Saudi crown prince’s arrests a risky gamble
Saudi crown prince’s arrests a risky gamble
DUBAI, United Arab Emirates (AP) — Saudi Arabia’s young Crown Prince Mohammed bin Salman has taken his riskiest gamble yet with the stunning arrests of top princes, military officers, government officials and influential businessmen in the kingdom.
The sweep, which the government says is aimed at eliminating corruption, also appears to be aimed at stamping out potential rivals or critics of Prince Mohammed, popularly known as “MBS” and the son of King Salman.
The move is raising concerns over increasing totalitarianism along with disarray and resentment from within a royal family whose unity has been the bedrock of the kingdom.
Most stunning in the arrests of 11 princes and 38 officials and businessmen are the detentions of two sons of the late King Abdullah. Until Saturday, Prince Miteb bin Abdullah had headed the powerful National Guard; Prince Turki bin Abdullah was once governor of the capital, Riyadh.
The two — both cousins of the crown prince — were considered the favorites of King Abdullah, who ruled until his death in January 2015, when his half brother King Salman was crowned monarch.
Why debt from GOP tax cuts might impose a painful price
WASHINGTON (AP) — When House Republicans proposed their tax-cut plan last week, critics noted that it came with a towering price: It would swell the nation’s debt by $1.5 trillion at a time when the economy is already faring well on its own and a vast generation of retiring baby boomers threatens to strain the Social Security and Medicare programs.
President Donald Trump and Republicans in Congress argue that their plan, which would shrink the corporate tax rate and end taxes for most wealthy estates, would accelerate economic growth. It would do so, they say, by leaving more after-tax money for businesses to invest and to increase pay for their employees, who would then spend more and help invigorate the economy.
Kevin Hassett, chairman of the White House Council of Economic Advisers, has contended that the proposal to cut the corporate tax rate to 20 percent from 35 percent could, by itself, enlarge the economy by up to $1.2 trillion over the long run and eventually add $4,000 a year to average household income. Those claims were promptly dismissed as wildly optimistic by Democrats and many economists.
Adding to the government’s debts poses risks, too: More debt could drive interest rates up as the government competes with private borrowers for credit. It could also eventually require cuts to popular spending programs. And it might leave policymakers with less ammunition the next time a recession strikes.
For now, the American economy is already gliding along at a decent pace. Growth has come in at a solid annual rate of 3 percent or better in each of the past two quarters. Employers have added jobs for a record 85 straight months. Corporate profits are strong. And the unemployment rate is 4.1 percent, its lowest level in nearly 17 years.
Lives of anxiety: Immigrants seek sanctuary in US churches
NEW YORK (AP) — Amanda Morales sees her children off to school each day from the entrance of a gothic church, but she won’t even venture onto the sidewalk for fear of what may happen if she leaves the building where she has been a virtual prisoner for more than two months.
Morales has been living in two small rooms of the Holyrood Episcopal Church at the northern edge of Manhattan since August, shortly after immigration authorities ordered her deported to her homeland of Guatemala. She says she cannot go back to her country and does not want to leave her three kids, who are all U.S. citizens by birth, so she sought sanctuary at a house of worship.
“Being cooped up like this is starting to drive me crazy,” the 33-year-old said on a recent morning as her two oldest children headed off to school escorted by a volunteer and she stayed behind with her youngest. “Some nights I hardly sleep.”
At least two dozen immigrants have sought sanctuary at U.S. churches since the Immigration and Customs Enforcement agency stepped up arrests by 40 percent under President Donald Trump. Morales provided a glimpse of her experience to The Associated Press, describing a life of constant anxiety that involves staying hidden all day, except for a few furtive trips to a nearby dentist and occasional appearances on the church steps.
She has reason to be anxious. As a fugitive, she could be arrested at any moment, though the agency considers churches to be “sensitive locations” and generally does not pursue people inside.
Fed leadership overhaul widens under Trump
WASHINGTON (AP) — A revamping of the Federal Reserve’s leadership is widening with the announcement Monday that William Dudley, president of the New York Fed and the No. 2 official on the Fed’s key interest rate panel, will retire next year.
Just last week, President Donald Trump chose Fed board member Jerome Powell to replace Janet Yellen as Fed chair in February. The post of Fed vice chair remains vacant. So do two additional seats on the Fed’s seven-member board. And a fourth seat may open as well next year.
The unusual pace of the turnover has given Trump the rare opportunity for a president to put his personal stamp on the makeup of the Fed, which operates as an independent agency. Investors are awaiting signals of how Trump’s upcoming selections might alter the Fed’s approach to interest rates and regulations.
Trump has made it known that he favors low interest rates. He has also called for a loosening of financial regulations. The Fed has played a key role in overseeing the tighter regulations that were enacted after the 2008 financial crisis, which nearly toppled the banking system.
The uncertainty surrounding the Fed’s top policymakers has been heightened by the slow pace with which the Trump administration has moved to fill openings.