U.S. Treasury Secretary Janet Yellen testifies before a Senate Appropriations Financial Services and General Government Subcommittee hearing on President Biden’s proposed budget request for the Department of the Treasury for fiscal year 2024, on Capitol Hill in Washington, March 22, 2023.
Evelyn Hockstein | Reuters
Here are the most important news items that investors need to start their trading day:
1. Double whammy
The Federal Reserve decided to hike its benchmark rate by a quarter point Wednesday, as was largely expected. The Fed also eased off its rate-increase ambitions, saying one more could be in the offing for this year. Markets seemed to take it all in stride. But then Fed Chairman Jerome Powell and Treasury Secretary Janet Yellen, who was testifying on Capitol Hill, said some things that didn’t seem to sit so well with investors. Powell, speaking to reporters after the big announcement, said a rate cut isn’t in the Fed’s “base case” and noted that the recent collapse of Silicon Valley Bank likely resulted in tightening in financial conditions. Yellen, meanwhile, told lawmakers that regulators aren’t considering a blanket guarantee for all U.S. deposits without congressional approval. The Dow, the S&P 500 and the Nasdaq all ended the day down at least 1.6%. Follow live markets updates.
2. Ford’s profit engines carry EV biz
Ford CEO Jim Farley announces at a press conference that Ford Motor Company will be partnering with the worlds largest battery company, a China-based company called Contemporary Amperex Technology, to create an electric-vehicle battery plant in Marshall, Michigan, on February 13, 2023 in Romulus, Michigan.
Bill Pugliano | Getty Images News | Getty Images
Ford is changing the way it reports financial results, which will put its nascent electric vehicle business under a bigger spotlight. The company said its EV unit lost about $2.1 billion last year on an operating basis, and that it expects to post an adjusted loss of $3 billion in 2023. But,…
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