Federal Reserve Chair Jerome Powell stuck to his guns on Wednesday following a two-day policy meeting of the Federal Open Market Committee, repeating a message that has become all too familiar for market-watchers: The Fed will keep interest rates near zero and continue asset-purchases "until the recovery is complete," he said.
For interest rates specifically, that means reaching full-employment and an inflation rate of roughly 2 percent over time before tinkering with the current formula.
"With inflation running persistently below 2 percent, we will aim to achieve moderately above 2 percent for some, so that inflation averages 2 percent over time and longer-term inflation expectations remain well-anchored at 2 percent," Powell said.
Fears of inflation amid massive federal stimulus have led some to question the Fed's steadfast commitment to low interest rates, but the chairman stressed during the press conference that a "transitory rise above 2 percent this year" was not a concern.
The chairman emphasized that this current outlook is not likely to change until maximum employment is achieved.
"It seems unlikely, frankly that we would see inflation moving up in a persistent way that would actually move inflation expectations up while there's still significant slack in the labor market," he said. "I won't say it's impossible, but it seems unlikely."
As for asset purchases, Powell said the Fed plans to maintain its current level of buying until the economy sees "substantial further progress."
He added that the Fed does not have an independent standard related to the status of the virus, but that progress combatting the pandemic will likely "coexist" with broader economic improvements.
A.I.-based entertainment company, Deedub, recently raised
$20 million in a Series A round, led by Insight Partners. Deepdub uses A.I. technology to automate the dubbing process for foreign-language movies or TV shows, while using actors' original voices. The company says it can take just two to three minutes of data from an actor's voice and transform the voice into a different language. The funding comes as foreign-language films and shows like Netflix's 'Squid Game' have recently become more popular with audiences in the U.S. and around the world. Oz Krakowski, Chief Revenue Officer at Deepdub, joins Cheddar News' Closing Bell to discuss.
Energy Vault, the company developing sustainable, grid-scale energy storage solutions, is now trading on the New York Stock Exchange following the completion of its business combination with Novus Capital Corporation II. Energy Vault develops sustainable, grid-scale energy storage solutions designed to advance the transition to a carbon free, resilient power grid. Robert Piconi, co-founder and CEO of Energy Vault, joins Cheddar News' Closing Bell to disucss.
A new mobile app has launched just in time for Valentine's Day. Our.Love bills itself as an A.I.-powered, gamified, relationship wellness app for couples. The app is set in what the company calls the Coupleverse, a virtual world where each couple can build a virtual relationship home as they also build their real-world relationship. Founder and CEO Tal Zlotnitsky joined Cheddar to discuss how the app works. "The concept behind Our.Love is to give people the opportunity to understand where they stand in their relationship through very simple metrics that we provide within the app that will help them in real-time, see where they stand, see where their partner is, and be able to get closer together," he said.
Alyson Wilson, VP of Brand Innovation at Alo Yoga, joins Cheddar News to discuss the yoga apparel company entering the metaverse and teaming up with Spring Studios for New York Fashion Week.
The 21st Annual Food Network and Cooking Channel South Beach Wine & Food Festival (SOBEWFF), is returning to Miami on February 24 with proceeds to benefit the future leaders of the hospitality industry. Lee Schrager, the founder and director of the festival, and Food Network star Jeff Mauro joined Cheddar News to discuss what ticket holders can expect, how the festival benefits students, and how Mauro will be paying tribute to fellow food celebrity, Guy Fieri, by hosting a charity auction dinner. "I mean there's nobody bigger, nobody more magnetic right now in the food space than Guy," Maura said. "I mean the guy had a Super Bowl commercial on last night. That's a dream of mine, so I'm one step closer there just by doing a tight 20 minutes at his tribute dinner."
