Fed rate cut expected and global traces behind Hezbollah pager explosions: Morning Rundown

Today, a long-awaited rate cut is expected. The mystery surrounding the origin of the exploding Hezbollah pagers is growing. And Sean “Diddy” Combs' team will once again plead for his release while he awaits trial on sex trafficking charges.

This is what you should know today.

Fed expected to cut key interest rate

The Federal Reserve is about to cut its key interest rate for the first time since the Covid pandemic began in 2020. At what time is the big question that will be answered today.

According to a CNBC poll, many experts are predicting a 0.25 percent cut from the current 5.3 percent. The Fed tends to trade in 0.25 percent increments, and until recently there was general agreement that it would likely cut the rate by that amount.

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But mixed signals from the economy have some Wall Street traders predicting a 0.5 percent cut. Unemployment is relatively low at 4.2 percent, but it has risen in four of the last five months. Meanwhile, retail sales have remained stable, but spending in restaurants is falling.

Some say a 0.5 percent cut is necessary to avert a looming recession. Others argue that such a large move would indicate that the Fed sees the economy in worse shape than recent data suggests.

You can read the whole story here.

Who made the exploding pagers? A dirty global trail emerges behind the deadly explosions in Lebanon

An electronics manufacturer in Taiwan said it did not manufacture the pagers used by members of the militant Hezbollah group. Yesterday's terrorist attacks exploded simultaneously across Lebanon, killing at least 12 people.

More than 2,750 other people were injured in the explosions, according to Lebanon's Health Ministry, including the Iranian ambassador to the country. In a statement, Iran-backed Hezbollah announced there would be a “harsh reckoning” over the explosions, for which it blamed Israel without providing evidence. Israel has not commented directly on the explosions.

Pictures of the destroyed pagers showed that they bore stickers from Taiwan-based Gold Apollo. The company's founder and president, Hsu Ching-kuang, told reporters that the pagers were made by another company that had a license to use its brand. Gold Apollo identified the other company as Hungary-based BAC.

BAC Consulting CEO Cristiana Bársony-Arcidiacono confirmed in a phone call that her company was working with Gold Apollo. However, when asked about the pagers and the explosions, she said: “I don't make the pagers. I'm just the intermediary. I think you've misunderstood.”

Hezbollah said it had distributed pagers to its members, many of whom had stopped using their cellphones because they feared Israel could use them to track and monitor them. The explosions came amid growing fears that tensions between Israel and the Lebanon-based militant group could escalate into open war.

Here’s what else we know:

Sean “Diddy” Combs arrested for sex trafficking

Sean “Diddy” Combs’ legal team will be back in court this afternoon to once again argue for the rapper-turned-mogul to be released on bail while he awaits trial on sex trafficking charges in federal court.

Prosecutors in the Southern District of New York accused Combs of using his sprawling business empire to abuse, threaten and traffic women to “fulfill his sexual desires” and protect his reputation. The charges revolve around Combs' alleged staging of elaborate sex parties, which he called “freak offs.” Here are the other allegations made by the prosecution:

Combs made his first court appearance yesterday and pleaded not guilty. His bid to post $50 million bail was rejected and he was sent to jail. Prosecutors argue he should remain incarcerated until the trial begins.

Politics Compact

Financing battle: Speaker Mike Johnson said the House of Representatives will vote today on a six-month stopgap funding bill, the same bill he abruptly withdrew last week. But he made no promises that the package would pass.

Trump on taxes: Donald Trump demanded withdrawal A controversial part of his tax bill suggests he would seek to reinstate a state and local tax deduction, commonly known as SALT.

Harris Interview: Vice President Kamala Harris tore up Trump's statements about Haitian immigrants in Springfield, Ohio, but gave indirect answers about Gaza and reparations in a discussion hosted by the National Association of Black Journalists.

Right to IVF Law: Republicans in the Senate a vote blocked to create protections for access to in vitro fertilization, saying the Democrats' actions on the issue were unnecessary and politically motivated.

A political discourse problem: “The current level of political discourse is unsustainable for this democracy,” writes Chuck Todd, chief political analyst at NBC News. Just look at how the Trump campaign team reacted to the second alleged assassination attempt on the former president or the false rumors about Haitian migrants in Ohio. The full analysis can be found here.

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read all about it

• In an exclusive interview, the crew of the Polaris Dawn mission remembered their experiences Conducting the world's first purely civilian spacewalk.

• The University of North Texas Health Science Center will stop accepting uncollected bodies after an NBC News investigation documented how the program used the remains without the consent of the dead or their families.
• A Chinese-American family met the descendants of the black couple who rented them an apartment in 1939 when no one else would. A donation of $5 million brought the two families back together in San Diego.
• The Home Depot agreed to a $2 million settlement in a case where it was alleged that the company overcharged customers and charged them more than the stated price for items at checkout.

Selection of personnel: A glimmer of hope in the French mass rape trial

France is shocked by the trial of 51 men accused of raping a woman after her husband drugged her for 50 years and asked strangers he met online to repeatedly abuse her. But Gisèle Pelicot's rare, courageous decision to give up their anonymity so that she could advocate for other victims, she became a national symbol of resistance and a hero to the dozens of women who line up outside the courthouse every day to applaud her as she enters the building to hear the harrowing evidence.

“Today I am taking back control of my life,” she said at the start of the trial. “Many women have no proof of that. I have proof.” — Annie Hill, Platform Editor

NBC Select: Online shopping, simplified

Are you already thinking about Christmas shopping? If so, now is the right time – Amazon the dates announced for its Prime Day sale in October. It's only for Prime members, so you'll need to sign up in time if you want to shop. And did you know that in addition to free shipping, members also get perks like Prime Video and Grubhub+? Here you can find out everything you need to know to your Prime membership.

Sign up for The Selection Newsletter with practical product tests, shopping tips from experts and a look at the best deals and sales every week.

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