Federal Reserve Chair Jerome Powell testified before Congress earlier this week and once again repeated the message that more rate hikes are likely if inflation continues. He also stressed that the current labor market is too hot, and even got into a back-and-forth with Sen. Elizabeth Warren (D-Mass.) about the need to increase unemployment. The testimony confirmed investors' suspicions that the Fed wasn't done with tightening, and markets were rattled accordingly. The jobs report released on Friday only reinforced this narrative, as it showed the U.S. economy adding 311,000 jobs in February, which is 100,000 more than the consensus estimate. In other words, it's becoming even more clear that the Fed won't be changing course anytime soon.
BANKING TROUBLES
Shares of Silicon Valley Bank, a major lender in the nation's biggest tech hub, plunged toward the end of the week after the banker said it needed to raise $2.25 billion in stock to remain solvent. Then the bank announced it was trying to sell itself, adding momentum to the sell-off. Fears that Silicon Valley Bank's troubles would spread to the rest of the banking sector put downward pressure on markets Friday, but stocks rebounded later in the morning, with investors betting that the problems were contained. Trading of the stock was halted early Friday, and the Federal Deposit Insurance Corporation shut down the bank and seized its assets.
CRYPTO WOES
The price of Bitcoin sank more than 10 percent to below $20,000, with second-largest cryptocurrency ether falling by a similar amount. The sell-off followed the announcement from crypto bank Silvergate Capital was winding down operations due to liquidity issues. The crypto sector overall suffered hundreds of millions in liquidations this week, with this latest bankruptcy adding to a growing consensus that the crypto market is in shambles.
WEIGHTWATCHERS GAINS
WeightWatchers' stock soared more than 70 percent Tuesday following reports that it was planning to buy Sequence, a telehealth company that helps treat obesity. The company has struggled over the past year to transition away from weight loss and embrace other aspects of wellness and nutrition. CEO Sima Sistani took over in February, and the acquisition is one of the company's first big plays under new leadership. The purchase also comes amid heightened buzz around weight loss drugs such as Ozempic.
The social video platform's future remains in doubt, as players scramble to profit from the chaos. Plus: Big oil gets bigger, DOGE downsizes, and tariffs!
Ty Young, CEO of Ty J. Young Wealth Management, joins Cheddar to discuss Trump's moves as he returns to Washington D.C. and how it may affect the U.S. economy.
Starbucks’ decision to restrict its restrooms to paying customers has flushed out a wider problem: a patchwork of restroom use policies that varies by state and city. Starbucks announced last week a new code of conduct that says people need to make a purchase if they want to hang out or use the restroom. The coffee chain's policy change for bathroom privileges has left Americans confused and divided over who gets to go and when. The American Restroom Association, a public toilet advocacy group, was among the critics. Rules about restroom access in restaurants vary by state, city and county. The National Retail Federation says private businesses have a right to limit restroom use.
President Donald Trump is talking up a joint venture investing up to $500 billion for infrastructure tied to artificial intelligence by a new partnership formed by OpenAI, Oracle and SoftBank. The new entity, Stargate, will start building out data centers and the electricity generation needed for the further development of the fast-evolving AI in Texas, according to the White House. The initial investment is expected to be $100 billion and could reach five times that sum. While Trump has seized on similar announcements to show that his presidency is boosting the economy, there were already expectations of a massive buildout of data centers and electricity plants needed for the development of AI.
Chris Ruder, Spikeball Founder and CEO, explains how he and his friends put roundnet on the global map, plus, how Spikeball helps people "find their circle."
J.W. Roth, CEO of Venu Holding Corporation, discusses the company's IPO and plans to redefine live music entertainment with their fan founded, fan-owned model.
Variety's Clayton Davis discusses why more than just the 1% are struggling after the LA fires. Plus, how awards shows will pivot to help victims. Watch!