Posts by Amelia Frost
The Economy Grew Less Than Expected In Q2. Core Inflation Also Remained Above The Key 2% Target
The U.S. economy grew 1.5% in the second quarter, less than expected, according to new data released by the Commerce Department’s Bureau of Economic Analysis. The figure stood below the estimates of analysts surveyed by Reuters, who previewed the figure would stand at 2.1%. Figures given ranged between 0.8% and 2.9%. The outlet noted that…
Read MoreTreasury Yields Stay Near Decades-High After Fed Pause. Long-Term Borrowing Costs Still Under Pressure
U.S. Treasury yields held near recent highs Thursday as investors digested the Federal Reserve’s latest interest rate decision and awaited fresh inflation data that could shape expectations for the remainder of the year. The benchmark 30-year Treasury yield remained close to levels last seen in 2007 after the Federal Open Market Committee voted to leave…
Read MoreTalks To Disarm Hamas In Gaza Reportedly Make Progress: ‘A New Beginning’
Discussions about the disarmament of Hamas in Gaza are making progress, according to a new report. A diplomatic official familiar with the matter told The Times of Israel that parties “continue to advance the implementation of the roadmap that offers a balanced and pragmatic path forward, with all weapons decommissioned and a phased transition of…
Read MoreThe Federal Reserve Just Changed How It Talks About The Economy. Here’s What’s Different Under Kevin Warsh
The Federal Reserve offered investors another glimpse into its new communication strategy on Wednesday, releasing the second Federal Open Market Committee statement under Chairman Kevin Warsh. While the central bank once again left interest rates unchanged, the statement revealed several notable changes in both style and substance that reflect Warsh’s effort to simplify how the…
Read MoreMore Americans Are Buying Groceries With Credit Cards. The Long-Term Cost Could Be Painful
Financial experts say the trend can become particularly costly when balances are carried from month to month. Freepik More working-age Americans are relying on credit cards to pay for groceries as persistent cost-of-living pressures strain household finances, raising concerns among consumer advocates about the growing use of debt to cover everyday essentials. A new survey…
Read More‘Cognitive Surrender’ Isn’t Just Affecting Employees, But Whole Organizations Too
Researchers at the Wharton School have coined the term “cognitive surrender” to describe the tendency to accept artificial intelligence (AI) outputs without scrutiny. Now, experts are also warning this phenomenon has implications in the workplace and for whole organizations, particularly around decision-making. A recent Boston Consulting Group (BCG) report shows most companies still struggle to…
Read MoreA Major Crypto Firm Is Backing The Clarity Act. It Says The U.S. Is Losing Ground In The Industry
Digital Currency Group (DCG), one of the cryptocurrency industry’s largest investment firms, has urged the U.S. Senate to pass the Clarity Act, arguing that continued delays in establishing clear digital asset regulations are allowing competing financial hubs such as Singapore and the United Arab Emirates to attract crypto businesses and investment. In a statement released…
Read MoreMicrosoft’s AI Business Keeps Accelerating. Meta’s Profit Miss Shakes Investor Confidence And Its Stock Plunges
Microsoft and Meta Platforms delivered sharply different messages to investors Wednesday as the two technology giants reported quarterly earnings under intense scrutiny over their multibillion-dollar artificial intelligence investments. The reports, released after the closing bell, come at a pivotal moment for the AI industry. Investors have increasingly questioned whether the massive spending by the world’s…
Read MoreFIFA’s $20 Billion World Cup Plan Sparks Global Backlash. UEFA Says Tournament ‘Is Not FIFA’s To Sell’
FIFA’s ambitious plan to bring private investors into the commercial operations of the FIFA World Cup has ignited one of the biggest governance disputes in modern soccer, with critics accusing the organization of putting the sport’s most prestigious tournament up for sale. The controversy erupted after FIFA announced it intends to create a new commercial…
Read MoreThe Fed Did What Investors Anticipated. Stocks Plunged Anyway And Nasdaq Entered Correction Territory
Stocks plummeted on Wednesday even though the Federal Reserve left rates unchanged as investors expected. CNBC detailed that the bond market signaled that the central bank could be falling behind in the fight against inflation, with chair Kevin Warsh’s remarks failing to convince. “I want to stress, of course, that decisions by this committee matter…
Read MoreTech Stocks Slide As Nasdaq 100 Nears Correction Driven By AI Spending Fears
A trader works on the floor of the New York Stock Exchange during the afternoon of December 10, 2014 in New York City. Andrew Burton/Getty Images KEY POINTS The tech-heavy Nasdaq-100 index approached correction territory, dropping roughly 10% from its June record high. South Korea’s Kospi index suffered a rapid bear-market decline driven by the…
Read MoreHow Hedge Funds Made Billions From Forced Buying of SpaceX Shares By Index Funds
KEY POINTS Inclusion into the Nasdaq 100 forced passive index funds to automatically SpaceX shares regardless of price. Hedge funds anticipated index rebalancing and positioned ahead of mandatory buying by passive index funds to monetize a predictable surge in demand. Because index-rebalancing opportunities occur within narrow trading windows, large hedge funds used prime-broker leverage to…
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