Federal Reserve Chairman Jerome Powell stated that the central bank isn't in a hurry to make moves and will lower interest rates "over time," emphasizing the overall economic strength. He reiterated his belief that inflation will continue to move towards the Fed's 2% target.
Chicago Federal Reserve Bank President Goolsbee noted concerns over potential long-term port worker strikes, which might disrupt supply chains. The strikes could increase business costs and lead to shortages, similar to supply chain disruptions during the pandemic.
California Governor Gavin Newsom has signed a law banning legacy admissions at private universities, including Stanford University. The new law, effective from September next year, will prohibit universities from giving preferential treatment to alumni children. California joins Maryland in enforcing such a ban.
Bank of America has moved its forecast for the European Central Bank's next interest rate cut from December to October. This adjustment comes after ECB President Christine Lagarde expressed increased confidence in controlling inflation. Additional cuts are anticipated through June 2025, bringing the deposit rate down to 2%.
SoftBank's Vision Fund plans to invest $500 million in OpenAI, part of a larger funding effort where OpenAI seeks to raise $65 billion at a valuation of $150 billion. Thrive Capital will lead the funding round, with participation from major investor Microsoft and others.
Goldman Sachs' Chief Global Equity Strategist Peter Oppenheimer indicated that the U.S. stock market appears expensive, suggesting that future gains will be moderate. He expects profit growth to drive market performance, especially among mid-sized companies that can benefit more from interest rate drops.
