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Iowa economy still being plagued by rising inflation, supply chain issues, labor shortages

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RADIO IOWA – A monthly survey shows the economic pictures for Iowa and the Midwest are darkening, with a few sunny breaks in the clouds.

Creighton University economist Ernie Goss says the overall figures for Iowa sank during May, as did the numbers for the nine-state region. Goss says the survey of business leaders and supply managers showed hiring slowed during the past month.

“Regional employment still remains well below pre-pandemic levels, about 1.4% below pre-pandemic levels,” Goss says. “We’re still moving. We’re crawling out of this economic downturn, but we’re doing somewhat better, and we’ll see how that trends out in the weeks and months ahead.”

According to the survey, the greatest economic threats for the rest of 2022 include supply chain disruptions, inflationary pressures, higher interest rates and labor shortages.

“Inflation will remain high for the rest of the year, but I expect it to come down a bit,” Goss says. “There’s some indicators that inflation is declining. Economic growth will likewise slow for the rest of the year but we’re still in the positive range right now. Supply chain disruptions and delays will lengthen, but I think even there, we’ll see some improvements.”

The inflation index for May rose to 91.7 on a scale of zero to 100, that’s up from 89.7 during April. The survey asked supply managers how much more they expect prices to rise during the second half of the year.

“For the next six months, they expect 8.7% growth. Of course, you double that and annualize it, that’s 17.4% in the wholesale price index. So that’s some big, big time numbers in terms of growth and wholesale prices,” Goss says. “So of course, that will spill over into consumer prices in the weeks and months ahead.”

Again, using the zero to 100 scale, Iowa’s overall economic index for May fell to 59.6, dropping significantly from 69.8 in April.

Despite that, Goss says: “Both durable and non-durable goods manufacturers in the state are growing at a solid pace with companies linked to the farm economy expanding at a healthy rate. The state’s leisure and hospitality industry has benefited from this healthy growth, but employment in this industry remains 8,300 jobs (5.7%) below pre-pandemic levels.”

Northern Iowa father, son get prison time for Capitol riot

By DAVID PITT

DES MOINES, Iowa (AP) — A federal judge on Wednesday sentenced a northern Iowa father and son to prison for their participation in the U.S. Capitol riot on Jan. 6, 2021.

Daryl Johnson, 51, and his son Daniel Johnson, 30, both of St. Ansgar, admitted to entering the building through a broken window and pushing through a police line once inside.

Daryl Johnson will serve 30 days in jail, the time recommended by federal prosecutors, and Daniel Johnson with serve four months, less than the six months prosecutors sought. Defense attorneys for both men sought probation and no jail time.

Federal Judge Dabney Friedrich handed down the sentences in Washington.

Daryl Johnson’s attorney, Christopher Davis, wrote in a sentencing memo that Johnson is a politically conservative, passionate man who got caught up in the moment and now admits he was wrong to enter the Capitol.

“I have no explanation nor any excuse. I was wrong to enter the capital and behave like I did. I simply am heartbroken; I know there is no way I can make amends. The only option I have is own my failure, ask for forgiveness, and pay the price required,” Johnson said in court documents.

In social media comments after the attack, Johnson posted that Jan. 6 marked the beginning of a revolution that could lead to “hangings on the front lawn of the capitol.” On Feb. 7 he posted, “Bring it on Biden! I have no problem dying in a pool of empty shell casings.”

Davis argued Johnson, now a convicted felon, can no longer carry a gun for protection or vote and his businesses, which include laundromats, a tanning salon and a car wash, could suffer as a result of the felony conviction.

Documents filed by Daniel Johnson’s attorney, Allen Orenberg, said Johnson works for a roofing company and lives with his parents in St. Ansgar, a town of 1,100 people near the Minnesota boarder, 130 miles northeast of Des Moines. He previously listed an address in Austin, Minnesota.

In court documents, Orenberg said Johnson believed what he read on the internet and heard from President Donald Trump about the election being stolen but didn’t plan to enter the Capitol “until Mr. Trump invited everyone to march to the U.S. Capitol.”

Both men pleaded guilty in January to one felony count of civil disorder. The government agreed to drop other charges, including disorderly conduct, entering a restricted building and demonstrating in a Capitol building.

It’s not hot today, but be prepared for the sweltering summer ahead

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RADIO IOWA – This week’s temperatures in Iowa are fairly on target for the season, but soon enough, we’ll be getting into the hot, humid days of summer.

Today is Heat Awareness Day in Iowa and meteorologist Donna Dubberke, at the National Weather Service, explains the goals.

“Heat awareness is really important because it’s an underrated hazard,” Dubberke says. “We know it’s going to be hot in the summer and sometimes we don’t take it seriously and you can have serious injury and even fatalities in extreme cases if you don’t do the right things.”

She notes that spending too much time outside can mean more than just a bad case of sunburn.

“When we get hot and humid in the summer, it becomes really difficult for your body to make the necessary adjustments and stay cool enough,” Dubberke says. “If your body gets overheated, you can have heat illnesses, heat exhaustion, heat stroke. That’s why we’re encouraging people to learn what you need to do and to be ready for when it does get hot, even though it’s not going to be that hot this week.”

Iowa motorists need to take special care with their passengers when the weather starts to warm up.

“Never leave a pet or a child and in a hot car,” she says. “It can heat up so quickly, so much hotter and so much faster than you think it normally would.”

Find more tips about heat awareness at www.weather.gov/dmx

(By Pat Powers, KQWC, Webster City)

West promises Ukraine more, better arms to fend off Russia

By JOHN LEICESTER and FRANK JORDANS

KYIV, Ukraine (AP) — Western nations promised more and more advanced arms to bolster Ukraine’s defense as its troops battled a grinding Russian offensive that was closing in on capturing a key city in the east.

Germany said Wednesday it will supply Ukraine with modern anti-aircraft missiles and radar systems, and the U.S. will unveil a new weapons package later in the day that will include high-tech, medium-range rocket systems.

The Kremlin spokesman told reporters Wednesday that the U.S. is “pouring fuel on the fire.”

Western arms have been critical to Ukraine’s success in stymieing Russia’s much larger and better equipped military — thwarting its initial efforts to take the capital and forcing Moscow to shift its focus instead to the eastern industrial Donbas region.

But as the war drags on and Russia bombards towns in its inching advance in the east, Ukraine has repeatedly pleaded for more and better weapons. Ukrainian President Volodymyr Zelenskyy has occasionally criticized the West for moving too slowly in shipping arms — and military analysts have said Russia is hoping to overrun the Donbas before any weapons that might turn the tide arrive.

Germany has come under particular fire, both at home and from allies abroad, that it isn’t doing enough.

German Chancellor Olaf Scholz told lawmakers that the surface-to-air IRIS-T SLM missiles it will send are the most modern air defense system the country has. They can operate at longer ranges than the Cold War-era anti-aircraft vehicles it has previously provided.

“With this, we will enable Ukraine to defend an entire city from Russian air attacks,” he said. The radar systems Germany is sending will help Ukraine locate enemy artillery.

Scholz said Germany and the United States are coordinating their moves.

In addition to the rocket systems it has promised, the U.S. package will include helicopters, Javelin anti-tank weapon systems, tactical vehicles, spare parts and more, two senior administration officials said Tuesday. The officials spoke on the condition of anonymity to preview the package before it is formally unveiled.

One official noted that the advanced rocket systems will give Ukrainian forces greater precision in targeting Russian assets inside Ukraine.

Moscow views the U.S. plans to supply more weapons “negatively,” Kremlin spokesman Dmitry Peskov told reporters Wednesday, saying the Kremlin doesn’t trust Kyiv’s assurances that the rocket systems will not be used to attack Russia.

“We believe that the U.S. is deliberately and diligently pouring fuel on the fire,” Peskov said.

The announcements come as a regional governor said Russian forces now control 70% of Sievierodonetsk, a city that is key to Moscow’s efforts to complete their capture of the Donbas, where Ukrainian and Russian-backed separatists have fought for years and where the separatists already held swaths of territory.

Luhansk Gov. Serhiy Haidai said in a post on the Telegram messaging app that some Ukrainian troops have pulled back from the city, though he later told The Associated Press that the troops who remained were battling it out in the streets.

The only other city in Luhansk that the Russians have not yet captured, Lysychansk, is still “fully” under Ukrainian control, he said — but it would likely be next.

“If the Russians manage to take full control over Sievierodonetsk within two to three days, they will start installing artillery and mortars and will shell Lysychansk more intensively,” Haidai said.

Zelenskyy, meanwhile. said the country is losing between 60 and 100 soldiers a day in the fighting and that another 500 are wounded.

He told the U.S. TV channel Newsmax on Tuesday night that “the most difficult situation is in the east of Ukraine and southern Donetsk and Luhansk,” two regions that make up the Donbas.

In southern Ukraine, a regional governor sounded a more positive note, saying Russian troops are retreating and blowing up bridges to prevent a possible Ukrainian advance. Vitaliy Kim, governor of the Mykolayiv region, said in messages on Telegram on Wednesday that Russia was on the defensive.

“They are afraid of a counterattack by the Ukrainian army,” Kim wrote. He didn’t specify where the retreat was happening. The parts of the Mykolayiv region which have been held by Russian forces in recent days are close to the large Russia-held city of Kherson.

Zelenskyy said in his nightly address there had been “some success in the Kherson direction” for Ukraine.

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Jordans reported from Berlin. Associated Press writers Yuras Karmanau in Lviv, Ukraine, and Lolita C. Baldor in Washington contributed to this report.

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Follow the AP’s coverage of the war at https://apnews.com/hub/russia-ukraine

Senator Grassley is hopeful of compromise on gun control legislation

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RADIO IOWA – U.S. Senator Chuck Grassley of Iowa says he’s hopeful to hear of efforts to reach compromise on gun control legislation, especially if it includes his bill.

Republican Senator John Cornyn of Texas and Democratic Senator Chris Murphy of Connecticut are scheduled to meet this week to establish a “framework” to find common ground on a response to recent mass shootings.

Grassley says he heard President Biden’s address Sunday, where he promised to do something about gun violence.

Grassley says, “When I heard him talking about what Cornyn and Murphy are the people that are leading this effort to get some sort of a compromise, I heard him not only talk about guns but school safety.”

Under his bill called the Eagles Act, Grassley says trained professionals would be tasked with working to identify and manage threats at the high school level before they occur. The bill would direct experts in child psychology to work closely with a federal threat assessment center to develop evidence-based techniques to identify potential threats.

“It builds on a program that was set up in 1998 for the Secret Service,” Grassley says. “It’s been very successful, to teach people how to observe people, and if you observe somebody that appears to be a threat to themselves or a threat to somebody else, that you would try to intervene.”

While some bills before Congress have long names that are summarized with an acronym, Grassley says the Eagles Act is different.

“Eagle is the mascot for the Parkland, Florida, school that a student murdered, I think, 13 kids,” Grassley says. “I’ve worked with the parents down there. In fact, within the last two weeks, one of the parents was in my office again, asking how they could help.”

Seventeen people were killed at the Parkland school, with 17 more injured. A 19-year-old former student was charged in the Valentine’s Day 2018 killings, which surpassed the Columbine High School massacre that killed 15, including the perpetrators, in Colorado in 1999.

A week ago, an 18-year-old fatally shot 19 students and two teachers, wounding 17 others, at Robb Elementary School in Uvalde, Texas.

Iowa parents urged to get kids boosted for COVID before summer arrives

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Health experts are encouraging Iowans to make sure their children are up to date on their COVID-19 vaccinations before summer vacation starts.

Earlier this month, the Centers for Disease Control expanded its recommendations for booster doses to include children who are five to eleven years old.

Mike Brownlee, chief pharmacy officer at the University of Iowa Hospitals and Clinics, says kids should be fully vaccinated — and boosted — before heading off to summer activities.

“So as we think about where people are traveling to, they may be traveling into areas that are higher risk,” Brownlee says. “We’ve seen that changing throughout the country where, with this new sub variant, it’s still spreading, the virus is still here, the pandemic is still a real thing.”

Brownlee says state data show just about a quarter of the state’s five-to-eleven-year-olds are fully vaccinated, and COVID cases are rising across the country.

“We know that millions of kids have been infected,” he says. “Last I remember, about 30% of those that don’t really have other conditions still end up being hospitalized.”

Federal health officials recommend children get the booster shot five months after their last dose, or three months after if they are immunocompromised.

(Natalie Krebs, Iowa Public Radio)

Des Moines tries cooperation to reduce farm runoff

By SCOTT McFETRIDGE

DES MOINES, Iowa (AP) — A Des Moines utility has for years engaged in a bitter struggle to clean up drinking water that comes from rivers teeming with agricultural pollutants, filing lawsuits, proposing legislation and even public shaming to try to force farmers to reduce runoff from their fields.

None of it has worked, so Des Moines Water Works is trying a less combative approach — inviting farmers to learn the latest techniques for reducing pollution at riverfront plots of corn and soybeans in the sprawling park where the utility filters the city’s drinking water.

“I think it’s great to have the farmers out here and show what can be done,” said Jessica Barnett, who oversees management of the 1,500-acre (2.3-square mile) park little more than a mile from downtown.

It’s a surprising turn in a long-running dispute between the state’s dominant industry and a utility that supplies drinking water to 600,000 customers in Iowa’s largest metro area.

Des Moines Water Works has complained for years that nitrates and phosphorous from farm fertilizers pour off fields, leaving rivers so polluted that the utility fears even its sophisticated and costly equipment can’t purify the water. The utility’s efforts to hold some upstream counties legally liable for the pollution have failed, and Republicans who control the legislature and governor’s office have repeatedly rejected regulation, instead supporting voluntary programs too limited to result in real improvements.

That history makes the deal between Landus, the state’s largest farmer-owned grain cooperative, and Water Works all the more surprising. Or as Matt Carstens, the president and CEO of Landus, put it: “This is an unlikely partnership.”

In some ways, Carstens and Water Works CEO Ted Corrigan said the new initiative is possible only because the earlier, more confrontational approaches failed.

“Whatever we’ve tried in the past hasn’t been as successful as this could be,” Carstens said.

Under the plan, Landus has planted corn, soybeans and a cover crop of rye and red clover on three plots totaling about 12,000 square feet (1,100 square meters) near a bend in the Raccoon River that, along with the Des Moines River, meets the city’s water needs.

Landus plans to bring in about 500 farmers through the summer to examine the plots and learn how they can confidently scale back their use of fertilizer, with more advanced monitoring and by planting cover crops that grow alongside the main crop and naturally infuse the soil with nitrate.

Dan Bjorkland, a soil expert at Landus, said he’s especially hopeful the company’s efforts will encourage more planting of cover crops, now used by less than 10% of Iowa farmers despite the clear benefits in preventing erosion and creating healthy soil. Some farmers might be more willing to consider planting cover crops because fertilizer prices have reached record highs due to the Russian invasion of Ukraine, which disrupted supply chains.

“We have the technology today in agriculture to apply exactly what you need,” Bjorkland said. “I call it the Goldilocks method of nutrient management. You don’t want too much but you have to have enough to get the production you need.”

Jeff Frank, a corn and soybean farmer from northwest Iowa who attended a presentation on the new effort last week, said farmers used to be encouraged to apply more fertilizer than needed to ensure they had enough.

“We were coached that way, to put down a little extra, to have a little in the bank,” Frank said. “The technology has come a long way and that isn’t the case anymore.”

Corrigan, of Water Works, said he’s hopeful the demonstration plots along with other efforts by local governments to build streamside buffer zones will pay off in cleaner water. Corrigan also credited Landus for acknowledging that large-scale agriculture needs to take a lead in cleaning up Iowa’s waterways.

But Corrigan said he still believes some form of increased regulation is needed to significantly reduce runoff from the state’s roughly 85,000 farms.

“I don’t think it can be done without some sort of legislative action that sets minimum expectations and what we’re doing now is to show it can be done. Ag and clean waterways can coexist,” he said. “And maybe someday the Legislature will see it can be done and say, everyone needs to do it.”

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Follow Scott McFetridge on Twitter: https://twitter.com/smcfetridge

OHS graduate wins statewide poetry contest

A recent Oskaloosa High School graduate has won a statewide poetry contest.  Ian Kilgus won first place in the Iowa Poetry Association’s annual Poetry Contest.  His prize-winning poem is called “Borrowed Love” and was rated first out of 287 entries from Iowa high school students.  Here is Ian’s poem

Borrowed Love

I borrowed your smile a week ago.

I still have it in my mask. I’m keeping it safe.

It feels nice to have the weight of facial muscles lifted.

I stole your laugh hoping I could take a part as my own.

A sound nice on my worn ears, a soft melody to lull to sleep

I asked for your heart, or at least a bit of it.

Only to fix mine that’s been shattered to a million pieces.

Some pieces too tattered, I had to scrap them.

But here’s your smile back,

still together barely because I used it one too many times.

And here’s your laugh, now sounding like a broken record.

Skipping the best parts and stuck on the pre-chorus.

 And lastly, your heart.

Seemingly untouched, but crumpled like old newspaper.

Lightly torn from being smoothed back to how it once was.

I guess I used it too much.

Sorry, but not really…

 

Biden to meet Fed chair as inflation bites pocketbooks

By ZEKE MILLER

WASHINGTON (AP) — President Joe Biden is set to meet with Federal Reserve Chairman Jerome Powell as soaring inflation takes a bite out of Americans’ pocketbooks.

The meeting Tuesday will be the first since Biden renominated Powell to lead the central bank and comes weeks after his confirmation for a second term by the Senate.

The White House said the pair would discuss the state of the U.S. and global economy and especially inflation.

“The most important thing we can do now to transition from rapid recovery to stable, steady growth is to bring inflation down,” Biden said in an op-ed posted Monday by The Wall Street Journal. “That is why I have made tackling inflation my top economic priority.”

Inflation in the U.S. hit a 40-year high earlier this year, amid supply chain constraints caused by the global economy’s recovery from the pandemic and Russia’s invasion of Ukraine.

But the economy saw a welcome bit of data Friday, as the Commerce Department said inflation rose 6.3% in April from a year earlier, the first slowdown since November 2020 and a sign that high prices may finally be moderating, at least for now.

The inflation figure was below the four-decade high of 6.6% set in March. While high inflation is still causing hardships for millions of households, any slowing of price increases, if sustained, would provide some modest relief.

Powell has pledged to keep ratcheting up the Fed’s key short-term interest rate to cool the economy until inflation is “coming down in a clear and convincing way.” Those rate hikes have spurred fears that the Fed, in its drive to slow borrowing and spending, may push the economy into a recession. That concern has caused sharp drops in stock prices in the past two months, though markets rallied last week.

Powell has signaled that the Fed will likely raise its benchmark rate by a half-point in both June and July — twice the size of the usual rate increase.

Biden, in his op-ed, signaled that the record-setting pace of job creation in the aftermath of the pandemic would slow dramatically, suggesting more moderate levels of 150,000 jobs per month from 500,000. He said “it will be a sign that we are successfully moving into the next phase of recovery—as this kind of job growth is consistent with a low unemployment rate and a healthy economy.”

Ahead of the meeting Biden pledged not to interfere in the Fed’s decision-making, but suggested that he and Powell are aligned on addressing inflation.

“My predecessor demeaned the Fed, and past presidents have sought to influence its decisions inappropriately during periods of elevated inflation,” Biden wrote. “I won’t do this. I have appointed highly qualified people from both parties to lead that institution. I agree with their assessment that fighting inflation is our top economic challenge right now.”

Street resurfacing in Ottumwa

Weather permitting, there will be some street resurfacing in Ottumwa Tuesday and Wednesday (5/31 & 6/1).  Orchard, Ash and Elm Streets south of Hayne Street and west of Iowa Avenue will be closed for the work.  On Tuesday, the streets will be graded and a sealer will be applied.  Then on Wednesday, the new surface for the streets will be laid.  Those parts of Orchard, Ash and Elm will re-open once the new surface is applied Wednesday.

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