Key takeaways: The Conference Board’s Leading Economic Index (LEI) has declined for the tenth consecutive month. The index is a key barometer for the health…
Posts published in “Financial”
Elon Musk took the witness stand for a second day on Monday in a trial over a controversial tweet from 2018, in which he claimed he had "funding secured" to take Tesla private for $420 a share. Musk is attempting to explain the thought process behind the tweet and push back at the idea that it was partly a joke. U.S. Judge Edward Chen has already ruled the tweet was false and reckless, and Musk is now trying to convince the jury that he did not know the tweet was false when he sent it.
Spotify announced that it will lay off 6% of its workforce in order to reduce costs, with CEO Daniel Ek taking full responsibility for the difficult but necessary decision. This follows other tech giants such as Amazon and Microsoft cutting jobs in the wake of the pandemic, with the industry having cut roughly 50,000 jobs in January alone. Spotify will provide severance and other benefits to those affected, as part of its effort to remain competitive and provide the best service to its customers.
Treasury Secretary Janet Yellen has warned of the potential consequences for everyday Americans if the debt limit is not raised.
US Hits $34.1 Trillion Debt Ceiling, White House and House Republicans Negotiate Potential Solutions
US Hits $34.1 Trillion Debt Ceiling, White House and House Republicans Negotiate Potential Solutions
The US has officially hit its $34.1 trillion debt ceiling and the government has begun "extraordinary measures" to pay bills. House Speaker Kevin McCarthy has accepted an invitation from President Biden to discuss a solution, while Senate Minority Leader Mitch McConnell has said the US "never has and never will" default on its debt. House Republicans have threatened to hold the Biden administration hostage over the debt limit, and the outcome of negotiations between the White House and House Republicans could have a significant impact on the financial security of American households.
Google, one of the world's leading technology companies, has announced a 6% workforce reduction of 12,000 employees, as the economic boom experienced during the pandemic begins to slow. This is one of the biggest rounds of layoffs ever for the company, and adds to the tens of thousands of job losses recently announced by other tech companies such as Microsoft, Amazon, and Facebook parent Meta. The layoffs are a sign of the times, and a reminder that the tech industry is not immune to the effects of the pandemic.
The Federal Reserve is signaling that it will continue to raise interest rates, despite signs of slowing economic activity and inflation. At a press conference, Vice Chair Lael Brainard noted that inflation is still high and Cleveland Fed President Loretta Mester said the policy rate may need to go higher than 5%. The Fed will discuss the policy rate at their upcoming meeting and monitor economic activity and inflation to determine the appropriate rate.
Treasury Secretary Janet Yellen has warned that the United States has reached its legal borrowing capacity and must now rely on "extraordinary measures" to avoid a catastrophic default. President Joe Biden and House Republicans are at odds over how to address the situation, and it is uncertain whether the United States can sidestep a potential economic crisis. The Treasury Department is urging Congress to raise the debt limit as soon as possible to avoid a potential economic crisis.