What we’re reading (2/1)
“Fed Slows Its Tightening With Quarter-Point Interest Rate Rise” (Wall Street Journal). “The Federal Reserve nudged up short-term interest rates by a quarter-percentage point and signaled it was on track to do so again at its meeting next month while officials consider whether and when to pause increases late this spring. The decision Wednesday to raise the Fed’s benchmark federal-funds rate followed six larger, consecutive increases to combat inflation, which hit a 40-year high last year. Officials raised rates by a half point in December and by 0.75 point in November.”
“Americans Are In For More Economic Pain This Year As The Fed Signals Its War On Inflation Will Continue” (Insider). “On Wednesday, the Federal Reserve announced it's raising interest rates 25 basis points — a slowdown from December's 50 basis point increase. It's a sign the Fed is responding to recent data showing the country is recovering from the pandemic, with inflation slowing (now at a level of 6.5% year-over-year in December) and the economy growing, and it's the bank's latest effort to get the country to the pre-pandemic 2% level of inflation.”
“Bond King Jeffrey Gundlach Says He Expects One More Fed Rate Hike” (CNBC). “DoubleLine Capital CEO Jeffrey Gundlach said he sees one additional rate hike from the Federal Reserve before the central bank ends its tightening cycle. ‘I think one more,” Gundlach said Wednesday on CNBC’s ‘Closing Bell: Overtime.’ ‘I think it’s tough to make the statement ‘ongoing increases’ with an ‘s’ at the end of the word ‘increase’ and do zero unless you had very substantial change in economic conditions.’”
“The Private Markets Valuation Debate Isn’t Settled Yet” (Institutional Investor). “Private equity and venture capital firms mark, or assign value to, their portfolios on a quarterly basis. Their limited partners receive that data a few weeks after the quarter ends. Audited on an annual basis, these numbers can be adjusted by managers based on certain metrics. At present, private investment valuations lag the public markets, although that could soon change as the valuations, audited in December, begin to trickle in.”
“Are NFTs Actually... Interesting? This Suit Could Be Precedent Setting” (Dealbreaker). “If you were hearing about this story at the watercooler or company-compelled Zoom socializing effort, you’d expect copyright infringement to be at the top of the list, no? You learn something everyday. This case spins on if RC/BAYC has any merit-bearing defenses rooted in artistic value or free speech. The US District Court for Central District of California held a resounding ‘Nah’.”
