The Federal Reserve made an aggressive new move in its campaign to bring down inflation Wednesday, raising its target interest rate by three-quarters of a percentage point, the steepest rate hike since 1994 — and indicated another similar move could be coming next month.
Driving the news: In addition to increasing their target for short-term interest rates to a range of between 1.5% and 1.75% Fed officials projected that their target rate will reach 3.4% late this year, far higher than the 1.9% they envisioned in March.
The founders of major crypto lender BlockFi, Zac Prince and Flori Marquez, took pay cuts amidst broader cutbacks at the company that included laying off 20% of its staff, a spokesperson confirms for Axios.
Why it matters: Talks about salaries at the highest echelons of crypto leadership have bubbled up amid layoff announcements.
If you plan to shop for fireworks for the Fourth of July, brace yourself for sticker shock of 25–30%, one fireworks CEO told Axios.
Driving the news: There has been an “unprecedented demand” for backyard fireworks since 2020 when many cities and towns first canceled professional shows because of COVID, said Julie Heckman, executive director of the American Pyrotechnics Association.
Kraken wants to hire more than 500 people to fill open and soon-to-be-open positions at the crypto exchange — only it comes with a disclaimer about company culture that job hunters might want to be aware of.
Why it matters: Signs of a bear market are all around, including the rash of layoffs over the last couple of weeks. That makes crypto job hunters, especially those who were disappointed lately, susceptible to leap before looking.
Microsoft co-founder Bill Gates said Tuesday during a TechCrunch talk that he's "not involved" in cryptocurrency or non-fungible tokens, and he doesn't see value in either of them.
Driving the news: Both are "100% based on the greater fool theory that somebody's gonna pay more for it than I do," Gates said.
The economic recovery has been "more equitable" for Black Americans than after previous downturns, Cecilia Rouse, chair of the Council of Economic Advisers, told Axios at an event on equity in entrepreneurship Wednesday.
Why it matters: Black Americans as a group face the highest unemployment rates of any racial category in the U.S. But Rouse pointed to data that shows the Black jobless rate is recovering more quickly than it has in the past.
It's becoming clear what Americans are cutting back on as energy and food costs cut into their budgets: durable goods.
What's new: The story of the economy is spelled out in today's retail sales report, which showed overall sales down 0.3% in May. Excluding spending at gas stations, retail sales were down 0.7%.
Some crypto projects make outlandish claims while largely flying under the radar of the press, all the while building up large followings of retail investors organically. Safuu is one such project. It has almost 47,000 Twitter followers, 32,000 Discord members and a claim that it can turn $1,000 into almost $4 million in a year.
Why it matters: Crypto may or may not be key technology for the future internet-of-value, but it's definitely beset with dodgy projects right now. Sometimes it's worth digging into these things so people know the danger signs.
Customers have a lot less faith in companies than executives think they have.
Driving the news: 87% of business leaders "think customers highly trust their companies," but only 30% of consumers actually do, according to a new survey by PricewaterhouseCoopers.
The Federal Trade Commission ordered JAB Consumer Partners to divest 16 veterinary clinics that JAB had acquired via a portfolio company's $1.1 billion purchase of SAGE Veterinary Partners.
Why it matters: The accompanying press release suggests that the FTC is looking hard at private equity activity in the healthcare sector, particularly when it comes to roll-ups that it's traditionally ignored.
Want to make a venture capital or private equity investment in China? The U.S. government might soon have a problem with that, and a mechanism to stop it.
Driving the news: Congress is hammering out final details of a bill that some refer to as "reverse CFIUS." It would be included in a massive domestic semiconductor production bill, known as the CHIPS Act, that may be passed before the August recess.
Why it matters: Tesla has made up nearly 70% of the 392 car crashes that have occurred since last June involving vehicles using an advanced driver assistance system.
Elon Musk on Wednesday appealed a federal judge's refusal to terminate a 2018 settlement with the Securities and Exchange Commission that required Tesla to vet his tweets about the company.
The big picture: Musk in a court filing said he will ask the 2nd U.S. Circuit Court of Appeals in Manhattan to overturn an April decision that upheld the settlement.
Consumer spending came to a halt last month: Retail sales fell 0.3% from the prior month, the Commerce Department said on Wednesday.
Why it matters: Weak car sales weighed on retail sales, as vehicles got more expensive, shortages persisted and borrowing costs rose. Stripping out autos, retail sales actually rose 0.5%.
The U.S. Consumer Product Safety Commission has issued a stern new warning for a popular Fisher-Price baby product after at least 13 babies died: Never use the rockers for sleep.
Driving the news: CPSC and Fisher-Price issued an alert Tuesday for the company’s Infant-to-Toddler Rockers and Newborn-to-Toddler Rockers after "at least 13 reported deaths" occurred between 2009 and 2021.
Yields on U.S. government bonds — known as Treasuries — rocketed in recent days, as Friday's inflation report convinced many that a combination of persistently high inflation and aggressive Federal Reserve interest hikes, is on the way.
Driving the news: The yield on the 10-year Treasury note surged to nearly 3.50% in recent days, a level not seen since 2011.
All Major League Soccer (MLS) games will be streamed exclusively via the Apple TV app starting in 2023, the league and Apple announced Tuesday.
Why it matters: Live sports are one of traditional TV's last big draws, but deals like this one are making it easier than ever for sports fans to cut the cord.
Having every match on one platform also sidesteps the "where's the game?" issue plaguing other sports. Baseball, for instance, is split between regional sports networks (RSNs), ESPN, Apple, and more.
A philanthropic push spearheaded by Goldman Sachs will invest $10 million over a series of years in nonprofits led by Black women, the banking giant announced on Wednesday.
Driving the news: In partnershipwith its “One Million Black Women” initiative, the bank is doling out grants to 50 organizations, spanning a wide range of geographical areas and organizational missions.
Parents are increasingly looking for customized, patchwork child care arrangements that reflect the ways their own workplace realities have changed.
The big picture: The shift away from 9-5 daycare and toward "configurable" arrangements — perhaps a babysitter two days a week, and other arrangements for the rest — is a response to both the realities of hybrid work and the soaring cost of child care.
You might have heard that nowadays workers want flexibility or jobs with a sense of purpose. But with inflation on the rise, something far more basic is getting attention: Cost of living wage adjustments (COLAs), or raises that keep up with actual inflation.
Why it matters: Though wages have risen substantially over the past year, on average they're notkeeping pace with inflation. Whether that's a good or a bad thing kind of depends on where you sit in the worker food chain, and on your economic outlook.
"Immediate action" is needed to avoid a water supply crisis next year because of the Colorado River's depleted reservoirs, according to the U.S. Bureau of Reclamation's chief, Camille Calimlim Touton.
New York's highest court rejected former President Trump's attempt to avoid testifying in state Attorney General Letitia James' civil investigation into his business.
Why it matters: James has alleged that the Trump Organization "used fraudulent and misleading asset valuations on multiple properties to obtain economic benefits."The former president and his two elder children, Ivanka Trump and Donald Trump Jr., are scheduled to testify under oath on July 15.
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