Good morning. US stock futures moved higher in Thursday morning trading as Wall Street digested news of the latest move by the Federal Reserve to pause on interest rate hikes.
📊 Federal Reserve holds hand on rate hike
The Fed reiterated that future rate hikes would be contingent on the impact of previous rate hikes on the economy, lag effects, and economic developments.
Fed officials said they were proceeding more cautiously as they take more time to digest cooling inflation data and judge whether hotter-than-expected consumer spending and job growth could continue.
The majority of Fed officials had however penciled one more rate hike at the Fed’s September policy meeting.
💡 So what: The decision by the Fed to hold interest rates steady is often influenced by various economic factors. These factors include the level of inflation, the state of the economy and employment levels. In a nutshell, holding rates steady gives the Fed time to see how previous rate hikes have been absorbed by the economy and the effects of policy decisions on areas such as borrowing and spending.
Thursday - Initial Jobless Claims (wk end Oct 28)
Friday - US Unemployment Rate
💸 Are the rich keeping the economy propped up?
🤖 US to create AI Safety Institute
WHAT: Get ready for some AI safety vibes! US Commerce Secretary Gina Raimondo, in a speech at the AI Safety Summit in Britain, announced that the US is gearing up to unveil its own AI Safety Institute to evaluate known and emerging risks in the fast-growing AI space.
WHY: Raimondo added that she would also commit for the US institute to establish a formal partnership with the United Kingdom’s Safety Institute.
📱 Apple hit with iPhone battery lawsuit
WHY: In a rebuttal of the claims, Apple said the lawsuit was “baseless” and that it strongly denies batteries in iPhone’s were defective apart from a small number of iPhone 6s models for which it offered free battery replacements.
🖥️ India grants tech firms permission for hardware imports
WHY: India announced the new system for laptops, tablets and personal computers last month after it rolled back an earlier plan to impose a licensing regime following criticism from the industry and Washington.
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