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Daily Scoop 12-15

Daily Scoop 12-15

👋 Your Wednesday Scoops - More Starbuck unions & Nike's NFT expansion

December 15, 2021

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Today's Scoop:Relief

Big Picture

Policymakers are rolling back stimulus faster than initially expected.
They see higher economic growth, but also higher inflation for 2022.
Interest rates will likely start to increase next year.

The Market

⬆️

+1.6%

S&P 500: 4,709.85

1Mo:

+1%

| 1Yr:

+27%

| 5Yr:

+109%

Markets surged to near-record highs following the announcements from the Federal Reserve. Investors were relieved to hear that they're rolling back stimulus more quickly to rein in inflation, while still expecting strong growth next year.

The Federal Reserve, controllers of the money system, announced a significant shift in policy today. Until this point, the Fed has expected high inflation to be a short-term thing, but now they're recognizing that it might take more time for the pandemic-related disruptions to subside and ease costs. The Fed expects higher economic growth and lower unemployment next year, but also higher inflation of closer to 3%. The Fed is rolling back its stimulus measures more quickly now, cutting back its monthly money creation and ending the stimulus by the spring. The members of the Fed are expecting to raise interest rates fairly significantly next year.

Company Scoops ❤🌎💰

(Click to dig in & vote your reaction, see how others feel)

Starbuck

faces more union uprising

Nike

makes a big NFT acquisition

Kroger's

charging the unvaccinated

United Airlines

makes net-zero progress

McDonald's

sets a blueprint for net-zero restaurants

(These links only work for 24 hours while the story is live)

🤓 Inside Scoop...

The Federal Reserve, aka the Central Bank, controls the flow of money. When the economy needs juice, they create more money and lower interest rates to incentivize more lending and spending. When inflation gets too high, that means there's too much lending and spending for the given available resources. The Fed then raises interest rates and starts to shut down all the supportive stimulus measures. It's a natural part of the economic cycle, but no one wants to be at the end of the good times.