Powell said to “prepared to raise rate more further if needed”
The US Federal Reserve has nearly ended its rate hike cycle, with annual headline inflation climbing 3.2% in July, down from 9.1% in June and nearing the Fed’s 2% target. The core personal consumption in expenditures index shows inflation at 4.1%, down from 5.4% in February 2022. The economy is expected to produce 170,000 more…
Puerto Rico’s power company filed bankruptcy process
Puerto Rico’s power utility has filed a new plan to restructure $10 billion in debt to conclude a bankruptcy process. The federal control board proposed a plan to lower the Electric Power Authority’s debt by nearly 80% to $2.5 billion. If approved by a federal bankruptcy judge, Puerto Rico’s Energy Bureau would raise residents’ expensive…
The FTC pressured “Big Tech Companies” to prevent monopolized
The Federal Trade Commission (FTC) is prosecuting tech giants like Meta, Microsoft, and Amazon for monopolizing personal social networking. Meta is being pressured to divide Facebook, Instagram, and WhatsApp, while Microsoft was targeted for acquiring Activision Blizzard. The FTC’s merger policy discourages startup investment, and Amazon is preparing to sue for unlawful competition. Lina Khan,…
AI is the next giant tech which have unclear values
New lawsuits are being filed to break up Google, Meta, and possibly Amazon, potentially leading to new tech giants. Blair Levin, former Federal Communications Commission Chief of Staff, believes that these cases could lead to new tech giants, but there is no guarantee. The technology behind these lawsuits is not clear, and neither IBM nor…
Digital Companies tightened with US government antitrust litigation
Digital companies face US government antitrust litigation, but past disputes have demonstrated that even if the government loses, new enterprises can emerge. Microsoft, for example, faced a 1969 federal prosecution against IBM, which was dismissed due to “flimsy” evidence. Between 1998 and 2001, Microsoft faced a settlement that allowed more internet browser software competition, allowing…
The BOJ not rising interest rates in the previous 18 months
The yen has fallen to its lowest level against the dollar since November, putting pressure on the Bank of Japan to tighten its ultra-loose monetary policy and strengthen the currency. The US Federal Reserve chair Jay Powell suggested greater domestic interest rate hikes, potentially expanding the US-Japan borrowing cost disparity. Japan is the only major…
The SEC has announced that Wells Fargo will pay $35 million advisory fee
Wells Fargo will pay $35 million to settle U.S. advisory fee overcharging claims, accusing the company of overcharging over 10,900 investment advising accounts $26.8 million. The SEC claims Wells Fargo and its predecessors overcharged clients who opened accounts before 2014. Wells Fargo settled without admitting or rejecting the claims, and reimbursed $40 million, including interest.
The US indirect supply-chain links to China remain intact
A report at the Federal Reserve Bank of Kansas City’s annual Jackson Hole conference revealed that China remained in US supply chains despite efforts to decrease direct imports. Between 2017 and 2022, US imports from China decreased, while imports from Vietnam and Mexico increased. However, Chinese enterprises are increasing exports and foreign direct investment in…