Powell: The “soft” economic landing may be out of the Fed’s control
WASHINGTON (AP) – Federal Reserve Chairman Jerome Powell, who just won Senate confirmation for a second term earlier in the day, acknowledged for the first time on Thursday that high inflation and economic weakness abroad could frustrate his efforts to avoid causing a recession. For weeks, Powell described the Fed’s push to raise interest rates as consistent with the so-called “soft landing” for the economy. In that scenario, the Fed would be able to tighten borrowing costs enough to cool the economy and curb inflation without dropping the economy into recession. But in an interview with NPR’s Marketplace, Powell admitted that the balancing act – which many economists said they doubted the Fed could achieve – could be undermined by the economic downturn in Europe and China.
Crypto arrives in Washington. Will millions buy influence?
WASHINGTON (AP) – Erin Houchin was preparing for the worst when a mysterious, well-funded group began buying television commercials last month in its competitive run in South Indiana Congress. Houchin assumed she would face a negative bombing, like the one that crushed her in 2016 when she ran for the same seat. But in fact, the opposite happened. American Dream Federal Action, a super-political action committee funded by a cryptocurrency CEO, saturated the district with advertisements promoting Houchin as a “Trump Tough” conservative who would “stop the Socialists in Washington.” That momentum helped him secure his victory last week in a Republican primary.
The Senate confirms Powell for a second term as the Fed fights inflation
WASHINGTON (AP) – The Senate on Thursday confirmed Jerome Powell for a second four-year term as chairman of the Federal Reserve, backing bipartisan Powell’s efforts to curb the highest inflation in four decades. The 80-19 vote reflected broad support in Congress for the Fed’s push to combat rising prices through a series of sharp interest rate hikes that could extend into next year. The Fed’s goal is to reduce debt and spending enough to ease inflationary pressures. Since February, when his first term expired, Powell has run the central bank on a temporary basis. He faces a difficult and risky task of trying to stifle inflation without weakening the economy so much as to cause a recession.
The merger of the crypts causes Yellen to request a new regulation
WASHINGTON (AP) – Treasury Secretary Janet Yellen, responding to the recent sharp decline in the value of cryptocurrencies, said Thursday that additional federal regulation was needed to respond to the wave of speculative investment in currency whose secret is an essential part of its attractive. . “We really need a regulatory framework to protect ourselves from risks,” Yellen said of so-called stable currencies, during a House committee hearing on Thursday. Citing the rapid increase in the use of digital assets, he added: “Really, we need a complete framework so that there are no gaps in regulation.” Stable currencies are a type of cryptocurrency linked to a specific value, usually the dollar, another currency, or gold.
US stocks end mixed after another day of irregular trading
NEW YORK (AP) – Another erratic Wall Street trading day ended with an uneven end for major stock indices on Thursday, after the market reversed most of the initial drop in the last hour of trading. The S&P 500 closed just 0.1% after falling 1.9% earlier in the day. The Dow Jones Industrial Average was down 0.3%, while the Nasdaq was up 0.1%. Wall Street trading has been volatile, with indices prone to sudden changes overnight, or in a single day, as investors try to protect their portfolios from the impact of decades of higher inflation and rising interest rates such as or Federal Federal. Reserve movements to control rising prices.
Tesla and Twitter shares are falling as Elon Musk’s legal issues grow
DETROIT (AP) – Shares of Tesla and Twitter fell this week as investors deal with the consequences and possible legal issues surrounding Tesla CEO Elon Musk and his $ 44 billion bid to buy the social media platform . Of the two, Musk’s electric vehicle company fared worse, as its stock fell nearly 16 percent so far this week to $ 728. Twitter shares fell 9.5% during the week, closing Thursday at $ 45.08. Both stocks suffered a bigger blow than the S&P 500, which is down 4.7% during the week. Along with the unrest in the wider markets, investors have had to weigh legal issues for Musk, as well as the possibility that his Twitter acquisition could be a distraction to driving the world’s most valuable carmaker.
Prices for U.S. producers rose 11% in April as food prices rose
WASHINGTON (AP) – U.S. producer prices soared 11 percent in April from a year earlier, a strong gain that indicates high inflation will continue to be a burden for consumers and businesses in the coming months. The Labor Department said on Thursday that its producer price index, which measures inflation before it reaches consumers, rose 0.5% in April from March. However, it is a slowdown compared to the previous month, when it increased by 1.6%. The report included some signs that price increases are moderating, but at a painfully high level. The year-on-year increase in April fell from 11.5% in March annual gain, the first decline in annual data since December 2020.
Managers fired from Twitter amid the turmoil in Musk’s purchases
SAN FRANCISCO (AP) – Twitter fired two of its top executives on Thursday, the latest sign of internal turmoil amid the planned purchase of the company’s billionaire Tesla billionaire Elon Musk. Twitter CEO Kayvon Beykpour will leave after 7 years. In a series of tweets on Thursday, Beykpour said that CEO Parag Agrawal “asked me to leave after letting me know that he wants to take the team in a different direction.” Bruce Falck, head of product and revenue for Twitter, was also fired, according to a tweet that has already been removed. His Twitter biography now says “stopped.” “I dedicate this tweet to these engineers and thank you ALL for the opportunity to serve with you.
The S&P 500 fell 5.10 points, or 0.1%, to 3,930.08. The Dow Jones Industrial Average fell 103.81 points, or 0.3%, to 31,730.30. The Nasdaq added 6.73 points, or 0.1%, to 11,370.96. The Russell 2000 Small Business Index rose 21.24 points, or 1.2%, to 1,739.38.