The Federal Reserve said Wednesday it would cut its benchmark interest rate by 0.50 percentage points, marking the first cut in four years and moving to ease borrowing costs as inflation-weary consumers struggle with higher rates on everything from mortgages to credit cards.

Central Bank He said The cut lowers the federal funds rate to 4.75% to 5%, down from its previous range of 5.25% to 5.5%, the highest level in 23 years.

A half-point move signals that the Fed is working hard to keep the U.S. economy from stalling, as most rate cuts historically have been 0.25 percentage points. Before the decision, some economists urged the central bank to make a bolder cut, given signs of weakness in the labor market and a cooling economy.

“This is somewhat surprising,” Fitch Ratings chief economist Brian Coulton said in an email.

“Later incoming inflation data is a bit harder to interpret and it suggests the central bank may be more concerned about the state of the labor market, where the pace of job creation still looks firm,” he added.

There is almost inflation

In a press conference to discuss the rate cut, Fed Chairman Jerome Powell said the rate hike would be based on the Fed’s confidence that inflation will soon reach policymakers’ target of 2% annual rate, as well as cooling employment.

While not as hot as it was during the pandemic, the labor shortage has pushed up wages and some businesses are finding it difficult to find new workers, Powell said.

“We’re certainly not saying mission accomplished or anything like that, but we’re encouraged by the progress we’ve made,” Powell said in response to a question from CBS News’ Joe Ling Kent about the rate cut. It can be seen as a declaration of victory against hyperinflation.

Later in a press conference, Powell noted that he did not see any red flags indicating an economic downturn. “I don’t see anything in the economy right now that looks like there’s much potential for a downturn — you’re seeing growth at a solid rate, inflation coming down and a labor market that’s still at a solid level,” he said. was added.

However, according to a summary of the central bank’s economic projections, central bank economists forecast that the unemployment rate could rise slightly by the end of the year.

Protecting the labor market

It was the first drop in the federal funds rate — or what banks charge each other for short-term loans — since the U.S. central bank cut rates to near zero in March 2020 amid an economic standstill caused by the pandemic. But as prices spiked during the health crisis, the central bank repeatedly raised rates in an effort to control inflation.

While the central bank’s rate hikes have helped curb inflation, the economic whiplash of the past four years has left many consumers and businesses grappling with higher prices and higher borrowing costs. 2.5% in August On an annualized basis, close to the central bank’s 2% target.

Recently, however, there have been some worrying signs of a slowdown in the labor market, prompting Fed Chairman Powell last month to say “The time has come“Simplify rates.

In its Wednesday statement, the central bank cited its decision for a bigger cut “in light of the improvement in inflation and the balance of risks.”

“The panel remains highly confident that inflation is moving steadily towards 2%, and risks to achieving its employment and inflation targets are roughly balanced,” the central bank said in a statement. “The economic outlook remains uncertain, and the board remains cautious about risks on both sides of its dual mandate.”

The big cuts signal “the federal labor market has regained momentum,” Sonu Varghese, global macro strategist at the Carson Group, said in an email.

Further tariff reduction in 2024

More important than today’s cuts is what the central bank does in the coming months as it moves away from fighting inflation to improve the country’s economic engines in an effort to stave off a recession.

The Fed also released its economic projections for the coming years, which showed its members expected an average 2024 federal funds rate of 4.4%, representing a 1 percentage point reduction from its previous level, financial data firm FactSet noted.

“We only have two more [Fed] meetings this year, and they’ve already gone below half a percentage point of that full percentage point. That means a quarter of a percentage point in each of the next two meetings,” Citi economist Veronica Clark told CBS News.

The Fed’s forecast shows its members predict the federal funds rate will drop to 3.4% by the end of 2025.

Wednesday’s cut should ease financial pressures for some consumers, experts said.

“A September cut, at least one more possibility this year, should be welcome news for investors,” said Joe Cafoglio, CEO of Mutual of America Capital Management, in an email ahead of the close. The rate cut will “help curb inflation and ease the financial burden on low- and middle-income consumers.”

With many analysts expecting the Fed to cut its benchmark rate as well, economists predict Wednesday’s rate cut will be the first of cuts this year and into 2025, according to FactSet. (The Fed does not have a rate meeting scheduled for October.)

Next FOMC meetings

Powell has previously come under fire from some economists and policy experts for moving too slowly both to raise rates to address inflation and to hold off on cutting rates as the economy falters.

But the central bank chief advocated that the central bank’s decision should wait until September.

“I think our move is timely,” Powell said at the press conference. “As I said, you can see our 50 basis point move as a commitment to make sure we don’t pull back.”

The next Fed meetings are scheduled for November 6-7 and December 17-18 after the US presidential election.

A tugboat heads toward Baltimore Harbor as rescue crews continue to clear debris from the collapse of the Francis Scott Key Bridge over the Patapsco River on June 11 in Baltimore. The city’s Fort McHenry Federal channel was opened for shipping a few months later when the cargo ship Daly struck the bridge and collapsed.

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The Justice Department sued the owner and operator of the container ship Daly, alleging negligence and risky cost-cutting decisions that caused the ship to enter and destroy Baltimore’s Francis Scott Key Bridge.

The disaster killed six construction workers and shut down a busy port for months; It also destroyed a portion of Interstate 695 carried by the bridge.

“The owner and manager of the vessel … sent an unprepared crew aboard a vessel grossly unfit to navigate the waterways of the United States,” the Justice Department alleged in a civil claim filed Wednesday in federal court in Maryland.

Companies, not taxpayers, should pay, DOJ says

The government is suing two Singapore-based companies, Grays Ocean Pvt Ltd and Synergy Marine Pvt Ltd, over $100 million in US disaster response costs.

Rescue crews removed wreckage from the Daly on May 8, six weeks after the freighter Daly hit the Francis Scott Key Bridge in Baltimore. 6 people died in the March 26 collapse.

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“The Department of Justice is committed to ensuring accountability for those responsible for the tragic death of six people and the destruction of our nation’s transportation and safety infrastructure,” Attorney General Merrick B. Garland said in a news release.

The civil claim cites the costs of emergency response to the disaster and the removal of about 50,000 tons of steel and other materials, creating a temporary channel for ships to enter and exit the port.

Those costs, Garland said, “should be borne by the companies that caused the accident, not by the American taxpayer.”

According to court filings, the ship’s owner, Grace Ocean, and its operator, Synergy, sought to settle liability for less than $44 million.

The federal claim does not include the cost of rebuilding the bridge: Because Maryland built and owns the bridge, the state will pursue its own compensation, according to the court.

Army Corps of Engineers conducts controlled demolition to remove debris from the Francis Scott Key Bridge of the freighter Daly on the Patapsco River in Baltimore on May 13. A 500-foot section of the bridge, weighing 8-12 million pounds, was removed by controlled demolition in the final phase of removing the debris so that the ship could be moved to port.

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The US says the disaster was “entirely avoidable” and was caused by a series of failures that resulted in the ship losing power – and thus, its ability to steer.

As the ship went into crisis under the command of a qualified local pilot, “None of the four means of controlling Dolly – her propeller, rudder, anchor or bow thrust – worked when they were needed to prevent or mitigate this disaster.

America is blamed for repeated failures at critical moments

A picture filed in a judicial court shows a cargo chain turnbuckle welded to an angle piece of metal between a transformer (left) and a steel beam (right) on a dolly ship, in an apparent attempt to reduce vibrations that could damage electrical equipment. .
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The U.S. says Dali’s No. 1 step-down transformer — a large device that converts high-voltage power from diesel generators into usable low-voltage power — failed as the freighter approached the Key Bridge.

The transformer has long been known to suffer from severe vibrations, which raised the risk of eventual failure. But instead of fixing the problem, the Justice Department alleges that the owner and operator of the dolly “jury-rigged” their vessel, including welding a large hook in place in an attempt to brace the transformer.

The US claim describes what happened next:

“A failure in the No. 1 step-down transformer stopped all power going to the ship’s 440-volt electrical panel. The bridge and engine room became completely dark, the crew could not steer, and the main engine stopped, causing the propeller to stop turning. At that time, Shakti want Within a few seconds the backup No. 2 step-down transformer was automatically switched, still enough time to pull away from the bridge. But this automation, a safety feature in the hands of the tailor, is irresponsibly disabled. Engineers struggled in the dark to manually reset tripped circuit breakers for the No. 1 step-down transformer. It took them a full minute, wasting crucial time to regain control of the ship.

In the next few minutes, no backup system could bring enough power back to the ship to avoid hitting the bridge, the Justice Department says.

According to maritime regulations, a container ship that loses power can tap into an emergency generator within 45 seconds. But Daly went without power for “over a minute” after the original blackout.

With power back at the helm, the Maryland-based pilot gave orders to maneuver the ship into the center span of the bridge. But a minute later Dali’s power failed again. The suit alleges that the ship operators’ decision to fuel the diesel generators using a “flushing” pump rather than a standard fuel pump was made “to save money and for their own convenience.” That arrangement starved the generators because the flushing pump on the tally was not designed with a safety feature that automatically restarted after a power outage. As a result, the ship’s main engine and propeller were inoperable.

As the emergency intensified, the pilot called for Daly to release an anchor, hoping to pull the ship out of its collision course. But the anchor was not ready to fall.

“By the time the ship finally dropped anchor, less than half a ship’s length from the bridge, it was too late to have any effect,” it says.

A construction boat passes rescue crews as they work to clear debris from the collapse of the Francis Scott Key Bridge over the Patapsco River on June 11 in Baltimore.

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Another last-minute emergency order to send full power to a bow thruster to turn the ship brought the response that the thruster was “not available,” according to an image of the ship’s log in the court document.

The Daly then crashed into a support vessel, and parts of the Francis Scott Key Bridge crashed into the vessel and into the Patapsco River.

John David “JD” Souther, a member of the Songwriters Hall of Fame known for his co-written hits with the Eagles, James Taylor and Linda Ronstadt, has died at the age of 78.

The singer-songwriter died peacefully at home in New Mexico, representatives of Solders PR said. Cause of death not reported.

Souther was born in Detroit, Michigan on November 2, 1945, and grew up in Amarillo, Texas. In the late sixties, after moving to Los Angeles, California, he formed a long-lasting partnership with Glenn Frey of the Eagles. The two briefly formed the band Longbranch Pennywhistle, which released an eponymous album in 1970 for Jimmy Bowen’s Amos Records.

Throughout the seventies, Souther collaborated on many songs for the Eagles, including “Best of My Love”, “James Dean”, “New Kid in Town” and “Doolin-Dalton”. He would co-write “Hard Take Tonight” with Frey, Bob Seger and Don Henley, which the Eagles would record and release in 1979, the group’s final number one hit on the Hot 100.

As a successful solo artist, Souther recorded his self-titled debut in 1972 and formed The Souther-Hillman-Furey Band with former Byrds member Chris Hillman and Poco’s Richie Furey. In 1976, he released a second solo album. Black roseIt was produced by Peter Asher, and featured a duet with his then-girlfriend Linda Ronstadt, “If You Have Crying Eyes.” His two biggest solo hits included the 1979 single “You’re Only Lonely,” which peaked at number seven on the Hot 100, and the 1981 duet “Her Down Two” with Taylor.

The great songwriter wrote “Run Like a Thief” for Bonnie Raitt’s 1975 album. Home plateand several songs for Ronstadt, including “Faithless Love” and “White Rhythm and Blues”. Souther also recorded several duets with Ronstadt, including “Prisoner in Disguise,” “Sometimes You Can’t Win” and “Hearts Against the Wind,” which were part of the 1980 film. Urban Cowboy.

As an actor, he also appeared in South TV shows Thirty thousand, NashvilleAnd Refinement As well as movies Postcards from the edge, my girl 2, And Deadline.

The multi-talented artist was set to ring in the New Year’s tour with Carla Bonoff this month when it was cancelled.

After his induction into the Songwriters Hall of Fame in 2013, Souther was hailed as “the primary architect of the Southern California sound and a major influence on a generation of songwriters.”

During an interview PBS aired in 2016Souther said “a lot of time is involved in any kind of career in the arts” and called himself “lucky”.

“If really given the choice, I’d go to the beach and spend a couple of weeks in Aspen and skiing, or hang out at my ranch with my dogs,” he said, looking back on his life. “I work because I love my work, but I don’t love it more than my life.”

When asked why there was such a big gap between 1984 Home at dawn And If the world were you In 2008, Souther responded, “I said, ‘I’m going to get off the hamster wheel for a while and see what life is like when it’s off.’ Write, record, tour, write, record, tour, write, record, tour, promote.’ I was obviously very happy for 12, 14, 20 years.

Following his hiatus, the singer-songwriter would release four more albums. Reflecting on his return, Souther added, “I fell back in love with work again, which is always important.”

On the night of September 17, the Earth, Sun and Moon will create three celestial phenomena.

In many places, depending on the time zones, people will have the opportunity to see the harvest moon, super moon and lunar eclipse when the full moon rises.

Here’s what you need to know about these events:

First things first: What is a full moon?

According to NASA, a full moon is defined as the moment when the moon is exactly right 180 degrees Opposite to the sun. At this time, the Sun completely illuminates the Earth’s satellite.

NASA says this month’s full moon will peak at 10:35 PM EDT on Tuesday, September 17 (or 02:35 PM GMT on Wednesday, September 18).

Full moons usually rise around sunset and set around sunrise. There are eight phases of the moon cycle, which repeats every 29.5 days.

What is a partial lunar eclipse?

A partial lunar eclipse is when part of the full moon is covered by the Earth’s shadow.

The shadow expands and then retreats, but never reaches full phase. In contrast, during a total lunar eclipse, the Earth’s entire shadow completely covers the Moon.

At 8:41 PM EDT the Moon will begin moving into Earth’s partial shadow On Tuesday (Wednesday 00:41 GMT). The initial dimming will likely be subtle until the Moon’s upper edge begins to enter full shadow at 10:13pm EDT on Tuesday (Wednesday 02:13 GMT).

The eclipse will peak at 10:44pm EDT on Tuesday (02:44 GMT Wednesday), with only the first eight percent of the Moon in full shadow.

The moon will exit the full shadow by 11:16pm EDT (03:16 GMT) and the partial shadow by 12:47am EDT or 04:47 GMT on Wednesday morning.

What is a Super Moon?

This moon will also be a super moon.

A supermoon is defined as an astronomical phenomenon in which a full moon is larger and brighter than usual. It occurs when the full moon occurs at the same time as its orbit is closest to Earth.

According to NASA, the term “supermoon” was coined by astrologer Richard Nolle in 1979 to describe a full moon that occurs when the moon is “within 90 percent of its closest approach to Earth.”

In essence, the Earth, Moon and Sun are all in a line at this point. At the opposite end of the moon-viewing spectrum is a micromoon—when the full moon appears especially small and dim, coinciding with the point in the moon’s orbit when it is farthest from Earth.

Is this also the harvest moon?

The Harvest Moon is the closest full moon to the Northern Hemisphere’s autumnal equinox, which this year takes place on September 22 at 12:43 GMT.

Yes, this is also a harvest moon.

According to the Farmer’s Almanac, “This full moon will rise at about the same time Time – around sunset – for several evenings in a row.” As a result, there is more bright moonlight in the evening.

This event traditionally helps farmers harvest their summer crops by giving them many extra evenings of moonlight. Hence, it is called the harvest moon.

The Harvest Moon is orange and red. It appears larger and brighter than other full moons due to an optical illusion that occurs when a moon is near the horizon.

It gets its color because the light from the moon is filtered through the Earth’s atmospheric particles.

So all together, how will the Mars event unfold?

• The full moon will peak at 10:35 p.m. EDT (02:35 p.m. GMT on Wednesday) on Tuesday. At this time, it reaches the peak of illumination.
• The peak of the eclipse will be at 10:44 PM EDT (02:44 GMT).

The total duration of the partial lunar eclipse is four hours and six minutes.

For viewers in the Eastern Time Zone of the United States, the eclipse will reach its darkest phase on September 17 at 10:44 PM EDT.

In Europe and Africa, the eclipse will be visible in the early hours of September 18. In the UK, the eclipse will be most prominent on September 18 at 3:44am BST.

People living in the Gulf will not be able to catch the peak of the eclipse, but they will be able to see the moment when the partial eclipse begins at 05:15 am local time on Wednesday.

In the map below you can see which countries can see the peak of the Martian eclipse.

How to watch lunar eclipse and harvest moon?

If you are in the right time zone, a casual stargazer will be able to see the lunar eclipse, although it is preferable to be in dark places.

NASA Recommends Using a pair of binoculars “with a magnification of at least 7”, “a magnification of 10 or 15 will provide more detail; you may need a tripod to steady them.”

Several cities in southeastern North Carolina saw historic rainfall on Monday. Rainfall was a particularly notable record along the coast of Carolina near Wilmington. According to the National Weather Service, 18 inches of rain fell on Ocean Boulevard in 12 hours — something meteorologists said only happens “once every 1,000 years.”

“Historical rainfall occurred today across Carolina Beach, Southport and PSL,” the weather service in Wilmington wrote in a news release. Social media post Shared on Monday afternoon. “Voluntary gauges reported more than a foot of rain since midnight.”

Citing data from the National Oceanic and Atmospheric Administration, the weather service estimates that 12 inches of rainfall in 12 hours only occurs in this area about once every 200 years. That unusual range was met at several locations where gauges collected rain readings between midnight and midnight on Monday.

The highest rainfall associated with the weather system was 18 inches recorded along Ocean Boulevard in Carolina Beach. After that, areas around the nearby Snow Cut Bridge, Sunny Point Military Terminal and Boiling Springs Lake all received more than 14 inches in half a day. Southport and parts of St. James City each recorded more than a foot of rain, while Leland, near Wilmington, received nearly 7 inches. Rainfall was significantly less than the 3 1/2 inches measured at the Wilmington airport.

Parts of southeastern North Carolina experienced severe flooding and powerful, gusty winds on Monday. National Hurricane Center They warned that some of the effects of the storm would be “life-threatening” as a potential tropical cyclone eight. By 5 p.m. EDT that afternoon, forecasters estimate that the system will bring another 4 to 8 inches of rain to parts of the region by the end of the night, with up to 10 inches in some places.

By Tuesday morning, about 21 inches of rain had fallen near two feet along Ocean Boulevard in Carolina Beach. Weather Service. Nineteen inches of rain was reported in Southport during the same period, and several sites in the area reported similarly heavy flooding. Boiling Spring Lakes and Long Beach reported 16 inches of rain, and parts of Wilmington received 9 inches.

The weather service in Wilmington shared images of some of the damage from Monday’s rain and flooding. In Brunswick County, the weather caused a section of road to collapse, leaving pieces of it floating in a puddle of stagnant muddy water below.

“Today’s heavy rains and flash flooding have resulted in major road washouts across Brunswick County,” the service said.

Forecasters said no additional rain was expected on Tuesday in areas hit on Monday. Numerous flash flood warnings already in place across the region expired before midnight.

(Reuters) – Intel’s ( INTC ) foundry or contract manufacturing business has signed on as a customer for Amazon’s ( AMZN ) cloud services unit to make custom artificial intelligence chips, the companies said on Monday, a deal that would give the chipmaker a vote. hope

Shares of Intel rose nearly 8% in extended trading on Tuesday. CEO Pat Kelsinger issued a memo to employees saying Intel had secured the Amazon unit as a multibillion-dollar customer, paying Santa Clara, California-based Intel for design services and manufacturing. The note also outlined Intel’s planned cost cuts.

Amazon’s AWS cloud computing division has already designed several chips for use in its data centers and has hired Intel to compile at least one version. Intel will make an “artificial intelligence fabric chip” for AWS and use the chipmaker’s 18A process, the most advanced version available to external customers, the companies said.

Intel expects to build additional designs from Amazon on the company’s upcoming 18AP and 14A manufacturing processes.

The memo also outlined several steps Intel would need to take to revive itself. Last month, it posted disastrous second-quarter earnings.

“The board and I agreed that there is much work to be done to drive greater efficiency, improve our profitability and increase our market competitiveness,” Kelsinger wrote in the memo.

Among the steps the board decided to take, Intel is selling a stake in its programmable chip business Altera. It also said it would suspend construction on its chip factory project in Germany for two years, a move Reuters previously reported. The company also plans to suspend its project in Poland.

Intel said there was no change in plans to expand production in the US

Intel plans to keep its manufacturing business, or foundry, within the company, confirming an earlier Reuters report. The foundry business is key to Gelsinger’s turnaround plan for the company, which he outlined in 2021. Until Amazon, Intel struggled to find marquee customers that could be discussed publicly.

But in the memo, Kelsinger said the foundry business would have more freedom, for example to be able to take out capital. Intel plans to establish it as an independent subsidiary, with a board of directors overseeing the foundry operation. The foundry unit separated its financial performance from the design business earlier this year.

The company is taking several steps to prioritize the core technology behind its central processing units (CPUs) and is restructuring several divisions, including its automotive and “edge” businesses.

The story continues

Intel on Monday said it was awarded up to $3 billion in direct funding from the US CHIPS and SCIENCE Act as part of the Secure Enclave program.

The company said it plans to send notices in mid-October to about 15,000 employees it said it would lay off in August.

(Reporting by Max A. Cerny in San Francisco and Juby Babu in Mexico City; Editing by Krishna Chandra Eluri and David Gregorio)

Social media giant Meta announced on Monday that it was banning Russian media outlet RT, days after the Biden administration accused RT of working as part of Moscow’s spy agencies.

“After careful consideration, we have expanded our existing enforcement against Russian state media. Rossiya Segodnya, RT and other related companies are now banned from our apps globally for foreign interference,” a Meta spokesperson said in a statement.

The Biden administration announced new sanctions on Friday and a State Department official called the media “a full-fledged member of the Russian government’s intelligence organization and operation” for the war in Ukraine.

US officials later accused RT of conducting covert information warfare operations around the world on behalf of Russia’s spy agencies.

James Rubin, coordinator of the State Department’s Center for Global Engagement, said, “RT is spreading propaganda, disinformation, and lies to millions, if not billions, of people around the world.”

Some of RT’s activities are hidden, US officials said.

In Africa, US officials accuse RT of being behind an online platform called “African Stream” but concealing its role; In Germany, it secretly runs a Berlin-based English-language site called “Red”; In France, it hired a journalist in Paris to carry out “influence projects” aimed at French-speaking audiences.

Biden administration imposes restrictions on state-funded broadcaster RT, overseeing TV-Novosti; Another state media agency, Rosia Sekotnia; and its director Dmitry Kislyov, officials said.

The U.S. has previously accused Russia of trying to interfere in the U.S. election by sowing discord and division, and in 2018, US Department of Justice announced charges against 12 Russian nationals for alleged cybercrimes intended to interfere in the 2016 election — including hacking into the Democratic National Committee’s computers and stealing emails.

Russia has denied conducting information operations to interfere in US elections or other countries’ politics.

Meta began regulating Russian state-controlled media two years ago. The implementation of the ban announced on Monday is expected to be rolled out in the next few days.

Meta’s apps include Facebook, Instagram, WhatsApp and Threads.

Reuters

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Where does Storm Boris go next?

Tito Jackson, an original member of the hit-making pop group The Jackson 5, has died, his family confirmed Monday. He is 70 years old.

NBC Los Angeles Spoke to a family member He who confirmed death. Even his sons He posted the news on Instagram.

“It is with heavy hearts that we announce that our beloved father, Rock and Roll Hall of Famer Tito Jackson, is no longer with us. We are shocked, saddened and heartbroken,” his sons DJ, Taj and Darryl said in the post. “He will be greatly missed. It will be “titto time” for us,” they added.

Jackson was a founding member of the group of five brothers, along with Jackie, Jermaine, Marlon and Michael, who rose to fame with a string of hits in the late 1960s and 1970s.

Tito Jackson was nominated for and included in three Grammy Awards Rock and Roll Hall of Fame in 1997 as a member of the Jackson 5.

The Jackson 5 is known for hits including “ABC” and “I Want You Back,” sung by a young Michael Jackson, which were released in 1969 after he signed with the Motown label.

The Jackson family was raised in Cary, Indiana, and the group was managed by their domineering father, Joe Jackson.

The Jackson 5 achieved major chart success, but their careers were overshadowed by the solo career of Michael Jackson, who became one of the most successful and recognizable music stars of the century before his death in 2009 at the age of 50.

Tito Jackson was there He stopped playing the guitar Recordings as a backing session musician in The Jackson 5, he later began his own career as a solo blues musician in 2003.