

    So-called “vaccine passports” may be on the horizon too, said Nelson, as interest increases for reliable proof of vaccination status.
    “I think we are going to see them throughout the hospitality and entertainment industry,” he said.

    From Sept. 13, guests staying at New York City’s Equinox Hotel must be vaccinated.
    Jeenah Moon | Bloomberg | Getty Images

    The White House last April ruled out plans to create a federal vaccine passport, but Nelson said he feels they are more likely to show up in “blue” states given “the trend of ‘red’ state hostility to the concept.”  
    “My sense is that the government is counting on the fact that as more ambivalent and reluctant people are vaccinated, the stronger the public pressure will be,” he said. “New measures, coupled with fear over hospitalization and mortality rates among the unvaccinated, are likely to lead to even more support for more restrictions.” More

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    Ant Group to share consumer credit data with China's central bank as regulatory overhaul continues

    Ant Group will share credit data from its consumer lending business with China’s central bank as part of an overhaul of the fintech giant.
    Information from Ant’s Huabei product, including date of account set up, amount in the credit line and status of repayment will be provided to the People’s Bank of China.
    Chinese regulators ordered a restructuring of Ant Group after the company’s blockbuster listing in November was suspended.

    GUANGZHOU, China — Ant Group will share credit data from its consumer lending business with China’s central bank as part of an overhaul of the fintech giant.
    Huabei is a consumer loan product under Ant Group. Data from that lending product will be fed into the financial credit information database held by the People’s Bank of China (PBOC), Ant said in a statement Wednesday.

    Information including date of account set up, amount in the credit line and status of repayment will be provided to the central bank. Users will need to authorize this. Specific information such as details about time of purchases or goods being bought will not be handed over to the PBOC.
    Ant Group, which is controlled by billionaire Alibaba founder Jack Ma, had its blockbuster initial public offering suspended in November over regulatory concerns.
    Ant’s lending business worked on a model in which it matched up borrowers to lenders, such as banks, but the company did not underwrite those loans. Instead, banks bore most of the risk.

    This worried regulators who believed companies like Ant were acting like financial institutions but not being regulated like them.
    Chinese regulators ordered a restructuring of Ant Group. In June, the company was given the green light to operate a consumer finance business with outside shareholders. This business houses its Huabei and Jiebei loan products and is called Chongqing Ant Consumer Finance Co. Ant will have to partly underwrite more of these loans.

    Ant Group is currently in the process of becoming a financial holding company which will be overseen by the PBOC and other regulators.

    A logo of Ant Group is pictured at the headquarters of the company, an affiliate of Alibaba, in Hangzhou, Zhejiang province, China October 29, 2020.
    Aly Song | Reuters

    The data-sharing requirements with the PBOC brings Ant Group in line with other financial institutions in the lending space which are required to do the same thing.
    Ant Group said some users can already look up the Huabei-related records in their credit reports with the central bank.
    The company looks to assuage fears that the sharing of users’ credit data from Huabei could affect their future ability to get loans.
    “A comprehensive and proper set of credit records will enable financial institutions to better understand users’ creditworthiness and to better serve them,” Ant Group said in a statement.

    In my view, this means the intent is to allow Ant to continue its business but under regulatory purview and rules.

    Kevin Kwek

    “Therefore, under general circumstances and with the normal usage of Huabei and timely repayments, the use of other financial services such as loan applications will not be impacted.”
    Kevin Kwek, managing director and senior analyst at Bernstein, said the credit data-sharing agreement with the central bank clears “significant” regulatory uncertainty around Ant Group.
    “Sharing of data of course erodes Ant’s edge, but doing so allows them to obtain regulatory blessings, such as getting the consumer finance license,” Kwek told CNBC.
    “In my view, this means the intent is to allow Ant to continue its business but under regulatory purview and rules, and if it helps the broader consumer credit bureau agenda. It is important to note that Ant will continue to be dominant as a very large distributor given its user base, even if it now has to share some data.”

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    FDA still silent on Covid booster shots as key CDC panel concludes first day of a two-day meeting

    The FDA still hasn’t said whether it will authorize Pfizer-BioNTech Covid booster shots for some Americans even as a key CDC vaccine advisory group concludes its first day of a two-day meeting on the topic.
    Usually, the FDA announces its decision on certain vaccines or drugs before the CDC and its Advisory Committee on Immunization Practices meet and issue their own recommendations.
    The CDC panel is supposed to vote on the booster shots Thursday, but officials said they will postpone that noon meeting if the FDA’s decision hasn’t been announced by then.

    The Food and Drug Administration still hasn’t announced whether it will authorize Pfizer-BioNTech Covid booster shots for some Americans even as a key Centers for Disease Control and Prevention vaccine advisory group concludes its first day of a two-day meeting on the topic.
    Usually, the FDA announces its decision on certain vaccines or drugs before the CDC and its Advisory Committee on Immunization Practices take their turn to meet and issue their own recommendations. The CDC panel is supposed to vote on the booster shots Thursday, but officials said they will postpone that meeting if the FDA’s decision isn’t announced by the time the committee reconvenes at noon.

    The FDA’s Vaccines and Related Biological Products Advisory Committee on Friday overwhelmingly rejected a plan to distribute the extra shots to Americans 16 and older, before unanimously embracing an alternate plan to give boosters to older Americans and those at a high risk of suffering from severe illness.

    CNBC Health & Science

    It was considered a controversial recommendation because the Biden administration has said it wants to begin offering booster shots to the general public as early as this week, pending authorization from U.S. health regulators.
    It’s now up to FDA regulators to decide whether they will accept the FDA advisory committee’s recommendation — which it often does — or perhaps depart from the advice given and increase the number of people eligible to get the extra shots.
    An FDA spokesperson declined to provide information on the timing of the agency’s decision.
    The FDA still has some time. The CDC advisory group isn’t expected to vote on who should get Pfizer booster shots until Thursday afternoon, and federal health officials indicated earlier Wednesday that the vote may be pushed to another time if the FDA hasn’t made its decision by then.
    During the meeting Wednesday, CDC advisors listened to several presentations on data to support the wide distribution of booster shots, including one presentation from a Pfizer executive, who displayed data that showed a third shot appears to be safe and boost antibody levels in recipients.

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    FDA authorizes Pfizer's Covid booster shots for people 65 and older and other vulnerable Americans

    The FDA authorized Covid vaccine booster shots for people 65 and older.
    Individuals 18 through 64 years old who are at high risk of developing severe Covid are also eligible.
    Individuals 18 through 64 years of age who are frequently exposed to Covid either through their work or “institutional” exposure to the virus are also eligible.

    The Food and Drug Administration authorized Pfizer and BioNTech’s Covid-19 booster shots for people 65 and older and other vulnerable Americans six months after they complete their first two doses, making many Americans eligible to receive the shots now.
    The FDA’s decision largely follows recommendations given Friday by its key vaccine advisory committee at a more than 8-hour agency meeting. The Vaccines and Related Biological Products Advisory Committee voted 16-2 against distributing the vaccines to Americans 16 and older, before unanimously embracing an alternate plan to give boosters to older Americans and those at a high risk of suffering from severe illness if they get the virus.

    Though Americans 65 and older make up roughly 17% of the U.S. population, they are the most at risk of dying from Covid, accounting for more than 77% of all Covid deaths, according to the Centers for Disease Control and Prevention.
    The FDA granted emergency use authorization to administer Pfizer’s shots to older Americans and people from 18- to 64-years-old with medical conditions that place them at risk of getting severely sick. The agency also included a broad definition of people from 18 to 64 “whose frequent institutional or occupational exposure” to the virus place them at a high risk of developing serious complications from Covid. That leaves enough wiggle room for the CDC to potentially clear third doses for people in nursing homes, prisons, front-line health employees and other essential workers who were among the first Americans who got the initial shots in December.
    “The FDA considered the committee’s input and conducted its own thorough review of the submitted data to reach today’s decision,” Dr. Peter Marks, the agency’s top vaccine regulator, said in a statement. “We will continue to analyze data submitted to the FDA pertaining to the use of booster doses of COVID-19 vaccines and we will make further decisions as appropriate based on the data.” 
    The nonbinding decision by the vaccine advisory committee was expected to be a controversial one as the Biden administration has said it wants to begin offering booster shots to the general public as early as this week, pending authorization from U.S. health regulators.
    While the agency hasn’t always followed the advice of its committee, it often does. Still, Marks reminded the panel on Friday that federal regulators did not have to accept its recommendation as written.

    CNBC Health & Science

    “We are not bound at FDA by your vote, just so you understand that. We can tweak this as need be,” he said.
    In clearing the shots, which only apply to people who received Pfizer’s original vaccine, the FDA cited a small study provided by the company of about 300 people who received the boosters, data provided by the U.K. as well as more comprehensive, but less rigorous data, from Israeli health authorities.
    Some scientists, including at least two at the FDA, had said they weren’t entirely convinced every American who has received the Pfizer vaccine needed extra doses at this time. However, the nation’s top health regulators, including CDC Director Dr. Rochelle Walensky, acting FDA Commissioner Dr. Janet Woodcock and White House chief medical advisor Dr. Anthony Fauci, already endorsed Biden’s booster plan in August.
    Friday’s vote put the FDA panel in an “awkward position” as the administration has already announced they would begin distributing boosters to the general public this month, Northwell Health chief of infectious disease Dr. Bruce Farber said prior to the panel’s recommendation.
    Some committee members said they were concerned that there wasn’t enough data to make a recommendation, while others argued third shots should be limited to certain groups, such as people over age 60 who are known to be at higher risk of severe disease. Some members raised concerns about the risk of myocarditis in younger people, saying more research is needed.
    Phil Krause, an FDA vaccine regulator who is leaving the agency over pressure from the Biden administration to approve the shots, was critical of the findings presented at the meeting, saying much of the data had not been reviewed by the federal agency or peer-reviewed. He said the models used were complex and scientists have to ensure it “is giving you the correct results.”
    “That’s part of the difficulty at looking at this kind of data without having the chance for FDA to review it,” he said.
    In outlining plans last month to start distributing boosters as early as this week, administration officials cited three CDC studies that showed the vaccines’ protection against Covid diminished over several months. Senior health officials said at the time they worried protection against severe disease, hospitalization and death “could” diminish in the months ahead, especially among those who are at higher risk or were vaccinated during the earlier phases of the vaccination rollout.
    Pfizer said In documents made public last week that an observational study in Israel showed a third dose of the Covid vaccine six months after a second shot restores protection from infection to 95%. The data was collected from July 1 through Aug. 30 when the fast-spreading delta variant was surging throughout the country.
    In a presentation Friday, Dr. Sharon Elroy-Preiss of Israel’s Health Ministry argued that if officials there had not begun distributing boosters at the end of July, the nation likely would have exceeded its hospital capacity. Health officials began to see a trend, she said, of individuals in their 40s and 50s who were fully vaccinated become critically ill with Covid.
    “We didn’t want to wait to see those results and we knew that we needed to vaccinate a larger portion of the population in order to get the numbers down quickly,” she told the committee. Israeli health authorities expected severe cases to average 2,000 by late August, she said. “We were able to dampen that effect and our severe cases are roughly 700 or less and have stayed stable, even though we still have days at 10,000 confirmed cases.”
    The FDA OK is not the final go-ahead. The CDC’s vaccine advisory committee held the first day of a two-day meeting Wednesday to debate the third shots with a vote on the FDA’s proposal scheduled Thursday afternoon. If they issue a recommendation and it is approved by the CDC, booster shots could begin immediately.

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    Britney Spears conservatorship: Ex-prosecutor predicts timeline for when Jamie Spears may be removed

    Britney Spears stated in court documents Wednesday, for the first time, that her father, Jamie Spears, should be removed from the conservatorship.
    She had previously asked a judge for it in a court hearing, but Wednesday’s filing is a new step that makes it official.
    Ex-prosecutor David Henderson told host Shepard Smith that before eliminating the conservatorship, “the judge is probably going to want to hear testimony from an investigator.”

    Former prosecutor David Henderson predicted that September 29 would mark the day that Jamie Spears would be removed from daughter Britney Spears’ conservatorship. 
    “I think this is one of those situations where you turn on the light, and the bugs scatter,” the Civil Rights lawyer told CNBC’s “The News with Shepard Smith.” “I think that on the 29th, we can expect to see him removed.”

    Britney Spears stated in court documents Wednesday, for the first time, that her father, Jamie Spears, should be removed from the conservatorship. She had previously asked a judge for it in a court hearing, but Wednesday’s filing is a new step that makes it official.
    Henderson explained, however, that the conservatorship will likely continue past Sept. 29. 
    “I think this is a situation that’s closer to when you have a CEO who steps down, the company can still survive, so the conservatorship exists because the court has determined that Britney is not capable of taking care of herself physically or financially,” said Henderson, a CNBC contributor.
    The conservatorship has enabled Britney’s father to control her life decisions and finances for 13 years. Jamie filed a petition earlier this month, and asked to terminate the conservatorship. He has repeatedly denied any misconduct in his role as conservator. 
    Henderson told host Shepard Smith that before eliminating the conservatorship, “the judge is probably going to want to hear testimony from an investigator.”

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    The Fed is evaluating whether to launch a digital currency and in what form, Powell says

    The Fed is pushing ahead with its study into whether to implement its own digital currency and will be releasing a paper on the issue shortly, Chairman Jerome Powell said Wednesday.
    No decision has been made on the matter yet, he added, and said the Fed does not feel pressured to do something quickly as other nations move forward with their own projects

    The Federal Reserve is pushing ahead with its study into whether to implement its own digital currency and will be releasing a paper on the issue shortly, Chairman Jerome Powell said Wednesday.
    No decision has been made on the matter yet, he added, and said the Fed does not feel pressured to do something quickly as other nations move forward with their own projects.

    “I think it’s important that we get to a place where we can make an informed decision about this and do so expeditiously,” Powell said at his post-meeting news conference. “I don’t think we’re behind. I think it’s more important to do this right than to do it fast.”
    Powell added the Fed is “working proactively to evaluate whether to issue a CBDC, and if so in what form.”
    Establishing a digital dollar has been on the Fed’s radar for more than a year, and it announced in May it would launch a deeper examination into the issue with a paper to follow.
    The Boston Fed has taken point on the project, joining with MIT in an initiative on whether the central bank should establish its own digital coin targeted at making the payments system more effective. Fed Governor Lael Brainard has been a strong advocate of the effort, though several other officials, including Vice Chair for Supervision Randal Quarles, have cast doubts.
    Advocates such as Brainard say a central bank digital currency’s benefits include getting payments quickly to people in times of crisis and also providing services to the unbanked.

    “We think it’s really important that the central bank maintain a stable currency and payments system for the public’s benefit. That’s one of our jobs,” Powell said. He noted the “transformational innovation” in the area of digital payments and said the Fed is continuing to do work on the matter, including its own FedNow system expected to go online in 2023.
    The test for a CBDC, he said, is “are there clear and tangible benefits that outweigh any costs and risks.”
    However, a larger drumbeat has been building as central banks, most notably China, have moved forth with their own plans and begun the first stages of implementation.
    Some concerns even have been raised that if the Fed does not act more aggressively, the dollar’s position as the global reserve currency could be challenged.
    Powell noted the dollar’s position in the world and said the Fed is “in a good place” to make a decision on whether to implement its own digital currency. He expressed some concern about the regulatory landscape and said the Fed likely will need congressional permission should it decide to proceed.
    “Where the public’s money is concerned, we need to make sure that appropriate regulatory protections are in place, and today there really are not in some cases,” Powell said.

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    Federal Reserve holds interest rates steady, says tapering of bond buying coming 'soon'

    The Fed kept benchmark interest rates anchored near zero.
    Officials indicated they expect to begin reducing monthly asset purchases “soon,” but did not say when.
    Economic projections pointed to slower overall growth this year but higher inflation than previously projected.

    The Federal Reserve on Wednesday held benchmark interest rates near zero but indicated that rate hikes could be coming sooner than expected, and it significantly cut its economic outlook for this year.
    Along with those largely expected moves, officials on the policymaking Federal Open Market Committee indicated they will start pulling back on some of the stimulus the central bank has been providing during the financial crisis. There was no specific indication, though, as to when that might happen.

    “If progress continues broadly as expected, the Committee judges that a moderation in the pace of asset purchases may soon be warranted,” the FOMC’s post-meeting statement said. Respondents to a recent CNBC survey said they expect tapering of bond purchases to be announced in November and begin in December.
    Fed Chairman Jerome Powell, at his post-meeting news conference, said the committee is ready to move.
    “While no decisions were made, participants generally viewed that so long as the recovery remains on track, a gradual tapering process that concludes around the middle of next year is likely to be appropriate,” he said.
    For now, the committee voted unanimously to keep short-term rates anchored near zero.

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    However, more members now see the first rate hike happening in 2022. In June, when members last released their economic projections, a slight majority put that increase into 2023.

    Powell said the Fed is getting closer to achieving its goals on “substantial further progress” on inflation and employment.
    “For inflation, we appear to have achieved more than significant progress, substantial further progress. That part of the test is achieved in my view and the view of many others,” he said.
    “My own view is the test for substantial further progress on employment is all but met,” Powell added.

    Markets shaved some of their gains following the Fed news initially, with major stock averages still showing strong gains and government bond yields mixed.
    There were some substantial changes in the Fed’s economic forecasts, with a decrease in the growth outlook and higher inflation expectations.
    The committee now sees GDP rising just 5.9% this year, compared with a 7% forecast in June. However, 2023 growth is now set at 3.8%, compared with 3.3% previously, and 2.5% in 2023, up one-tenth of a percentage point.
    Projections also signaled that FOMC members see inflation stronger than projections in June. Core inflation is projected to increase 3.7% this year, compared with the 3% forecast the last time members gave their expectations. Officials then see inflation at 2.3% in 2022, compared with the previous projection of 2.1%, and 2.2% in 2023, one-tenth of a percentage point higher than the June forecast.
    Including food and energy, officials expect inflation to run at 4.2% this year, up from 3.4% in June. The subsequent two years are expected to fall back to 2.2%, little changed from the June outlook.
    In another move, the Fed said it would double the level of repurchase of its daily market operations to $160 billion from $80 billion.
    Markets had been expecting little in the way of major decisions from the meeting but have been on edge in part over when the Fed will begin reducing the pace of its monthly bond purchases.
    Powell said during the Fed’s annual August symposium in Jackson Hole, Wyoming, that he and others were of the position that the central bank had met its inflation target and could start reducing the minimum $120 billion a month in buying of Treasurys and mortgage-backed securities.
    Investors also were looking to the meeting to see where Fed officials stand on the inflation outlook.
    The Fed’s preferred inflation measure — the personal consumption expenditures index less food and energy prices — accelerated by 3.6% in July, the highest level in 30 years. However, Powell has said repeatedly that he expects price pressures to subside as supply chain factors, goods shortages and unusually high levels of demand return to pre-pandemic levels.
    Projections for unemployment were a bit more pessimistic, with the end-year unemployment rate now at 4.8%, from the current 5.2% and the June estimate of 4.5%. That comes on the heels of a disappointing August payrolls report that showed job growth of just 235,000.
    However, Powell said it would not require blockbuster jobs numbers to get the Fed to begin removing policy accommodation.
    “For me it wouldn’t take a knockout, great, super strong employment report. It would take a reasonably good employment report for me to feel like that test is met. Others on the committee, many on the committee, feel the test is already met. Others want to see more progress,” he said.

    Correction: An equal number of FOMC members see a rate hike in 2022 as those who don’t, though the central tendency is listed as an increase next year in the Fed’s summary of economic projections. An earlier version mischaracterized the committee members’ individual expectations.

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    Stock futures are flat after Dow, S&P snap 4-day losing streak following Fed decision

    U.S. stock index futures were little changed during overnight trading on Wednesday after the Federal Reserve kept benchmark interest rates unchanged, while indicating no immediate intention of removing stimulus policies.
    Futures contracts tied to the Dow Jones Industrial Average gained 62 points. S&P 500 futures were up 0.14%, while Nasdaq 100 futures advanced 0.17%.

    Stocks finished higher across the board during regular trading following the central bank’s commentary. The Dow gained roughly 340 points, or 1%, for its first positive session in five and best day since July 20. The 30-stock benchmark did close below its highest levels of the day, however, after advancing more than 500 points at one point.
    The S&P advanced 0.95%, also snapping a four-day losing streak and registering its best day since July 23. The Nasdaq Composite finished the session 1.02% higher, while the Russell 2000 outperformed on the session, rising 1.48%.
    “If progress continues broadly as expected, the Committee judges that a moderation in the pace of asset purchases may soon be warranted,” a statement from the Fed following the meeting read. No timeline was given, however.
    The central bank implemented a $120 billion per month bond-buying program last year as the pandemic shuttered the economy. As economic conditions improve more members of the Federal Open Market Committee now see the first rate hike happening in 2022.

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    “The Fed struck a positive tone, acknowledging that the economy is strong enough to stand on its own two feet and the central bank can begin removing the monetary stimulus that they’ve been providing since the beginning of the Covid crisis,” said Chris Zaccarelli, chief investment officer for Independent Advisor Alliance.

    “Although there may be some additional turbulence this fall, we are constructive on the US economy in general and believe that any dips would be worth buying as the fundamentals are still sound and recession appears to be more than a year away at this point,” he added.
    Wednesday’s move was not enough to push stocks into the green for the week, however. The Nasdaq Composite is down 0.98% over the last three sessions, while the S&P and Dow have dipped 0.84% and 0.94%, respectively.
    Some of this week’s weakness is thanks to concerns over heavily indebted Chinese property developer Evergrande. The company did announce on Wednesday that its real estate group would make interest payments on time, which assuaged some fears.
    September is also living up to its reputation as a tough period for stocks, and the three major averages are all down at least 2% for the month.
    “We believe the S&P 500 has further room to run, but one of the biggest downside risks stems from valuations amid the prospect of higher yields/ERPs, less liquidity and slower growth,” UBS said in a recent note to clients.
    On Thursday the Department of Labor will release initial jobless claims number, while several companies are on deck for quarterly updates including Darden Restaurants which reports before the market opens, while Nike and Costco Wholesale will provide quarterly updates once the market closes. Flash estimates for September Manufacturing PMI and Services PMI will also be released.

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