Guidance

Thousands of Los Angeles homeowners faced a persistent problem long after the devastating wildfires in January 2025: While their homes were left standing, they had been infiltrated by heavy, toxic smoke and ash, and remained unsafe.

Residents were forced into lengthy battles with their insurance companies to prove contamination and get help paying for the cleanup and additional living expenses.

Backed by wildfire survivors and advocates in Altadena, California Gov. Gavin Newsom on Tuesday announced he had signed legislation to create new, first-in-the-nation standards to test and remediate homes damaged by wildfire smoke, and to require insurance companies to pay for the associated costs.

“California will not leave survivors to navigate recovery alone,” Newsom said. “These new protections will make insurer obligations clearer and give homeowners more financial flexibility when they need it most. As fire seasons across the West become a year-round reality, California’s commitment to recovery must be just as enduring.”

The January 2025 Eaton and Palisades fires were two of the deadliest and most destructive in state history. Together, they burned more than 16,000 structures and killed 31 people.

Assemblymember John Harabedian (D-Pasadena) authored Assembly Bill 1642 after hearing repeatedly from constituents concerned that the fires had left layers of ash contaminated with asbestos, lead and toxic materials in and around their homes.

The now-signed bill directs the state to create scientific standards for what constitutes a safe home and provide guidance on how to properly remediate residences.

Twenty months after Jane Lawton Potelle sat in a friend’s garage — already suffering from a cough and chest pain as her Altadena home stood contaminated with toxic smoke — she stood alongside Newsom as he signed the bill, which was championed by her advocacy group, Eaton Fire Residents United.

“Early days, we were told we were the lucky ones,” said Potelle, who founded EFRU as her neighbors shared concerning test results on Facebook — all while government agencies and insurers offered conflicting guidance and little support.

“To have this bill signed is acknowledgment that just because your home is left standing and looks fine, doesn’t mean that it’s actually safe to return,” she said.

The data EFRU collected in the months after the fire showed the vast majority of homes tested had lead levels beyond what the U.S. Environmental Protection Agency considers acceptable. With no clear guidance, haphazard and improvised efforts by companies to clean these homes left 6 in 10 residences still unsafe.

A companion bill signed by the governor, AB 1795, was born out of a Department of Insurance task force and requires insurers to abide by the AB 1642 standards in the insurance claims process and to do so in a timely manner.

If these laws had been in place when the Eaton fire broke out, “we’d all be home by now,” Potelle said.

Potelle’s home — like many others’ — remains contaminated as disputes with her insurance company drag on. Her Christmas tree, from 2024, is still up.

“Going forward, the question of whether a family can safely return home should be answered by science, not by an insurance company’s guesswork,” Harabedian said in a statement. “Families should not have to fight for the testing they need or be left trying to figure out on their own whether their homes are safe.”

More than 13,000 insurance claims filed after the fires involved homes that were damaged by smoke, not flames, according to an estimate from the Department of Insurance.

Newsom also signed legislation from Harabedian that will allow homeowners in the future to seek up to one year of mortgage forbearance if their home becomes uninhabitable due to the effects of a wildfire or other disaster. Another bill signed into law extends existing mortgage relief for those affected by the Palisades and Eaton fires for another year.

Sept. 3 (UPI) — The U.S. Defense Department has temporarily rescinded its recently announced mandatory testosterone screening guidance for men over age 30 on active duty or in the reserves.

The guidance, which was announced on Wednesday, required that men over 30 get testosterone blood tests. Those under 30 would be tested only if health professionals felt it was necessary or if service members wanted it.

The Pentagon’s website before Thursday showed a link for “Clinical Guidance for Health and Human Performance Optimization” that detailed the testosterone deficiency screening requirements for male and female service members over 30. However, that link read “PAGE NOT FOUND” on Thursday.

According to The Hill, an unnamed Pentagon official said the guidelines were rescinded to allow for “updates.”

“The Department remains committed to addressing hormone deficiencies, protecting the long-term health of its Service members and enabling peak operational performance,” the Pentagon official said.

Defense Secretary Pete Hegseth in July announced service members would be screened for their testosterone levels and be offered testosterone replacement therapy, saying it would keep troops on the “leading edge of lethality.”

Marking his 100th day in the job, Federal Reserve Chair Kevin Warsh told the Kansas City Fed’s symposium in Wyoming that the US economy has strengthened rather than weakened under recent shocks, that the labour market is consistent with full employment, and that inflation remains the central bank’s dominant concern.

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Warsh declined to say what he would do next month, but he removed most of the arguments against acting and bolstered the ones in favour of a rate hike.

“For my part, today I am impressed by the overall performance of the economy, which appears to have strengthened,” Warsh stated.

“One indicator of strength is how well an economy holds up to shocks. On that score, both Main Street and Wall Street have been remarkably resilient,” he added.

On inflation, Warsh noted that the PCE index stood at 3.7% over twelve months and 4.1% over six, and 54% of the basket’s components rose by more than 3% over the past year, against 32% in the two decades before the pandemic.

Summer readings that beat expectations “do not tell me that underlying trends have meaningfully improved,” Warsh stated.

The Federal Reserve Chair’s conclusion was blunt: “the Fed’s predominant focus right now should be on prices.”

The standard set was equally direct. “We must be confident that underlying inflation is moving to our objective, clearly and at sufficient speed. Otherwise, we have work to do,” Warsh declared.

That assessment matters because it eliminates the case for supporting growth with further stimulus and potentially opens the door for restrictive measures as markets moved in response.

At the time of writing, the 10-year Treasury yield has fallen 0.5% from its Friday high to 4.67% and the 30-year dropped around 0.9% to 5.16%, while the dollar index rose 0.4% from the intraday low to roughly 99.4 points.

Traders raised the implied probability of a 0.25% hike at the 15 and 16 September Fed meeting to 55%, from around 35% before Warsh’s speech.

Performance of the US economy

Warsh opened his speech with what he called a hinge point in history, arguing that artificial intelligence has advanced faster than even its advocates predicted.

Annualised AI token sales at the two leading labs alone exceed $100 billion, he said, up more than 500% in a year.

AI is “a new variable, potentially a new factor of production,” raising questions the Fed cannot answer yet such as whether it will lift productivity and when, whether it complements or replaces labour, and where the returns will ultimately land.

A new Federal Reserve task force on productivity and jobs is examining it, though he stressed its recommendations will have no bearing on current policy decisions.

Warsh then listed extensive evidence for his positive outlook on the US economy.

Business investment in equipment and intangibles growing at around 9%, its fastest since 2021, with more than half of this year’s capital expenditure growth attributable to the AI buildout.

S&P 500 profits went up more than 20% over the year, credit spreads are near historic lows and banks are easing lending standards. Housing and agriculture are strained, Warsh acknowledged, but on balance he “would be hard pressed to describe broad financial conditions as restrictive.”

Unemployment at 4.1% is low by historical standards, with jobless claims near their lowest in decades, leaving inflation as the outlier.

No forward guidance

The Federal Reserve Chair devoted a substantial section to defending his refusal to signal future moves, a stance that has drawn criticism since he took office in May.

Forward guidance was adopted during the 2008 crisis by colleagues including himself, he said, and was essential then, but “the practice has overstayed its welcome” and now “risks creating ambiguity in the name of clarity.”

Warsh warned of a hall-of-mirrors problem in which markets read the Fed while the Fed reads markets, leaving both blind to new developments.

“We should not indulge a regime in which market participants are looking primarily to the Fed for their next trade,” he said, adding that the costs of such errors fall not on “financial high-fliers” but on households facing high inflation or insecure jobs.

Warsh also rejected calls to publish an explicit reaction function, arguing economic knowledge does not permit a mechanical rule.

Instead he set out six principles: interrogate incoming data rather than trust stale figures, accept that judging supply against demand is imprecise; treat the 2% PCE target as firm and fixed; pursue both mandates without treating them as a trade-off; rely on short-term rates rather than unconventional tools; and remember that money itself matters.

“I stand here today committed to a discipline, not to a decision,” Warsh said in closing.

The decision comes on 16 September at the next Fed meeting.