Highlight of the Week
Economists Anticipate the Fed will not cut rates over the long term
- In anticipation of Friday’s Jackson Hole Conference, many economists are unsure of the Fed’s plan to raise rates over the next few months. Economists have indicated that it might be too soon to tell and that the next CPI print will dictate the size of the next rate hike.
- Regardless of the outcome of the next month, most economists agree that the Fed will not stop raising rates in the long run. Economists believe the Fed will raise rates to around 4% by the end of 2022 or beginning of 2023.
Rate Curves
Rapid Report:
Twitter comes Under Washington Spotlight with Whistleblower Complaint
- Former Twitter security executive Peiter Zatko filed a complaint that alleged Twitter’s user base had issues with bot accounts, as well as claiming that Twitter has deceived shareholders and customers about the quality of information security.
- The claims of Mr. Zatko echo the same worries that Elon Musk espoused when attempting to back out of the deal to purchase Twitter.
- The SEC, FTC, and Senate Intelligence Committee plan to look into the claims of the whistleblower. If true, the allegations could bring more support to the consumer-privacy protection legislation that is currently in the Senate.
- Suspicion against Twitter seems to be growing on all sides
Laid-Off Workers Quickly Finding Jobs
- Start-ups and smaller businesses appear to be laying off workers in the midst of a cooling economy and pending recession. Despite these layoffs, there are still about 2 job openings for every unemployed person seeking work. This means that laid-off workers are finding new jobs quickly
- The number of initial jobless claims has risen over the summer while the continuing claims have grown at a much slower rate, which indicates that people are finding new jobs faster.
- One advantage of the current market is that laid-off workers have the ability to search for a job that meets their goals in a relatively short amount of time
