Powell says the U.S. economy can handle the coming additional rate hikes. He said that gross domestic product has picked up since a weak first quarter and that consumer spending remains strong. Powell told the lawmakers that the central bank is committed to bringing inflation down and that additional rate hikes are coming. He said that only the size of the upcoming moves has not been decided. Read more here.
Twitter adds a shopping feature for Shopify merchants. Shopify merchants will be able to display and automatically update up to 50 items for sale on their Twitter profile, the companies said Wednesday. Users will be able to click on items and be directed to the merchant’s website to complete a purchase. The feature, which Twitter has been testing with a small number of users, will be offered widely and at no cost starting Wednesday.
Demand for adjustable-rate mortgages surges, as interest rates make the biggest jump in 13 years. Mortgage applications to purchase a home rose 8% last week compared with the previous week, bolstered in part by demand for adjustable-rate mortgages, according to the Mortgage Bankers Association. A big jump in mortgage rates may have actually spurred homebuyer demand, perhaps as consumers, worried rates would move even higher.
Rents climbed 15.5% annually in May but it's decelerating. It hit a median of $1,849 in the nation’s largest metropolitan areas. However, the percentage by which they increased fell as price growth slowed. It’s lower than the 16.5% rise seen in April and the nearly 17% jump in March. Rental growth is starting to taper off over the last five months because there's a natural limit to what landlords can reasonably charge. Read more here.
Home affordability passes an' inflection point' for buyers. Affordability hits a 15-year low as prices and mortgage rates rise. Ballooning mortgage costs, driven by skyrocketing prices and interest rates, have made mortgages less affordable than at any time since at least 2007. Demand for homes has pulled back in response, easing price growth, slowing sales, and boosting inventory.
Rents to rise for millions of New Yorkers in rent-stabilized housing. At a contentious June 21 public meeting that saw tenants plead for another freeze and landlords call for hikes, the Rent Guidelines Board ultimately voted 5–4 to raise rents on regulated units by 3.25 percent on one-year leases and by 5 percent on two-year leases. According to estimates, the rent hikes will impact around 2.4 million New Yorkers. Read more here.
WHAT TO WATCH
FDA to order Juul E-Cigarettes off the U.S. market. Juul's fruity flavors and hip marketing were blamed for fueling a surge of underage vaping. The marketing denial order would follow a nearly two-year review of data presented by the vaping company, which sought authorization for its tobacco- and menthol-flavored products to stay on the U.S. market. Read more here.
Citigroup raises global recession odds to 50% as consumer demand softens. Citi cites a fall in container shipping costs in China and retailers’ complaints about rising inventories as evidence of the consumer starting to curb spending. The drop in consumer demand, along with persistent severe supply shocks, are decreasing the chances of a soft landing by central banks.
More acquisitions are on the way. Motley Fool's Bill Mann says the companies that hoarded cash during the pandemic are now being punished because inflation is eroding the value of that cash. Companies strapped with cash are going to make opportunistic buys. There are also a lot of target companies in different spaces that have seen their valuations come down a great deal and some of those are also strapped for cash now. Source(11:02)
Biden calls on congress to approve a three-month gas tax holiday. The President is calling on Congress to suspend the federal tax on gas and diesel for three months to provide relief for Americans grappling with soaring pump prices. A suspension of the 18.4 cents a gallon federal gasoline tax and 24.4 cents diesel tax would require congressional approval and has faced opposition from some lawmakers. Read more here.
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