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US Federal Reserve approves first interest rate hike after Covid-19 outbreak, signals more hikes ahead

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Federal Reserve hiked interest rates on Wednesday for the first time since the 2020 outbreak of the Covid-19 pandemic and said there could be another six hikes this year if inflation remains high.

This comes at a time when economists warn that if inflation does not begin to subside in response to these initial moves, policymakers will end up raising rates too high, sending the economy into a recession and financial markets into a slump, as per news agency ANI report.

Chairman Jerome Powell said as the Fed raised rates to between a quarter and half percentage point from a previous zero to a quarter percentage point, even though US economic growth was robust with a projected 4.3% this year, 2.2% in 2023 and 2% in 2024, challenges from the Russia-Ukraine crisis might be just as great.

Powell said the Russian-Ukraine conflict also represented multiple downside risks for the United States. The central bank forecast inflation at 4.3% for 2022, versus its typical target of 2 per cent a year.

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Deborah Maclatchy - Waterloo universities will pause vaccine and mask requirements as of May 1 - globalnews.ca - city Waterloo
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Waterloo universities will pause vaccine and mask requirements as of May 1
University of Waterloo and Wilfrid Laurier University will pause their COVID-19 mask and proof of vaccination requirements as of May 1.However, both post-secondary institutions said the mandates can be brought back on short notice if needed. University of Guelph pausing vaccine, masking requirements May 1 In a joint letter, Laurier president and vice-chancellor Deborah MacLatchy and provost and vice-president Tony Vannelli said the high vaccination rate at the school is one of the main remains reasons they are able to make changes.“Community members should remain up-to-date with their COVID-19 vaccinations, including third and fourth doses, as recommended by public health,” they said.“Remaining up-to-date on your vaccination status will ensure your work or study is not disrupted, should vaccinations be required to access any of our campuses or locations in the future and/or the meaning of ‘fully vaccinated’ changes to include additional doses.”Should vaccination requirements be reinstated, the university will not offer remote or hybrid options for in-person classes for students who do not meet the vaccination requirement.“Failure to demonstrate proof of vaccination under a future mandatory COVID-19 vaccination policy risks deregistration from in-person courses for students who cannot verify compliance,” the school said.The University of Waterloo said it will maintain a requirement for everyone to provide information on their vaccination status in order to minimize any disruption to work and learning if vaccine requirements return.The school said it will also not be offering virtual or hybrid learning options for those who are unable to attend campus.
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