📉 Is Inflation Stalling The Fed's Plans?

Good morning. US stock futures rose in Wednesday morning trading as investors continued to parse through earnings reports.

💸 Fed Chair: Inflation moving slower than expected

📝 Our report: Fed Chair Jerome Powell dropped a bombshell, admitting it'll take "longer than expected" to tame inflation down to the central bank's 2% target. "Given the strength of the labor market and progress on inflation so far, it's appropriate to allow restrictive policy further time to work and let the data and the evolving outlook guide us," Powell said at an event in Washington on the Canadian economy.

 🔑 Key points:

• The comments mark Powell’s first acknowledgment yet that sticky inflation data in the first quarter of this year are not showing the progress that the Fed needs to begin easing monetary policy.

• Rates are currently at a 23-year high following an aggressive campaign by the Fed to tame inflation and cool the economy.

• While inflation has been stickier in the first quarter, underscoring reasons not to cut rates, the job market has also turned in stronger readings, and retail sales for March showed consumers continue to spend at a solid clip.

💡 So what: When inflation moves slower than expected, it means the Federal Reserve might need to keep interest rates higher for longer to cool down the economy and prevent prices from rising too quickly. This cautious approach could delay any plans to cut interest rates in the near future, as the Fed aims to maintain stability in the economy while keeping inflation in check.

Wednesday - Fed Beige Book

Thursday - U.S. Leading Economic Indicators, Atlanta Fed President Raphael Bostic Speaks

Friday - Chicago Fed President Austan Goolsbee Speaks

📈 Investing legend George Soros shares his 4 tips for success!

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💸 Living single? Here’s how much you’d need to earn in every state in the US

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💳 Biden admin doubles down on student loan relief

WHAT: President Joe Biden is ramping up his student loan forgiveness pledge with a new plan set to bring relief to over 30 million Americans. The recently announced proposal would fully wipe accrued interest for 23 million student loan borrowers, eliminating college debt for 4 million Americans. Overall, 10 million borrowers would see debt relief of $5,000 or more, the White House said.

WHY: Under Biden’s new proposal, some borrowers could see up to $20,000 of their accrued interest forgiven — regardless of income. Specifically, interest accrued while the borrower was in repayment, the White House said.

💃🏽 Event promoter under antitrust scrutiny

WHAT: Looks like the Department of Justice (DOJ) is tuning up to file an antitrust lawsuit against concert and event maestro Live Nation. According to the report from the Wall Street Journal, the DOJ will allege that Live Nation, the parent company of Ticketmaster, has "leveraged its dominance" in the marketplace to harm competitors.

WHY: The federal government approved the Live Nation-Ticketmaster merger in 2010. Since then, the company has been at the center of antitrust concerns, with critics taking aim at its sky-high ticket fees and accusing the entertainment giant of monopolistic practices and anti-competitive behavior.

🍪 Snack giant fined for blocking sales

WHAT: The European Union is gearing up to slap Oreo-maker Mondelez International with a fine for putting up barriers to cross-border sales, according to reports from the Financial Times. The fine could be worth millions of euros and come as early as next month, the report said.

WHY: EU antitrust authorities began investigating Mondelez International in early 2021 over concerns it may have blocked cross-border sales of its products in the European Union in breach of competition rules.

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