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Fed officials question stock market surge after rate cut projections on December 20, 2023 at 2:29 pm Business News | The Hill

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Several Federal Reserve officials are urging caution as the financial markets continue to surge over the prospect that the central bank could begin cutting interest rates next year.  

The Fed held interest rates steady for a third consecutive meeting last week and signaled it may have reached an end to its aggressive rate hike campaign.

“We are likely at or near the peak rate for this cycle,” Fed Chair Jerome Powell said at a press conference following the announcement.

While Powell and other Fed officials have said little about the central bank’s plan for next year, all but three members of the Fed panel responsible for setting monetary policy noted in economic projections released Wednesday that they expect at least two rate cuts next year, with the largest share projecting three cuts.

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The markets surged on the news, with the Dow Jones Industrial Average surpassing 37,000 for the first time Wednesday. The Dow has continued to climb since, adding 0.68 percent or about 252 points on Tuesday to close at a record high for the fifth day in a row. 

The other two major indices also remained up nearly one week later, with the S&P 500 adding 0.59 percent and the Nasdaq Composite adding 0.66 percent Tuesday.

However, some Fed officials suggested the market is being overly enthusiastic. Chicago Fed President Austan Goolsbee, who currently sits on the Fed’s rate-setting panel, said Monday that he was “confused” by the market reaction. 

“It’s not what you say, or what the chair says. It’s what did they hear, and what did they want to hear,” Goolsbee told CNBC’s “Squawk Box.” “I was confused a bit with the, was the market just imputing, here’s what we want them to be saying?”

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“I thought there seemed to be some confusion about how the [Federal Open Market Committee] even works,” he added. “We don’t debate specific policies, speculatively, about the future. We vote on that meeting. And we voted at that meeting not to raise rates.” 

New York Fed President John Williams similarly told “Squawk Box” on Friday that the panel isn’t “really talking about rate cuts right now” and said it was “premature” to consider what the Fed would decide at its future meetings.

Futures markets are projecting that the Fed will begin cutting rates in March and will make more significant cuts than currently suggested by the central bank’s projections.

“I think the market, in a way, is kind of reacting very strongly, maybe more strongly than what we’re showing in terms of our projections,” Williams said.

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He noted that market reactions to all types of events have been much larger than normal over the past year, pointing to the “uncertainty” and “unusual nature” of the current situation.

Sheila Bair, former chair of the Federal Deposit Insurance Corporation (FDIC), argued the Fed needs to “strike a more hawkish tone” to “offset the irrational exuberance of the markets.”

“There’s a long way to go on this fight,” Bair told CNBC’s “Fast Money” on Thursday. “I do worry they’re blinking a bit and now starting to pivot and worry about recession, when I don’t see any of that risk in the data so far.”

“I do think this is a mistake,” she added. “I think they need to keep their eye on the ball, the inflation ball and tame the market, not reinforce it with this very dovish dot plot.”

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The Fed has repeatedly raised interest rates over the past two years to tame stubbornly high inflation, which peaked at a 40-year high of 9.1 percent in June 2022. Inflation has eased significantly since, falling to 3.1 percent in November.

However, it remains above the Fed’s target rate of 2 percent, and Powell has repeatedly warned in recent months that inflation is still too high despite showing substantial improvement.

“It is far too early to declare victory,” he said at Wednesday’s press conference.

​Business, Dow Jones, federal reserve, Interest rates, Nasdaq, S&P 500 Several Federal Reserve officials are urging caution as the financial markets continue to surge over the prospect that the central bank could begin cutting interest rates next year. The Fed held interest rates steady for a third consecutive meeting last week and signaled it may have reached an end to its aggressive rate hike campaign….  

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Why 9 Million Americans Have Left

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The Growing American Exodus

Nearly 9 million Americans now live outside the United States—a number that rivals the population of several states and signals a profound shift in how people view the American dream. This mass migration isn’t confined to retirees or the wealthy. Thanks to remote work, digital nomad visas, and mounting pressures at home, young professionals, families, and business owners are increasingly joining the ranks of expats.

Rising Costs and Shrinking Wallets

Living in the US has become increasingly expensive. Weekly grocery bills topping $300 are not uncommon, and everyday items like coffee and beef have surged in price over the last year. Rent, utilities, and other essentials also continue to climb, leaving many Americans to cut meals or put off purchases just to make ends meet. In contrast, life in countries like Mexico or Costa Rica often costs just 50–60% of what it does in the US—without sacrificing comfort or quality.

Health Care Concerns Drive Migration

America’s health care system is a major trigger for relocation. Despite the fact that the US spends more per person on health care than any other country, millions struggle to access affordable treatment. Over half of Americans admit to delaying medical care due to cost, with households earning below $40,000 seeing this rate jump to 63%. Many expats point to countries such as Spain or Thailand, where health care is both affordable and accessible, as a major draw.

Seeking Safety Abroad

Public safety issues—especially violent crime and gun-related incidents—have made many Americans feel unsafe, even in their own communities. The 2024 Global Peace Index documents a decline in North America’s safety ratings, while families in major cities often prioritize teaching their children to avoid gun violence over simple street safety. In many overseas destinations, newly arrived American families report a significant improvement in their sense of security and peace of mind.

Tax Burdens and Bureaucracy

US tax laws extend abroad, requiring expats to file annual returns and comply with complicated rules through acts such as FATCA. For some, the burden of global tax compliance is so great that thousands relinquish their US citizenship each year simply to escape the paperwork and scrutiny.

The Digital Nomad Revolution

Remote work has unlocked new pathways for Americans. Over a quarter of all paid workdays in the US are now fully remote, and more than 40 countries offer digital nomad visas for foreign professionals. Many Americans are leveraging this opportunity to maintain their US incomes while cutting costs and upgrading their quality of life abroad.

Conclusion: Redefining the Dream

The mass departure of nearly 9 million Americans reveals deep cracks in what was once considered the land of opportunity. Escalating costs, inaccessible healthcare, safety concerns, and relentless bureaucracy have spurred a global search for better options. For millions, the modern American dream is no longer tied to a white-picket fence, but found in newfound freedom beyond America’s borders.

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Will Theaters Crush Streaming in Hollywood’s Next Act?

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Hollywood is bracing for a pivotal comeback, and for movie lovers, it’s the kind of shake-up that could redefine the very culture of cinema. With the freshly merged Paramount-Skydance shaking up its strategy, CEO David Ellison’s announcement doesn’t just signal a change—it reignites the passion for moviegoing that built the magic of Hollywood in the first place.

Theatrical Experience Roars Back

Fans and insiders alike have felt the itch for more event movies. For years, streaming promised endless options, but fragmented attention left many longing for communal spectacle. Now, with Paramount-Skydance tripling its film output for the big screen, it’s clear: studio leaders believe there’s no substitute for the lights, the hush before the opening credits, and the collective thrill of reacting to Hollywood’s latest blockbusters. Ellison’s pivot away from streaming exclusives taps deep into what unites cinephiles—the lived experience of cinema as art and event, not just content.

Industry Pulse: From Crisis to Renaissance

On the financial front, the numbers are as electrifying as any plot twist. After years of doubt, the box office is roaring. AMC, the world’s largest theater chain, reports a staggering 26% spike in moviegoer attendance and 36% revenue growth in Q2 2025. That kind of momentum hasn’t been seen since the heyday of summer tentpoles—and it’s not just about more tickets sold. AMC’s strategy—premium screens, with IMAX and Dolby Cinema, curated concessions, and branded collectibles—has turned every new release into an event, driving per-customer profits up nearly 50% compared to pre-pandemic norms.

Blockbusters Lead the Culture

Forget the gloom of endless streaming drops; when films like Top Gun: Maverick, Mission: Impossible, Minecraft, and surprise hits like Weapons and Freakier Friday draw crowds, the industry—and movie fans—sit up and take notice. Movie-themed collectibles and concession innovations, from Barbie’s iconic pink car popcorn holders to anniversary tie-ins, have made each screening a moment worth remembering, blending nostalgia and discovery. The focus: high-impact, shared audience experiences that streaming can’t replicate.

Streaming’s Limits and Studio Strategy

Yes, streaming is still surging, but the tide may be turning. The biggest franchises, and the biggest cultural events, happen when audiences come together for a theatrical release. Paramount-Skydance’s shift signals to rivals that premium storytelling and box office spectacle are again at the center of Hollywood value creation. The result is not just higher profits for exhibitors like AMC, but a rebirth of movie-going as the ultimate destination for fans hungry for connection and cinematic adventure.

Future Forecast: Culture, Community, and Blockbuster Dreams

As PwC and others warn that box office totals may take years to fully catch up, movie lovers and industry leaders alike are betting that exclusive theatrical runs, enhanced viewing experiences, and fan-driven engagement are the ingredients for long-term recovery—and a new golden age. The Paramount-Skydance play is more than a business move; it’s a rallying cry for the art of the theatrical event. Expect more big bets, more surprises, and—finally—a long-overdue renaissance for the silver screen.

For those who believe in the power of cinema, it’s a thrilling second act—and the best seat in the house might be front and center once again.

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Why Are Influencers Getting $7K to Post About Israel?

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Influencers are being paid as much as $7,000 per post by the Israeli government as part of an expansive and sophisticated digital propaganda campaign. This effort is designed to influence global public opinion—especially among younger social media users—about Israel’s actions in Gaza and to counter critical narratives about the ongoing humanitarian situation.

How Much Is Being Spent?

Recent reports confirm that Israel has dedicated more than $40 million this year to social media and digital influence campaigns, targeting popular platforms such as TikTok, YouTube, and Instagram. In addition to direct influencer payments, Israel is investing tens of millions more in paid ads, search engine placements, and contracts with major tech companies like Google and Meta to push pro-Israel content and challenge critical coverage of issues like the famine in Gaza.

What’s the Strategy?

  • Influencer Contracts: Influencers are recruited—often with all-expenses-paid trips to Israel, highly managed experiences, and direct payments—to post content that improves Israel’s image.
  • Ad Campaigns: State-backed ad buys show lively Gaza markets and restaurants to counter global reports of famine and humanitarian crisis.
  • Narrative Management: These posts and ads often avoid overt propaganda. Instead, they use personal stories, emotional appeals, and “behind the scenes” glimpses intended to humanize Israel’s side of the conflict and create doubt about reports by the UN and humanitarian agencies.
  • Amplification: Paid content is strategically promoted so it dominates news feeds and is picked up by news aggregators, Wikipedia editors, and even AI systems that rely on “trusted” digital sources.

Why Is This Happening Now?

The humanitarian situation in Gaza has generated increasing international criticism, especially after the UN classified parts of Gaza as experiencing famine. In this environment, digital public relations has become a primary front in Israel’s efforts to defend its policies and limit diplomatic fallout. By investing in social media influencers, Israel is adapting old-school propaganda strategies (“Hasbara”) to the era of algorithms and youth-driven content.

Why Does It Matter?

This campaign represents a major blurring of the lines between paid promotion, journalism, and activism. When governments pay high-profile influencers to shape social media narratives, it becomes harder for audiences—especially young people—to distinguish between authentic perspectives and sponsored messaging.

As user trust in mainstream news decreases and social media’s power grows, understanding how digital influence operations work is critical for anyone who wants to stay informed and think critically about global events.


In short: Influencers are getting $7,000 per post because Israel is prioritizing social media as a battleground for public opinion, investing millions in shaping what global audiences see, hear, and believe about Gaza and the conflict.

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