Biden tax to rescue Medicare: https://www.aol.com/finance/biden-tax-high-earners-save-110458800.html . This is the correct approach, from both a substantive and political standpoint. There’s no way to balance out the Medicare cash flow without a tax increase. High earners must be a part of any tax increase. The GOP can fight, but this won’t go well if they don’t offer a viable alternative solution. WSJ: More: https://www.wsj.com/articles/bidens-budget-to-lay-out-plan-to-extend-key-medicare-trust-fund-by-25-years-825ab8a .
WSJ: Two more companies recall eye drops: https://www.wsj.com/articles/eye-drops-recalled-by-two-companies-over-safety-concerns-ee30b105 .
Powell indicates rate hikes may be higher and faster than previously expected: https://apnews.com/article/inflation-federal-reserve-interest-rates-powell-unemployment-79b7ead4530ab381a17638a6c9df2d90 . WSJ: More: https://www.wsj.com/articles/time-to-get-used-to-higher-rates-684cf7ae . Still more: https://www.wsj.com/articles/powell-testimony-drives-up-shorter-term-bond-yields-3eb3b493 . And: https://www.wsj.com/articles/jerome-powell-to-testify-to-congress-on-outlook-for-rates-inflation-e4e7f1e3 . To me, nothing here is at all surprising. The Fed slowed the size of rate hikes hoping that the delayed effect of their prior increases would bring down inflation more rapidly. However, inflation has remained sticky across the economy, and therefore rate increases must continue. The Fed remains strongly focused on its 2% inflation target, which I believe they are now locked into.
The reported comments by the two senators, one from each side of the aisle, on unemployment strike me as political and not relevant. The Fed deals with macroeconomics; the senators’ comments are microeconomics.
Bank of America chief sees US recession in 6 months: https://www.msn.com/en-us/money/markets/bank-of-america-ceo-brian-moynihan-says-the-us-will-enter-a-recession-in-the-3rd-quarter-of-this-year/ar-AA18k40u?ocid=hpmsn&cvid=2ac0b2d7d42a41589a64a5b6c9cdf2c0&ei=36 . Moynihan also sees the Fed cutting rates in a year. However, that assumes substantial progress to the 2% inflation goal is in place by that time. Right now, all of the evidence and historical experience is that inflation will be far stickier than that.
Interest rate inversion reaches highest level in 40 years: https://www.msn.com/en-us/money/markets/bond-market-recession-gauge-plunges-to-triple-digits-below-zero-on-way-to-fresh-four-decade-milestone/ar-AA18kOs0?ocid=hpmsn&cvid=1cb63a72905b4fe997fa33618ffc90ab&ei=53 . I follow bond rates every business day. Today the 1 year Treasury rate jumped from 5.04% to 5.19%. This 15 basis point increase is unheard of. The jump indicates that the market believed the Fed would increase 25 basis points at its next meeting, but now is almost fully pricing in a 50 basis point increase.
WSJ: China exports fall again: https://www.wsj.com/articles/chinese-exports-pull-back-again-hampering-post-covid-recovery-185c3f21 . So we continue to look at a global recession.
WSJ: Meanwhile, Ukraine exports its sunflower seeds: https://www.wsj.com/articles/ukraine-shift-on-sunflower-seed-exports-calms-cooking-oil-market-rocked-by-invasion-4839cbc8 . Russia increases shelling of Kherson: https://www.wsj.com/articles/as-russia-steps-up-shelling-in-kherson-ukraine-calls-on-residents-to-evacuate-59847d42 .
US files suit to block JetBlue purchase of Spirit: https://apnews.com/article/consolidation-jetblue-spirit-airlines-us-regulators-competition-dbc06fb25b009cecc61e2c8632b21d0b . While an expert considers the US case strong, we know the US has allowed mega-mergers in this industry. Is it surprising that two little guys feel they need to get together to compete? WSJ: More: https://www.wsj.com/articles/justice-department-files-antitrust-lawsuit-to-block-jetblue-purchase-of-spirit-airlines-8496b514 .
Fox’s grave danger from Dominion lawsuit increases: https://www.msn.com/en-us/news/politics/tucker-carlson-s-january-6-segment-draws-bipartisan-outrage-one-of-the-most-shameful-hours-we-have-ever-seen-on-cable-tv/ar-AA18krO8?ocid=hpmsn&cvid=b4d70814b10e496b814e5748dc0d522e&ei=34 . WSJ: More: https://www.wsj.com/articles/tucker-carlson-capitol-riot-segment-criticized-by-democrats-republicans-ac07522f . There is now major bipartisan backlash against the lies Carlson and Fox continue to perpetuate about the 2020 election and January 6. As previously reported, the standard is “reckless disregard of the truth”. So how much more proof does a court need? More: https://abcnews.go.com/Politics/capitol-police-chief-slams-carlsons-comments-jan-6/story?id=97686463 . The language has a phrase for this: “Digging your own grave”. If these anti-American clowns survive the Dominion lawsuit, it proves the collapse of our legal system .
Experts shocked by Fox’s violation of ethical standards: https://news.yahoo.com/an-egregious-violation-of-journalism-ethics-experts-slam-fox-news-conduct-in-dominion-case-184832045.html .
Who said this about Orange Julius: “I hate him passionately”? Answer: Tucker “Rhymes With” Carlson: https://www.nbcnews.com/politics/donald-trump/private-fox-news-text-messages-emails-released-dominion-suit-rcna72693 . Tucker is the biggest fraud of the 21st Century. Sam Bankman-Fried may slither off this hook.
Two January 6 defendants accused of violence now on the run: https://news.yahoo.com/2-capitol-riot-defendants-accused-182733163.html . Arrest warrants have been issued for these losers. I would guess they just raised their jail time by a third.
Elon Musk burnishes his reputation as the world’s leading jerk boss: https://apnews.com/article/twitter-musk-iceland-fired-wheelchair-haraldur-employee-0329405846dac8f1f08ac55594881bb6 . Musk mocked this (disabled) laid-off employee, then changed his mind and offered him his job back. Musk says it’s because he was told some things about the employee that were untrue. In other words, if those things were true, then it was okay to mock a laid-off employee. Anyone working for this abysmal excuse of a human should rethink their alternatives.
Two of 4 kidnapped Americans found dead: https://apnews.com/article/mexico-kidnapped-americans-killed-eaed854f1b16cd61fb79edcb5b87cfe6 . Matamoros, which is across the US border from Brownsville, Texas, has a State Department Level 4 travel warning: DO NOT TRAVEL: https://www.traveloffpath.com/u-s-state-department-has-travel-warnings-in-place-for-these-6-regions-in-mexico/ . But again, this tragedy probably does not happen if the US had a rational healthcare system. More: https://www.msn.com/en-us/news/us/mom-in-mexico-for-cosmetic-surgery-among-2-americans-who-survived-kidnapping/ar-AA18kj1j?ocid=hpmsn&cvid=604df068ee9142d5b001a63d7c3db0d0&ei=13 . Apparently, Latavia McGee survived uninjured while Eric Williams was shot but survived. That means the two dead Americans are Zindell Brown and Shaeed Woodward. WSJ: More: https://www.wsj.com/articles/tamaulipas-governor-says-two-of-four-americans-kidnapped-in-matamoros-found-dead-e2bcce49 .
Father of mass murderer gets 18 months for illegally giving the kid an assault weapon: https://apnews.com/article/nashville-waffle-house-shooting-father-convicted-5e67274c8938e6ba08c7ad615e2ae76d . However, 18 months seems like a woefully inadequate sentence.
Passenger on plane threatens bloodbath before attacking flight attendant: https://www.nbcnews.com/news/us-news/video-shows-united-passenger-threaten-kill-every-man-plane-rcna73757 . Presumably this nut will be banned from air travel.
Pair of killer whales has a taste for shark liver: https://www.aol.com/nearly-two-dozen-sharks-found-163524028.html .