FT News Briefing Federal Reserve poised to raise rates a half-percent
May 3, 2022
Amazon workers in New York have hit a setback, with unionization efforts rejected at a second warehouse. Meanwhile, the U.S. Federal Reserve is preparing for its first major interest rate hike since 2000 to combat inflation. The renewable energy sector faces challenges, as Vestas reports unexpected losses linked to the war in Ukraine. Additionally, Japan is pushing for a carbon tax in the shipping industry to curb emissions, reflecting a global movement toward sustainable energy solutions.
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Split Vote
- Amazon workers in Staten Island voted against unionizing, contrasting a recent successful vote at a nearby warehouse.
- Logistical challenges and Amazon's opposition may have played a role in the different outcomes.
Fed's Catch-Up
- The Federal Reserve is poised to raise interest rates by half a percentage point, the first such increase since 2000.
- This aggressive move signals the Fed's determination to combat inflation and bring policy to a more appropriate stance.
Wind Energy Paradox
- Vestas, the world's largest wind turbine maker, reported a bigger-than-expected loss despite increased demand for renewable energy.
- Cost inflation and transportation challenges hinder profitability, even as countries transition towards green energy.