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Wednesday, April 12, 2023

Four Fed bank boards wanted different policy decision ahead of March hike

 Directors at four of the 12 Federal Reserve regional banks did not want the quarter-percentage-point interest rate increase that the U.S. central bank delivered in March, but it was unclear whether they preferred a pause or a bigger hike, the Fed indicated in a footnote to the minutes from that meeting.

Fed bank directors don't vote on monetary policy, but they do express their views through non-binding votes on the discount rate, which is what the Fed charges to commercial banks for emergency loans. Fed bank presidents say their directors provide key information on the state of the economy.

What exactly the boards at the Cleveland, Chicago, St. Louis and Minneapolis Fed banks would have liked the U.S. central bank to do at the March 21-22 meeting, which was held after the collapse of two regional U.S. banks, won't be known until the Fed publishes separate minutes of its meetings on the discount rate. Those would typically be published next week.

Despite their boards' preference for something different, Chicago Fed President Austan Goolsbee and Minneapolis Fed President Neel Kashkari joined other Fed policymakers in a unanimous vote last month to lift the benchmark overnight interest rate to the 4.75%-5.00% range.

Goolsbee has subsequently called for "patience" on rate hikes.

St. Louis Fed President James Bullard and Cleveland Fed President Loretta Mester do not cast policy votes this year. Both of them have indicated they lean toward tighter policy to battle high inflation.

The minutes of the Fed's meeting last month, which were released on Wednesday, showed "several" policymakers considered pausing interest rate increases, but that they changed their minds after seeing how the central bank and other regulators had calmed conditions with emergency backstops and other measures.

Fed meeting minutes never specify which policymakers made which comments.

"Some" policymakers also would have considered a half-percentage-point increase absent the banking sector stress, the minutes said.

https://www.marketscreener.com/news/latest/Four-Fed-bank-boards-wanted-different-policy-decision-ahead-of-March-hike--43479487/

Novavax cut $50 million in costs, plans to slash more, CEO says

 Novavax Inc cut about $50 million in costs in the first quarter of 2023 and plans to slash more, Chief Executive John Jacobs said in an interview on Wednesday.

“We’re looking at everything from buildings, leases, land, headcount, and contractors, every aspect of our company and the way we work,” he told Reuters.

Jacobs also said the company is in regular talks with the U.S. Food and Drug Administration over the potential design of its 2023 COVID-19 booster shot, and believes Novavax will have a new shot ready in time for the fall.

Novavax, whose COVID-19 vaccine is its lone marketed product after 35 years in business, is relying on an updated COVID shot, cost cutting, and Phase 2 data on its COVID/influenza combination vaccine due in the coming weeks to stay afloat.

The company’s stock plunged to a three-year low in March after the Maryland-based vaccine maker in late February raised doubts about its ability to remain in business, flagging uncertainty around its 2023 revenue, funding from the U.S. government, and pending arbitration with global vaccine alliance Gavi.

Novavax shares ended the day unchanged at $9.04 on Wednesday. They were trading above $76 in early July.

Jacobs said Novavax would seek funding for its COVID/influenza combination shot, including a potential partnership, depending on whether the upcoming data is positive.

The CEO added that the company did not expect to launch its individual flu vaccine this year, and will focus on the COVID vaccine.

Novavax, which missed out on the pandemic vaccine windfall enjoyed by rivals Pfizer Inc and Moderna Inc, is preparing for changes to the way next generation COVID vaccines will be rolled out. Global regulators expect vaccination campaigns to be conducted once a year, similar to annual flu inoculations.

Jacobs said conversations on strain selection with the FDA and other global regulators would help it manufacture its protein-based COVID booster shot much faster than it would otherwise have been able to.

https://www.marketscreener.com/quote/stock/NOVAVAX-INC-58256108/news/Novavax-cut-50-million-in-costs-plans-to-slash-more-CEO-says-43479606/

Saudi Arabia, Syria Foreign Ministers Welcome Start Of Procedure

 SAUDI ARABIA, SYRIA FOREIGN MINISTERS WELCOME START OF PROCEDURES TO RESUME CONSULAR SERVICES AND FLIGHTS - JOINT STATEMENT

https://www.marketscreener.com/news/latest/SAUDI-ARABIA-SYRIA-FOREIGN-MINISTERS-WELCOME-START-OF-PROCEDURE-8230--43479675/

Proud Boy tells jury he had no plan to attack U.S. Capitol before Jan. 6

 A former leader of the far-right Proud Boys testified to a jury on Wednesday that he had no plan to attack the U.S. Capitol before he entered it with hundreds of Donald Trump supporters on Jan. 6, 2021, attempting to overturn his election defeat.

Zachary Rehl, one of five Proud Boy members facing seditious conspiracy and other criminal charges for their role in the attack, spent two days this week answering questions from his attorney about his conduct that day.

"Never did it cross my mind ever to attack the Capitol," Rehl said on Wednesday.

"I think what ultimately unfolded there - all of the violence - was a disgrace," said Rehl, a former leader of the group's Philadelphia chapter. "At the time I was down there it looked like a big, giant protest. I thought it was a protest. That is what I went there for."

Hundreds of supporters of Republican former president Trump stormed the Capitol in a failed attempt to stop Congress from certifying Democratic President Joe Biden's election. Five people including a police officer died during or shortly after the riot and more than 140 police officers were injured. The Capitol suffered millions of dollars in damage.

Rehl testified that he did not assault anyone that day. His decision to testify in his own defense marked the latest twist in what has become the longest running Jan. 6 trial so far in Washington.

Criminal defendants often choose to invoke their Fifth Amendment right not to testify to avoid cross-examination by prosecutors in front of the jury.

A second member of the Proud Boys, Dominic Pezzola, is also expected to testify in his own defense before the trial concludes.

Former Proud Boys leader Henry "Enrique" Tarrio and fellow members Rehl, Pezzola, Ethan Nordean and Joseph Biggs have been on trial on seditious conspiracy charges, with prosecutors alleging they plotted to use violence to stop the transfer of presidential power.

Prosecutors allege that Tarrio, Rehl, Nordean and Biggs were part of group called the Ministry of Self Defense, which allegedly helped mobilize the Proud Boys to travel to Washington.

At least 65 members of this group exchanged encrypted messages, some of which discussed attacking the Capitol, according to the indictment.

Defense lawyers have argued that there was no plan to storm the Capitol and that prosecutors have taken private messages out of context to suggest there was a broad conspiracy.

Answering questions from his lawyer, Rehl was careful in how he described his decision to enter the Capitol on Jan. 6.

"I did eventually go inside the Capitol after it was understood (then-Vice President) Mike Pence had evacuated the building and all the other members of Congress had already evacuated," Rehl said during his first day of testimony on Tuesday. "I didn't want to affect anything with that proceeding."

https://www.marketscreener.com/news/latest/Proud-Boy-tells-jury-he-had-no-plan-to-attack-U-S-Capitol-before-Jan-6--43479680/

Fusion: IND Clearance for Precision Radiation Therapy

 Fusion Pharmaceuticals Inc. (Nasdaq: FUSN), a clinical-stage oncology company focused on developing next-generation radiopharmaceuticals as precision medicines, today announced the clearance of investigational new drug (IND) applications for [225Ac]-FPI-2068 (FPI-2068) and corresponding imaging analogue [111In]-FPI-2107 (FPI-2107) to the U.S. Food and Drug Administration (FDA). Fusion is jointly developing FPI-2068 with AstraZeneca (LSE/STO/Nasdaq: AZN) under the companies' multi-asset collaboration agreement.

Kirby Addresses Pentagon Leak Showing US Special Forces On Ground In Ukraine

In our previous reporting on the leaked Pentagon documents which US authorities are scrambling to undercover the source of, we noted that one Department of Defense slide confirms that the United States and its allies have roughly 100 special forces troops on the ground in Ukraine. Many observers believe it could be much more. 

But the leaked intel showed that as many as 50 British have been operating inside Ukraine at the time the March 23 briefing was put together. Among the US, France and Latvia are also a dozen special forces personnel each, according to the document.


However, the documents don't identify the location of the Western special forces operatives inside Ukraine or what their mission or purpose inside the war-ravaged country is. Typically, US Green Berets train and advise local forces on the ground, as well as assist or directly conduct unconventional warfare operations. 

On Wednesday White House National Security Council spokesman John Kirby belatedly admitted to the accuracy of basic content the slide (namely that there are indeed US Special Forces on the ground), but he downplayed it as a "small US military presence" which is stationed at the American Embassy in Kyiv.

When pressed about the leaked documents, he said to Fox News

"I won't talk to the specifics of numbers and that kind of thing. But to get to your exact question, there is a small U.S. military presence at the embassy in conjunction with the Defense Attachés office to help us work on accountability of the material that is going in and out of Ukraine," Kirby said, referencing the weapons and other support the U.S. has been sending to Kyiv. "So they're attached to that embassy and to that the defense attache." 

Kirby, who was speaking on the sidelines of President Biden’s trip to Northern Ireland, added that those troops "are not fighting on the battlefield." In addition, Fox News is told that the U.S. forces in Kyiv also provide security services.

So he framed the SF troops as part of "oversight" for American defense aid shipped into the country. 

"There has been no change to the president's mandate that there will not be American troops in Ukraine fighting in this war," Kirby said, fully aware that this seems a contradiction of prior Biden administration pledges to keep troops out of Ukraine. Certainly, everywhere there's a US embassy, there are Marine guards, but special forces are a significant step beyond this standard contingent. 

Do the fresh Pentagon leaks show that the US is hiding something when it comes to 'boots on the ground'? It appears so.

https://www.zerohedge.com/markets/kirby-addresses-pentagon-leak-showing-us-special-forces-ground-ukraine

California bill would give convicted murderers a chance to walk free from death row or life in prison

 A new California bill would let some of the state's worst criminals, murderers and serial rapists walk out of prison despite sentences of death or life without parole.

The bill was written by state Sen. Dave Cortese and co-authors, including San Francisco's Sen. Scott Wiener, who wrote a prior bill that decreased the punishment for knowingly infecting someone with HIV. 

It would let some of the state's worst killers and rapists go free after serving 20 years, despite far longer sentences.

"This bill would authorize an individual sentenced to death or life imprisonment without the possibility of parole for a conviction in which one or more special circumstances were found to be true to petition for recall and resentencing if the offense occurred before June 5, 1990, and the individual has served at least 20 years in custody," the legislation reads. "The bill would authorize the court to modify the petitioner’s sentence to impose a lesser sentence and apply any changes in law that reduce sentences or provide for judicial discretion, or to vacate the petitioner’s conviction and impose judgment on a lesser included offense."

The bill was referred to the state Senate's Appropriations Committee on Tuesday.

"It is a slap in the face to victims, who were told that these people would go away for life without the possibility of parole," state Assemblyman James Gallagher, the body’s Republican leader, told Fox News Digital Wednesday.

It's part of an incremental push to empty the state's prisons, he said, which first began with opposition to the death penalty and has expanded over the past decade.

"And with California’s track record right now, these are people who are going to end up being released, who committed murders, rapes, unfathomable crimes against Californians," Gallagher added. "It’s a dangerous and completely unthinkable policy."

The bill has received criticism from prominent Democrats as well.

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"The people supporting this should really be ashamed of themselves," said Jonathan Hatami, a deputy district attorney in Los Angeles who is running to replace the county's current DA, George Gascon. "I’m a Democrat, and I’m 100% against this. I'm also a dad and a caring human being." 

The bill's primary impact would be beneficial to the worst of the worst, he said: murderers who were also convicted of additional special circumstance allegations, and serial rapists.

"SB 94 is another slap in the face to victims and their families," said Kathy Cady, a California lawyer and former prosecutor. She argued that the proposal would "violate the will of the People," and in particular, Marsy's Law, the Victims' Bill of Rights Act.

Robert Galvan, who is on death row for murder, speaks to members of the media at the Adjustment Center yard during a media tour of California's death row at San Quentin State Prison in San Quentin, California, on Dec. 29, 2015. Galvan, who was sentenced to death in 2000, would not be eligible for resentencing under the proposed new law, which would benefit prisoners sentenced prior to June 5, 1990.

Robert Galvan, who is on death row for murder, speaks to members of the media at the Adjustment Center yard during a media tour of California's death row at San Quentin State Prison in San Quentin, California, on Dec. 29, 2015. Galvan, who was sentenced to death in 2000, would not be eligible for resentencing under the proposed new law, which would benefit prisoners sentenced prior to June 5, 1990. (REUTERS/Stephen Lam)

That law, which guarantees victims' rights, she explained, provides that: "Victims of crime are entitled to finality in their criminal cases. Lengthy appeals and other post-judgment proceedings that challenge criminal convictions, frequent and difficult parole hearings that threaten to release criminal offenders, and the ongoing threat that the sentences of criminal wrongdoers will be reduced, prolong the suffering of crime victims for many years after the crimes themselves have been perpetrated. This prolonged suffering of crime victims and their families must come to an end.’" 

Cady said the new bill is both unconstitutional and a violation of victims' rights, which include a right to be heard at sentencing — especially if resentencing is done by stipulation or in secret.

Last year, Gascon's office pushed to transfer a convicted murderer named Scott Forrest Collins off of death row. He had kidnapped and murdered construction worker Fred Rose on his lunch break, stealing his car and $200. Collins' rap sheet already included throwing a Molotov cocktail, stabbing a man in the back and carjacking a woman, and he was out on parole for another robbery when he murdered Rose, a 41-year-old father of three.

Cady represented Rose's family, who opposed his removal from death row.

Left: Fred Rose and his family in an undated photo taken by his stepfather. Right: Convicted murderer and death row inmate Scott Forrest Collins in a 2007 prison photo.

Left: Fred Rose and his family in an undated photo taken by his stepfather. Right: Convicted murderer and death row inmate Scott Forrest Collins in a 2007 prison photo. (Bob Baker, San Quentin State Prison)

Gascon's special adviser at the time, Alex Bastian, argued that the progressive prosecutor was not seeking Collins' release, just to have him resentenced to life without parole.

"We’re not asking for his release, we’re asking that his sentence be commuted to life without the possibility of parole," he told Fox News Digital. "That is something that is, I think, important to note. We are not asking that he be resentenced to something that would put him in front of a parole board."

SB 94 would give a crack at freedom to both those on death row and serving life without parole. Collins, after being removed from death row, died in custody earlier this year.

In 2019, Gov. Gavin Newsom ordered a moratorium on executions in California, but more than 600 inmates remain on death row.

https://www.foxnews.com/us/california-bill-give-convicted-murderers-chance-walk-free-death-row-life-prison