how are you? (June 26-July 2)
High prices begin to be sacrificed
Consumers continued to spend in May, but couldn’t make any money. After adjusting for inflation, spending fell for the first time in May this year. This was down 0.4% as spending fell below prices. Spending in the first four months of 2022 was also weaker than previously believed. Americans rarely stop buying when prices for gas, groceries, travel, etc. rise, but there are signs that high prices may be beginning to affect demand. High-value products in particular have been affected by the housing market, which has been chilling in recent weeks due to high prices and rising mortgage rates.
Suspicious middle mark
We are in the middle of 2022 and there are signs that everything is not going well in the financial markets. The stock market was the worst in the first six months of the year since 1970. The S & P 500 has fallen nearly 21% since its peak in January. Bitcoin has fallen by more than 50% this year. The index that tracks 10-year government bonds has fallen by about 10%. Bonds, which are expected to provide investors with lower but more stable returns, are also declining. Federal Reserve Chair Jerome H. Powell said last week that banks’ efforts to combat inflation “are very likely to be somewhat painful.” With all the nasty financial and economic news, economists have increased the likelihood of a recession in the US economy.
Impact on Biden’s climate plan
The Supreme Court on Thursday limited the Environmental Protection Agency’s ability to limit carbon emissions from power plants. The 6-3 ruling, which reduces but does not eliminate the capacity of the agency that regulates the energy sector, was seen as a blow to President Biden’s climate. This decision also affects other types of regulations, which can now be difficult to defend. The court used this case to establish the so-called main question principle. This allows the court to revoke the agency’s regulation if there is not enough explicitness for Congress to authorize it and the regulation has significant economic implications. In certain special cases, the agency must “point out that it” clarifies Congressional approval “about the power it claims,” wrote Judge John G. Roberts, Jr. Legal experts say the conservative majority of courts provide business profits with powerful tools to challenge regulations that reduce profits.
What’s next? (July 3-9)
June work
The June job report will be released on Friday, and recruitment is expected to slow.First unemployment insurance claim Up from May.. Employment growth was strong last year and earlier this year, with the United States almost recovering the 22 million jobs it lost during the pandemic. The Federal Reserve will look at employment reports to see if wages continue to rise and the unemployment rate, looking for signs that rising interest rates are losing vitality to the economy. Minutes from the FRB’s June meeting, where policy makers raised interest rates by three-quarters percentage points, are the largest rise since 1994 and will be released Wednesday.
Crypto Bosses Rock On
As the aftershock of plunging cryptocurrency prices continues to echo, there is a gap between what you have and what you don’t. Wealthy cryptocurrency executives (some buy when prices are low and cash out when prices are high) are expected to lose money, but appear relatively intact. For example, Cameron and Tyler Winklevoss, heads of Gemini, the best-known early supporting role on Facebook, said their wealth dropped from $ 4 billion to $ 3.3 billion last week, according to Forbes. I confirmed. But crypto company workers have lost their jobs and private investors are seeing their savings evaporate. Gemini, the first major crypto company to announce layoffs, cut about 10 percent of its workforce last month. Companies like Coinbase soon followed. Meanwhile, the Winklebos twins took their cover bands on the road. Among the songs they played is “Don’t Stop Believin”.
Leaving the sadness jet (probably)
The July 4th weekend is one of the busiest travel weekends of the year. And this summer, it’s expected to be a nuisance. Delays and flight cancellations are expected nationwide. Last month, Secretary of Transportation Pete Butigeg urged airlines to follow their flight schedules. Reuters report. (It was just before his own flight from Washington to New York it was cancelled.. A combination of factors such as increased demand from travelers, ongoing staffing issues at airlines and airports, and the spread of Covids means that flight schedules can be unreliable. The same problem is affecting travel in Europe. In Europe, airline and airport workers are protesting staff shortages and payments.
what else?
Ernst & Young agreed to pay the Securities and Exchange Commission $ 100 million after regulators discovered that hundreds of company auditors had cheated on ethical exams. Spirit Airlines has postponed the shareholder vote to July 8 as it continues to speak with both Frontier Airlines and rival suitor JetBlue. Leading media, technology and business players will then meet in Idaho on Tuesday to attend the annual Sun Valley conference hosted by Allen & Company. This event is called “Summer Camp for Millionaires”.
