Federal Reserve Chair Jerome Powell has tested positive for COVID-19 and is currently working from home. He is experiencing symptoms and following CDC guidelines by staying away from others. Powell’s positive test comes after a trip to Europe, where he appeared on stage at an event with Dutch central bank president Klaas Knot. Powell had previously tested positive for COVID-19 in January 2023. Financial markets showed little reaction to the announcement, and the next scheduled Fed policy meeting is not until June 11-12.
Results for: Economic Policy
Former RBI Governor Raghuram Rajan has clarified his previous comments on manufacturing in India, stating that he is not against manufacturing itself but remains concerned about the government’s use of subsidies and tariffs in a non-transparent manner. Rajan expressed support for domestic defense production and job creation in manufacturing, but raised concerns about policies that have allowed labor-intensive manufacturing to decline while subsidizing areas like chip manufacturing, where India lacks expertise. He questioned the effectiveness of subsidizing old-generation chip production and emphasized the need for transparency in government policies.
Nicolas Janvier, Head of U.S. Equities-EMEA at Columbia Threadneedle, explores the impact of prolonged higher interest rates on financial markets.
Federal Reserve Chair Jerome Powell announced the central bank’s decision to maintain interest rates, reiterating its commitment to curbing inflation. Powell acknowledged the economic challenges posed by rising prices and outlined the Fed’s strategy to bring inflation back to its 2% target.
The proposed increase in the capital gains inclusion rate has been met with criticism as bad tax policy and cynical pre-legislation enforcement. The government’s implementation scheme, with an effective date of June 25, is likely to trigger a mass disposition of public company shares, as investors rush to sell their assets before the tax hike takes effect. This market manipulation is aimed at reducing the deficit in the short term, but it could have negative consequences for the stock market and the economy as a whole.
The 2024 edition of the International Conference on the Future of Aviation and Aerospace hosted by IIM Bangalore and Toulouse Business School France, featured insightful discussions and expert insights from over 300 senior executives in the sector. The conference addressed a wide range of topics, including macroeconomic environment, global and local aviation market, drones, talent management, and the challenges of achieving net zero emissions.
The Biden administration has finalized a new rule that will significantly expand overtime pay eligibility for salaried workers in the United States. Starting July 1, employers will be required to pay overtime to salaried workers who earn less than $43,888 a year in certain executive, administrative, and professional roles. That cap will then rise to $58,656 by the start of 2025.
The Federal Trade Commission (FTC) has voted to ban noncompete agreements, which restrict employees from working for competitors or starting competing businesses after leaving their jobs. The ban applies to all workers, including fast food workers and CEOs, and covers an estimated 18 percent of the U.S. workforce, or approximately 30 million people. The rule is slated to go into effect in 120 days, but could face legal challenges from pro-business groups.
Brussels has finalized two years of negotiations on a reform of the bloc’s budgetary rules. This reform aims to encourage investment while maintaining fiscal discipline among member states. The newly approved rules are designed to be more flexible and growth-oriented, according to EU Economy Commissioner Paolo Gentiloni. The commissioner expressed optimism that the reform represents a well-balanced compromise. However, the rules still require the endorsement of the EU’s 27 member states prior to implementation.