Juneteenth and its implications for the economy and generational wealth

Juneteenth and its implications for the economy and generational wealth
Juneteenth and its implications for the economy and generational wealth
Megan Varner/Getty Images

(NEW YORK) — While June 19, 1865, is widely regarded as a day of liberation, its celebration for some simultaneously brings into question just how far that freedom goes.

For real estate entrepreneur Jude Bernard, Juneteenth is a reminder of generational wealth deprived.

“The whole story behind Juneteenth was that we were technically free, but we didn’t know it and it was years before we actually truly got our freedom,” Bernard told ABC News.

Bernard said Juneteenth can be used to highlight financial equality, which is the type of freedom many, like him, have fought for.

He used student loan funds to buy his first property 25 years ago with the goal of earning extra income on the side. Now, with an extensive portfolio, the investor is the founder and CEO of The Brooklyn Bank–a nonprofit focused on financial literacy and development for people of color.

“My mission is equality,” he said. “The goal of the Brooklyn Bank is to pretty much bring the information to those that don’t have it. So many times, us as a people, we miss out on opportunities. Not because we’re not willing to learn, but because we don’t even know what we don’t know.”

Reflecting on his upbringing as a first-generation Haitian-American in Flatbush, Brooklyn, Bernard said he feels “lucky” to have come across the information that has brought him to where he is today. He said that not having a “formal financial education” during his childhood encouraged him to share what may not be readily available in their communities with others.

Bernard said education is key to resolving economic inequality.

On Juneteenth, The Brooklyn Bank will be holding its first annual Black Money Forum in collaboration with personal finance app Stash. The free event will focus on “financial freedom, financial education, financial empowerment, and most importantly, changing the financial mindset,” Bernard said.

“A lack of information keeps people on a treadmill,” he said. “A lack of education, has people not saving and not passing wealth down to the next generation.”

According to Wealth of Two Nations: The U.S. Racial Wealth Gap, 1860-2020, the white to Black per capita wealth ratio is six to one. The paper, by researchers Ellora Derenoncourt, Chi Hyun Kim, Moritz Kuhn & Moritz Schularick, drew information from census data and tax records to analyze racial economic disparities over time and what steps should be taken to equalize them.

“So the average white American has six times the wealth of the average Black American. That’s equivalent to Black Americans holding about 17 cents for every white dollar of wealth,” co-author Derenoncourt, an economic historian and assistant professor of economics at Princeton University, told ABC News.

She said while much of the work on the racial wealth gap focuses on recent years–from the 1980s onward–, she sought to show the evolution of the gap since the Civil War to examine “the importance of American history for where the wealth gap is today.”

In 1860, the white-to-Black per capita wealth ratio was 56:1, translating to the average Black American owning less than 2 cents to the dollar of every white American. Legal prevention of enslaved peoples to accumulate wealth exacerbated this gap and continues to severely constrain the ability to close it, she said.

Contrarily, in opening up the possibility for Black Americans to possess and bequeath capital, “emancipation was the single biggest closer of the racial wealth gap.” Policies enacted afterward, however, did not go far enough to continue to resolve this disparity, according to Derenoncourt.

“One major thing that was lacking was any sort of reparations or provision of some form of capital to the formerly enslaved,” she said. “W.E.B. DuBois called this a reckless experiment in emancipation, one that you’ve never seen in the history of humanity–to emancipate a people, but not provide them with any means for providing for themselves while the other group has had the opportunity to accumulate wealth and pass that wealth on to future generations.”

“… I like to regard Juneteenth as not just a day off, but it’s a freedom day,” Bernard said. “A financial freedom day, where it’s an opportunity to learn a little bit more about things that you need to gain the equality that we’re supposedly entitled to.”

Copyright © 2022, ABC Audio. All rights reserved.

Expectant Black mothers, facing higher mortality rates, turn to doulas and midwives for support

Expectant Black mothers, facing higher mortality rates, turn to doulas and midwives for support
Expectant Black mothers, facing higher mortality rates, turn to doulas and midwives for support
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(NEW YORK) — For Ebon’Nae Bradley, helping expectant parents is more than a job – it’s her mission. Bradley has been a licensed doula for more than a decade and has supported hundreds of mothers in their journeys to give birth.

“I always like to describe it as like a birth planner for your birth,” said Bradley, who is based in Dallas, of her role in the birthing process. “We sit with you and we really help you to see what the vision is for your birth. We help you find your power.”

The Mayo Clinic defines a doula as a professional labor assistant who provides both physical and emotional support during pregnancy, childbirth and the postpartum period.

Black doulas like Bradley are helping mothers reclaim their child birthing processes by empowering them to make decisions around their own health care.

“When women reach out to me, especially Black women, the No. 1 thing, without fail, is fear. They’re afraid,” Bradley told ABC’s Janai Norman.

She said she’s seen that some doctors worry about statistical risks and sometimes will dismiss a woman’s concerns rather than listen to them.

“Doctors in general, most of them kind of tend to look at birth as something they want to manage,” said Bradley. “Birth is not by the book.”

According to a 2013 study from the Journal of Perinatal Education, mothers who are “socially disadvantaged” were two times less likely to experience a birth complication while using a doula.

Dr. Joia Crear-Perry is a retired OB-GYN and leading specialist on maternal mortality among Black mothers. She said race, gender and socio-economic status matter during childbirth.

“We know that the consequences of racism, sexism, gender oppression are causing us to die within childbirth,” said Crear-Perry. “We have never invested in people who are the most marginalized. Our health care system was created to ensure that people who have resources are able to get things.”

Non-Hispanic, Black mothers are three times more likely to die from a pregnancy-related cause than their white and Hispanic counterparts, according to the Centers for Disease Control and Prevention.

Bradley often partners with licensed midwives like Kennasha Jones and Tereé Fruga, who are medically trained to deliver babies in most settings, including the hospital, birthing centers, or in homes.

“Midwifery care is not just about caring for her body. We’re caring for the whole woman,” said Jones. “We want to know what your mental state is. We want to know what your emotions are like.”

A 2018 study found that states with more robust midwifery services reported better maternal care and better birthing outcomes, suggesting that states that have better resources dedicated to health care have better results, according to a study published in the journal PLOS One.

The United States has the highest maternal mortality rate when compared to other industrialized nations, some of which use midwives at much higher rates than in the U.S., according to The Commonwealth Fund. The World Health Organization recommends midwifery care as an evidence based approach to reducing these deaths.

Bradley, Jones and Fruga were recently providing collaborative care for Justina Arrington, a mother of two with a third child on the way, in Arlington, Texas.

Arrington said that her first birth was a “traumatic” experience for her. Her prenatal records showed that her baby started showing signs of fetal distress and doctors said she would need an emergency cesarean section.

“It was just it was real tiresome and it was very traumatic, especially when I found out my doctor, that I had been working with the entire time, he was not going to be there,” said Arrington, who said she opted to undergo another C-section for her second pregnancy after her doctors warned she could be in labor for days.

In 2020, the CDC reported that about 1 out of every 3 deliveries in the United States were C-sections.

Arrington said that recovery from her two C-sections was painful. She said when she found out she was pregnant for a third time, she and her husband were determined to have a vaginal birth at home.

According to the American College of Obstetricians and Gynecologists, planned home birth is associated with more than two times increased risk of perinatal death and three times increased risk of seizures or serious neurological dysfunction in newborns. Only 1 percent of women in the U.S. opt to give birth at home.

But advocates like the Midwives Alliance of North America say these statistics are too generalized and do not take into account the option for midwifery or a doula in the home or the outcomes for low risk pregnancies.

Arrington was at higher risk than most. Medical organizations recommend a hospital setting for vaginal birth after C-sections, instead of at home, to allow for quick access to emergency medical care if it’s needed.

Fruga says her organization tries to take as many precautions as possible to ensure a healthy delivery.

“First thing we do is we have to get the previous records from her C-sections. We have to make sure that the surgery was done in a manner that is safe for her to try an out-of-hospital birth. And once we do that, then we go about preparing her prenatal,” said Fruga, who also makes sure that the patient is close to a hospital in the event more medical care is needed.

With the help of Fruga, Bradley and Jones, after six and a half hours in labor, in a birth pool in her home, Arrington successfully gave birth to a healthy baby girl.

“Just to be able to find a team that was willing to take me on, that was willing to give me all the information that I needed, it’s a big relief and it’s just a big feeling of like, ‘Wow, I did it,’” said Arrington. “Just knowing that I was able to have her naturally it just feels different, you know?”

Often doula care can become pricey. Only six states currently provide Medicaid reimbursement for doula services and several more states have recently passed legislation or are considering adding doula coverage to Medicaid programs, according to the National Health Law Program.

But licensed midwifery care is often more covered by insurers. ABC News reached out to three of some of the largest insurance carriers here in the U.S: United Healthcare, Cigna and Aetna. All offer some coverage for certified midwifery care.

Crear-Perry said the investment is worth it.

“We’re all deserving of justice and joy. So if we invested in health as a right, we would have nobody in this country that doesn’t have access to whatever kind of birth that they want,” said Crear-Perry.

In the meantime, Bradley said her practice has been compelled to offer alternative payment methods like scholarships to help extend access to care. While some of her colleagues, she said, will get creative with how they’re compensated.

“Another thing that some doulas do is barter. So you have moms who are incredibly talented and resourceful. They may be photographers; they may be hairstylists. And it’s like, ‘Well, okay, I’ll braid your hair for a few months in exchange for my doula care,’” said Bradley.

Bradley says she is seeing more and more women who are informed and empowered to speak up and seek help.

“We’re here on the ground doing the work, helping,” she said. “What we see is healthy birth outcomes. We see healthy mamas, healthy babies and all because they had doula support, midwifery care and just love.”

Copyright © 2022, ABC Audio. All rights reserved.

Peter Navarro pleads not guilty to Jan. 6 contempt of Congress charges

Peter Navarro pleads not guilty to Jan. 6 contempt of Congress charges
Peter Navarro pleads not guilty to Jan. 6 contempt of Congress charges
Chip Somodevilla/Getty Images

(WASHINGTON) — Former Trump White House adviser Peter Navarro entered a plea of not guilty Friday to two charges stemming from his failure to comply with subpoenas from the House select committee investigating the Jan. 6 attack on the U.S. Capitol.

U.S. District Judge Amit Mehta set a tentative trial date for November 17.

Navarro was represented by his new defense attorneys, John Irving and John Rowley, who were retained by Navarro as counsel on Thursday. Navarro was previously pro se and representing himself.

Mehta rejected the defense’s request to delay the trial date until early 2023 to accommodate Navarro’s new book on former President Donald Trump, and his planned publicity tours.

“The latter part of the year is going to be … a time where [Navarro’s] going to be on the road a lot and trying to promote that book, which is important to him in terms of income and whatnot,” Irving said. “So it’s not a trivial thing.”

“No, I’m not suggesting it is,” Mehta replied. “On the other hand … I’ve got also the public interest [to take] into account in terms of moving this case forward.”

A federal prosecutor said during the arraignment that “delaying this trial to early next year, potentially April, would be clearly unwarranted given the facts and issues in this case,” and argued that a book tour does not justify such a delay.

The House voted in April to hold Navarro in contempt over his refusal to cooperate with the Jan. 6 probe.

Earlier this month, Navarro failed to comply with a federal grand jury subpoena calling for him to appear at U.S. District Court in Washington, D.C.

Navarro was indicted on June 3 on charges of contempt of Congress. The Justice Department previously returned a similar indictment against former White House strategist Steve Bannon after the House voted to hold him in contempt last year.

According to court documents, Navarro dropped a civil lawsuit he had filed last month against the U.S. attorney in Washington, D.C., and other parties, after he had received a grand jury subpoena related to the House’s contempt referral. However Rowley, speaking to reporters following Friday’s hearing, said his team might review the lawsuit and refile it after additional consideration.

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What is Operation Lone Star? Inside Texas’ state border policy

What is Operation Lone Star? Inside Texas’ state border policy
What is Operation Lone Star? Inside Texas’ state border policy
Brandon Bell/Getty Images

(NEW YORK) — Last week, several thousand migrants reportedly walked through southern Mexico on the way to the United States in the largest migrant caravan of the year. Officials said they have disbanded the group in the past few days, but many may still be traveling in smaller groups.

In the past, many migrants would hope to get to the United States and claim asylum. In the last couple of years, however, multiple policies have tightened the border. These include the Trump administration’s “Remain in Mexico” policy, formally known as the Migrant Protection Protocols or MPP, which forces people seeking asylum to return to Mexico while awaiting their court dates.

Further, during the pandemic, Title 42 imposed travel restrictions and those seeking asylum were turned away at the border.

In May, there were nearly 240,000 unauthorized southern border crossings, according to the U.S. Customs and Border Protection – which is a two-decade high and a 30% increase from the same time last year.

In a response to the influx of illegal crossings, Texas Gov. Greg Abbott launched Operation Lone Star last year he said combat crime along the Texas-Mexico border and capture more immigrants trying to enter the United States. The law enforcement operation is to use “available resources to enforce all applicable federal and state laws to prevent the criminal activity along the border.”

According to an April 2022 Texas state report, Operation Lone Star touted more than 13,600 criminal arrests and more than 11,000 felony charges as well as over 3,700 weapons seizures.

“Texans demand and deserve an aggressive, comprehensive border security strategy that will protect our communities from the dangerous consequences related to illegal immigration,” said Abbott in a statement. “Until President Biden enforces the immigration laws passed by Congress, Texas will step up and use its own strategies to secure the border and negotiate with Mexico to seek solutions that will keep Texans safe.”

ABC News correspondent Mireya Villareal spoke to ABC News’ “Start Here” podcast about Operation Lone Star.

“[Abbott] decided to put National Guardsmen, Texas Guardsmen on the border, along with the increase of DPS troopers he already had patrolling the area who are helping local law enforcement,” said Villareal. “So we’re talking about roughly 10,000 soldiers that are now along the border with Operation Lone Star, but there is a lot of confusion about really what their duties are, what sort of arresting power they really have, and really what laws they are enforcing down there.”

Due to the way state laws are enforced by Operation Lone Star, immigration advocates said that migrants are being arrested on state trespassing charges and are treated like criminals before they’ve even been given the chance to seek asylum through federal policy, according to Villareal.

“The migrants that are coming across from Mexico believe the people they are running into are actual federal agents enforcing immigration policy,” said Villareal. “So they stop because they think they are turning themselves in and they will be given the ability to ask for asylum. However, that is not what happens when they run into either guardsmen or DPS troopers inevitably.”

She said this is why the state detention centers are overcrowded.

“The detention centers that are being used by the state of Texas are prisons that are meant for everyday criminals. And so the frustration we’re seeing and the reason why immigration advocates are being really loud about Operation Lone Star is because you are treating them like they are criminals,” said Villareal. “You have a migrant that has come to the U.S. begging for help, wanting to ask for asylum and being told they cannot.” Villareal calls it a “loophole” of a situation.

“This is where there is that very fuzzy line between what the state’s rights are and what laws they can enforce and what federal rights are and what laws they can enforce, what powers they have,” said Villareal. “I think that’s what immigration advocates are trying to fight here in trying to figure out is, does the state of Texas truly have the right to do this?”

Copyright © 2022, ABC Audio. All rights reserved.

Ancestry uses lost letters to reunite a former slave’s family more than a century later

Ancestry uses lost letters to reunite a former slave’s family more than a century later
Ancestry uses lost letters to reunite a former slave’s family more than a century later
Getty Images

(NEW YORK) — When Houston natives Kelley Dixon Tealer and her mother Alva Marie Jenkins embarked on the journey to discover their ancestral roots, they had no idea they would soon realize a dream that was more than 150 years in the making.

The quest to discover one’s family lineage can sometimes be difficult for some Black people throughout the African Diaspora due to the historical complications brought about by slavery. Finding records can be a daunting task.

Tealer says she spent most of her life not knowing the full extent of her family’s history, but the passing of an elder loved one inspired her to start a search through Ancestry, a Utah-based genealogy company that says it has helped millions of people discover their roots.

“I wanted to stay close to my grandparents and when they both transitioned, I just wanted to keep that piece of history. I wanted to dig more,” Tealer told “Good Morning America.”

It was then that Tealer connected with Dr. Nicka Sewell-Smith, an Ancestry genealogist who discovered through the Freedmen’s Bureau records that Jenkins and Tealer were second and third-generation granddaughters of Hawkins Wilson, a man who was born into slavery in Virginia, and separated from his family when he was sold as a boy.

The lost letters of Hawkins Wilson:

The Freedmen’s Bureau records are a collection of records compiled by Congress following the Civil War to “help formerly enslaved people make the transition from slavery to freedom and citizenship,” according to the National Museum of African American History and Culture.

After the war ended in 1865, the Freedmen’s Bureau was tasked with trying to reconnect families who were separated during slavery and transitioning formerly enslaved people into the workforce.

Twenty-four years after being separated from his family, Wilson, living as a free man in Galveston, Texas, sent letters to the Freedman’s Bureau seeking assistance to find his siblings.

“Dear sir, I am anxious to learn about my sisters, from whom I have been separated for many years,” Wilson wrote to the Freedman’s Bureau chief in a letter delivered to the agency on May 11, 1867.

“I have never heard from them since I left Virginia twenty-four years ago. I am in hopes that they are still living and I am anxious to hear how they are getting on,” the letter read.

Wilson sent several letters for his family to the bureau, hoping to reconnect, but they were ultimately sent to the wrong county and never made it to his relatives.

National Archive records show that Hawkins wrote to his sister Jane, hoping to hear back.

“Dear Sister Jane, your little brother Hawkins is trying to find out where you are and where his poor old mother is. Let me know and I will come to you,” he wrote. “I should never forget the bag of biscuits you made for me the last night I spent with you. Your advice to me to meet you in heaven has never passed from my mind. And I have endeavored to live as near to my God so that if he saw fit not to suffer us to meet on earth, we might indeed meet in heaven.”

Wilson also detailed his life in Galveston as a free working man, a husband, and a Christian.

”I’m writing to you tonight, my dear sister, with my bible in my hand, praying almighty God to bless you, and preserve you and me to meet again,” he wrote.

An Emotional Reunion:

It is unknown if Wilson was ever able to reunite his family, but Sewell-Smith was able to use the names mentioned in his letters, in addition to other historical records and Freedman’s Bureau documents, to connect Tealer and Jenkins, his descendants.

“What the Freedman’s Bureau does is it helps us scale the wall or in essence, blow the wall up because it really peers into a very specific period right after enslavement, where these individuals were walking into their economy, their lives, how they wanted to be referred to in terms of their names, and who they wanted to work for,” Sewell-Smith told “Good Morning America.” “And Hawkins was just enough of a cookie crumb for us to be able to connect him back to the ancestors and the family that he had been ripped apart from.”

Wilson’s words are the focal point in a new documentary by Ancestry titled “A Dream Delivered: The Lost Letters of Hawkins Wilson,” in which Tealer and Jenkins embark on the journey of reconnecting with other Wilson’s descendants.

“Now is the time. This is the time for his story to be shared,” Jenkins told “Good Morning America.”

Tealer and Jenkins were able to find and meet their sixth cousins, Valerie Gray Holmes and Linda Epps Parks, the descendants of Wilson’s Uncle Jim.

Epps Parker said she was overcome with emotion when the relatives met for the first time during the documentary’s filming, in April 2021.

“I felt like I had known Kelley and her mom all my life. I felt connected to them. It just was genuine,” she told “Good Morning America.”

Tealer told ABC News correspondent Kenneth Moton that she thinks of Wilson’s sister Jane often and hopes to one day find Jane’s descendants.

She told Moton, tearfully, that if she had the chance, she would tell Jane, “I found your brother, Hawkins. Can I read you his letters? Tell me about your journey. What have you been doing in these past 24 years?”

More than 150 years after Wilson sent his letters, Epps Parker said her ancestor finally achieved his dream to reunite his family.

“You can rest because your letter has been delivered,” Epps Parker said, addressing Wilson. “We are taking the baton and passing it on to other family members.”

Copyright © 2022, ABC Audio. All rights reserved.

More victims suspected after California man charged with kidnapping, torturing woman

More victims suspected after California man charged with kidnapping, torturing woman
More victims suspected after California man charged with kidnapping, torturing woman
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(LOS ANGELES) — Authorities say they believe a man accused of holding a woman captive at his California home and torturing her for several months may have other victims.

Peter Anthony McGuire, 59, was arrested Saturday after a woman reportedly told deputies he had been holding her against her will at his Chino Hills residence.

The Chino Hills Police Department released a photograph of McGuire on Thursday “as it is believed there may be additional victims of criminal acts committed by McGuire.”

Soon after moving into the house, the victim “was not allowed to leave,” San Bernardino County Sheriff’s Department spokesperson Mara Rodriguez told ABC Los Angeles station KABC.

“She was held there against her will by him and at that point was subjected to multiple assaults,” Rodriguez said.

The victim managed to escape the home on the evening of June 9 and fled to nearby Alterra Park, where a bystander called 911 to get aid for her, authorities said.

She claimed that McGuire held her against her will for six months and raped, tortured and disfigured her, authorities said.

“The victim had visible injuries consistent with the allegations made,” the sheriff’s department said in a statement.

Deputies executed a search warrant at the residence and recovered evidence, authorities said. McGuire was arrested on Saturday after allegedly fleeing to a home in Placentia, in neighboring Orange County. He surrendered after temporarily barricading himself inside, the sheriff’s department said.

The San Bernardino County District Attorney’s Office filed 10 felony charges against McGuire, including kidnapping, false imprisonment by violence, torture, mayhem, assault with a deadly weapon and forcible rape.

On the charge of mayhem, the criminal complaint stated that the suspect “did unlawfully and maliciously deprive Jane/John Doe of a member of the body and did disable, disfigure and render it useless and did cut and disable the tongue, and put out an eye and slit the nose, ear and lip of said person.”

McGuire pleaded not guilty to all charges earlier this week and is being held without bail. He is due back in court next month, KABC reported.

The victim was being treated at a hospital for her injuries, prosecutors said earlier this week.

Neighbors in Chino Hills said the suspect hardly talked to anyone.

“Honestly, it’s very frightening, it is very frightening to know that somebody like that lived three doors away,” Connie Ray told KABC.

Authorities are now urging others who are a victim of the suspect or have information about the case to contact the sheriff’s department or their local law enforcement agency if they are outside of San Bernardino County.

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Thousands of flights canceled as busy summer travel season heats up

Thousands of flights canceled as busy summer travel season heats up
Thousands of flights canceled as busy summer travel season heats up
Robert Nickelsberg/Getty Images

(NEW YORK) — Airlines are scrambling to recover after cancelling more than 2,800 flights since Thursday as severe weather pushed through the Northeast.

The majority of the cancellations and delays happened Thursday as storms passed through. The disruptions then bled into Friday as carriers worked to recover from the travel mess.

Airports that experienced the most cancellations were the New York City area airports, Charlotte Douglas International Airport and Boston Logan International Airport, according to flight-tracking site FlightAware.

Airline executives met with Department of Transportation Secretary Pete Buttigieg Thursday to discuss how to prevent widespread cancellations and delays ahead of the July 4 holiday.

Buttigieg pressed airlines over their ability to reliably operate holiday flight schedules and asked them to improve customer experience, a source familiar with the meeting told ABC News.

The secretary also said the Federal Aviation Administration (FAA) would continue to keep air traffic smooth and on schedule after criticism from some industry groups that FAA ground stops and delays caused by weather and staffing issues resulted in many delays over Memorial Day Weekend.

The FAA says it is working to hire more air traffic controllers for its facilities as it has had to reduce air traffic in some of the busiest airspace due daily staffing shortages.

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Dominion’s 2020 election lawsuit against Newsmax to move forward, judge rules

Dominion’s 2020 election lawsuit against Newsmax to move forward, judge rules
Dominion’s 2020 election lawsuit against Newsmax to move forward, judge rules
Ty O’Neil/SOPA Images/LightRocket via Getty Images

(WASHINGTON) — As the Jan. 6 committee continues to lay out its evidence surrounding the effort to overturn the 2020 presidential election, a federal judge on Thursday ruled that a defamation lawsuit filed by Dominion — a voting machine company at the heart of a number of “Big Lie” conspiracy theories — against far-right news outlet Newsmax is allowed to proceed.

Judge Eric M. Davis denied Newsmax’s motion to dismiss the $1.6 billion civil suit. In the original complaint filed in August, Dominion said Newsmax “helped create and cultivate an alternate reality where up is down, pigs have wings, and Dominion engaged in a colossal fraud to steal the presidency from Donald Trump by rigging the vote.”

At the first Jan. 6 hearing last week, former Attorney General Bill Barr said the baseless allegations that Dominion machines switched votes from Joe Biden to Trump were “complete nonsense” and “amongst the most disturbing.”

“I told them it was crazy stuff and they were wasting their time on it, and they were doing a great disservice to the country,” Barr said of the Dominion conspiracy theories, which were consistently pushed by Trump and his allies. “I saw absolutely zero basis for the allegations, but they were made in such a sensational way that they obviously were influencing a lot of people.”

Dominion has filed a number of defamation suits against those it says helped pushed the false accusations that it helped rig the 2020 election, including Rudy Giuliani and Fox News. Last year, a judge similarly denied requests from Giuliani, attorney Sidney Powell, and MyPillow CEO Mike Lindell to throw out the Dominion suits against them.

Dominion, in its complaint against Newsmax, alleged that Newsmax “manufactured, endorsed, repeated, and broadcast a series of verifiably false yet devastating lies about Dominion.”

In a statement responding to the ruling, a Newsmax spokesperson said they were “not surprised by the judge’s decision as this was a preliminary motion and he made a very similar ruling in the Fox News case,” then went on to defend its coverage of the 2020 election.

“Newsmax reported on both sides in the election dispute without making any claim about the results other than saying they were ‘legal and final,'” the statement said. “We are confident that Newsmax will ultimately prevail given the strong First Amendment protections provided to ensure free speech and a free press.”

Last year, Newsmax retracted some its reporting surrounding the 2020 election as part of a settlement after it was sued by a Dominion employee in a separate suit.

Referring to allegations that Dominion had schemed to rig the election in favor of Biden, the network reported that it “subsequently found no evidence that such allegations were true.”
 

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What the interest rate hike means for homebuyers

What the interest rate hike means for homebuyers
What the interest rate hike means for homebuyers
Phillip Spears/Getty Images

(NEW YORK) — A difficult year for many homebuyers became even tougher when the Federal Reserve dramatically raised borrowing costs this week in an effort to tame sky-high inflation, experts told ABC News.

For months, homebuyers have faced the dual challenges of skyrocketing mortgage rates and continued growth in home prices.

Since mid-March, when the Federal Reserve instituted its first rate hike of the year, the average 30-year, fixed-rate mortgage has jumped from 4.45% to 6.11%, according to Mortgage News Daily. Meanwhile, the median price for existing single-family homes rose 15.7% over the first three months of 2022 compared with the same period last year, according to data from the National Association of Realtors.

The Fed’s decision on Wednesday to raise interest rates by 0.75%, its largest hike since 1994, will further increase mortgage rates and push many homebuyers out of the market, slowing home price increases but intensifying demand in the rental market, experts said.

“It’s got a huge impact,” Mark Stapp, a professor of real estate at Arizona State University, told ABC News. “It’s going to bump a lot of people out of homebuying.”

To be sure, rates for 30-year, fixed-rate mortgages do not move in direct correlation with the Fed’s benchmark interest rate. Instead, mortgage rates trace the ups and downs of the yield on 10-year Treasury bonds, which responds to a host of indicators such as inflation and the outlook for the economy as well as interest rates.

Over the past week, as new inflation data showed a reacceleration of price hikes and observers expected the Federal Reserve to escalate its fight to dial back cost increases, mortgage rates increased more than they have over any week since 1987, according to a Freddie Mac survey released on Thursday.

Steep mortgage rate increases significantly elevate the monthly cost of homes, shutting out many buyers, decreasing overall demand, and affording leverage to the buyers who remain, experts said.

Mortgage rates will continue to increase at least moderately and could reach as high as 7%, some experts said.

“A month ago, I would’ve thought that 7% would be outlandish and it would be delusional to think they could go that high,” Holden Lewis, a housing expert at personal-finance site NerdWallet, told ABC News. “Now I think okay, well, 7% might be possible.”

“Every time I think they’ll stop, they keep going up,” he added.

At the outset of the year, when the rate for a 30-year fixed mortgage stood at 3.25%, buyers who could afford a $1,500 per month spend on the home principal plus interest, could borrow enough to afford a $345,000 home, Lewis said. At the current rate, roughly 6%, the same homebuyers can borrow about $250,000, reducing borrowing capacity by about $95,000, he added.

“As mortgage rates increase, the monthly payment you can afford can buy less house,” he said.

The mortgage rate hikes disproportionately impact buyers on the fringe of the housing market, such as people seeking their first home, said D. Sam Chandan, a professor of finance and director of the Center for Real Estate Finance at New York University’s Stern School of Business.

“We’ve seen a significant deterioration in housing affordability over the course of this year,” he said. “In particular for the aspirational first-time home buyer in many markets around the country.”

Forecasters expect a decline in home purchases this year, which should slow price increases, experts said. Total home sales are expected to drop 13.5% to 5.96 million units in 2022, according to Fannie Mae data released this month.

But the supply of homes will also likely decline, as sellers wait for a more favorable market, moderating the price relief expected from waning demand, Chandan said. Further, declining interest in the market for home purchases will spike demand and potentially raise prices in the rental market, he added.

In the short term, a possible rental price hike would coincide with a persistent rise in prices for essentials like fuel and groceries, straining household budgets, Chandan said.

“We find ourselves in a place where apartment rents are increasing faster than many families’ incomes are growing,” he said. “The deterioration in affordability for many income-constrained families is forcing a very tough choice in having to spend less on education, clothing, healthcare and food in order to pay rent.”

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Texas committee investigating shooting visits Robb Elementary school

Texas committee investigating shooting visits Robb Elementary school
Texas committee investigating shooting visits Robb Elementary school
Joshua Lott/The Washington Post via Getty Images

(UVALDE, Texas) — Members of the Texas House committee investigating the Uvalde school shooting visited Robb Elementary School on Friday, according to the committee’s chair.

The school’s superintendent, Hall Harrell, arranged for the committee to go into the school, Rep. Dustin Burrows, the committee chair, said.

Last month, 19 students and two teachers were killed after a gunman walked in through an unlocked door and opened fire in the school. This was the deadliest shooting in Texas public school history.
Uvalde police have come under intense scrutiny as the narrative of what happened on the day of the shooting has shifted. It was later revealed that the shooter was in the school for 77 minutes before officers shot and killed him.

The three-person committee is meeting with teachers and several Uvalde Consolidated Independent School District police officers behind closed doors.

In public remarks, Burrows said he met with a family member of one of the victims and discussed why the sessions were happening behind closed doors.

“Before this committee is willing to announce what we believe is to be factual, accurate information, we want to hear from all sides and all different viewpoints and get together before the three of us put our signatures and names on something … that is truthful and accurate,” Burrows said.

“I’m not telling you this is the perfect way to go about doing it, by any stretch of the imagination, but it’s the way we know that we feel works and we believe in it,” he added.

Burrows said the committee is continuing to have dialogue with the Uvalde police department and said he hopes the committee will get to interview officers who were on the scene.

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