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On January 29th, Chris Grisanti, Chief Market Strategist at MAI Capital Management in New York, stated that the Federal Reserves statement and press conference today were noticeably hawkish. The description of economic activity was upgraded from moderate to solid, while the wording regarding downside risks to employment was removed. At the press conference, Powell stated that after a period of weakness last year, the employment situation has stabilized. Inflation, while trending towards stability, remains slightly high. Overall, the Feds focus has shifted from unemployment to inflation. I dont believe there will be a rate cut in the short term. Furthermore, given the strong market performance and continued economic strength, I dont think there will be a rate cut in 2026, a stance that is more hawkish than current market expectations.FOMC Statement: 1. Interest Rate Decision: The benchmark interest rate was kept unchanged at 3.50%-3.75%, pausing the three-phase rate cuts since September of last year. 2. Voting Divergence: The interest rate decision was passed by a 10-2 vote, with Governors Milan and Waller supporting a 25 basis point rate cut. 3. Interest Rate Outlook: The statement did not signal the timing of the next rate cut. It reiterated that interest rates are assessed based on data, the economic outlook, and risks. 4. Economic Outlook: The assessment of economic activity was revised upward, stating that it is expanding at a "solid" pace; uncertainty about the economic outlook remains high. 5. Labor Market: The statement removed the statement that downside risks to employment have increased; the labor market has shown some signs of stabilization. 6. Inflation: Inflation remains slightly high. Powells Press Conference: 1. Interest Rate Outlook: Interest rates are at the upper end of the neutral range; there is no predetermined policy path, and the data will speak for itself; if tariff inflation peaks and then declines, it will indicate that policy easing is possible; raising interest rates is not anyones base case. Non-voting members also widely supported the interest rate decision. 2. Economic Outlook: The U.S. economy is fundamentally sound; the outlook for economic activity has improved significantly, and the economy is generally stronger than predicted in December. 3. Employment Outlook: The labor market may be stabilizing after a period of softening; risks to both inflation and employment have diminished. 4. Inflation Outlook: Inflation remains slightly above target; core PCE inflation is likely to rise by 3% in December; tariff inflation is expected to peak in the middle of the year. 5. Political Stance: Remaining tight-lipped on sensitive issues; no plans have been decided after the Fed Chairs term ends; the next Chair is advised to stay away from politics. 6. Other Aspects: The housing market remains weak; no data suggests investors are hedging against dollar risks; little macroeconomic information has been gleaned from the rise in gold prices. 7. Latest Forecasts: Overall expectations for rate cuts have been slightly dampened, with pricing in a 46 basis point rate cut for the year and a 60% probability of a June rate cut. 8. Market reaction: Between the release of the statement and Powells speech, spot gold and silver prices initially fell and then rose, while the US dollar did the opposite. Gold hit a new all-time high, with a fluctuation of over $60. US Treasury yields and US stocks fluctuated slightly. On January 29th, Federal Reserve Chairman Jerome Powell responded to questions about what he would tell his successor. He stated that he would tell the next Fed chairman not to get involved in politics. Powell said at a press conference, "Dont get involved in elected politics. Dont get involved in elected politics." He added, "Our window to democratic accountability is Congress. Going to Congress and engaging with the people is not a passive burden, but an active and regular obligation. If you want democratic legitimacy, you have to earn it through interaction with our elected oversight bodies.""New Bond King" Gundlach: Does not believe there will be further interest rate cuts during Fed Chairman Powells tenure.Note: Federal Reserve Chairman Powells press conference has ended.

Recent US Union Victories At Amazon, Starbucks, and Others

Charlie Brooks

Apr 02, 2022 09:20

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Last year, 10.3 percent of pay and salary employees in the United States were union members – less than half the 1983 rate – while union membership in the private sector, which includes Amazon and Starbucks Corp, was only 6.1 percent. In January and February of this year, there were 149 union elections, compared to 103 in the same two months last year.


The following is a list of important recent union wins.

AMAZON

Workers at an Amazon.com plant on Staten Island, New York, voted on Friday to become a union, making it the online retailer's first unionized site in the United States.


The creation of a new, independent union at the No. 2 private company in the United States adds to previous victories for labor organizers in new areas. Not all labor campaigns succeed, as seen by the early outcome of a vote count among Amazon warehouse employees in Alabama.

STARBUCKS

Workers United, an affiliate of the Service Employees International Union, was recently formed by employees at ten Starbucks stores in the United States. Five are located in Buffalo, New York; two are located in Mesa, Arizona; one is located in Seattle, starbucks; and one is located in Knoxville, Tennessee.


As of Friday, at least 170 further petitions for elections had been filed. Over a dozen other cafés will conduct ballot counting in the coming weeks.


Starbucks defeated a union at one of its Buffalo locations.

The New York Times

The New York Times' around 600 designers, software engineers, data analysts, and other technology staff voted in March to join the NewsGuild of New York, which has won a number of previous elections over the last two years.


The March results established the biggest union of bargaining-united technology workers in the United States. Additionally, the NewsGuild represents Reuters journalists based in the United States.

GOOGLE FIBER

Contractors in Kansas City, Missouri, for Google Fiber, a high-speed internet service owned by Alphabet Inc, voted last week to unionize. While just ten employees were participating, it was the inaugural bargaining unit of the Alphabet Workers Union (AWU).


The AWU claims to have grown to 800 members in less than a year since its inception, although those members lack the right to collective bargaining.

INDUSTRY OF CANNABIS

The United Food and Commercial Workers unionized cannabis lab Sonoma Lab Works and cannabis producer CannaCraft Manufacturing in June.


As the number of cannabis cultivators and dispensaries has increased, so has the number of union campaigns in the business. The UFCW said that it has grown to become the biggest union representing cannabis workers in the United States, with more than 10,000 members.

VALLEY OF SILICON

Kickstarter workers chose to become a union in 2020, making it the first large technology business to do so. Workers at Mapbox, a location data business, lost their effort to organize a union in August.