Business Update – May 18, 2022
US Weekly Digest – May 18, 2022
Welcome back to our Weekly Digest. Read on for the latest updates and some ideas to help us all move forward.
Gas prices of $5/gallon could become the norm
The price of gas hit a new record high on Monday, reaching $4.48/gallon. Prices have increased 40 cents in a month, and are now 27% higher than they were the day before Russia invaded Ukraine.
Feds won’t hesitate to raise interest rates again
The Federal Reserve will attempt to engineer a cooling of the economy to achieve lower prices without hitting a recession by steadily hiking interest rates if necessary. The move is reminiscent of the 1990s when the Feds last successfully tempered the economy.
Stock market could fall further in event of recession
Goldman Sachs lowered its year-end S&P 500 price target for the third time this year, citing slower economic growth and higher-than-expected interest rates. Experts say the stock market could fall another 11% in a recession.
Bitcoin back below $30,000 as TerraUSD says it will compensate some users
Bitcoin continued its tumble Monday, negating any gains it made over the weekend. The world’s most famous cryptocurrency has continued to lose value following the collapse of so-called stablecoin TerraUSD.
JetBlue appeals to Spirit shareholders to accept takeover bid
On Monday, JetBlue launched a hostile takeover of Spirit Airlines, offering $30/share in an all-cash offer. Spirit Airlines maintains they will pursue a $2.9 billion cash-and-stock offer to merge with fellow discount airline Frontier.
IRS destroys 30 million paper returns, says taxpayers won’t be affected
The tax community was angered on Friday when an audit revealed that the IRS destroyed millions of paper-filed information returns. Critics worry the move will trigger more error notices that the agency won’t be able to verify.
Paying by installment gains traction, but comes with risk
Many Americans are taking advantage of “buy now, pay later” offerings available almost everywhere you shop, but a Harvard researcher warns of the pitfalls of paying by installment.
States’ use of American Rescue Plan money criticized
Cash left over from the nearly $200 billion federal pandemic aid package doled out last year has trickled down to some niche projects that are raising eyebrows.
Fuel cost surge increases prices across all industries
Skyrocketing natural gas prices lead to higher manufacturing and transportation costs across many US industries, and the situation is expected to get worse as the US exports more gas to Europe to make up for deficits imposed by Russian sanctions.
US Treasury targets Russian sanctions evasion with new finance strategy
The treasury says it will continue to identify and seize US assets owned by Russians in an attempt to close loopholes that allow Russian oligarchs and their proxies to access the US financial system.
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