(Bloomberg) — Well, hello there.
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The S&P 500 Index posted its worst week since June, ahead of the Fed’s policy meeting next week and as FedEx’s earnings miss fueled concerns over the extent of a global economic slowdown. While FedEx’s results reflect in part the delivery giant’s own internal struggles, there’s no doubt economic growth is sputtering. Goldman Sachs cut its US GDP forecast for next year to 1.1% from 1.5% previously, saying a “below-potential growth trajectory” is necessary to cool inflation.
The Fed could announce a third consecutive 75 basis point hike on Wednesday, with further increases expected till rates reach 4% by December, according to a survey from Bloomberg. Another poll shows that recent additions to the Fed’s top ranks won’t shift the central bank away from its recent hawkish focus on inflation — though over the longer term, they could help lead a tilt toward slightly more dovish policy.
With borrowing costs set to continue climbing, those eligible to participate in the Biden administration’s student-debt relief program should act fast, as applications open in just a few weeks. Here’s a handy guide on the key dates to take note of and how to get ready.
Meanwhile, anyone looking to buy one of the latest electric vehicles in the market will likely need to shell out for more than the advertised starting prices. Bloomberg Green discovers how, against a backdrop of tight battery supplies and eager customers, EV makers aren’t making their most affordable cars, choosing instead to crank out more lavish versions.
Coffee prices are also set to keep rising, as world supplies run short. Stockpiles in Brazil, the biggest producer globally, are headed for a record low and may “just barely have enough to serve demand.”
In other Brazil news, Juan Pablo Spinetto argues that whether incumbent Jair Bolsonaro, and former President Luiz Inacio Lula da Silva emerges victorious in the upcoming presidential election, there’s a case to be made for optimism, particularly when it comes to the economy.
And finally, what do a billionaire, Secret Service agent and rabbi have in common? They’re just some of the personalities adopted by Russell Dwayne Lewis, who’s accused of making a bogus $290 million bid for the bankrupt Lord & Taylor department store chain. Read Bob Van Voris’s piece detailing the alleged scheme here.
Enjoy the rest of your Saturday, and we’ll be back tomorrow with a look-ahead to the coming week.
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