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US gas stations run out of fuel

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The cyberattack on one of America’s Colonial Pipeline is starting to impact consumers and businesses across the United States.

Gas stations across the US have begun reporting fuel shortages, primarily because of what analysts say is being caused on unwarranted panic-buying among drivers.

Panicked drivers have been seen banking up their cars in long lines at petrol stations across America’s East Coast, as they rushed to fill their cars amid fear supply could soon temporarily run out.

The pipeline supplies the East Coast of America with about 45 percent of its fuel but has now been offline for four days after a cyber attack.

The Governments Response

Government officials have acted swiftly to waive safety and environmental rules to speed the delivery of fuel by truck, ship or rail to motorists and airports, even as they sought to assure the public that there was no cause for alarm.

YOU MIGHT ALSO LIKE – The risk ransomware can pose to critical national industrial infrastructure

In some good news, a large part of the pipeline has now resumed operations manually and Colonial hopes that it will begin restarting most of its operations by the end of the week, US Energy Secretary Jennifer Granholm said.

Motorists may still feel a crunch because it takes a few days to ramp up operations, but she said there is no reason to panic-buy fuel.

“We know that we have gasoline; we just have to get it to the right places”

S&P’s Oil Price Information Service put the number of gas stations encountering shortages at more than 1,000.

Why the country’s biggest fuel pipeline system has shutdown:

One of the United States’ major fuel pipeline operators has shut its entire network following a cyber attack that involved ransomware.

Colonial Pipeline, the source of nearly half of the US east coast’s fuel supply, said they had engaged a cyber security firm to help the investigation and contacted law enforcement and federal agencies after the attack.

The biggest U.S. gasoline pipeline won’t resume full operations for at least several more days due to a ransomware cyberattack blamed on a shadowy criminal network called DarkSide.

The attack on the Colonial Pipeline is one of the most disruptive digital ransom schemes ever reported.

The cyber attack on one of America’s Colonial Pipeline is starting to impact consumers and businesses across the United States.

Gas stations across the US have begun reporting fuel shortages, primarily because of what analysts say is being caused on unwarranted panic-buying among drivers.

Panicked drivers have been seen banking up their cars in long lines at petrol stations across America’s East Coast, as they rushed to fill their cars amid fear supply could soon temporarily run out.

The pipeline supplies the East Coast of America with about 45 percent of its fuel but has now been offline for four days after a cyber attack.

North Carolina issues State of Emergency due to fuel supply issues

North Carolina governor Roy Cooper declared a state of emergency to help ensure adequate supplies are delivered.

“Today’s emergency declaration will help North Carolina prepare for any potential motor vehicle fuel supply interruptions across the state and ensure motorists are able to have access to fuel” 

North Carolina Gov. Roy Cooper speaks during a briefing at the Emergency Operations Center in Raleigh, N.C., Tuesday, June 2, 2020. (Ethan Hyman/The News & Observer via AP)

Aviation Impact

American Airlines says it has been impacted by the shutdown of the Colonial Pipeline

The airline says it has added a stop on two long-haul flights out of Charlotte North Carolina, because of a fuel supply shortage due to the recent colonial pipeline outage

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Money

Fed cuts rates, signals more potentially ahead

Fed lowers rates amid job market concerns, signalling potential further cuts in upcoming meetings

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Fed lowers rates amid job market concerns, signalling potential further cuts in upcoming meetings

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In Short:
– The Federal Reserve cut interest rates by a quarter-point to address job market concerns.
– Officials expect at least two additional rate cuts by year-end amid ongoing economic uncertainties.
The Federal Reserve has reduced interest rates by a quarter-point, addressing concerns about a weakening job market overshadowing inflation worries.
A majority of officials anticipate at least two additional cuts by year-end during the remaining meetings in October and December.Banner

Fed Chair Jerome Powell noted a significant shift in the labour market, highlighting “downside risk” in his statements.

The recent rate cut, supported by 11 of 12 Fed voters, aims to recalibrate an economy facing uncertainties from policy changes and market pressures.

Policy Dynamics

The decision comes amid intense political scrutiny, with President Trump openly criticising Powell’s reluctance to lower rates.

Despite the controversy, Powell asserts that political pressures do not influence Fed operations.

The current benchmark federal-funds rate now sits between 4% and 4.25%, the lowest since 2021, providing some reprieve to consumers and small businesses. Economic forecasts indicate ongoing complexities, including inflation trends and the impact of tariffs on labour dynamics, complicating future policy decisions.


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Fed faces unusual dissent amid leadership uncertainty

Fed’s Powell navigates contentious meeting amid Trump-appointed dissenters as rate cut looms and succession contest heats up

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Fed’s Powell navigates contentious meeting amid Trump-appointed dissenters as rate cut looms and succession contest heats up

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In Short:
– This week’s Federal Reserve meeting faces unusual dissent as Chair Powell approaches his term’s end.
– Analysts predict dissent over expected rate cuts due to political pressures from Trump-appointed officials.
This week’s Federal Reserve meeting is set to be particularly unusual, with Chair Jerome Powell facing significant disagreements over future policy as he approaches the end of his term in May.Tensions began before the meeting when Fed governor Lisa Cook won a court ruling allowing her to attend, despite opposition from President Trump, who is attempting to remove her.

The situation is further complicated by the recent swearing-in of Trump adviser Stephen Miran to the Fed’s board, following a Senate confirmation.

Analysts believe Powell may encounter dissent on an expected quarter-percentage-point rate cut from both Trump-appointed officials and regional Fed presidents concerned about inflation.

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Potential Dissent

Trump has urged significant rate cuts and for the board to challenge Powell’s decisions.

Some analysts predict dissenting votes from Miran and other Trump appointees in favour of larger cuts. Federal Reserve veterans express concerns that political motivations may undermine the institution’s integrity, with indications that greater dissent could become commonplace.


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Money

RBA plans to ban credit card surcharges in Australia

Reserve Bank of Australia plans to ban credit card surcharges despite banks warning of potential higher fees and weaker rewards

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Reserve Bank of Australia plans to ban credit card surcharges despite banks warning of potential higher fees and weaker rewards.

In Short:
– The RBA plans to ban surcharges on debit and credit card transactions, supported by consumer group Choice.
– Major banks oppose the ban, warning it could lead to higher card fees and reduced rewards for credit card users.

The Reserve Bank of Australia (RBA) intends to implement a ban on surcharges associated with debit and credit card transactions. Consumer advocacy group Choice endorses this initiative, arguing that it is unjust for users of low-cost debit cards to incur similar fees as credit card holders.Banner

The major banks, however, are opposing this reform. They caution that the removal of surcharges could prompt customers to abandon credit cards due to diminished rewards.

A final decision by the RBA is anticipated by December 2025.


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