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Interest rates are still too high in the U.S. more rate hikes possible

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The Federal Reserve’s latest meeting minutes reveal that the majority of its officials remain apprehensive about persistently high inflation and are contemplating the potential necessity of additional interest rate increases.

The minutes from the July 25-26 meeting unveil a mixed viewpoint among the policymakers regarding the trajectory of inflation and its implications for monetary policy.

While acknowledging a few signs that inflation pressures might be subsiding, the minutes underscore that many officials continue to perceive high inflation as a sustained threat.

The cautious sentiment aligns with the Federal Reserve Chair Jerome Powell’s earlier remarks, where he adopted a noncommittal stance on future rate hikes during a post-meeting news conference.

Persistent inflation

In light of this persistent inflation concern, the minutes indicate that the officials are seeking more data to be confident that inflation pressures are genuinely abating and on a trajectory towards the central bank’s 2% target.

As of now, despite efforts to curb inflation, it remains elevated beyond the desired threshold.

The Federal Reserve’s decision during the meeting to raise its benchmark rate for the 11th time in 17 months reflects its ongoing commitment to combating inflation.

However, the release accompanying the meeting did not provide explicit guidance on the timing or potential occurrence of future rate increases.

Further hikes

Market analysts and economists have been debating the likelihood of further rate hikes following the July increase.

While the consensus among most investors and experts suggests that the July hike could be the final one, Goldman Sachs economists recently projected that the Federal Reserve might begin a phase of rate cuts by the middle of the following year.

The release of the meeting minutes coincides with signs that the economy is undergoing a “soft landing,” where economic growth slows sufficiently to mitigate inflation while avoiding a deep recession.

The Federal Reserve’s extensive series of interest rate hikes, the most significant in over four decades, has aimed to strike this balance.

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Warner Brothers & Discovery considers splitting up to boost stock value

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Warner Bros Discovery is considering a strategic breakup to enhance its stock performance, according to a Financial Times report.

The potential move aims to unlock value by separating its media assets from its reality TV and lifestyle businesses.

This decision follows pressure from investors to improve stock performance, amidst challenges in the media industry #featured #trending

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Investors worldwide grow increasingly optimistic about Trump winning the election

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Investors are increasingly optimistic about Donald Trump’s potential re-election, prompting a resurgence in the so-called ‘Trump trade’.

Market participants are closely monitoring Trump’s political strategies and public sentiment, influencing their investment decisions.

Kyle Rodda from Captial.com joins to discuss all the latest.

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Netflix expands use of ads despite slow subscriber growth

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Netflix is intensifying its efforts to introduce an ad-supported tier amidst a plateau in subscriber growth.

The streaming giant hopes to attract new users and boost revenue by offering a cheaper alternative that includes advertisements.

This move marks a significant shift from its traditional ad-free model, reflecting Netflix’s response to competitive pressures and evolving consumer preferences.

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