Wall Street Today | Powell Says Fed Still Has a 'Ways to Go' After Half-Point Hike

Moomoo Recap US wrote a column · Dec 14, 2022 18:17

Wall Street Today | Powell Says Fed Still Has a 'Ways to Go' After Half-Point Hike

MACRO

Fed Raises Rate by 0.5 Percentage Point, Signals More Increases Likely

The Federal Reserve approved an interest-rate increase of 0.5 percentage point and signaled plans to lift rates through the spring, though likely in smaller increments, to combat high inflation.

The decision Wednesday marked a step down after four consecutive larger increases of 0.75 point and raised the benchmark federal-funds rate to a range between 4.25% and 4.5%, a 15-year high.
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Powell Says Fed Still Has a 'Ways to Go' After Half-Point Hike

"We still have some ways to go," Powell told a press conference on Wednesday in Washington after the Federal Open Market Committee raised its benchmark rate by 50 basis points. Policymakers projected rates would end next year at 5.1%, according to their median forecast, before being cut to 4.1% in 2024 — a higher level than previously indicated.

SECTORS

Pump Prices in US Have Biggest One-Day Drop Since March 2020

Average pump prices in the US fell by nearly 1% overnight, the largest decline since late March 2020. The national average of gasoline now stands at $3.214 a gallon, according to auto club AAA. That's the cheapest price American motorists have paid in more than 14 months.

COMPANY

Tesla Closes Below $500 Billion Market Cap for First Time in Two Years

The relentless decline in the shares of $Tesla (TSLA.US)$ has pushed the electric-vehicle maker's valuation to close below the half-trillion dollar mark for the first time since November 2020.

Delta Expects 2023 Earnings to Nearly Double Thanks to 'Robust' Travel Demand

The airline expects its adjusted earnings to nearly double to as much as $6 per share next year, above analysts' estimates. It forecast a 15% to 20% jump in revenue in 2023 from this year, which is expected to bring in roughly $45.5 billion. $Delta Air Lines (DAL.US)$

Goldman Sachs Weighs Bonus Cut of at Least 40% at Investment Bank

$Goldman Sachs (GS.US)$ is considering shrinking the bonus pool for its more than 3,000 investment bankers by at least 40 per cent this year, as chief executive David Solomon tries to control costs with deeper cuts than many of its Wall Street rivals.

Exxon Mobil Starts Up Baytown Plastic Recycling Facility

$Exxon Mobil (XOM.US)$ said Wednesday it has started operations of a recycling plant at its integrated manufacturing complex in Baytown, Texas.

Source: Bloomberg, Dow Jones, CNBC, Yahoo Finance

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