Business Highlights: Fed's Powell warns on inflation; Home sales continue to fall

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Business Highlights: A summary of the day’s top stories in the business world.

WASHINGTON — Federal Reserve Chair Jerome Powell said inflation remains too high and that bringing it down to the Fed’s target level will likely require a slower-growing economy and job market. Powell noted that inflation has cooled significantly from a year ago. But he cautioned that it’s not yet clear whether inflation is on a steady path back to the Fed’s 2% target.

LOS ANGELES — Sales of previously occupied U.S. homes fell for the fourth month in a row in September, held back by surging mortgage rates and a thin supply of properties on the market. Existing home sales fell 2% last month from August to a seasonally adjusted annual rate of 3.96 million, the National Association of Realtors said Thursday. That’s just above the 3.9 million unit pace that economists were expecting, according to FactSet. Sales sank 15.4% compared with the same month last year.

DALLAS — American Airlines is reporting a $545 million loss for the third quarter due to higher labor costs. And it is cutting its forecast of full-year profit. The airline said Thursday that its results were dragged down by nearly $1 billion in special charges related to a new contract with pilots. American’s loss stands in contrast with profits of more than $1 billion turned in by its two closest rivals, United and Delta, which also have expensive new contracts with their pilots.

 

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