A former Cornell University student alleges that, at age 20 in 2024, she was drugged and sexually assaulted by seven members of the school’s Chi Phi fraternity in what she described as a gang rape.
ITHACA, N.Y. —
Could Mehreen Faruqi Become Australia’s Next Greens Leader?
Greens deputy leader Mehreen Faruqi is being viewed as a front-runner to succeed Larissa Waters, who announced on Monday that she would leave the leadership after revealing she has kidney disease.
Faruqi is expected to seek the top job with strong backing from the party’s activist wing, including members calling for a tougher stance towards Labor and greater emphasis on social justice and Palestinian rights.
The Pakistani-born NSW senator has built considerable support among grassroots Greens organisations over several years.
In 2025, the Blak Greens, a group made up of First Nations members, formally endorsed Faruqi. The organisation also signed an open letter coordinated by the NSW Young Greens that backed her leadership ambitions.
Her position was strengthened further when the Blak Greens passed a motion urging that Faruqi replace Indigenous senator Dorinda Cox as the party’s spokesperson on First Nations issues.
The motion stated: “The First Nations portfolio (must) be moved to Senator Mehreen Faruqi.”
The meeting also took aim at Cox, a former police officer whose moderate political outlook has faced sustained criticism from sections of the Greens’ left faction.
Those divisions ultimately played a role in Cox’s move to Labor, following her growing dissatisfaction with parts of the Greens membership and the party’s internal culture.
Mehreen Faruqi (pictured) is regarded as one of the leading candidates to become the next Greens leader
The Blak Greens also sought to rule out another potential successor, passing a resolution opposing a leadership bid by South Australian senator Sarah Hanson-Young.
The group argued that Hanson-Young would not be effective in advancing Greens policies on First Nations affairs, racial and social justice, or Palestinian liberation.
The Australian Young Greens adopted a comparable motion rejecting the possibility of Hanson-Young taking over the leadership.
Despite her experience and lengthy Senate career, Hanson-Young continues to face reservations among some members of the party’s grassroots base.
The South Australian senator is married to political lobbyist Ben Oquist, a partner at DPG Advisory Solutions. The firm has listed Rio Tinto, Wesfarmers, Uber and Ausgrid among its clients.
Some Greens activists see the relationship as representing what they regard as the party’s increasing closeness to established political and corporate circles.
Although Faruqi currently appears to have the strongest support among activists, she is not the only figure from the Greens’ left being considered for the leadership.
Several party sources believe David Shoebridge could become a serious contender if he decides to nominate. He may appeal particularly to MPs and senators looking for a unifying figure after a difficult election campaign.
David Shoebridge (pictured) is also expected to be in the running for the Greens leadership
The Greens suffered a major setback in 2025, losing three of their four lower house seats, including Melbourne, once considered the party’s strongest base and previously held by former leader Adam Bandt.
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Shoebridge’s standing within the party was highlighted earlier this month when he publicly supported Waters during a highly visible internal revolt.
The dispute erupted when senators Nick McKim, Vanessa Bleyer and Jordon Steele-John crossed the floor to support a Coalition disallowance motion targeting a proposal for a future NSW Koala National Park and Australia’s carbon offset framework.
The move came despite Waters and the leadership having negotiated amendments with Labor, prompting Energy Minister Chris Bowen to publicly thank her for helping secure a deal.
Although the disallowance motion was defeated, the sight of Greens senators voting against their own party’s position fuelled speculation about divisions.
The episode exposed a growing split between MPs willing to accept incremental policy wins and activists who remain deeply sceptical of market-based climate policies like carbon offsets.
Waters rejected suggestions that the vote reflected wider leadership problems when questioned by the Daily Mail.
‘I’m really pleased that we were able to secure some important improvements,’ she said.
Larissa Waters (centre) on Monday announced her resignation as leader of the Greens
Join the discussion
Will a far-left Greens leader unite or further divide progressive voters in Australia?
‘We will work every single day to end native forest logging and to stop coal and gas projects from using dodgy ACCUs as a get-out-of-jail-free card. So I feel very pleased and confident about the fight that’s coming.’
Shoebridge, standing beside her, defended Waters.
‘On the question of leadership, when tough decisions needed to be made, Larissa made them last week,’ he said.
‘She showed leadership. It’s something that a less effective leader could easily have walked away from, but she didn’t.’
The comments have only added to speculation that Shoebridge could emerge as a unity candidate if the contest becomes a choice between the party’s activist wing and more pragmatic parliamentarians.
Shoebridge is also seen as the most outspoken and effective performer within the party on issues of artificial intelligence, AUKUS, defence and the Middle East, all considered key concerns for Greens members.
While Shoebridge also comes from the party’s left wing, his supporters believe he would be better at connecting the Greens with mainstream voters.
A vote to decide the new party leader will be held at a party room meeting in Sydney later this week, with the result expected by Thursday at the latest.
Julie Bowen Shares Rare Update on Her ‘Lovely’ New Boyfriend
Julie Bowen Reveals She Has a New Romance After Once Declaring Herself “Very Single”
Julie Bowen is giving love another chance.
Four years after the Modern Family alum said she was done with dating, Bowen has confirmed that a new man is now part of her life.
In an interview with People published Sept. 26, the actress shared, “I have a lovely friend.”
The 56-year-old did not reveal her partner’s identity, but said he has the qualities she values most in a relationship.
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“I need smart and funny,” Bowen said when describing what she looks for in a partner. “I don’t care what people look like—though he happens to be good-looking.”
The Happy Gilmore star made her priorities clear, adding, “I like the brains.”
Bowen was married to Scott Phillips from 2004 until their separation in 2017. They share sons Oliver, 19, and 17-year-old twins Gustave and John.
After her divorce was finalized in 2018, Bowen said she was “very single” and had closed the door on dating. At the time, she even marked the end of that chapter by gifting herself a new dog.
New Nancy Guthrie Ransom Note Emerges in Shock Development
Nearly eight months after Nancy Guthrie vanished, authorities are investigating what could be a new ransom note in the case.
Guthrie, 84, the mother of Today show host Savannah Guthrie, was forcibly taken from her home in the Tucson area on February 1. Her disappearance has drawn national attention and remained in the headlines for months.
In the early stages of the investigation, the Guthrie family received two disturbing ransom notes. Police released both documents in full in July. One demanded $4 million, while the other claimed Nancy had died before offering an apology.
Authorities are now examining the possibility that a third ransom note has surfaced.
Late Monday evening, the Pima County Sheriff’s Department said in a statement: “The PCSD/FBI Guthrie Task Force was recently made aware of a new possible ransom note related to the Nancy Guthrie investigation.
“Investigators are also aware of social media comments regarding the note and are looking further into the information to determine its credibility.”
The Pima County Sheriff’s Department is leading the investigation into the abduction with assistance from the FBI.
Police have not disclosed the contents of the possible ransom note, and their statement did not confirm whether the document is genuine.
Nancy Guthrie, 84, the mother of Today show host Savannah Guthrie, was forcibly abducted from her Tucson-area home on February 1
Police released two ransom notes in July, but a third possible note has now emerged. Pima County Sheriff’s deputies are shown at Guthrie’s home after her disappearance
The Pima County Sheriff’s Department issued the statement late Monday evening
A Pima County Sheriff’s Department spokesperson told 13 News that officials have “some skepticism” about the note’s validity.
Investigators previously said one of the ransom notes released in July might be authentic because it included specific details about Guthrie’s home. Those details included a broken floodlight in the backyard and a white smartwatch discovered on her bedroom floor.
The second note did not offer similarly specific information, but its tone closely resembled the first. That raised the possibility that both notes had been written by the same person.
Pima County Sheriff Chris Nanos said in July that investigators published the notes in hopes that someone might recognize the writer’s unusual wording, expressions or writing style.
The FBI has also released surveillance footage showing a masked man who authorities said appeared to interfere with a camera on Guthrie’s front porch, eventually blocking it with a plant. Investigators described the individual as a male approximately 5 feet, 9 inches tall.
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Authorities are asking the public to report anyone who began behaving unusually, altered their physical appearance, suddenly left the Tucson area or showed a noticeable and unexplained interest—or lack of interest—in the investigation.
“We’re still here. We are not going away,” Sheriff Nanos said two months ago. “We’ve got a lot of work ahead of us.”
For now, it remains unknown whether the 84-year-old is still alive, despite a previous ransom note claiming that she had died.
The FBI previously released surveillance footage of a masked man who authorities said appeared to tamper with a camera on Nancy Guthrie’s front porch and block it with a plant
It is unclear whether Guthrie may still be alive, although a previously released ransom note claimed that she died
Join the discussion
Should families of kidnapping victims share ransom notes with the public or keep details private?
If the new ransom note is determined to be legitimate, it may be evidence that the elderly woman is alive.
Prior to the revelation of the potential new ransom note, one of the most recent updates in the investigation came last month, when officers were seen scouring through the brush outside of Guthrie’s home.
They may have been looking for new clues after heavy rains in the area altered the landscape, potentially exposing or moving evidence that investigators had not previously noted, Bob Krygier, a retired Pima County Sheriff’s Department lieutenant, suggested to Fox News at the time.
However, it is also possible that authorities decided just to return to the area to take a fresh look at the crime scene after six months with no leads, the former lieutenant said, noting he was ‘certain that they’ve searched those areas already.’
Alternatively, new leads in the case may have led investigators to search the brush, looking for something specific, Krygier suggested.
It is unclear whether that search led to any new evidence or breaks in the case.
The Guthrie family has offered a reward of up to $1 million for information leading to Nancy’s recovery.
The family has yet to publicly address reports of the potential new ransom note.
Tennessee Death Row Inmate Christa Pike ‘At Peace’ After Clemency Denial
The first woman sentenced to death in Tennessee in two centuries says she is “at peace” ahead of her scheduled execution, after Gov. Bill Lee declined to intervene in her final appeal for clemency.
“Whether my clemency is granted or not, I am at peace,” convicted murderer Christa Pike wrote in a letter to NBC News before learning that Lee would not commute her sentence.
“I am not afraid to die,” Pike wrote. “I’m only nervous about the process.”
Pike, 50, is scheduled to be executed by lethal injection on Wednesday. If carried out, it will mark Tennessee’s first execution of a woman in more than 200 years.
Pike was 18 when she lured 19-year-old Colleen Slemmer, a fellow Job Corps student, to an isolated area of the University of Tennessee campus in Knoxville. On Jan. 12, 1995, Pike and her boyfriend tortured Slemmer and killed her in what prosecutors described as a jealous rage.
Pike’s attorneys have asked the U.S. Supreme Court to stop the execution, arguing that her post-traumatic stress disorder could cause “severe mental suffering and superadded psychological terror” as she is restrained on a gurney for the lethal injection, NBC News reported.
Her lawyers also say a childhood marked by sexual and physical abuse, neglect and domestic violence was never adequately addressed by the adults and institutions responsible for her care. They argue that the trauma was not properly considered by the jury when it weighed the death penalty.
Pike has additionally requested that an all-female team administer the lethal injection, saying the presence of men during her final moments could trigger further trauma.
Tennessee corrections officials have said they will attempt to accommodate some of those requests. NBC reported that female guards may escort Pike from the Nashville prison to a nearby maximum-security facility within 24 hours of the execution.
Officials may also approve her request for an entirely female execution team.
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Pike was among the youngest women in the United States to receive a death sentence when she was condemned in March 1996. She was later diagnosed with bipolar disorder and post-traumatic stress disorder.
In a 226-page clemency petition filed in September, Pike’s attorneys argued that untreated mental illness and years of trauma left her unable to “put the brakes on.”
“I was a mentally ill 18-year-old kid. It took me numerous years to even realize the gravity of what I’d done. Even more to accept how many lives I affected. I took the life of someone’s child, sister, friend. It sickens me now to think I had the ability to commit such a crime,” Pike said in a statement included with the petition.
Pike attacked Slemmer with a box cutter before beating her with a large piece of asphalt. Pike’s boyfriend, Tadaryl Shipp, also carved a Satanic pentagram into the victim’s body.
The brutality of the killing and the occult symbol shocked Knoxville, intensifying the “satanic panic” that swept through the United States during the 1980s and 1990s.
Slemmer’s mother, May Martinez, has said she wants the execution to proceed.
“Every time I think about it, I think about Colleen feeling that pain and trying to get up and run,” Martinez told The Associated Press.
“Not a day goes by, or a minute goes by that I do not think about Colleen. Holidays are the worst. Colleen’s birthday was last week. She would have been 51,” Martinez said.
Shipp, who was 17 when the murder occurred, received a life sentence with the possibility of parole because of his age. He was denied parole last year. A third teenager who acknowledged acting as an accessory was sentenced to probation.
With Post Wires
Ariana Grande’s Quiet LA Life—and When She’ll Return to the Spotlight

After announcing a break from the spotlight, Ariana Grande is spending quiet time in Los Angeles with her boyfriend, Ricky Alvarez.
“Ariana is doing great,” a source exclusively told Page Six. “She’s in an amazing place. She’s really happy.”
According to the source, the pop star is “laying low” in LA and making the most of her downtime.
“Ricky’s family is there and she loves Halloween things, so she’s getting into the season,” the source said.
Grande and Alvarez were most recently seen together on Sept. 24 at Universal Studios Hollywood’s Halloween Horror Nights.
TMZ reported that the couple tried to keep a low profile, with Grande wearing a baseball cap. They were nevertheless spotted kissing at a table in a VIP section.
Grande, 33, and Alvarez, 35, rekindled their relationship this past summer, 10 years after their 2016 breakup.
Alvarez, who previously danced professionally for Grande, was photographed with her occasionally during the singer’s “Eternal Sunshine” tour, which concluded in London in September. Before the 10-date overseas run, Grande performed 41 shows across the United States, Canada and the United Kingdom.
The “Dangerous Woman” singer has maintained a demanding schedule over the past several years.
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In 2024, Grande starred as Glinda in the big-screen adaptation of “Wicked.” She took part in a global press tour that year and returned to the promotional circuit for the sequel in 2025. Not long afterward, she began rehearsing for the tour supporting her album.
Once the tour began, fans commented on Grande’s thin appearance. The attention prompted her to address the situation and reveal that she would be stepping away from public life for a while.
“Ariana will be taking a step back from visibility after she completes the Eternal Sunshine Tour,” a representative for the Grammy Award winner told People.
“She looks forward to finishing the tour and ending it on a high note, both healthily and happily, and then taking a much-deserved break from public-facing work and appearances, which has led to endless, ongoing public scrutiny.”
In July, Grande announced that she was leaving Ryan Murphy’s “American Horror Story” Season 13 because of scheduling conflicts.
Several weeks later, Grande said she would also step away from the West End revival of Stephen Sondheim’s “Sunday in the Park with George,” which was set to star Jonathan Bailey. She had been scheduled to perform in the production in summer 2027.
For now, the break appears to be giving the pop star the time she needed.
With the November release of “Focker-In-Law,” the fourth film in the “Meet the Parents” franchise, approaching, Page Six has learned that Grande plans to return to work to promote the project.
“She is planning on doing press for ‘Focker-In-Law’ and supporting the film this fall,” the source confirmed.
In the movie, Grande plays Olivia Jones, the girlfriend of Henry Focker. When Henry announces that he plans to propose, his father, Greg (Ben Stiller), grows skeptical of Grande’s character. Robert De Niro, Blythe Danner, Owen Wilson, Teri Polo and Beanie Feldstein also appear in the film, which is scheduled for release over Thanksgiving weekend.
Lindsay Clancy’s Bid to Probe Holdout Juror Stalls Before Hearing
PLYMOUTH, Mass. — A Massachusetts judge is expected to hear arguments Tuesday on Lindsay Clancy’s double jeopardy motion. Meanwhile, a separate effort to investigate the lone holdout juror from her mistrial may be delayed, at least for now.
Clancy is expected to appear in person for the first time since her trial ended with a deadlocked jury and the judge declared a mistrial on Sept. 4.
Her case has continued to draw national attention in the weeks since the mistrial. Several jurors and Clancy’s defense attorney have criticized the lone holdout, while the Plymouth County District Attorney’s Office, led by Tim Cruz, has said little publicly about whether it plans to seek a retrial.

Lindsay Clancy in court last month. (Boston Globe via Getty Images)
Here is what to expect when Clancy returns to court:
Defense calls to investigate the holdout juror
Defense attorney Kevin Reddington has asked the court to investigate the lone holdout juror, Michael Desronvil, whom he has called “the obstructionist juror.” Desronvil disagreed with the other 11 jurors and remained the only panel member who wanted to convict Clancy.

Callan, left, Dawson and Cora Clancy. The three children were killed at their Duxbury, Massachusetts, home in January 2023. (Lindsay Marie Clancy/Facebook)
Edward Paltzik, the attorney for Desronvil, said Reddington and Plymouth County prosecutors agreed to postpone the motion after he objected. Paltzik said he and his client had not yet received access to impounded materials needed to prepare a response.
“The DA and Reddington consent to adjourn the motion to investigate Michael,” Paltzik told Fox News’ Kayleigh McEnany on Monday.

Michael P. Desronvil, the lone holdout juror in the Lindsay Clancy murder trial, which ended in a mistrial. (Fugitive TV)
“If Judge Sullivan signs an order today, much of it could be adjourned,” Paltzik said. “Either way, a status conference is still likely.”
Reddington strongly disputed that characterization, while acknowledging that he and the district attorney’s office agreed to delay the motion as a professional courtesy to the local attorney now representing Desronvil.

Defense attorney Kevin Reddington addresses reporters as jurors weigh the case against Lindsay Clancy in the 2023 deaths of her three children. (Photo by JOSEPH PREZIOSO / AFP via Getty Images)
“Earlier today, both the government and I were contacted by a professional local attorney who represents Juror Doe,” Reddington said, referring to the juror without using his name because of a court impoundment order. “That attorney requested — as any qualified counsel would — adequate time to review our motion and reply.”
He continued: “As is professional courtesy, both the government and I agreed to continue this specific motion to a later date at their request. The motion remains active, fully alive, and is currently pending a ruling from Judge Sullivan. We will not allow a publicity-seeking opportunist to twist simple courtroom courtesy into a victory that does not exist.”
Although the terms “adjourned” and “continued” are sometimes used interchangeably, they have different legal meanings.
“Adjournment generally signifies that something like a hearing is off indefinitely, especially because no date is specified,” explained retired Massachusetts Judge Carol Erskine. “A continuance is a simple request by a party or two parties to get a new date. [Reddington] objects because adjournment is a misrepresentation of what is happening.”

District Attorney Timothy Cruz leaves Plymouth Superior Court, Plymouth, Mass., Thursday, September, 3, 2026. (David McGlynn for News Media)
If Reddington’s request is ultimately granted, the court could hold a Fidler hearing, during which the judge would question Desronvil.
“There are three phases to a hearing like that,” said Erskine, who is also a child welfare advocate and has closely followed the case. “This is something that could result in a strong manifest necessity claim, but it’s hard to tell until it happens.”
Judge William Sullivan, left, delivered a rare Tuey-Rodriguez charge to the deadlocked jury as Lindsay Clancy, right, looked on during proceedings in Plymouth Superior Court. (Greg Derr/The Patriot Ledger via Pool and David L. Ryan/Pool)
Manifest necessity is the legal standard required to hold a second trial. Erskine said the motion is a long-shot but Reddington is likely laying the foundation for an appeal in the future.
“The big issue, in my opinion, is whether outside information came into the jury room and whether a judge can find that any ‘hypothetical juror’ would let it influence his decision,” she told News Media. “It’s definitely more complicated than that, but there is case law about it.”
Could the holdout sue Reddington?
“This is a strange new world in which disagreeing jurors and their surrogates conduct a public debate after the trial in the media and social media,” said Jack Lu, another retired Massachusetts judge.

Lindsay Clancy looks at jurors as Judge Sullivan asks them to start deliberations for a sixth day during her murder trial on Thursday, Sept. 3, 2026, in Plymouth, Mass. (Pool Photo by Greg Derr/The Patriot Ledger)
Reddington’s request for an inquiry into Desronvil is largely based on allegations from other jurors who accused him of having reasonable doubt about the case and ignoring it. He is seeking phone records, his confidential juror questionnaire and police records.
However, he’s also called him an “obstructionist” outside the courtroom and accused him of having an “agenda.”
“[The other jurors] know that they were robbed — by one man — for whatever his agenda was, who stole seven weeks of the life of these other jurors that were so attentive, so beautiful, so wonderful and listened to this evidence,” he told reporters after leaving the courthouse on Sept. 4, the day the mistrial was declared.
Still, he downplayed speculation from legal analysts about a potential defamation lawsuit from the holdout against Clancy’s team.

Patrick Clancy on the stand at Lindsay Clancy’s murder trial on July 29, 2026. (David L. Ryan/The Boston Globe via Getty Images)
“Defamation law is textbook complex,” he told News Media. “Statements made in court proceedings are privileged.”
Statements made out of court that could appear to be “false statements of fact” may end up being considered opinions, he added.
“If a person says X happened, and we all know that person was not present, then it may be deemed to be an opinion,” he said. “This might apply to any alleged statements about what happened in the jury room.”

Patrick Clancy and Rachel Danis hold hands as they walk through East Midtown in New York City, NY, Wedensday, September 2, 2026. (Elder Ordonez/InStar for News Media)
What’s next?
“I don’t think any of the legal maneuvering, double jeopardy, all that stuff, a hearing in the trial court with the juror, I don’t think it’s going anywhere,” said Mark Bederow, a New York-based criminal defense attorney and former prosecutor who is following the case.
“If you get down to brass tacks, once you get through all this, now you have to look at the DA and say, what are you doing?” he added.
Most prosecutors would not seek a second trial in a case where only one juror agreed with them, he said, but that appears unlikely in this case.
“At the first trial, the prosecution, in my view, failed miserably to satisfy their burden — but there is a credible argument that she’s guilty and intended to cause their deaths and knew right from wrong,” he said. “In order for them to win, they need to get better experts.”
The Commonwealth needs experts who can discredit Clancy’s defense experts, he said. And prosecutors also have room to improve their jury selection.
As for Reddington, he described him as “a titan of the Massachusetts bar” who is filing motions that make sense for his client’s benefit, regardless of his commentary outside the courtroom.
“That’s not frivolous, and any lawyer knows that,” he told News Media.
Reserve Bank of Australia Raises Interest Rates Amid Warning of ‘Human Disaster’
Millions of Australian mortgage borrowers are facing another sharp increase in household costs after the Reserve Bank lifted interest rates to their highest level in almost 15 years.
The RBA board unanimously increased the cash rate by 25 basis points to 4.6 per cent on Tuesday, raising concerns that households could face even more rate hikes before Christmas.
The decision pushed the cash rate to its highest point since 2011 and marked the fourth interest rate rise borrowers have endured in 2026.
Canstar estimates that, if lenders pass on the full increase, monthly repayments will climb by around $91 for a $600,000 mortgage, $114 for a $750,000 loan and $152 for a $1 million mortgage.
The combined effect of the increases is considerably more severe. Four rate rises this year have added roughly $364 a month to repayments on a $600,000 mortgage and about $606 a month on a $1 million loan. Over a year, that equates to approximately $4,400 and $7,300 respectively.
In its statement explaining the decision, the Reserve Bank declined to rule out further tightening, warning it was prepared to raise rates again if inflation failed to ease sufficiently.
The central bank cited higher international oil prices, the ongoing conflict in the Middle East and evidence that businesses were still passing rising costs on to consumers.
Although the RBA left rates unchanged in August, governor Michele Bullock said she ‘doesn’t like people losing their jobs’. However, she has also indicated that a weaker labour market and higher unemployment could be necessary to bring inflation back under control.
RBA governor Michele Bullock (pictured) said she ‘doesn’t like people losing their jobs’, but has warned that higher unemployment may be required to bring inflation under control
RBA governor Michele Bullock (pictured) said she ‘doesn’t like people losing their jobs’, but has warned that higher unemployment may be required to bring inflation under control
Critics say the consequences of higher interest rates will extend beyond mortgage stress, warning that slowing economic activity could cost Australians their jobs.
Australian Council of Social Service chief Cassandra Goldie said rate increases would put employment at risk, with the greatest impact felt by people who lose work or cannot secure enough paid hours.
‘Since interest rates started to increase, an extra 200,000 people are out of paid work,’ she said.
‘We cannot know with certainty what effect another rate rise will have on unemployment over the next year.
‘A move towards, or above, 5 per cent would create a human disaster, shutting people out of work for years and leaving them dependent on grossly inadequate income support payments.’
Those who lose their jobs may be forced to rely on JobSeeker, which currently provides $417 a week. That is equivalent to only 41 per cent of the minimum wage and remains well below the national median rent of $703, according to the latest SQM Research figures.
Asked about ACOSS’ concerns on the ABC, Treasurer Jim Chalmers said he did not expect the flow-on effects to be as serious as the organisation had suggested.
‘It is possible to maintain full employment and low unemployment while also achieving lower and more stable inflation,’ he said.
ACOSS chief Cassandra Goldie (pictured) warned that rising unemployment would create a ‘human disaster’, leaving people shut out of work for years
‘That is the Reserve Bank’s objective, and it is the government’s objective as well.’
Despite concerns about the impact on jobs, economists said inflation remains too high for the RBA to declare victory.
REA Group senior economist Eleanor Creagh said underlying inflation has been running at 3.6 per cent, well above the RBA’s 2 to 3 per cent target.
‘Higher mortgage repayments will weigh on discretionary spending at a time when households are already contending with elevated living costs, although resilient employment and incomes continue to provide an important buffer,’ she said.
‘The economy has slowed, but not enough to give the RBA confidence that inflation will return sustainably to target without further tightening.’
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Ms Creagh said the rate rise will drive down home prices and sales activity further.
‘While structural housing undersupply remains a long-term support for prices, in the near-term, affordability constraints, higher borrowing costs and weaker buyer demand are likely to keep downward pressure on prices,’ she said.
Beyond its impact on the housing market itself, the rate rise is also expected to make buying a home even harder for those trying to get a foothold.
Treasurer Jim Chalmers (pictured) said it’s possible to have full employment at the same time as having lower, more steady inflation
Domain chief residential economist Dr Nicola Powell said the rate rise will push home ownership even further out of reach for many Australians, particularly first-home buyers already facing significant affordability challenges.
‘Every increase in interest rates reduces the amount buyers can borrow, limiting what they can afford to pay and pushing some aspiring homeowners out of the market altogether,’ she said.
‘For many, that means delaying their plans while they save a larger deposit or work to meet stricter lending requirements.’
Dr Powell said Sydney and Melbourne could be hit hardest by another rate rise just as the market was behinning to show early signs of stabilisation, however, she said the bigger challenge is what higher rates could mean for future housing supply.
‘The risk is that today’s fight against inflation becomes tomorrow’s housing shortage,’ she said.
‘Building approvals remain subdued, but that’s not because construction activity has disappeared. Housing is increasingly competing with infrastructure, renewable energy and data-centre projects for the same workers, materials and resources.
‘Australia’s construction industry only has so much capacity. As labour and materials are drawn into other major projects, it becomes harder and more expensive to bring new housing developments to market.
‘Higher rates may help cool demand in the short term, but they can also make it harder to increase housing supply and address Australia’s long-term housing shortfall.’
The latest spending figures from the ABS suggest cash-strapped households are cutting back on discretionary items such as trips the cinema, sporting events and concerts
There are already signs higher borrowing costs are biting, with new figures showing Australians are cutting back on non-essential spending.
The latest spending figures from the ABS suggest cash-strapped households are cutting back on discretionary items such as clothing, furniture and recreation, reinforcing the RBA’s view that consumer demand remains subdued as it weighs future rate decisions.
Head of business statistics Tom Lay said recreation and culture spending saw the largest fall, down 1.4 per cent, after months of higher spending associated with major sporting events.
‘Clothing and footwear, recreational goods, food, health, and furniture also fell,’ he said.
‘These falls were offset by higher transport spending – up 2.3 per cent – leaving overall household spending unchanged from July.
‘Both fuel spending and new vehicle sales contributed to this rise, especially electric vehicles sales as households respond to rising fuel prices.’
University of Sydney economics senior lecturer Dr Luke Hartigan said recent commentary by senior officials indicate the Bank is losing tolerance with persistently high inflation which has been above the RBA’s target band for over 4 years.
‘The RBA is worried, if this continues, households and businesses will start to expect higher inflation which will feed into prices, causing more inflation, creating a difficult cycle to break,’ he said.
‘At the same time, the labour market remains relatively tight, and many businesses are struggling to increase output because they are already making full use of their staff and resources, suggesting inflationary pressures remain an issue even after the three recent increases.
‘With another rate increase by the RBA expected in November, the outlook for the local economy points to further downward pressure on housing prices, higher servicing costs for existing mortgage holders, an uptick in the unemployment rate, and a slowdown in economic activity.’
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