The Federal Reserve lowered its US economic growth forecast and raised its inflation estimate for 2022, according to its projections materials released on Wednesday.

The central bank now expects American economy to grow 1.7% this year, down from its previous projection of 2.8% growth that was made in March.

The personal consumption expenditures (PCE) price index, the central bank's preferred inflation indicator, is expected to come in at 5.2% in 2022, up from the 4.3% estimate made in March.

Core PCE inflation was also revised up to 4.3% for this year, from 4.1% forecast that was made three months ago.

The Fed anticipates its benchmark interest rate to end this year at 3.4%, an upward revision of 1.5 percentage points from the March estimate of 1.9%, according to the "dot plot" of the Federal Open Market Committee (FOMC) members’ expectations.

The FOMC then expects the benchmark interest rate to rise to 3.8% in 2023, which is a full percentage point higher than the March estimate of 2.8%.

The new projections came as the Fed raised its benchmark interest rate by 75 basis points to carry the federal funds rate to 1.5%-1.75% range, marking its biggest rate hike in 28 years, in order to tame record-high inflation in the country.

The US annual consumer inflation climbed to 8.6% in May, the highest level in more than 40 years./aa

The US Federal Reserve on Wednesday raised its benchmark interest rate by 75 basis points, marking its biggest rate hike in 28 years.

The Federal Open Market Committee (FOMC) said in a statement that it decided to raise the target range for the federal funds rate to 1.5%-1.75% range.

The largest interest rate increase since 1994 was approved by all FOMC members, except for Kansas City Fed President Esther George who voted for a 50 basis point of rate hike.

The FOMC added that it anticipates "ongoing increases in the target range will be appropriate."

"The Committee would be prepared to adjust the stance of monetary policy as appropriate if risks emerge that could impede the attainment of the Committee’s goals," it said.

"The Committee’s assessments will take into account a wide range of information, including readings on public health, labor market conditions, inflation pressures and inflation expectations, and financial and international developments," it added.

The FOMC stressed that it is strongly committed to returning inflation to its 2% objective.

The US annual consumer inflation climbed to 8.6% in May, the highest level in more than 40 years.

Fed Chair Jerome Powell later said the central bank understands the hardship caused by inflation, adding: "We are strongly committed to bring inflation down and moving expeditiously to do so."

"The labor market is extremely tight and inflation is much too high," he told at a post-meeting press conference. "The tightening conditions seen in recent months should continue to tamper growth, and help bring demand into better balance with supply."

Powell said the pace of the rate hikes will depend on the incoming macroeconomic data and the ongoing outlook of the economy.

"Clearly, today's 75 basis points of increase is an unusually large one, and I do not expect moves of this size to be common. From the perspective of today, either a 50 basis point or a 75 basis point increase seems most likely at our next meeting."

Powell underlined that the FOMC will make its interest rate decisions meeting by meeting.

"Economy often evolves in unexpected ways. Inflation is obviously surprised to the upside over the past year, and further surprises could be in store. We need to be nimble ... We are highly attentive to inflation risks and determined to take the measures necessary to restore price stability," he explained.

Türkiye’s National Defense Ministry said Wednesday it has implemented "red line" diplomacy to solve the grain crisis caused by the Russian war on Ukraine.

A "red line" was formed to discuss the issue more closely and bring it to a conclusion, under the leadership of Turkish Defense Minister Hulusi Akar. The Ukrainian and Russian defense ministries will each assign one general who will be in direct contact with Türkiye to solve the problem.

“We have intense negotiation traffic with both Russia and Ukraine. Both sides have some reservations. We are working to eliminate the reservations. We are hopeful,” said Akar.

Akar held separate telephone conversations last week with his Russian and Ukrainian counterparts.

While the negative effect of the situation on countries in different geographies was discussed, a new step was taken toward the solution to the problem.

Akar also underlined the importance of establishing a cease-fire as soon as possible before the humanitarian situation gets worse.

As food-laden ships cannot leave Ukrainian ports, there is a grain crisis around the world. Mines laid around the port make the situation even more difficult.

Up to 25 million tons of grain are blocked in Ukraine, Ukrainian President Volodymyr Zelenskyy recently said, adding he was seeking a secure corridor for Ukrainian vessels to ship it out to head off food shortages in some parts of the world./aa

US President Joe Biden urged major oil companies to boost their supply against record gasoline prices and criticized their high-profit margins.

The president urged companies to take "immediate actions" to raise the supply of gasoline, diesel and other oil refined products, in a letter sent Tuesday to ExxonMobil, Chevron, BP, Shell, Marathon Petroleum, Valero Energy and Phillips 66.

"Since the beginning of the year, refiners’ margins for refining gasoline and diesel have tripled, and are currently at their highest levels ever recorded," Biden said, and stressed that there is "an unprecedented disconnect between the price of oil and the price of gas."

"At a time of war, refinery profit margins well above normal being passed directly onto American families are not acceptable," he wrote.

Biden reiterated that Russian President Vladimir Putin is "principally responsible" for rising crude prices in the world and record-high gasoline prices in the US. "But amid a war that has raised gasoline prices more than $1.70 per gallon, historically high refinery profit margins are worsening that pain."

"The lack of refining capacity -- and resulting unprecedented refinery profit margins -- are blunting the impact of the historic actions my Administration has taken to address Vladimir Putin's Price Hike and are driving up costs for consumers," he added.

Amid Russia's war on Ukraine, international oil benchmark Brent crude jumped to $139 in March -- its highest since 2008.

The national average for gasoline in the US climbed above $5 per gallon (3.785 liters) during the weekend and hit an all-time high of $5.016 on Tuesday, according to the American Automobile Association (AAA).

The president emphasized that his administration is ready to use emergency powers to increase refinery capacity and production.

"Your companies need to work with my Administration to bring forward concrete, near-term solutions that address the crisis and respect the critical equities of energy workers and fence-line communities," wrote Biden./aa

Sea turtles along Pakistan’s coast are facing a welter of anthropogenic threats, including habitat degradation, plastic pollution, and entanglement in fishing gears, according to the World Wildlife Fund (WWF).

As a result of the construction of huts along beaches in the port city of Karachi, and the southwestern Balochistan province, major nesting grounds of sea turtles are adversely affected, the study said on the eve of World Sea Turtle Day.

Since 2000, World Sea Turtle Day is observed every year on June 16 to raise awareness about the dwindling population of sea turtles and their diminishing habitat.

According to Muhammad Moazzam Khan, the technical adviser to WWF-Pakistan, plastic waste, collapsing huts, and rubble pose a serious threat to nesting females and juveniles along Pakistan's coastal areas.

In Pakistan, sea turtles are known to nest on a number of beaches, including Sandspit, Hawke's Bay, and Cape Monz along the Sindh coast, as well as Taq (Ormara), Astola Island, Gwadar Headland, and Daran along the Balochistan coast.

Thousands of female turtles visit these beaches to nest and lay eggs.

To collect data on the entanglement of turtles, the WWF-Pakistan initiated a study in 2012, which revealed that 30,000 sea turtles were annually caught in tuna gillnet fisheries of the country.

This included roughly 25,500 Olive Ridley and 4,500 Green turtles in the offshore waters of Pakistan.

Entanglement in fishing nets is the most serious threat to marine turtles.

It was estimated that about 3% of entangled turtles were dying due to drowning or mishandling onboard fishing vessels.

Protecting endangered species

To protect the endangered species, the organization has trained some 100 "skippers and crew members" to safely release the entangled sea turtles and developed a modification in the operation of the gillnets.

This, the study said, has reduced the entanglement of sea turtles by 85%.

Pollution is also another major threat to the sea turtle population in Pakistani waters. Popular beaches are littered with garbage, dominated by single-use and micro-plastics.

The study has also reported on the impact of diesel and petrol on the population of turtles, stating that exposure to these fuels results in deformation in hatchlings and so, poses a serious threat to their survival.

Government agencies have taken several steps in recent years for the protection of sea turtles along Pakistan’s coasts.

"Through the efforts of WWF-Pakistan, fisheries-related legislations of both maritime provinces have been amended and sea turtles, as well as freshwater turtles, are declared protected," the study added.

According to Khan, the declaration of Astola Island as a marine protected area, actions taken by the wildlife departments of Sindh and Balochistan, as well as awareness programs initiated by non-governmental wildlife organizations, have collectively increased the turtle population along Pakistani coastal regions.

However, he added that there is a need to declare all turtle beaches along the coast of Sindh and Balochistan marine protected areas.

Rab Nawaz, the senior director of WWF-Pakistan's Conservation Biodiversity, for his part, called for "better protection and conservation" of sea turtles in the country.

He said these unique and iconic animals have been in existence for more than 100 million years but are under "serious" threat.

Human activities such as the destruction of nesting sites and unplanned development, as well as climate change, are pushing turtles closer to extinction, which calls for immediate steps for their conservation, he stressed.

Major species

Experts believe that the South Asian country has lost 25-30% of the nesting ground for Green turtles over the past decade.

Female turtles lay their eggs on beaches between October and February, and the eggs hatch in about 60 days.

Five species of marine turtles are reported from Pakistan, with Green turtles (Chelonia mydas) the most dominant one, while another important sea turtle is the Olive Ridley (Lepidochelys olivacea) which used to nest along the coast of Pakistan.

However, no nest of this turtle species has been reported since 2001, the study said.

The other three species, including loggerhead turtle (Caretta caretta), hawksbill turtle (Eretmochelys imbricata), and leatherback turtle (Dermochelys coriacea) are reported from Pakistan and only a few authentic records are made by WWF-Pakistan.

Although turtles are not commercially harvested for food in Pakistan, however, poaching of turtle eggs has been reported.

Turtle hatchlings are also illegally removed from their nests and sold in aquarium shops.

"Although the government takes action against poachers, this illegal trade still continues and needs to be curbed," it concluded./agecies