Fed officials warn rates could hit ‘tight’ levels
Federal Reserve officials agreed when they met earlier this month that they may need to raise interest rates to levels that would weaken the economy as part of their drive to rein in inflation, which is near. from a four-decade high.
At the same time, many policymakers also agreed that after a rapid series of rate hikes in the coming months, they could “assess the effects” of their rate hikes and, depending on the health of the economy, raise rates at a slower pace.
After their meeting this month, policymakers raised their benchmark short-term rate by half a point, double the usual hike. According to the minutes of the May 3-4 meeting released Wednesday, most officials agreed that half-point hikes “would probably be appropriate” at their next meeting in June and July.
Twitter shareholders meet amid Musk takeover drama
Twitter’s regular shareholders’ meeting on Wednesday did not include a vote on Tesla billionaire Elon Musk’s $44 billion bid for the social platform. But the prospects of redemption and the drama surrounding it seemed to be on the minds of the attendees anyway.
CEO Parag Agrawal said upfront that executives would not answer any questions about the proposal. Even a question from a shareholder asking what would happen to their shares if someone buys Twitter and takes it private was dismissed. (If this happens, the shareholder would receive the agreed purchase price for each share and the stock would be delisted).
Musk did not attend the meeting, although he could have, being one of Twitter’s major shareholders.