(Bloomberg) — Well, hello there.
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The S&P 500 Index posted its worst week since June, ahead of the Fed’s policy meeting next week and as FedEx earnings fueled concerns about the extent of the global economic slowdown. While FedEx’s results partly reflect the delivery giant’s own internal struggles, there’s no doubt that economic growth is faltering. Goldman Sachs cut its US GDP forecast for next year to 1.1% from 1.5% previously, saying a “below-potential growth trajectory” is necessary to cool inflation.
The Fed could announce a third consecutive 75 basis point hike on Wednesday, and further increases are expected to bring rates to 4% by December, according to a Bloomberg survey. Other polls show that recent additions to the Fed’s top ranks will not shift the central bank away from its recent hawkish focus on inflation – although, in the long term, they could help guide a tilt towards slightly more dovish policy.
With borrowing costs set to continue climbing, those eligible to participate in the Biden administration’s student debt relief program should act quickly, as applications open in just a few weeks. Here is a handy guide for you on the important dates to note and how to prepare.
Meanwhile, anyone looking to buy one of the latest electric vehicles on the market will probably have to pay more than the advertised starting prices. Bloomberg Green finds that EV makers aren’t making their cars more affordable, opting to churn out fancier versions amid tight battery supplies and eager customers.
Coffee prices are also set to continue to rise, as global supplies run short. Stockpiles in Brazil, the world’s largest producer, are headed for an all-time low and may “barely have enough to meet demand.”
In other Brazilian news, Juan Pablo Spinetto argues that whether incumbent Jair Bolsonaro and former President Luiz Inacio Lula da Silva emerge victorious in the upcoming presidential election, there is a case to be made for optimism, particularly in with the economy.
And finally, what do a billionaire, a Secret Service agent and a rabbi have in common? They are just some of the personalities assumed by Russell Dwayne Lewis, who is accused of making a false $290 million bid for the bankrupt Lord & Taylor department store chain. Read Bob Van Voris’ piece detailing the alleged scheme here.
Enjoy the rest of your Saturday, and we’ll be back tomorrow with a look back at the week ahead.
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