✂️ Is The Fed Priming A Rate Cut?

Good morning. US stock futures slipped in Wednesday morning trading as Wall Street awaited earnings from one of the latest tech darlings.

📊 Fed Governor: Rate cuts could come by year’s end

📝 Our report: Federal Reserve Governor Christopher Waller hinted that if data keeps cooling off over the next few months, the central bank might think about cutting borrowing costs by the end of 2024. “If we get enough data going the right way, then we can think about cutting rates later this year, beginning of next year.” Waller said in an interview with CNBC.

 🔑 Key points:

• Waller’s comments about the rate outlook follow those made earlier at the Peterson Institute for International Economics, where he said he needs to see “several more” good inflation numbers to begin interest-rate cuts.

• Waller is among Fed officials who have recently emphasized the central bank may need to hold rates steady for longer than previously thought. Policymakers haven’t adjusted the benchmark interest rate — now at a 23-year high — since July.

• Fed officials broadly have cited the economy’s performance to make the case they can afford to be patient before implementing rate cuts.

💡 So what: For the U.S. Federal Reserve to lower interest rates later this year, a couple key factors need to align. First, there must be a clear and sustained decline in inflation toward the Fed's target of 2%. This would likely require evidence of slowing price increases across various sectors of the economy. Second, economic growth should remain moderate without signs of overheating, ensuring that lower rates wouldn't reignite inflationary pressures. If these conditions are met, the Fed may consider easing monetary policy to support further economic stability and growth.

Wednesday - Minutes of Fed's May FOMC Meeting

Thursday - Atlanta Fed President Raphael Bostic Speaks

Friday - Consumer Sentiment (final), Fed Gov Christopher Waller Speaks

📈 In the market for stocks? Here’s how you can tell if they’re undervalued!

🧾 Make your resume pop by using these tips!

💍 Thinking about getting married soon? Here are 3 financial rules to follow!

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⛽ Biden releases gas to ease prices at the pump

WHAT: The Biden administration announced it's tapping into a Northeast gasoline reserve with 1 million barrels, set up after Superstorm Sandy, to help lower pump prices this summer. “The Biden-Harris administration is laser-focused on lowering prices at the pump for American families, especially as drivers hit the road for summer driving season,″ Energy Secretary Jennifer Granholm said in the statement.

WHY: Biden significantly drained the Strategic Petroleum Reserve in 2022 following Russia’s invasion of Ukraine, dropping the stockpile to its lowest level since the 1980s.

💰 Tesla shareholders voice discontent with Musk pay package

WHAT: A group of disgruntled Tesla shareholders is asking their peers to nix Elon Musk's $56 billion pay package, which the company's board wants them to approve again. Amalgamated Bank, SOC Investment Group and six other signatories that hold a small portion of Tesla stock said Musk is distracted by his commitments to the five other companies he controls and isn’t serving the carmaker’s best interests.

WHY: Musk’s pay package, which shareholders first approved in 2018, granted the CEO equity awards as Tesla’s market capitalization increased and as it hit certain operational targets. While the company met all the conditions for Musk to receive the full payout of stock options, a Delaware judge voided the deal in late January, saying it was unfair to shareholders who weren’t fully informed of key details.

🦾 Tech companies team up to fight online scams, crypto fraud

WHAT: A tech squad featuring Match Group, Meta, Coinbase, and others is teaming up to battle online fraud in dating apps, social media, and crypto. The new coalition, Tech Against Scams, will work together to find ways to fight back against the tools used by scammers and to better educate the public against financial scams.

WHY: To protect users from fraud on their respective platforms, the companies said they will share tips and information with one another. They'll also collaborate on ways to educate and protect consumers against the ever-evolving crop of financial scams on the market.

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