The Fed’s decision to hold interest rates was the major talking point in global financial markets. The policy decision from the US central bank has sent the dollar to a 6-month high and reignited optimism among crypto investors as Bitcoin posted a three-week winning streak.
There is a change of guard at News Corp. and Fox as Rupert Murdoch steps down from his media empire, while Wall Street witnesses another blockbuster IPO as Instacart goes public. Here are some of the news that made headlines in the past week.
Fed holds interest rates
The Federal Reserve maintained its current Interest rate while signaling that it still anticipates one more hike before the year ends and fewer rate reduction than it had previously stated for the following year.
In a statement released on Wednesday at the conclusion of its two-day meeting, the US central bank indicated that, should it materialize, that final hike would be the last one for this cycle.
Should the Fed proceed with the decision, it would have raised interest rates twelve times since the tightening of policy started in March 2022.
Investors snap up Instacart shares on its first day of trading
On the first day of trading, shares of the grocery delivery company Instacart spiked as high as 40%, before waning, indicating that investor appetite in new public listings remains strong following the blockbuster IPO of ARM.
On the Nasdaq platform, the stock closed at $33.70 per share, up 12.3% from its opening price of $30. Based on outstanding shares, the group was valued at $9.3 billion at closing, or $11.2 billion when completely diluted.
Ethereum records a fifth weekly loss in six, Bitcoin posts three-week winning streak
Ethereum finished the week with another weekly loss, its fifth in six, while Bitcoin posted its first winning run of three weeks since March 2023. As of Friday evening (22 September), Ethereum traded at $1,591.20, while Bitcoin was at $26,559.43.
Bitcoin prices nudged higher after the US central bank’s most recent policy announcement to hold interest rates. Analysts believe that Federal Reserve policy is dictating the price of Bitcoin.
Last year’s crypto winter is a reminder of the influence of the US central bank when crypto prices plummeted in the face of aggressive rate hikes to combat inflation.
Oil prices may hit $150 per barrel
JPMorgan claims that oil might reach $150 per barrel and that there may be much more upside to the current spike in prices.
An oil “supercycle” could potentially push Brent crude prices as high as $150 per barrel by 2026, according to analyst Christyan Malek, who upgraded the whole global energy sector to an overweight rating in a research note on Friday.
Following the announcement that Russia and OPEC would continue their voluntary production cutbacks of 1.3 million barrels per day until the end of the year, oil prices have reached a 10-month high.
Dollar hits 6-month high
The dollar reached its highest level in six months as investors prepared for an extended period of high-interest rates.
The U.S. dollar reached its highest levels against the Euro, Pound, and Yen since March after the Federal Reserve announced plans to cut interest rates — which are currently at a 22-year high — much more slowly than economists anticipated.
However, the Federal Reserve’s aggressive interest rate increases intended to combat inflation have so far defied predictions that the US economy will enter a recession.
SEC charges Stoner Cats Web Series creator for unregistered offering of NFTs
The Securities and Exchange Commission has imposed a $1 million civil fine on the creator of the animated web series Stoner Cats for conducting an unregistered offering of crypto asset securities in the form of NFTs.
Stoner Cats 2 LLC reportedly raised approximately $8 million from investors by selling over 10,000 NFTs at approximately $800 each.
Stoner Cats 2 LLC neither admitted nor denied wrongdoing in settling allegations that it unlawfully raised $8.2 million in July 2021 by selling 10,320 NFTs for approximately $800 each, which sold out within 35 minutes. In addition, the company agreed to eliminate all NFTs in its possession.
Rupert Murdoch relinquishes control of media empire
92-year-old Rupert Murdoch announced his resignation as executive chairman of News Corporation and Fox on Thursday. After inheriting a small newspaper business in Australia, the controversial media tycoon created his empire over seven decades by acquiring or creating iconic brands in publishing, television, and film.
Murdoch will be named chairman emeritus of each company, and his eldest son, Lachlan Murdoch, will become sole chairman of News Corp and continue as executive chairman and CEO of Fox Corp.
Social security beneficiaries face across-the-board cuts
The Social Security trust funds, upon which 67 million Americans rely for benefits, are projected to run dry in 2034, one year earlier than last year’s projection.
This means that beneficiaries face the prospect of an across-the-board benefit cut of at least 20% in the next decade.
The Social Security program confronts a shortfall between the payroll tax revenue it receives and the monthly benefits it pays out. The program’s trust funds help bridge the gap.
According to projections, however, these trust funds will evaporate within the next decade. Without this buffer, the benefits will decrease promptly.
The trustees have updated their projections for the U.S. economy to incorporate recent data on output and inflation.
Treasury Secretary Janet Yellen described the programs as “fundamental programs on which older Americans rely for their retirement security” in light of the new projections.