Wall Street Today | Fed's Waller Supports 'Significant' Rate Hike at September Meeting
MACRO
Slower Inflation Unlikely to Sway Fed From Another Jumbo Hike
US inflation likely slowed for a second month in August as gas prices continued to drop, but that probably won't be enough to stop the Federal Reserve from delivering another jumbo rate hike later this month. Tuesday's CPI report is last Fed officials will get before Sept. meeting. That's unlikely to shift investors' bets that the US central bank will lift rates by 75 basis points this month.
Fed's Waller Supports 'Significant' Rate Hike at September Meeting
The Federal Reserve may have to raise its benchmark interest rate "well above 4%" if inflation does not moderate or rises further this year, said Fed Governor Christopher Waller last Friday. While Waller did not commit to a particular increase, his comments had a mostly hawkish tone that indicated he would support the 0.75-point move, as opposed to a half-point increase.
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SECTORS
Oil Prices Slump as Recession Fears Grow
Another turbulent week in oil markets carried crude prices to their lowest point since January, with thin trading and a blurry outlook for supply and demand driving a fitful 30% decline from this year's highs.
Treasuries Suggest Fed Can Tame Inflation Without Killing Growth
Demand for inflation protection keeps falling. The five-year expected inflation rate implied by those yields is back below 2.6%, down from a March peak of 3.76%. Meanwhile the market's expected peak in the Fed's policy rate remains below 4%, and long-dated Treasury yields have rebounded from levels that suggested a recession was in the cards.
COMPANY
Activist Investor Dan Loeb Backs Off Pushing Disney to Sell ESPN
Activist investor Dan Loeb signaled Sunday morning on Twitter that he is backing off his push to persuade $Disney(DIS.US$ to spin off its popular sports television network ESPN.
Google Cracks Down On Happy Hour, Limits Business Trips, Encourages Virtual Options: Report
According to a leaked email by The Information, $Alphabet-A(GOOGL.US$'s Google is cracking down on employees' non-essential travel, team bonding, happy hours, and other social gatherings.
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Musk Says Whistle-Blower Deal Lets Him Drop Twitter Purchase
Elon Musk told $Twitter (Delisted)(TWTR.US$ that a $7 million severance payment to a whistle-blower who raised questions about problems at the company gives him another reason to walk away from his $44 billion purchase of the social media platform.
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Nikola Founder Faces Securities-Fraud Trial Over Promises About Electric Trucks
Trevor Milton, the $Nikola(NKLA.US$ founder who enticed auto-industry leaders and investors with his promise for a revolution in electric trucks, faces a securities-fraud trial beginning this week on allegations that he lied about his company's development of environmentally friendly technology.
Revamp of Federal Software Buys Could Force Microsoft Changes
The top Democratic senator responsible for government oversight is drafting legislation that would overhaul how the federal government buys software, a move that could force $Microsoft(MSFT.US$, $Oracle(ORCL.US$ and other technology companies to remove limits on how their products interact with those made by rivals.
Source: Bloomberg, Dow Jones
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leadsheet : FUD... everyone knows that they will raise rates. .75 to 1%.... Articles like this push fear
moneyworkhard : Another way is needed to combat this inflation which differs from previous times. Dun think continuing increase of interest rates has impact except South movements n more fears