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.
Cheeze, Inc. is a media platform that hopes to help photographers to tell stories through the use of NFT’s. Simon Hudson, founder and CEO of Cheeze, Inc. joined Cheddar News to explain the process as well as teasing its "Women of Authenticity" display for Women’s History Month. "We've made it very simple and focused very hard on reducing all of the friction to bring their items to the blockchain." Hudson explained. He also addressed reports that cloud software giant Salesforce could be getting into the NFT marketplace.
President Biden's push for electric vehicles is doing more than trying to hold off climate change as it also hopes to revive American manufacturing jobs. The latest company to open an EV charging production plant in the U.S. is Australia-based Tritium, looking to open its new Lebanon, Tennessee, facility in the fall of 2022. It's expected to create at least 500 jobs in the region and reach a production capacity of 10,000 charging units per year. Jane Hunter, CEO and executive director of Tritium, joined Closing Bell to discuss the plant, production capacity, and working with the Biden administration. "The policies that they put in place have directly driven demand for our fast charging products," she said. "Discussions that we have are just incredibly positive because this administration wants to have an electric superhighway that runs all across the country so that it's open equitably for all people to drive electric vehicles."
Samsung unveiled its latest product lineup, including a new family of Galaxy S22 smartphones featuring the S22 Ultra with a larger screen, more powerful camera, and the Samsung S Pen stylus. The company also revealed its latest tablet, the Tab S8 Ultra, featuring a 14.6" screen, expanded storage, and 4K video capability. Cheddar News was able to showcase each device as Allison Johnson, reviews writer at The Verge, joined Closing Bell to discuss the new releases, the standout features, and more.
Shares of Canadian cannabis giant Canopy Growth surged after the company reported Q3 earnings Wednesday morning, with shares up more than 15 percent at the close of the day's trading session. Despite net revenue declining year-over-year, Canopy beat analyst expectations and has ramped up efforts to develop a "THC ecosystem' in the U.S. Canopy Growth's CEO, David Klein, joined Cheddar News' Closing Bell to discuss the report. He noted that its brands Storz & Bickel vaporizers and BioSteel beverages showed record growth.
Commercial property ownership platform withco recently raised $32 million across a seed and Series A funding round. The company purchases properties and then rents them back to small business owners and works to transition them into full ownership. Founder and CEO Kevin Song says withco was inspired by his family's experience of operating a Brooklyn grocery store for two decades and being forced to shutter the business due to a doubling in rent by a new landlord. Now, Song says his mission is to help small business owners become commercial property owners, in a way that's simple and affordable. Song joined Cheddar News' Closing Bell to discuss.
