Business Week: Higher Interest Coming Soon

After nearly two years of near-zero interest rates, the Federal Reserve signal that it will probably elevate them March. Jerome H. Powell, Fed Chairman, said officials no longer think the rapidly recovering US economy needs that much support, as inflation is well above policymakers’ targets and tight labor market. By making it more expensive to borrow money to buy a home or car, the Fed hopes higher interest rates will cool demand and ultimately help curb inflation. The Fed’s preferred measure of inflation, personal consumption expenditure index, was 5.8% in December, the fastest pace since 1982 and possibly disastrous for the political outlook of President Biden and his fellow Democrats in the November midterm elections.

Whether you hold traditional stocks, cryptocurrencies, or a combination of the two, it’s been an intense week to be an investor. Stocks rallied as uncertainty about upcoming rate hikes – how much and how quickly – comes at the same time as positive signs of growth in American economy last year. Bitcoin, the largest cryptocurrency, continued its amazing demise before inching up a bit, although its value is still higher than it was last summer. The value of Bitcoin is now about half of its peak in November.

The The International Monetary Fund makes a new prediction for 2022, showing slower economic growth than previously anticipated, mainly due to problems with the world’s two largest economies, China and the United States. Compared with 5.9% growth in 2021, the IMF predicts global growth this year will be 4.4%, down from the previous forecast of 4.9%. The fallout of President Biden’s Build Back Better act coupled with reduced economic support from the Fed and continued problems in the supply chain contributed to lower expectations for the United States, while China’s economy continues to grapple with a “zero Covid” approach and a hard reality. real estate sector.

The Beijing 2022 Winter Olympics begin this week, as China comes under increasing scrutiny for human rights abuses, including allegations of forced labor in Uyghur communities. Er in Xinjiang. The United States, Britain, Canada and Australia have announced that they will not send government officials to Beijing, for a diplomatic boycott of the Game. Many people in the world most famous brandHowever, there will still be, including Visa and Coca-Cola. The reluctance of corporations to boycott the Olympics could soften the political blow of diplomatic boycotts.

The Labor Department will release its January jobs report on Friday, showing the state of the job market at the start of the year and the extent to which the Omicron variation has affected it. Last month’s report showed 199,000 jobs added to the economy in December, the smallest gain for 2021. But with the unemployment rate at 3.9%, people looking for work have a hard time finding them. Yet employers continue to struggle to attract workers, with demand for them outstripping supply. The Labor Department will also release data on the number of Americans who voluntarily quit their jobs in December. A record 4.5 million Americans Retired in November.

Workers at an Amazon warehouse in Birmingham, Ala., will begin voting in an election by mail to decide whether to form a union or not. Last spring, workers there voted against the union before the National Labor Relations Board voted, citing Amazon’s improper interference. If the vote for the merger is successful this time around, it will be the first union at the online retailer, which employs about a million people in the United States. Amazon workers at a Staten Island warehouse are also pushing for a union vote. And Starbucks workers recently voted to unionize at two locations.

Apple’s revenue and profit during the holiday quarter beat expectations. CNN continues to recruit for its new online news channel. Neil Young is leaving Spotify via the platform’s online stream about Joe Rogan, a podcaster who denies a Covid vaccine. The Biden administration’s plan to work for companies to commission vaccines or tests passed. Business Week: Higher Interest Coming Soon

Fry Electronics Team

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