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After a record economic expansion, the coronavirus pandemic sent the U.S. economy into a recession as unemployment soared to staggering heights. The country now faces urgent questions about how much stimulus is needed for reeling consumers and businesses, and what a recovery might look like.

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Alex Karp — co-founder and CEO of Palantir, the data-intelligence giant — is 55 years old and has 7% body fat. That's like Michael Phelps when he was training to swim in the Beijing Olympics.

But Karp is a billionaire entrepreneur and tech visionary, not an Olympian. And he doesn't starve himself. 

His fitness comes from cross-country ski training — 5+ hours a week. 

Why it matters: Karp's training secret can help all of us as we vary or elevate our workout routines. He's all about sheer distance — not speed or intensity. Just put ... in ... the miles. 

🦌 How it works: "To run like a deer," Karp told me in an interview for Finish Line, "you have to spend 90% of your time running like a snail." 

Whether you're running or skiing, he advises going at the "slowest pace a human can run for as many hours as you can afford. And then once, preferably twice, a week, you're doing [speed] intervals."

Karp says he learned the training regime from athletes in Norway, the country with the most all-time Winter Olympics medals  — many for cross-country skiing.  

"You're almost always moving like a snail — except for when you're doing intervals and you're going fast," he told me. 

"It builds a cardio base so that when you race, you're by far the fastest in the world. And that's how they win."

Alex Karp cross-country skiing. Courtesy of Alex Karp

When the pandemic hit, Karp radically changed how he trained. 

"I was already in reasonably good shape because I do tai chi, cross-country skiing, stretching," he recalled, using resistance bands as we talked. 

"But then I became very disciplined about training this way. I saw results after 18 months — and especially huge results after 36 months." 

🥊 Reality check: Karp is realistic about diet, and says the biggest adjustment he's made is simply dropping added sugar. He used to like chocolate snacks, sugar in his coffee and tea.

"I don't give things up forever," he said. "I have a special event, I eat sugar. If I'm traveling and someone has a really nice Danish, I enjoy every minute of eating it."

Axios Finish Line: How Palantir CEO Alex Karp trains

Alex Karp in Davos on Jan. 18. Photo: Stefan Wermuth/Bloomberg via Getty Images

Palantir Technologies

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David Cahn has agreed to join Sequoia Capital as a partner on its growth team, Axios has learned. He previously was a general partner and COO of venture capital with Coatue Management.

Why it matters: This reflects how top VC firms are seeking to bolster their AI and data expertise, which Cahn focused on at Coatue.

The 27 year-old Cahn spent the past five years with Coatue.

His Coatue investments have included Abacus, Databricks, Kubecost, Stability AI, Starburst Data and Supabase, Weights & Biases, and UiPath. 

It is unclear if Cahn will retain any of those responsibilities after leaving Coatue.

Cahn's educational background includes degrees in both finance and computer science.

What they're saying: “David is a force of nature," says Sequoia Capital partner Pat Grady. 

"He is equal parts commercial and technical, which makes him a uniquely impactful partner for founders. After intersecting with him on Notion and Hugging Face and repeatedly hearing his name from many of the best founders, we are eager to have him on Team Sequoia.”

A Coatue spokesperson declined to comment. 

Sri Viswanath, the fomer Atlassian CTO who joined Coatue last year, is expected to continue serving as its AI venture practice lead. 

Scoop: David Cahn leaves Coatue for Sequoia Capital

Top VC firms are seeking to bolster their AI and data expertise.

Venture capital

From the Valley to D.C., Big Tech players like Facebook, Google and Amazon are under more scrutiny than ever as new technology develops and privacy and antitrust concerns grow in lockstep with companies’ ambitions.

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The Federal Reserve slowed down its campaign of interest rate increases Wednesday, raising its target interest rate a quarter percentage point after months of more aggressive steps and signaled that more increases are ahead.

Why it matters: The Fed raised interest rates at a breakneck pace last year as inflation soared. Now they have further slowed the pace of hikes, but Fed chair Jerome Powell emphasized that the central bank's job is not done and warned that the economy is only in the early stages of easing inflation.

"Inflation has eased somewhat but remains elevated," the central bank's policy statement said, an acknowledgement that the inflation data has improved since its last meeting in mid-December.

The policy-setting Federal Open Market Committee concluded a two-day policy meeting by raising its target range for the federal funds rate to between 4.5% and 4.75%.

Where it stands: Inflation has come down alongside a labor market that has remained solid — and, by some measures, strengthened. 

But, speaking to reporters during a press conference, Powell was cautious about whether that would continue. 

"It is a good thing that the disinflation that we have seen so far has not come at the expense of a weaker labor market," Powell said. "But I would also say that that that disinflationary process that you now see underway is really at an early stage."

Powell acknowledged that a key area of the economy the Fed is watching — core services, excluding housing — has not seen disinflation yet.

Between the lines: The committee kept language in its statement that it "anticipates that ongoing increases in the target range will be appropriate" to return inflation to 2%. 

The plural "increases" implies that there will be at least two more rate hikes this year.

That throws cold water on a view held by many analysts and traders that there might be only one more rate hike, in March, with the Fed pausing its tightening campaign after that point.

If the Fed follows through on enacting "ongoing increases" in its policy rate, it would be on track to bring its target interest rate above 5%, consistent with Fed officials' own projections but not with current market pricing.

"The job is not fully done," Powell said at the news conference.

The intrigue: Alongside the issues of inflation and employment, there is also another potential issue brewing that will inevitably involve the Fed: The possibility that Congress does not raise the debt ceiling. 

But at the news conference, Powell would not offer any detail about any actions the Fed would take should that scenario play out.

"There's only one way forward here. And that is for Congress to raise the debt ceiling so that the United States government can pay all of its obligations, when due and any deviations from that path would be highly risky," Powell said.

"No one should assume that the Fed can protect the economy from the consequences of failing to act in a timely manner."

Catch up quick: The Fed raised rates seven times in 2022, including four times in super-sized 0.75 percentage point increments in an effort to bring down inflation. That created the most rapid tightening of monetary policy in decades and sent ripples across global financial markets.

Now, though, the end looks to be in sight. As of December, Fed officials expected to raise rates only another 0.75 percentage point across all of 2023, and with Wednesday's move they're one-third of the way there.

In another tweak to its latest statement, the committee referred to how it will determine the "extent" of future rate hikes, instead of the "pace" of them. That implies the pace is now a settled matter, with quarter-point rate moves at a time.

Markets price in a likelihood of rate cuts in the second half of 2023, a notion Fed officials themselves have pushed back on.

The decision, which included first-time policy votes from Dallas Fed President Lorie Logan and newly-installed Chicago Fed President Austan Goolsbee, was unanimous.

Editor's note: This story has been updated with additional reporting.

Fed raises rates by a quarter point, notes lower inflation

The central bank still sees "ongoing increases" to rates.

The Federal Reserve headquarters building in Washington.  Photo: Stefani Reynolds/AFP 

Federal Reserve

What we know about Beyoncé's new "Renaissance" world tour

The new shows will promote her most recent album, “Renaissance,” which dropped in summer 2022.

Beyoncé performs on stage headlining the Grand Reveal of Dubai's newest luxury hotel, Atlantis The Royal on January 21, 2023

Beyoncé performs on stage at the Grand Reveal of the Atlantis The Royal on Jan. 21, 2023. Photo: Mason Poole/Parkwood Media/Getty Images for Atlantis The Royal via Getty Images

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When he takes questions from reporters this afternoon, the Fed chair will presumably talk at length about the outlook for inflation, employment, and Fed policy.

But a different set of issues loom over the central bank that we suspect Powell would rather not talk about — potentially tough decisions that involve a debt ceiling standoff.

Why it matters: The debate itself is a fiscal issue between Congress and the executive branch. But if it turns into a crisis with a U.S. default or other extreme outcomes on the table, it would inevitably ensnare the Fed.

State of play: The Fed acts as the "fiscal agent" for the U.S. government, essentially serving the same role for the Treasury that a bank (like JPMorgan) might for a large corporation.

The New York Fed operates Treasury debt auctions, so it would be in the middle if demand falters for U.S. government bonds, or if the government attempts to avoid breaching the debt limit through novel strategies to manipulate the face value of debt.

The Fed also maintains the government's operating accounts; any attempt to prioritize payments — for example, making good on interest payments but delaying paying military contractors — would be a profound operational challenge.

For now, the Biden administration is disinclined to exploit a legal loophole by minting large denomination platinum coins. But if it did, the Fed would have to decide whether to accept the deposit, and could face litigation regardless of its decision.

Then, there are the risks to financial markets and the economy if there is a technical default on bonds, which economists across partisan lines see as potentially catastrophic.

The Fed would immediately face questions as to whether it should suspend quantitative tightening that is withdrawing liquidity from the Treasury market, or even start buying bonds again.

What they're saying: "While the Fed will be careful not to inject itself directly into what is ultimately a fiscal issue, we can also be sure that it won’t take the possible effect of a default on financial markets and the economy lightly," Piper Sandler's Roberto Perli and Benson Dunham wrote in a research note.

"A default, even if brief, could have profound consequences, and most likely the Fed is exploring possible ways to mitigate the problem," they wrote.

The intrigue: There are unusually close ties between the individuals involved. Treasury Secretary Janet Yellen is a former Fed chair. Current Fed vice chair Lael Brainard may be heading to the White House imminently.

And Powell was a Treasury undersecretary in the 1990s overseeing debt issuance. He came to public prominence with commentary on the debt ceiling standoff back in 2011.

The bottom line: The Fed doesn't like getting caught up in the middle of political disputes. But with the way things are going, it won't have much choice.

The Fed will be in the thick of the debt limit mess

The Fed could have a plethora of issues on their hands, including a debt limit standoff.

Fed chair Jerome Powell sitting next to Treasury Secretary Janet Yellen.

Fed chair Jerome Powell and Treasury Secretary Janet Yellen. Photo: Anna Moneymaker/Getty Images

The FTC on Wednesday filed a court order against GoodRx for failing to notify users that it shared their personal, identifiable health data with Facebook and Google and said it would permanently ban the company from sharing such information for ads, should the court order be federally approved.

Why it matters: The court order is the first FTC action under the Health Breach Notification Rule, which requires companies to notify users when their health data is infringed upon, and includes several safeguards aimed at protecting consumer data.

"We’re making clear that apps violating this rule need to come clean with consumers when they share sensitive data improperly," an FTC official said during a press briefing about the order.

The order must be approved by the federal court to go into effect.

Zoom in: The health data GoodRx shared with tech companies includes individually identifiable data on users' prescription medications and health conditions. Per the complaint:

In August 2019, GoodRx compiled lists of users who'd purchased medications for heart disease and high blood pressure and uploaded their email addresses, phone numbers and mobile advertising IDs to Facebook so it could identify their profiles.

GoodRx then used that information to target users with relevant ads, a 2020 Consumer Reports investigation found.

Details: The court order, filed by the Department of Justice on behalf of the FTC in California's Northern District, found GoodRx shared data with companies including Facebook, Google, Criteo, Branch and Twilio. The order found GoodRx:

Monetized users' personal health data to target them with health- and medication-specific ads on Facebook and Instagram. 

Let third parties it shared data with use the information for research, development or advertising purposes without getting consent.

Misrepresented its HIPAA compliance, displaying a seal at the bottom of its  telehealth site falsely suggesting it complied with the law.

Failed to maintain sufficient policies or procedures to protect its users’ personal health information.   

State of play: GoodRx, which offers prescription discount coupons and telehealth services, lets users track their personal health data to save, track and get alerts about prescriptions, refills, pricing and medication purchase history.  

Per the complaint, the company collects data from users themselves and from pharmacy benefit managers (PBMs) that confirm when someone buys a prescription drug using one of its coupons.

Since January 2017, more than 55 million consumers have visited or used GoodRx’s website or mobile apps, the complaint says.

What they're saying:  A spokesperson for GoodRx told Axios the company does not agree with the allegations, saying the order "focuses on an old issue that was proactively addressed almost three years ago."

"We admit no wrongdoing," the spokesperson said. "Entering into the settlement allows us to avoid the time and expense of protracted litigation."

"Health data today isn’t just what your doctor keeps in a file behind a desk," an FTC official said during the briefing. "And the way we’re enforcing this reflects that new reality."

“We expect this to have a significant impact on the marketplace," the official added.

Flashback: The FTC in 2021 issued a warning to health apps and others that collect or use consumers’ health information that they must comply with the Health Breach rule.

"We are now showing the market that we meant business when we issued that policy statement," the FTC official said.

What's next: In addition to charging GoodRx with a $1.5 million civil penalty and banning it from disclosing user health information for ads, the order requires that the company:

Direct third parties to delete the consumer health data shared with them and inform users about the breaches and the FTC’s enforcement action. 

Get users’ consent before sharing health data with third parties for purposes other than ads and detail the types of health information it will disclose to those parties.

Limit how long it can retain personal health information.

Create a privacy program that includes safeguards to protect such data. 

Of note: While the order only binds GoodRx, companies including Facebook who received the data "are on notice that they were in receipt of data that was illegally collected," another FTC official said.

This story has been updated to include the company’s comment.

GoodRx fined $1.5M for sharing health data with Facebook and Google

The first-of-its-kind order permanently bans GoodRx from sharing consumer health data for ads.

Illustration of a hand pulling a 3D bottle of pills from a laptop screen.

Health tech

The U.S. faces a range of health care flashpoints — unaffordable drugs, opioids, vaping — as we debate whether to adopt universal care. For now, the Affordable Care Act is the law of the land, but Republicans want to issue it a final death blow.

Health

Job openings rose in December, while layoffs edged up only slightly, the Labor Department said on Wednesday — the latest sign employers are eager for workers. 

By the numbers: There were 11 million vacancies in the final month of 2022, up from 10.4 million in November. Meanwhile, there were 1.5 million layoffs — slightly higher from the 1.4 million the prior month, though still historically low.

Why it matters: The labor market is still tight with only modest signs of loosening up. Despite a steady stream of layoff announcements in sectors like technology, there are still more job postings than workers available to fill them.

The data is closely watched by the Federal Reserve, which sees the elevated number of open jobs as proof that the labor market is out of whack. 

Fed officials have raised concerns that a too-tight labor — as signaled in part by high job openings — might complicate efforts to stamp out inflation.

Of note: There are signs that the labor market has cooled off. For one, the number of quits has come down, though it's still elevated relative to pre-pandemic times. In other words, workers still feel confident enough about the jobs market to leave their current gig — though perhaps less so than 2021.

In December, roughly 4.1 million workers quit their jobs — down from the all-time high of 4.5 million in November of 2021. 

Signs of weakness in tech were apparent in the report: the rate of job openings in the information sector fell to 3.4% from 6.6% in December. 

What to watch: New data from ADP points to a notable slowing in private sector hiring last month, adding just 106,000 jobs last month — far fewer than the estimated 190,000. 

Yes, but: The report isn't a perfect indicator of what's to come in the official government jobs report. Plus, ADP said the slowdown had less to do with factors that suggest a big shift in hiring patterns and more to do with extreme weather last month that disrupted employment in sectors like construction.

Editor's note: This story has been corrected to show job openings rose in December, not last month.

Job openings jumped in December

Layoffs ticked up only slightly, the latest sign most employers are plenty eager for workers.

Media Trends

Axios Media Trends

BDG Media is suspending Gawker and will lay off 8% of full-time staff, according to an internal memo from CEO Bryan Goldberg that was obtained by Axios.

Why it matters: The news comes as BDG continues to search for a buyer or potential liquidity partner. 

“Gawker was essentially an early-stage startup within our company,” Goldberg tells Axios. ”And the time came to either triple-down on the investment or pull back and focus on our other properties. And, unfortunately, now just isn’t the moment to push millions of dollars into a pre-monetization product.”

Details: In the memo, Goldberg noted that changes to the internet  publishing landscape, will force the company to change parts of its strategy moving forward.

“After experiencing a financially strong 2022, we have found ourselves facing a surprisingly difficult Q1 of 2023,” he wrote. 

“BDG has made the decision to reprioritize some of our investments that better position the Company for the direction we see the industry moving.“

Catch up quick: Goldberg launched Bustle nearly 10 years ago, and has since expanded the company to include nearly a dozen fashion and lifestyle brands.

Much of the company’s portfolio was created through small acquisitions.

Bustle revived Gawker in 2018 after the media insiders' website had been shut down via a celebrity lawsuit.

Bustle rebranded to BDG Media in 2021 ahead of a planned blank check merger IPO.

The big picture: BDG joins dozens of other media and tech firms that have implemented layoffs in the past few weeks, as the advertising market continues to slow. 

💭 Kerry Flynn's thought bubble: A brutal end for the revived brand. When it relaunched in 2021, the site published, “How much money do you have: Bryan Goldberg?” The answer is apparently not enough to keep Gawker going.

Bad winter coming for U.S. media companies

BDG Media suspending operations at Gawker

BDG Media's CEO announced in a memo that it can't keep investing in Gawker.

Media deals

Whats Next

Axios What's Next

The Biden administration's plan to jump-start a domestic supply chain for electric vehicles (EVs) is on track to shatter expectations.

The big picture: Democrats offered carmakers new tax credits as an incentive to scale up domestic battery manufacturing — and they're racing to take advantage.

Some experts say the value of those tax credits may be four times higher than Congress' budget experts anticipated.

Why it matters: This is what President Biden and congressional Democrats wanted — to seed a domestic EV supply chain and reduce America's dependence on China, while accelerating the transition to cleaner transportation.

Scoop: Biden's EV surprise

The White House's plan to jump-start a domestic supply chain for electric vehicles is on track to shatter expectations.