Last week, following the Federal Reserve policy meeting, markets experienced a significant surge with the S&P 500 and Dow Jones Industrial Average closing at record highs. The tech-heavy Nasdaq Composite also saw three consecutive highs. Goldman Sachs’ chief US economist, David Mericle, discussed the implications of the meeting, the potential for continued market momentum, and the likelihood of a recession. The meeting left the inflation forecast unchanged, indicating that despite promising data, the Fed still plans to cut rates in June.
Mericle noted that although uncertainty remains about whether the first rate hike will occur in June or July, the Fed seems committed to following through with rate cuts as necessary. Goldman Sachs currently predicts a 15% chance of recession over the next 12 months, down from 35% the previous year. This change was attributed to reduced concerns about inflation and banking stress, leading to increased confidence in the economy’s stability. While the risk of recession is always present, recent developments have alleviated some major concerns.
The Federal Aviation Administration recently announced increased oversight of United Airlines due to a series of safety incidents, potentially delaying future projects for the airline. Following a United flight that landed in Oregon missing an external panel, the FAA will be evaluating the company’s safety management and compliance. United informed employees of the impending review and emphasized the importance of safety compliance in all areas of operation.
The FCC has warned of a potential internet access crisis affecting over 23 million US households, or nearly 60 million Americans. This issue is linked to the Affordable Connectivity Program, which provides discounts on internet service for low-income households. With the program expected to run out of funding by the end of April, Congress has yet to approve the necessary $6 billion to renew it. The lack of funding could lead to widespread financial distress for millions of Americans, jeopardizing their ability to access essential services and exacerbating the digital divide.
Despite the looming internet access crisis, Congress has failed to allocate funds for the Affordable Connectivity Program, raising concerns about the welfare of millions of Americans. With time running out, the FCC has begun shutting down the program, impacting new signups and potentially suspending benefits for current users. The lack of government intervention could have far-reaching consequences, further highlighting the need for immediate action to ensure continued access to essential services and prevent economic instability.
