JACKSON HOLE, Wyo. >> The Federal Reserve will give serious consideration to raising its benchmark interest rate in mid-September, particularly if volatility subsides in financial markets, a number of Fed officials said Friday.
The comments, uncoordinated but generally consistent, suggested that some investors and analysts had been too quick to discount a September rate increase, particularly as global markets finished the week on a relatively quiet note Friday.
"We haven’t made a decision yet, and I don’t think we should," Stanley Fischer, the Fed’s vice chairman and a close adviser to the Fed chairwoman, Janet Yellen, said in an interview with cable network CNBC. "We’ve got time to wait and see the incoming data and see what exactly is going on now in the economy." The Fed’s policymaking committee is scheduled to meet Sept. 16 and 17.
Fischer offered an upbeat assessment of the domestic economy. He described job growth as "impressive" and said there had been a "pretty strong case" to raise rates in September before the latest round of global turmoil.
Ashley Madison CEO steps down
NEW YORK >> The chief executive of the company that runs adultery website Ashley Madison is stepping down in the wake of the massive breach of the company’s computer systems and outing of millions of its members.
The abrupt departure of Noel Biderman, which came without the appointment of an interim replacement, could be another sign that the website’s days may be numbered, experts say.
"Unless they can immediately assure the public that their information is protected, then their business is over," says Lawrence Kellogg, a partner with the law firm Levine Kellogg Lehman Schneider & Grossman LLP, who specializes in class-action lawsuits.
"The only reason for an adulterer to join the service is to keep their information private. Absent that, they don’t have a business."
Kellogg says that if the lawsuits from Ashley Madison members keep piling up, Avid Life Media Inc., Ashley Madison’s parent company, ultimately could end up filing for bankruptcy protection.
And while those who sue the company might have a tough time proving their claims, costs related to the court fights could drain the company dry, he says.
Apple’s music service losing key player
SAN FRANCISCO >> Apple’s online music subscription service is losing a key player as millions of listeners near the end of a free three-month trial period that has drawn mixed reviews.
Ian Rogers, part of a team acquired last year, is leaving Apple to take a job at an unidentified company in Europe. Apple confirmed Rogers’ departure Friday without providing additional details.
Apple’s $3 billion acquisition of Beats last year was driven in large part by the iPhone maker’s desire to draw upon the musical chops of Rogers, longtime recording executive Jimmy Iovine and hip-hop artist Dr. Dre. Both Iovine and Dr. Dre, whose real name is Andre Young, remain with Apple.
Consumer spending up 0.3% in July
WASHINGTON >> U.S. consumers increased their spending moderately in July, as wages and salaries made their biggest jump in eight months.
Spending rose 0.3 percent in July, helped by purchases of big-ticket items such as cars, the Commerce Department reported Friday. June’s result was revised up to a matching 0.3 percent gain.
Incomes increased 0.4 percent in July. The key category of wages and salaries rose 0.5 percent, the biggest advance since November.
The report suggests that consumer spending, which accounts for 70 percent of economic activity, got off to a good start in the third quarter as strong momentum from the second quarter rolled into July.
Stock meltdown hits consumer sentiment
WASHINGTON >> Plummeting stock prices have taken a toll on U.S. consumer confidence, though there are signs the setback may be temporary.
The University of Michigan says its consumer sentiment index fell to 91.9 this month from 93.1 in July. The index is still up 11.4 percent from a year ago.
The figures provide an early read of the impact on consumers from the 1,900-point drop in the Dow Jones industrial average over six days through Tuesday. Stock prices have since recovered some of those losses.
Goodyear retiring blimps for new craft
LOS ANGELES >> The fabled Goodyear Blimp, which has been seen floating over American sports events for generations, is retiring.
But that big, cigar-shaped dirigible will remain instantly recognizable with its blue-and-gold Goodyear logo emblazoned across the side. It just won’t be, technically, a blimp.
From the ground it won’t look much different from Goodyear’s Spirit of America, which was deflated and disassembled earlier this month after a farewell flight across California.
ON THE MOVE
Servco Pacific Insurance has announced two management appointments for their operations in Hawaii:
>> Wayne Wehr has been appointed executive vice president and will also serve as group vice president and vice president for Servco Pacific, parent company of SPI. Wehr has been with SPI since 1996 and was a senior vice president for SPI and vice president for Servco Pacific.
>> Jacinda Elias was appointed senior vice president and will also serve as group vice president and vice president for Servo Pacific. Before joining SPI, Elias served as unit manager for Atlas Insurance Agency in Honolulu as well as vice president of insurance operations for King & Neel.
Coldwell Banker Pacific Properties has promoted Jennifer L. Andrews to branch manager of its Windward office. She joined the real estate firm in 2013 and was assistant branch manager of Coldwell Banker Pacific Properties’ Honolulu office. Before joining the firm, Andrews was a projects manager for Primary Properties Inc.’s Department of Hawaiian Home Lands.
