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click here to get the latest news in less than three minutes. Top Stories Today is an audio news digest that keeps you updated on the day’s headlines.
Jay Powell yesterday signaled support for a faster withdrawal of the Federal Reserve’s massive bond-buying program and has been significantly more aggressive on inflation than in recent years, suggesting the Fed should drop the word “temporarily” to denote the current one Describe price increase.
The comments, the first in Congress since Powell was nominated for a second term as Fed chairman, caused global equity markets to collapse.
The S&P 500, which was already lower due to negative comments from Moderna CEO about the effectiveness of vaccines against the new Omicron strain, fell 1.9 percent. The technology-heavy Nasdaq Composite share index closed 1.6 percent lower.
The yields on government bonds with shorter maturities, which move with interest rate expectations, rose, while the yields on government bonds with longer maturities, which track economic growth and inflation expectations, fell.
Traders also changed their bets on the Fed’s restrictive stance over the coming months – a U-turn in recent days when investors had bet that the advent of the Omicron variant would prompt the central bank to take a step on the more patient approach Increase in rates. Implied rates on federal funds futures rose, with markets pricing in rate hikes of just over two-quarter points through the end of next year.
“The economy is very strong and inflationary pressures are high,” Powell told lawmakers. “Therefore, I believe it is appropriate to consider stopping expanding our securities purchases. . . maybe a few months earlier. “
Powell said he expected the Federal Reserve Open Markets Committee to discuss a faster cut at its next meeting on Dec. 14-15. Equity markets in Europe and Asia rebounded today and Wall Street is expected to open higher.
Do you agree with Powell, or has Omicron changed the outlook for the US economy? Send me an email at email@example.com. Here’s the rest of today’s news – Gordon
Five more stories on the news
1. Microsoft shareholders rebel and support protest voices Almost four-fifths of Microsoft shareholders voted against the software company’s management yesterday and supported a protest vote calling for more details to be published about the latest sexual harassment allegations. The shareholder revolt followed years of complaints from some workers that Microsoft had swept ubiquitous harassment allegations under the rug.
2. The future of New York City “not guaranteed” Goldman Sachs CEO David Solomon warned New York City leaders that they cannot take its position as a global business destination for granted and that higher taxes threaten to make it less attractive to companies and their employees.
3. Executive Leading Meta’s stalled digital currency project is being discontinued David Marcus, who joined the former Facebook company from PayPal seven years ago, announced his departure yesterday. The exit comes after the social media network suffered a series of setbacks in its attempts to launch ambitious cryptocurrency products, including a new digital token called Diem.
4. Holmes defends response to Theranos news coverage Prosecutors interrogated Elizabeth Holmes on her reaction to the investigative article that pierced her rosy image in 2015 when Theranos founder stood on her criminal fraud trial for a fifth day of testimony.
5. CNN suspends moderator Chris Cuomo CNN has suspended star news host Chris Cuomo “indefinitely” after the New York attorney general released transcripts showing he was far more involved than previously known in defending his brother, the embattled former governor of the state was.
Omicron’s coronavirus variant threatens to exacerbate the imbalances that slow growth and fuel inflation OECD warns in its latest economic forecast.
Seth Berkley, one of the leading members of the United Nations-backed Covax has urged rich countries to support developing countries.
Scientists are rushing to subject existing stress tests Covid-19 vaccinations against the new Omicron variant.
Experts for a US Food and Drug Administration The committee has given the go-ahead for Merck’s antiviral pill with a narrow majority. In the meantime, early tests suggest that mutations of Omicron may reduce the effectiveness of. can affect Regenerons Covid antibody drug, the company said.
European populists are increasingly profiling themselves as torchbearers of vaccination skepticism and anti-lockdown libertarianism.
The day ahead
US Supreme Court weighs abortion law contestation Judges will hear the oral argument in the greatest challenge to abortion law in the United States in generations. A verdict in the Mississippi case is expected by June 2022.
Legislature takes Powell and Yellen interrogation into day two Federal Reserve Chairman Jay Powell and Treasury Secretary Janet Yellen face a second day of questioning by US lawmakers. Yellen is expected to urge lawmakers to reach an agreement on raising the debt ceiling. The Federal Reserve will also release its latest Beige Book report.
data With record numbers of Americans quitting their jobs, the latest ADP employment report will be closely watched ahead of the Friday November non-agricultural wage and unemployment figures.
Exxon update The US energy super major is expected to publish new targets to reduce greenhouse gas emissions. It will be the first update on capital spending since Exxon lost seats on its board in a proxy battle with activist hedge fund Engine No 1, who argued the company was ill-prepared for a lower-carbon future.
FT and McKinsey Business Book of the Year The 17th annual award winner will be announced at a ceremony in London. Here is the short list of titles selected by the prestigious jury. The winner of the £ 15,000 Bracken Bower Prize for Young Authors will also be announced.
Join more than 100 influential FT executives and top journalists from across America and around the world in the Global Boardroom Conference to discuss how resilient, sustainable, inclusive economies and businesses in a crisis-changed world can be built. Register for freehere.
What else we read
The future of work WFH, Presenterism, the “Great Resignation” – Emma Jacobs reviews a new novel and two searching non-fiction books that focus on dramatic changes in work culture.
Go deeper: In the latest episode of Working It, the new FT podcast on the world of work, presenter Isabel Berwick explores the topic of flat hierarchies with an expert in organizational design.
Lessons in “Leveling Up” from the Basque Country How should shrinking regions be revived? This question arises wherever in high-income countries the former bastions of heavy industry have collapsed. The Basque Country in Spain has managed to regenerate. Martin Wolf examines how.
Russia’s arctic ambitions The world’s first floating nuclear power plant is located in a remote Siberian port, a sign of Vladimir Putin’s ambitions to open an important shipping route through the Arctic. Could it offer an alternative to the Suez Canal?
The UK stock market risks becoming a global backwater The UK is falling behind as US and Chinese markets advance and fund managers obsessed with dividends rather than growth. London largely failed to take part in the global rally that began in 2015, writes Paul Marshall, chairman of the Marshall Wace hedge fund.
to eat and drink
Quality hot chocolate can be as nuanced as coffee or wine. The single origin specialist Cartography produces four sustainably grown hot chocolates that highlight different terroirs. Its Venezuelan is soft and creamy, with notes of Earl Gray. The Tanzanian is fruity: caramelized banana, pineapple and espresso.
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