Business

Fed ‘likely’ done with rate hikes, concerned with ‘uncertainty’: minutes on January 3, 2024 at 7:47 pm Business News | The Hill

Published

1 year ago

January 3, 2024

Members of a key Federal Reserve committee forecasted rate cuts in 2024 but noted “an unusually elevated degree of uncertainty” as it weighs its next move, according to new minutes from its December meeting released Thursday.

The committee voted to hold interest rates at their highest level in more than two decades following its final meeting of 2023. But Fed officials, including Chair Jerome Powell, signaled rate cuts were on the horizon following the announcement.

“We are likely at or near the peak rate for this cycle,” Powell said at press conference last month, sending markets soaring.

The new minutes add fuel to forecasts that the Fed is likely done with rate hikes.

“In discussing the policy outlook, [Federal Open Market Committee (FOMC)] participants viewed the policy rate as likely at or near its peak for this tightening cycle, though they noted that the actual policy path will depend on how the economy evolves,” according to the minutes.

“Participants pointed to the decline in inflation seen during 2023, noting the recent shift down in six-month inflation readings in particular, and to growing signs of demand and supply coming into better balance in product and labor markets as informing that view.”

Inflation has dropped significantly to 3.1 percent in November 2023 from its 9 percent peak in June 2022, according to the latest consumer price index report by the Bureau of Labor Statistics. The bureau’s December inflation reading is expected next Thursday.

Markets have priced in seven quarter-point rate cuts by the Fed in 2024, far outstripping the Fed’s own cautious forecast. But all but three members of the 12-person FOMC anticipated at least two rate cuts in 2024, according to economic projections released following last month’s meeting.

“In their submitted projections, almost all participants indicated that, reflecting the improvements in their inflation outlooks, their baseline projections implied that a lower target range for the federal funds rate would be appropriate by the end of 2024,” the new meeting minutes said.

The Fed is already being lauded for pulling off the rare soft landing, but the job is not done. Inflation remains above the Fed’s 2 percent target, and the meeting minutes noted risks including holding rates too high for too long, eroding household balances and a slowing global economy.

While unemployment has remained below 4 percent for its longest stretch in decades, participants also “noted the risk that, if labor demand were to weaken substantially further, the labor market could transition quickly from a gradual easing to a more abrupt downshift in conditions.”

Business, federal reserve, inflation, Interest rates Members of a key Federal Reserve committee forecasted rate cuts in 2024 but noted “an unusually elevated degree of uncertainty” as it weighs its next move, according to new minutes from its December meeting released Thursday. The committee voted to hold interest rates at their highest level in more than two decades following its final…

Business

Hermès Heir Leaves $11 Billion Fortune to Former Gardener

Published

5 days ago

March 20, 2025

Bolanle Media Staff

Nicolas Puech, the 82-year-old unmarried heir to the Hermès fortune, has made a surprising decision to leave a significant portion of his $13 billion estate to his former gardener, Jadil Butrak, and Butrak’s partner. This includes $11 billion and $5.9 million in properties.

To facilitate this unprecedented move, Puech is reportedly adopting 51-year-old Butrak, a legal maneuver that has sparked opposition from the Isocrates Foundation, which was originally set to inherit his wealth.

This decision has caused tension among Hermès stakeholders, who are concerned about the potential impact on the luxury brand’s legacy and the future distribution of the fortune. The unexpected inheritance shift raises legal and ethical questions, as well as speculation about Puech’s motivations and the influence of personal relationships in wealth distribution.

However, in a recent development, Puech now fears that he has little left in the bank. The $13 billion fortune, primarily composed of shares in the French luxury design house Hermès, has seemingly vanished. This turn of events adds another layer of complexity to the already controversial inheritance plan.

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Business

Kanye West Defies Kim Kardashian Over Daughter’s Song Release

Published

6 days ago

March 19, 2025

Bolanle Media Staff

In a recent development that has reignited tensions between ex-couple Kim Kardashian and Kanye West, the rapper has released a song featuring their 11-year-old daughter North, despite Kim’s attempts to prevent it.

The Controversial Song

Kanye West dropped the track “Lonely Roads Still Go to Sunshine” on social media platform X (formerly Twitter). The song features vocals from North West and Sean “Diddy” Combs. However, the post was later removed from the platform.

Kim’s Opposition

Kim Kardashian had taken preemptive legal measures to block North’s involvement in the song:

She trademarked North’s name to protect her daughter’s image
Sent cease-and-desist letters to Kanye
Arranged an emergency mediation session with a judge

Despite these efforts, Kanye proceeded with the release, sparking a heated exchange between the former couple.

The Public Dispute

Kanye shared screenshots of text messages between him and Kim on social media. In these messages:

Kim explained her reasons for trademarking North’s name
Kanye responded aggressively, threatening to “go to war” over the issue

The rapper’s decision to share private conversations publicly has further escalated the situation.

Public Reaction

The incident has drawn criticism from various quarters:

Some have criticized Kanye for involving North in a project with Diddy, who is currently facing serious legal charges
Others have questioned Kim’s level of control over North’s potential career

Ongoing Co-Parenting Challenges

This dispute highlights the continuing difficulties Kim and Kanye face in co-parenting their children. Their custody agreement grants both parents joint legal and physical custody, but disagreements over the children’s public involvement persist.

Looking Ahead

As the situation unfolds, it remains to be seen how this will impact:

The ex-couple’s co-parenting relationship
Their children’s involvement in future public projects
Potential legal ramifications for both parties

This latest incident serves as a reminder of the complexities involved when high-profile celebrities navigate divorce and co-parenting in the public eye.

Business

Amsterdam’s Red Light Revolution: A Daring Leap into the Future of Sex Work

Published

1 week ago

March 16, 2025

Bolanle Media Staff

In a bold move that has sparked intense debate, Amsterdam is pushing forward with plans to relocate part of its iconic Red Light District to a new “Erotic Center” in the Europaboulevard area of Amsterdam-Zuid. This ambitious project, spearheaded by Mayor Femke Halsema, aims to address long-standing issues of overcrowding, safety, and the city’s struggle with overtourism.

The Proposal

The proposed Erotic Center is envisioned as a multi-story complex that would house 100 brothels, effectively relocating them from the current Red Light District. Unlike the traditional window displays, the new center would restrict visibility to the inside of the building, marking a significant shift in how sex work is presented in the city.

Key features of the plan include:

A safe workplace for sex workers
Reduced tourist disruptions in the city center
Efforts to combat crime associated with prostitution
Space for LGBTQI+ communities
Cultural events linked to eroticism, such as lectures on feminism and tantric yoga courses

Timeline and Challenges

If approved, the Erotic Center is not expected to open until 2031 at the earliest. The project still faces several hurdles, including multiple city council votes and ongoing consultations with stakeholders.

Mayor Halsema acknowledges that many aspects of the plan remain unclear, including how existing brothel owners will be bought out and the potential costs to the city. The process is described as “careful and gradual,” with many decisions yet to be made.

Opposition and Concerns

The proposal has met with significant opposition from various groups:

The Bigger Picture

This initiative is part of a broader effort to reshape Amsterdam’s image and manage its tourism challenges. Other measures include banning public marijuana smoking in the Red Light District and launching a “Stay Away” campaign aimed at deterring disruptive tourists.

As Amsterdam grapples with balancing its reputation as a progressive, open-minded city with the need to improve quality of life for residents, the Erotic Center represents a controversial but potentially transformative approach to managing sex work and tourism in the 21st century.

The coming months and years will be crucial in determining whether this bold vision becomes a reality, and how it might reshape one of Amsterdam’s most famous, and contentious, industries.