☕️ Super confusing

Why the Fed is holding interest rates steady... May 02, 2024 [View Online]( | [Sign Up]( | [Shop]( [Morning Brew]( PRESENTED BY [Impact.com]( Good morning, and Happy [World Password Day](. This holiday offers a powerful lesson: If at first you don’t succeed, try again, and then try one more time with a question mark until you’re locked out. Then, wait 10 minutes and try again, all lowercase this time, or just give up and pray you set up autopay. —Holly Van Leuven, Cassandra Cassidy, Matty Merritt, Adam Epstein, Neal Freyman MARKETS Nasdaq 15,605.48 -0.33% S&P 5,018.39 -0.34% Dow 37,903.29 +0.23% 10-Year 4.595% -9.1 bps Bitcoin $57,380.99 -5.33% Starbucks $74.44 -15.88% Data is provided by *Stock data as of market close, cryptocurrency data as of 10:00pm ET. [Here's what these numbers mean.]( - Markets: Investors didn’t know quite what to do yesterday: The Fed predictably announced it’s [not ready]( to cut interest rates (bad) but also said its next move will not be to hike rates, either (good), leaving investors unsure if they should buy, sell, hold, or just log off for awhile. The net result was a market relatively unchanged from the day before. Things were more clear-cut for Starbucks, which tanked after it failed to meet earnings expectations.  ECONOMY [In this economy, ‘old’ is the new ‘rich’]( [Graphic of a walker on top of stacks of cash]( Scialabba The Domino’s nearest the Federal Reserve had really no traffic at all yesterday afternoon, as central bankers let the current inflation predicament be the sole source of their heartburn. The big Fed meeting concluded with Chair Jerome Powell announcing that interest rates are [still not coming down]( (yet), regurgitating the same language from his last two interest rate statements. Additionally, the Fed announced it will make changes to its bond holdings in a further attempt to slow down economic growth. What’s the biggest obstacle to lowering interest rates? In short: wealthy people, especially those 60 and over. Looking at the current economy is like looking at a floral sofa: Millennials say “gross,” but boomers say “sweet.” - Since they’re the most likely generation to have already paid off a house and a car (or two), boomers don’t have to worry about borrowing costs like people without those assets do. - And because they’ve played the long game in the stock market and have money compounding in the bank, they’re indulging in international travel, first-class airline tickets, and more. Turns out, it’s really hard to bring down the prices of goods and services when a lot of buyers…don’t care about the price. What’s next: While this can resolve on its own with time, the Fed may want to be more strategic. The Wall Street Journal reports that allies of former President Trump, a boomer himself, are drafting plans to [curtail]( the Federal Reserve’s independence if he retakes the White House. Options being considered range from minor policy changes to “a long-shot assertion that the president himself should play a role in setting interest rates.”—HVL PRESENTED BY IMPACT.COM [Shopping like they mean it]( [Impact.com]( What does it take to get onto consumers’ shopping lists these days? [impact.com conducted research]( to find out. Shoppers are increasingly buying with purpose and deliberation. And you can credit that to inflation. Elevated prices are sticking around longer than anyone wants them to, and it’s making customers more cautious about their carts. The good news is that even as click rates decline, [conversion rates are still on the rise](. So while fewer shoppers are engaging, the ones who do are more likely than ever to make a purchase. [Get more details]( on how consumer spending habits are shifting and what it means for business. WORLD [Tour de headlines](#) [US Secretary of State Antony Blinken in Saudi Arabia]Evelyn Hockstein/Getty Images The US and Saudi Arabia are reportedly nearing a historic security pact. The deal, a key priority for the Biden administration, could [reshape the Middle East]( and lead to a path for Israel to enter into formal diplomatic ties with Saudi Arabia for the first time, Bloomberg reported. Secretary of State Antony Blinken met with Saudi leaders earlier this week and Israeli Prime Minister Benjamin Netanyahu yesterday to discuss the framework of the deal, which would see Saudi Arabia recognize Israel in exchange for a defense relationship with the US. Israel would need to end its war in Gaza and agree to a path for Palestinian statehood. Several states sued the NCAA over “unfair” NIL contracts. The suit, filed by a bipartisan group of states including New York and Florida, argues that the NCAA [impedes]( student-athletes from brokering better name, image, and likeness deals before they choose which college to attend. The states argue that the NCAA’s existing rule keeps athletes in the dark about the true earning potential at each school. It’s just one of multiple lawsuits against the NCAA in the wake of landmark policy changes allowing student-athletes to profit. 🪧 Campus unrest over Gaza continued across the country. Following Tuesday night’s arrests of 300 pro-Palestine protesters at Columbia University in New York and clashes of protesters, counterprotesters, and police at UCLA, [more demonstrations]( popped up throughout the US. At least a dozen people were arrested yesterday at the University of Wisconsin-Madison, while police reportedly deployed “chemical irritants” at a protest at the University of Arizona. UCLA canceled classes Wednesday following the night of violence on campus. AUTO [Tesla guts Supercharger team in super confusing move]( [Illustration of a Tesla charging station]( Scialabba If you thought your situationship was befuddling, imagine being a Tesla investor. This week, on the heels of a groundbreaking deal with China, the company [laid off]( its entire 500-person, ultra-successful Supercharger team, leaving stakeholders wondering what the future of EVs will look like. Tesla’s Superchargers—the charging industry gold standard—are critical to widespread EV adoption due to their reliability and efficiency. Without Tesla leading the charge, a lot of companies are left hanging: - Executives at Rivian are concerned. Along with Ford and GM, Rivian is in the middle of adopting Tesla’s charging connector to give its customers access to the Tesla network. - Construction work on Supercharger sites in Texas and deals to expand sites in New York City were put on hold seemingly indefinitely. It may or may not be political, too. Last year, President Biden praised Musk for his [decision]( to open Tesla chargers up to other car manufacturers as a means to boost EV adoption—a key component of the administration’s signature Inflation Reduction Act. On X, Musk [said]( that Tesla will continue to grow its charging infrastructure “at a slower pace for new locations” but will focus on “100% uptime and expansion of existing locations.”—CC TOGETHER WITH LETSGETCHECKED [LetsGetChecked]( You’re better off knowing. The LetsGetChecked Simple 2 test screens for gonorrhea and chlamydia, the two most common sexually transmitted infections that are often symptomless. With discreet delivery, quick results, and treatment if needed, it’s never been easier to [take control of your sexual health](. SOCIAL MEDIA [LinkedIn has games now]( [LinkedIn’s three new games on three screens.]( It’s no Farmville renaissance, but LinkedIn [released]( three new games on its site yesterday: word games Pinpoint and Crossclimb and logic puzzle Queens. The additions highlight just how vital word games and puzzles are right now, especially for publishers. How to play? You can access the games via this [link](. You can’t easily share your scores, but you can DM them to your former internship boss. With this new feature, LinkedIn is following in digital media’s footsteps despite its social media roots. - Wordle, which the NYT bought in 2022 for a low seven-figure sum, was played over 4 billion times in 2023. That’s half of the total [8 billion]( times people played games via the NYT last year, according to Axios. - Hearst [acquired]( indie puzzle creator Puzzmo last December. Zoom out: Even though it’s littered with influencers sharing their thoughts on success, LinkedIn might be cooler than some social platforms still hanging on to their share button for dear life. The company brought in [$119 million]( in mobile app revenue during the first quarter of 2024, more than X and Snapchat combined, according to Appfigures.—MM GRAB BAG [Key performance indicators](#) [image from Mufasa: The Lion King]Disney Quote: “There is nothing soulless about The Lion King.” You come at the lion king, [you best not miss](. Some moviegoers have argued that the 2019 photorealistic CGI remake of The Lion King and its upcoming prequel, directed by award-winning filmmaker Barry Jenkins, are sucking the life out of the original movie’s unique animation style as part of a cynical Disney cash grab. “You’re too good and talented for this [Disney CEO Bob] Iger’s soulless machine,” one X user backhand-complimented Jenkins, who clapped back with a passionate defense of the franchise. The 2019 film grossed $1.6 billion despite its arguably uncanny photorealism. Stat: You can lead a horse to water, but you can’t make it drink—or go faster, apparently. At the 150th running of the Kentucky Derby on Saturday, it’s unlikely the Thoroughbreds will gallop any quicker than they usually do. That’s because there’s been virtually no improvement in winning times [since 1960]( Sportico reported. In fact, the average Derby winner’s time in the 2010s was slightly slower than in the 1960s. Compare that to Olympic track races, where humans are still setting new records all the time. Horse Knowers believe that breeding programs, which are meant to create the strongest and fastest horses possible, have likely reached their maximum potential. That would mean Secretariat’s 1973 record will never be broken. Read: The romantic history of Berkshire Hathaway’s annual meeting. ([WSJ]( NEWS [What else is brewing](#) - [Anthropic]( one of OpenAI’s biggest rivals, launched an iPhone app for its chatbot, Claude. - [The House]( passed a bipartisan antisemitism awareness bill, which advocates say will combat rising antisemitism on college campuses. - [Johnson & Johnson]( offered to pay $6.5 billion to settle thousands of lawsuits alleging its talc powder products cause ovarian cancer. - [Arizona lawmakers]( voted to repeal the state’s 19th-century, near-total abortion ban, which would make the 15-week ban enacted in 2022 the prevailing law again. - [Harvey Weinstein]( will be retried in New York sometime after Labor Day following the overturning of the Hollywood mogul’s 2020 rape conviction. - [UnitedHealth CEO Andrew Witty]( told Congress that Change Healthcare was hacked because it lacked multifactor authentication. RECS [To do list Thursday] Buzz: Witness the [growing legend]( of the Arizona Diamondbacks “Bee Guy.” Learn: What Stone Age hunter-gatherers ate may not be exactly [what you think](. Float: A replica of the iconic house from Up is now [bookable on Airbnb](. Read: How actor Daniel Radcliffe overcame [being known]( solely as Harry Potter. Calling finance pros: At this morning’s CFO Brew event, leaders from Mastercard, Headspace, and more will teach you how to leverage AI for business results. [Grab your virtual ticket here](. Fewer reports, more vacay: Celebrate the end of tax season with BILL Spend & Expense. They’re offering a [$200 Delta gift card]( when you take a 30-minute demo. [Get away]( *A message from our sponsor. GAMES [The puzzle section](#) Brew Mini: You could hang today’s grid up in the Louvre because it’s such an artistic masterpiece. [Play the Mini here](. Three Headlines and a Lie Three of these headlines are real and one is faker than whatever’s cooking on a gas station roller. Can you spot the odd one out? - A startup hoping to bring back landlines has [no employees]( who have used a landline - A little girl said monsters were in her bedroom. It was [60,000 bees]( - Wally the emotional support alligator [stolen]( during trip to Georgia, released into swamp - The mysterious ‘dark’ energy that permeates the universe is slowly [eroding]( SHARE THE BREW [Share Morning Brew]( with your friends, acquire free Brew swag, and then acquire more friends as a result of your fresh Brew swag. We’re saying we’ll give you free stuff and more friends if you share a link. One link. Your referral count: 0 [Click to Share]( Or copy & paste your referral link to others: [morningbrew.com/daily/r/?kid=4904f90a]( ANSWER We made up the one about the landline startup. Word of the Day Today’s Word of the Day is: uncanny, meaning “strange or mysterious, often in a way that is slightly frightening.” Thanks to Gayle from Nashville, TN, for the eerie suggestion. Submit another [Word of the Day here](. Written by [Adam Epstein]( [Holly Van Leuven]( [Cassandra Cassidy]( [Matty Merritt]( and [Neal Freyman]( Was this email forwarded to you? Sign up [here](. Interested in podcasts? - Check out ours [here]( [ADVERTISE]( // [CAREERS]( // [SHOP]( // [FAQ]( Update your email preferences or unsubscribe [here](. View our privacy policy [here](. Copyright © 2024 Morning Brew. All rights reserved. 22 W 19th St, 4th Floor, New York, NY 10011