Shares of banks and other financial institutions tumbled as the Federal Open Market Committee’s next decision looms in the market.
Investors are wondering not only whether the central bank will raise rates by 75 basis points or raise rates by 100 basis points, but also how far the Fed will signal rates will go in the future. The meeting started on Tuesday and will end on Wednesday.
Fed officials have made it clear that they are willing to accept a recession if it is the price of a slower pace of inflation. Last week’s data showed that inflation remained strong, bolstering expectations that the central bank will continue to raise rates.
Republican attorneys general in 23 states are warning Visa, Mastercard and American Express not to move forward with plans to add a new code to identify when purchases are made at gun retailers. The attorneys general said in a letter that the card companies’ plan could lead to misuse of consumer data and would not protect the public.
Morgan Stanley will pay $35 million to settle allegations that it scrapped computer servers and hard drives without ensuring they no longer held sensitive customer information, regulators have said.
The nation’s largest pension fund faced a scathing performance review on Monday when its new chief investment officer pointed to the pension system’s underperforming returns and estimated it had missed $11 billion. of gains in a “lost decade” for private equity. The unusually candid presentation to board members of California’s public employee retirement system, known as Calpers, has shown underperformance of other major pensions in nearly every asset class over the course of of the past 10 years, with private equity lagging the most, 1.3 percentage points.
Chamath Palihapitiya, one of SPAC’s biggest promoters, is ending two trading efforts that together hold more than $1.6 billion after the market crashed, wiping out tens of billions in startup market value and punishing individual investors.
Write to Amy Pessetto at amy.pessetto@dowjones.com
