Good morning. US stock futures dipped in Tuesday morning trading as investors prepared for the latest round of Federal Reserve policy meetings.

"The trick of being contrarian is to be early, not just different"

Dean LeBaron

Top News

US Treasury: Cash crunch likely without debt limit moves

WHAT: The US Treasury might be about to go on a payment diet. Treasury Secretary Janet Yellen, in a letter to Congress said the agency might not be able to foot the bill for all the government's expenses by early June.

WHY: After hitting the $31.4 trillion borrowing cap in January, Yellen previously told Congress the Treasury would keep up payments on debt, federal benefits and make other outlays at least through June 5th using cash receipts and other extraordinary cash measures.

More banking sector weakness likely

WHAT: According to Kristalina Georgieva, managing director of the International Monetary Fund, don't be surprised if there are more skeletons to come tumbling out of the banking sector's closet. Speaking at the 2023 Milken Institute Global Conference, Georgieva said the move from low to much higher interest rates played a roll in uncovering banking sector weaknesses and the pain may not be over.

WHY: The IMF welcomed the move by US regulators to seize embattled First Republic Bank and find a buyer, but noted that the resilience of the global financial system continued to be tested.

White House to examine employee monitoring tools

WHAT: The Biden Administration is putting on their investigative hats to take a closer look at how companies are keeping tabs on employees. According to the White House, the use of technology to monitor and manage employees can cause "serious risks to workers".

WHY: Advocates have been critical for years of how companies use such technology, saying it can violate worker privacy, hamper union activities and enable discrimination.

In Other News

New rules coming for Fed officials

 WHAT: The Federal Reserve announced they're taking steps to make sure their officials aren't up to any funny business with trading and ethics. According to a recently released report, the Fed said more work can be done on the process of filing disclosure reports and verifying their accuracy, while also clarifying how those who violate rules will be held accountable.

WHY: The Fed's report is the latest development in a long running effort by the central bank to impose limits on officials' and staff financial activities.

Judge declares mistrial in Apple Watch lawsuit

WHAT: A US judge in California declared a mistrial in the smartwatch trade secret lawsuit between Masimo Corp and Apple. Apparently jurors couldn't agree on whether Apple was guilty of stealing Masimo's secrets or if they were just really good at guessing!

WHY: Masimo and its spin-off Cercacor Laboratories sued Apple in 2020, accusing it of stealing trade secrets and using them to create and sell several Apple Watch models.

Adidas sued by investors over Kanye West deal

WHAT: A bunch of investors are teaming up to sue sportswear giant Adidas over their partnership with Ye, the artist formerly known as Kanye West, citing Adidas was well aware of offensive remarks and harmful behavior, but decided to stick with West anyway.

WHY: The German sports brand cut ties with its star collaborator in late October, following West's anti-semitic comments on social media and in interviews.

Key Economic Events

• Tuesday - FOMC Begins Two-Day Meeting

• Wednesday - FOMC Rate Decision, Fed Chair Holds Press Conference

• Thursday - ECB President Lagarde Press Conference

• Friday - US Unemployment Rate, Fed's Bullard Discusses The Economic Outlook

Notable Briefs

• Rent or buy? 10 reasons why renting might be better than buying

• These are 10 things other than salary you should negotiate for!

• Here are 5 places to put cash other than a bank

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