FT News Briefing Fed lays out rate cut plans
Jun 13, 2024
The Federal Reserve plans to hold interest rates steady but hints at just one cut by the end of 2024. Meanwhile, Terraform Labs faces a hefty $4.47 billion penalty from the SEC, signaling serious regulatory scrutiny. In a twist, tech companies are rallying against California's proposed AI safety bill, which could introduce a controversial 'kill switch' on AI models. With US inflation dipping to 3.3%, the market is buzzing over these pivotal economic shifts and the ongoing battle between innovation and regulation.
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Fed Rate Cut Plans
- The Federal Reserve left interest rates unchanged, remaining at a 23-year high.
- They signaled only one rate cut this year, despite a slight decrease in the May CPI inflation report.
FOMC Rate Cut Predictions
- The majority of the FOMC anticipates either one or no rate cuts this year, down from previous estimates of three.
- However, there's uncertainty about the future, and the focus remains on the 2024 forecast.
Terraform Labs Case
- Terraform Labs agreed to a $4.5 billion penalty in an SEC fraud case.
- The company raised billions by selling unregistered digital securities, including the crashed stablecoin TerraUSD.