Fed holds interest rates, projects 3 cuts this year | Congress agrees on $1.2T funding plan to avert shutdown | US medium-term bonds draw $9.8B in inflows
The Federal Reserve left interest rates unchanged after its March meeting, but officials indicated three rate cuts are still expected this year. The Fed also slightly boosted its inflation forecast, with a core personal consumption expenditures index of 2.6%, up from a previous 2.4%, and higher real gross domestic product growth, up to 2.1%.
Congress has released plans for a $1.2 trillion deal to keep government agencies open through Sept. 30. Defense spending and border and immigration agencies would see a funding boost, while domestic spending would stay the same. The package also includes a 6% funding cut for the State Department and foreign operations. The agreement comes just ahead of a Saturday deadline for a partial shutdown.
Investors are increasingly purchasing US medium-term government bonds as they seek protection from uncertainty over interest rate cuts. US medium-term government bonds saw $9.8 billion in inflows in January and February, outpacing inflows of $2.3 billion for long-term government funds and outflows of $3.5 billion for short-term government bonds.
Reddit has priced shares at $34, at the top end of its target range for its initial public offering. This would give the company a valuation of around $6.4 billion, below the $10 billion valuation it hit in fundraising rounds in 2021.
Medical technology firm Hologic experienced a surge in revenue during the pandemic due to the development of coronavirus tests, but demand for these products has since declined. Despite the boom-bust period, Hologic maintained a steady full-time workforce and stuck to its philosophy of avoiding mass layoffs. Hologic managed burnout risk during the pandemic by hiring temporary employees and providing bonuses to production staff, and the company carefully evaluates the necessity of each new hire, redistributes positions to control compensation budgets and focuses on efficiency and savings in its operations.
The CFO role has changed dramatically in recent years, with a greater emphasis on value creation and innovation accompanying the traditional financial responsibilities. Technological innovation, particularly in AI and automation, is enabling CFOs to leverage technology to streamline operations, improve decision-making and drive operational excellence. "Chief value officer, or CVO, might be a more suitable title in the future for this position where you're looking at not just financial analysis, reporting and controls, but value creation and how to use those resources to drive value creation for the company," said Abhishek Khandelwal, CFO of LiquidX.
Roughly $3.2 trillion of debt from high-carbon companies in commodities and utilities is due to be refinanced in the coming years, about $600 billion annually through 2030, representing more than half of the outstanding debt from carbon-intensive sectors. A report from the London Stock Exchange Group noted issuers "may struggle to refinance maturing carbon-intensive debt," as investors are cautious about the profitability of carbon-intensive industries amid stricter regulations on greenhouse gas emissions.
Recent data from PwC reveals that executives tend to overestimate the trust others have in them, with only 44% of executives saying they trust one another, while more than half say they trust non-C-Suite members. Trust is critical for organizational success, and though executives say they highly trust their employees, employees tend not to feel trust from leadership.
Brands should consider using a chief AI officer to develop guardrails, rules of conduct and disclosure principles, as organizations such as UnitedHealth, Deloitte and the US Department of Justice have done, writes Inuvo President Barry Lowenthal. The CAIO should work with multiple internal teams but prioritize relationships with marketing first because "marketing is where the position can make the most immediate impact."
The FBI's 2023 Internet Crime Report reveals that investment fraud related to cryptocurrency caused $3.9 billion in losses, up from $2.57 billion the previous year and making up the majority of investment fraud cases. The Securities and Exchange Commission has increased enforcement actions against cryptocurrency firms, with 46 actions in 2023, resulting in $281.4 million in penalties, with roughly 37% of SEC enforcement actions related to initial coin offerings.