The Fed announces a major pivot...
December 16, 2021 [View Online]( | [Sign Up]( | [Shop]( [Morning Brew]( TOGETHER WITH [Electric]( Good morning. Sorry to break the news, but Santa isnât real. Yep, heâs just a [shill for Big Soda](. Donât take it from usâthatâs what a Catholic bishop in Sicily told a dismayed group of children earlier this month, per the NYT. In fact, âThe red color of his coat was chosen by Coca-Cola for advertising purposes,â Bishop Antonio Staglianò said. Just wait until they find out the Grinch is sponsored by Mountain Dew. âNeal Freyman, Jamie Wilde, Matty Merritt MARKETS Nasdaq 15,565.58 +2.15% S&P 4,709.85 +1.63% Dow 35,927.43 +1.08% 10-Year 1.457% +1.1 bps Bitcoin $48,844.48 +4.04% Apple $179.30 +2.85% *Stock data as of market close, cryptocurrency data as of 6:00pm ET. [Here's what these numbers mean.]( - Markets: The major indexes went from [red to solidly green]( after the Fed announced steps to wind down its Covid-era stimulus policies and curb surging inflation. After another strong day, Apple is staring down a $3 trillion market cap.
- BBB drama: Democratsâ hopes are [dimming]( that theyâll be able to pass President Bidenâs $2 trillion social spending bill, known as Build Back Better, before the end of the year as they originally planned, NBC News reports. Sen. Joe Manchin (D-WV), a key vote, doesnât support it in its current form. Markets Sponsored by Fidelity InvestmentsFresh Invest Season 2 might be over, but weâre not finished! We wrap up highlights and key investing takeaways from the previous 14 episodes in our recap. [Listen here](. ECONOMY [Behold, the Fed-Tailed Hawk](
[A hawk standing on top of the Federal Reserve building ](Francis Scialabba, [OSHUA DANIEL](/Unsplash, Rudy Sulgan/Getty Images Yesterday, the Fed flipped the bird: It signaled a [major pivot]( from a dovish monetary policy (keeping interest rates low, letting the economy run hot) to a hawkish strategy (raising interest rates, slowing down economic growth) in a bid to tamp down surging consumer prices. The central bank said it will reduce its economy-juicing, bond-buying program at double the pace it had originally announced in early November. When it stops purchasing bonds altogether, which will likely be in March, it plans to begin hiking interest rates to cool down the economy. And how many hikes will there be? Most of the Fedâs 18 officials foresee at least three rate increases next year, which shows how worried theyâve become about inflation in just the last three months. In September, half of Fed officials believed they wouldnât have to hike rates at all until 2023. Big picture: Inflation has replaced the Covid economic crisis at the top of the Fedâs âmust tackle ASAPâ list. Hereâs why: - Consumer prices rose at their fastest pace in 39 years in November, and it wasnât just due to volatile goods, like food and energy. Items across the economy, from rents to home furniture, also rose a concerning amount.
- And this week, producer prices gained at their [fastest pace on record](. Higher prices paid by producers often trickle down and hit consumersâ wallets. At the same time, job gains have been strong and the unemployment rate has plunged to 4.2%, the lowest level since the pandemic began. âWe are making rapid progress towards maximum employment,â Fed Chair Jerome Powell said yesterday. Bottom line: For months, Powell stressed that inflation was âtransitoryâ and related to quirks of the economy reopening. Now heâs singing a different tune. âThe risk of higher inflation becoming entrenched has increased. I donât think itâs high at this moment, but I think itâs increased,â Powell said. Cue the hawkish pivot.âNF Â Â Â mailto:?subject=Check%20out%20this%20story%20from%20Morning%20Brew%21&body=Behold%2C%20the%20Fed-Tailed%20Hawk%3A%20https%3A%2F%2Fwww.morningbrew.com%2Fdaily%2Fstories%2F2021%2F12%2F15%2Ffed-makes-a-hawkish-pivot-in-a-bid-to-tame-inflation%3Futm_campaign%3Dmb%26utm_medium%3Dnewsletter%26utm_source%3Dmorning_brew%26mid%3D{{md5%28profile.email%29}}%26uid%3DhtwfLgmyDtkWRTXRTk6KksLR%0A%0AWant%20more%20great%20content%3F%20Subscribe%20to%20Daily%20Brew%20%E2%80%94%20Delivering%20the%20latest%20business%20news%20from%20Wall%20St.%20to%20Silicon%20Valley%2C%20daily.%0Ahttps%3A%2F%2Fwww.morningbrew.com%2Fdaily%2Fr%2F%3Fkid%3Da905682a%26utm_source%3Demail_share%0A GOVERNMENT [Pelosi Says, âLet Them Trade Stocksâ](
[Nancy Pelosi speaking](Drew Angerer/Getty Images Nancy Pelosi believes that if she wants to YOLO into AMC or Peloton, thatâs her right as a citizen in a free market economy. At her weekly press conference yesterday, the House Speaker [said]( she is against any potential bans of Congressional members and their spouses holding or trading individual stocks. The TikTok traderâs queen. This year, young traders [flocked]( to social media to share their newest investment hack: Nancy Pelosi + Ctrl+C. Because of the STOCK Act, sitting lawmakers and their families can trade individual stocks but have to disclose them within 45 days. - Most of the Pelosi householdâs trades come from her husband, but she became the face of the âfollow the House leaderâ investing strategy. Taking into account her husbandâs assets, Pelosi is one of the wealthiest members of Congress. Zoom out: 49 members of Congress and 182 senior congressional staffers have violated the STOCK Act, per an Insider report published this week. Progressive politicians and angry internet people galore have all spoken out against stock trading by lawmakers, arguing that since they make the rules, they have access to insider knowledge.âMM Â Â Â mailto:?subject=Check%20out%20this%20story%20from%20Morning%20Brew%21&body=Pelosi%20Says%2C%20%E2%80%98Let%20Them%20Trade%20Stocks%E2%80%99%3A%20https%3A%2F%2Fwww.morningbrew.com%2Fdaily%2Fstories%2F2021%2F12%2F15%2Fhouse-speaker-nancy-pelosi-says-members-of-congress-should-be-allowed-to-trade-stocks%3Futm_campaign%3Dmb%26utm_medium%3Dnewsletter%26utm_source%3Dmorning_brew%26mid%3D{{md5%28profile.email%29}}%26uid%3DhtwfLgmyDtkWRTXRTk6KksLR%0A%0AWant%20more%20great%20content%3F%20Subscribe%20to%20Daily%20Brew%20%E2%80%94%20Delivering%20the%20latest%20business%20news%20from%20Wall%20St.%20to%20Silicon%20Valley%2C%20daily.%0Ahttps%3A%2F%2Fwww.morningbrew.com%2Fdaily%2Fr%2F%3Fkid%3Da905682a%26utm_source%3Demail_share%0A COVID [Health Careâs Hottest Ticket Goes Virtual]( Gathering thousands of health care execs in person? JPMorgan knows thatâs probs not the best look with Omicron lurking. On Wednesday, the bank said it [wonât hold]( its 40th Annual Healthcare Conference in person in San Francisco next month. The event, one of the biggest in the biotech industry, will go virtual instead. The guest list was getting thin anyways. Industry leaders Moderna and Amgen both bailed on Tuesday, and Alnylam Pharmaceuticals CEO John Maraganore tweeted that the conference âshould go virtual to avoid a super-spreader event and a PR disaster for our industry!â - He may not be exaggerating. The event has been so [notoriously crowded]( in the past that attendees conducted meetings in the restrooms in 2019.
- And at a different health care conference, held by Biogen in Feb. 2020, thousands of people were infected with the coronavirus. Zoom out: JPMorgan CEO Jamie Dimon, who usually gives the conferenceâs keynote speech, probably isnât psyched about the switch to Zoomâand not because heâs bad at Jackbox games. Dimon's previously said that virtual communications make it harder to close deals and retain customers, and he led a push to partially reopen the bankâs Manhattan office in July.âJW Â Â Â mailto:?subject=Check%20out%20this%20story%20from%20Morning%20Brew%21&body=Health%20Care%E2%80%99s%20Hottest%20Ticket%20Goes%20Virtual%3A%20https%3A%2F%2Fwww.morningbrew.com%2Fdaily%2Fstories%2FJPMorgan-health-care-conference-virtual-omicron%3Futm_campaign%3Dmb%26utm_medium%3Dnewsletter%26utm_source%3Dmorning_brew%26mid%3D{{md5%28profile.email%29}}%26uid%3DhtwfLgmyDtkWRTXRTk6KksLR%0A%0AWant%20more%20great%20content%3F%20Subscribe%20to%20Daily%20Brew%20%E2%80%94%20Delivering%20the%20latest%20business%20news%20from%20Wall%20St.%20to%20Silicon%20Valley%2C%20daily.%0Ahttps%3A%2F%2Fwww.morningbrew.com%2Fdaily%2Fr%2F%3Fkid%3Da905682a%26utm_source%3Demail_share%0A TOGETHER WITH ELECTRIC [A Free Theragun Mini + Stress-Free IT (Looking at You, Log4j)](#)
[Electric]( A vulnerability in the Log4j logging framework has security teams scrambling this week. But customers of [Electric]( are stress-free, knowing Electricâs team of IT gurus and security experts have them covered. But it gets better: If youâre an IT decision-maker at a US-based company with 15-500 employees, Electric will gift you a Theragun Mini when you take a qualified meeting with them. And with Electric powering hybrid work with lightning-fast, chat-based support and proactive security standardization across devices, apps, and networks, this is what youâd call a win-win situation. Their 105% ROI doesnât hurt either. With IT & security stresses off your plate and a brand new Theragun Mini in hand, Electric is bringing the feel-good vibes this holiday. [Get started here](. GRAB BAG [Key Performance Indicators](
[Boris Johnson](Wpa Pool/Getty Images Stat: The UK reported the [most new daily Covid-19 cases]( on Wednesday (78,610) since the pandemic began, and that number is only expected to rise as the super-contagious Omicron variant spreads across the country. Covid deaths remained low at 165, but experts are worried that surging cases, however mild, could overwhelm hospital systems. Quote: âItâs time the reign of criminals who are destroying our city, it is time for it to come to an end.â San Francisco Mayor London Breed [dissed her own city]( in powerful terms when revealing a new police intervention for the Tenderloin neighborhood, which is suffering from a spike in crime and fentanyl overdoses. A new report out this week showed that California, and the Bay Area in particular, lost residents at an accelerated clip during the pandemic. Read: How Shein beat Amazon at its own game and reinvented fast fashion. ([Rest of World]() Â Â Â mailto:?subject=Check%20out%20this%20story%20from%20Morning%20Brew%21&body=Key%20Performance%20Indicators%3A%20https%3A%2F%2Fwww.morningbrew.com%2Fdaily%2Fstories%2F2021%2F12%2F15%2Fkey-performance-indicators-december-16%3Futm_campaign%3Dmb%26utm_medium%3Dnewsletter%26utm_source%3Dmorning_brew%26mid%3D{{md5%28profile.email%29}}%26uid%3DhtwfLgmyDtkWRTXRTk6KksLR%0A%0AWant%20more%20great%20content%3F%20Subscribe%20to%20Daily%20Brew%20%E2%80%94%20Delivering%20the%20latest%20business%20news%20from%20Wall%20St.%20to%20Silicon%20Valley%2C%20daily.%0Ahttps%3A%2F%2Fwww.morningbrew.com%2Fdaily%2Fr%2F%3Fkid%3Da905682a%26utm_source%3Demail_share%0A RETAIL [Chanelâs New Luxury Outsider](
[Leena Nair](Shriya Patil/The The India Today Group via Getty Images The luxury fashion brand Chanel picked its newest CEO from a pool that wasnât filled with $80 perfume. The company [announced]( that Leena Nair, an exec at the British consumer goods giant Unilever, would replace billionaire co-owner and chairman Alain Wertheimer. Who is Nair? After joining Unilever 29 years ago, she worked her way up to become the first Asian, first female, and youngest chief human resources officer at the company. - As the first luxury brand CEO of Indian origin, Nair brings Chanel into the ranks of powerful companies like Google, Microsoft, Adobe, and most recently, Twitter, which are all run by people who grew up in India. Zoom out: Chanelâs decision to hire Nair signals 1) a shift in product prioritiesâChanel sells a number of other items including makeup and watchesâand 2) a new company culture that values inclusivity. Her appointment will also hopefully help the brand avoid any more [out-of-touch advent calendars](.âMM Â Â Â mailto:?subject=Check%20out%20this%20story%20from%20Morning%20Brew%21&body=Chanel%E2%80%99s%20New%20Luxury%20Outsider%3A%20https%3A%2F%2Fwww.morningbrew.com%2Fdaily%2Fstories%2F2021%2F12%2F15%2Fleena-nair-luxury-outsider-will-be-the-next-ceo-of-chanel%3Futm_campaign%3Dmb%26utm_medium%3Dnewsletter%26utm_source%3Dmorning_brew%26mid%3D{{md5%28profile.email%29}}%26uid%3DhtwfLgmyDtkWRTXRTk6KksLR%0A%0AWant%20more%20great%20content%3F%20Subscribe%20to%20Daily%20Brew%20%E2%80%94%20Delivering%20the%20latest%20business%20news%20from%20Wall%20St.%20to%20Silicon%20Valley%2C%20daily.%0Ahttps%3A%2F%2Fwww.morningbrew.com%2Fdaily%2Fr%2F%3Fkid%3Da905682a%26utm_source%3Demail_share%0A WHAT ELSE IS BREWING - [Dr. Fauci]( said variant-specific boosters arenât necessary at this point because studies show that boosters of Modernaâs or Pfizerâs vaccine are effective against Omicron.
- [Bruce Springsteen]( sold his music rights to Sony Music Entertainment in a reported $500 million deal, perhaps the largest sum ever paid for an individual artistâs body of work. Boss.
- [Apple]( pushed back its return-to-office âto a date yet to be determined.â
- [bell hooks](, the renowned Black feminist author, activist, and professor, died at 69. SPONSORED BY THE MOTLEY FOOL
[The Motley Fool]( The ultimate resolution. Itâs got nothing to do with eating 50 pounds of kale or, ugh, making new friends (whoâs got the energy?). Instead, itâs all about getting your financial and investing house in order. And with [The Motley Fool offering 60% off their premier stock picking service]( for new members for their first year, you can start your year off with the potential for big returns. How big? Since the service began, the picks have returned an average of 656% [as of 12/14/2021]. [Get 60% off here](. BREW'S BETS Good, quick pod: Youâll hear the biggest stories and why they matter in just 10 minutes with the Axios Today podcast. [Listen now]( for smart analysis and the latest scoops. Resilience: Watch [one man play the piano]( after a tornado ripped through his house last weekend. Stay in school, kids: The vast majority of unicorn founders are not high-school dropouts, as we are sometimes led to believe. Check out the [full breakdown here](. GAMES [The Puzzle Section](#) Brew Mini: Ready to give your brain a little exercise before the workday? [Play our Mini crossword](. Three Headlines and a Lie Three of these news headlines are real and one is faker than your familyâs smiles on this yearâs holiday card. Can you guess the odd one out? - New Jersey man [pleads]( guilty to $76K in chainsaw thefts from Amtrak
- Finland is suing dating site Farmers Only to [expand]( the definition of âfarmerâ
- Vladimir Putin reveals he [moonlighted]( as a taxi driver after Soviet Union collapse
- Need to break up with someone? Baboons have [found]( a good way to do it, study finds SHARE THE BREW We think you should [share the Brew.]( Not only is it a smart thing to do for your friends, itâs also the smartest way to get showered in free Brew swag. Your referral count: 0 [Click to Share]( Or copy & paste your referral link to others:
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