Newsletter Jul 27, 2022

3 things you must know

Federal Reserve ready to make another big interest rate hike
The Federal Reserve opens its two-day policy meeting today and is expected to hike the benchmark borrowing rate again by .75% in its campaign to cool demand and ease price pressures. Despite a healthy job market, workers' wage gains are overwhelmed by inflation that rose by a 40-year high of 9.1% in June. Slowing the economy is likely to mean more job losses, but policymakers want to avoid the greater pain of a price spiral that spins out of control.
SEE THE BALANCING ACT THE FED IS TRYING TO PULL OFF

US consumer confidence declines for third straight month
U.S. consumer confidence has fallen for the third consecutive month as Americans continue to pare back spending in the face of persistently high inflation. On Tuesday, the Conference Board released the latest results of its Consumer Confidence Index and found that the index now stands at 95.7 -- 2.7 points lower from the 98.4 recorded in June. A lower score represents higher pessimism in American consumers' outlook on the economy.
HOW CONSUMER CONFIDENCE IMPACTS THE ECONOMY

Target, Walmart feel 1-2 punch of inflation, end of stimulus
Target and Walmart are feeling the pain of soaring inflation and the lack of stimulus checks, which leave low-income and middle-income Americans with little money to spend in the stores of the two retail chains. The COVID pandemic saw unprecedented fiscal stimulus put money in the hands of low- and middle-income Americans to spend beyond necessities at Walmart and Target, but the last six months have given the retailers a double punch.
SEE WHAT TARGET AND WALMART ARE DOING TO ADJUST

Markets

DJIA	31,761.54	-0.71%
S&P 500	3,921.05	-1.15%
Nasdaq Composite	11,562.57	-1.87%
Japan: Nikkei 225	27,539.86	-0.42%
UK: FTSE 100	7,306.28	0.00%
Crude Oil Futures	95.61	0.66%
Gold Futures	1,717.50	-0.01%
Yen	136.96	0.02%
Euro	1.01	0.22%
* As of market close

Biden, China's Xi to discuss Taiwan, Ukraine

President Joe Biden and China's leader Xi Jinping are expected to talk Thursday, a source familiar with the planning said, amid tensions over Taiwan and Russia's war on Ukraine. The White House said Tuesday that managing economic competition between the two countries would also be discussed. The fifth call between the two leaders comes as China has delivered heightened warnings to the Biden administration about a possible visit by House Speaker Nancy Pelosi to Taiwan.

FIND OUT THE MESSAGE BIDEN HOPES TO DELIVER TO CHINA

St. Louis area devastated by flash flooding

At least one person died Tuesday in the St. Louis area after the city saw as much as 9 inches of rain in one day, shattering a record of 6.85 inches that was set 107 years ago. Officials described the rain as "catastrophic" as more than 6 inches fell on St. Louis in just a few hours, causing major flash flooding and leading to dangerous situations with resident trapped and in cars and houses. The flood caused a gas leak at the St. Louis Zoo and forced the iconic Gateway Arch to close.

SEE PHOTOS OF THE DEVASTATION IN THE ST. LOUIS AREA

Site offers dream job for retro beach bum

Hotels.com is hiring for what could be every beachgoerâ€™s dream job. The hotel booking site is looking for a Retro Beach Motelier to travel to a series of beachside paradises and stay in the best retro beach motels available in the U.S. The traveling job comes with a $10,000 stipend and a $5,000 salary, in addition to a number of â€œold-school seaside accessories,â€ including a cooler, solar-powered AM/FM radio, vintage sunglasses, striped umbrella, Polaroid camera and instant film."

FIND OUT HOW TO APPLY FOR THE ULTIMATE BEACH BUM'S GIG

First resort

What's the oldest seaside resort in the U.S., dating back to what year?

Tuesday's answer: CBS televised the first NFL game in color on Thanksgiving Day 1965 between the Detroit Lions and Baltimore Colts.