News Module : Upload Files

[Squire4Hire]

Is it possible to upload images/files from the News Module directly from the wysiwyg content block? It appears one is only able to select existing files that have been uploaded.

If this isn't possible, does that mean that I have to give File Manager permissions to the editor group in order to have them upload files before creating News/Blog postings?

I've attached a couple images to show where I'm talking about, and where I would expect to see the ability to upload images/files.

What am I missing here? What might be a typical workflow for this kind of thing? It seems that having to upload images/files through the File Manager before creating the News/Blog article is a bit of a run-around way of going about this... not to mention a potential security issue in regards to system access.