Pending <a href="http://dailywire.com/topic/housing">home sales</a> inched higher last month despite seeing declines for most of the past year.
The National Association of Realtors’ Pending Home Sales Index rose 0.7% in May — even as transactions fell year-over-year by 13.6%.
&#8220;Despite the small gain in pending sales from the prior month, the housing market is clearly undergoing a transition,&#8221; NAR Chief Economist Lawrence Yun said in a <a href="https://www.nar.realtor/newsroom/pending-home-sales-edge-higher-0-7-in-may">press release</a>. &#8220;Contract signings are down sizably from a year ago because of much higher mortgage rates.&#8221;
Indeed, the 30-year fixed rate mortgage <a href="https://www.dailywire.com/news/mortgage-rates-hit-highest-level-in-over-a-decade">began climbing</a> precipitously at the beginning of 2022, according to data from government-backed mortgage company <a href="https://fred.stlouisfed.org/series/MORTGAGE30US">Freddie Mac</a>. Beginning at slightly over 3% in January, the mortgage rate surpassed 5.75% earlier in June.
The rise in mortgage rates corresponds with the Federal Reserve <a href="https://www.axios.com/2022/05/18/fed-mortgage-portfolio">tapering</a> its aggressive monetary stimulus. In response to COVID-19 and the lockdown-induced <a href="http://dailywire.com/topic/recession">recession</a>, the central bank ramped up its purchase of <a href="https://www.dailywire.com/news/watch-powell-admits-that-fed-policies-are-behind-high-home-prices">mortgage-backed securities</a>, leading to a decline in mortgage costs. In addition to discharging the securities, monetary policymakers are <a href="https://www.dailywire.com/news/federal-reserve-takes-most-aggressive-action-to-fight-inflation-in-three-decades">hiking interest rates</a> — most recently, by a 0.75% increment that represented the boldest move to combat <a href="http://dailywire.com/topic/inflation">inflation</a> in nearly three decades.
Monthly mortgage payments for the median single-family home have increased by $800 since the beginning of the year, according to the National Association of Realtors. The organization noted that the housing market differs in various regions of the United States. While the West — where real estate is the priciest — saw the largest drop in contract activity, the Northeast and South saw increases. All four regions saw year-over-year decreases in pending sales.
Existing home sales fell by 3.4% in May, according to more National Association of Realtors <a href="https://www.nar.realtor/newsroom/existing-home-sales-fell-3-4-in-may-median-sales-price-surpasses-400000-for-the-first-time">data</a>, even as the median national sale price surpassed $400,000 for the first time.
Among other factors, high prices are driven by persistent mismatches between the supply and demand for new homes. As of last summer, the United States had an <a href="https://www.nar.realtor/newsroom/once-in-a-generation-response-needed-to-address-housing-supply-crisis">underbuilding gap</a> of 5.5 million to 6.8 million units.
&#8220;There is a strong desire for homeownership across this country, but the lack of supply is preventing too many Americans from achieving that dream,&#8221; Yun said at the time. &#8220;It&#8217;s clear from the findings of this report and from the conditions we&#8217;ve observed in the market over the past few years that we&#8217;ll need to do something dramatic to close this gap.&#8221;
Even amid the long-term shortages, analysts from the Federal Reserve Bank of Dallas <a href="https://www.dailywire.com/news/unhinged-and-abnormal-fed-warns-of-housing-bubble-as-average-cost-of-new-homes-hits-record-high">forecasted</a> a housing bubble due to “market exuberance” that is “unhinged from fundamentals” — a warning that has not been issued since the housing market crash of 2008.
“An asset — in this case, housing — is in the primary expansionary phase of a bubble when price rises are out of step with market fundamentals,” they wrote. “Rapid real house-price appreciation, such as that observed now, does not in itself signal a bubble… But real house prices can diverge from market fundamentals when there is widespread belief that today’s robust price increases will continue. If many buyers share this belief, purchases arising from a ‘fear of missing out’ can drive up prices and heighten expectations of strong house-price gains.”

Pending Home Sales Unexpectedly Surge Even As Mortgage Rates Near 6%

Pending Home Sales Witness Small Surprise Uptick In May

Economy

Federal Reserve

Housing

Inflation

More than 150 million American adults are living <a href="http://dailywire.com/topic/economy">paycheck-to-paycheck</a> amid soaring <a href="http://dailywire.com/topic/inflation">inflation</a>, a poll from LendingClub and PYMNTS revealed earlier this month, a drastic increase from levels reported at the same time last year.
The <a href="https://www.pymnts.com/wp-content/uploads/2022/05/PYMNTS-New-Reality-Check-June-2022.pdf">survey</a> of more than 4,000 Americans showed that “consumers in all income brackets — including those who make more than $100,000 annually&#8221; — are devoting nearly all of their salaries to paying their expenses, with little to nothing left over for savings.
In April 2021, when year-over-year consumer price <a href="https://www.usinflationcalculator.com/inflation/historical-inflation-rates/">inflation reached 4.2%</a>, and the economy continued to rebound from the previous year’s recession, roughly 52% of consumers were living paycheck-to-paycheck, according to the survey. In April 2022, when consumer inflation was 8.3%, that figure rose to 61%.
“Inflation will most likely be part of the economic picture for many months to come, and consumers living paycheck to paycheck of all income brackets will need to review their financial situations and plan their spending accordingly,” the survey report concluded.
As of May 2022, consumer inflation reached <a href="https://www.dailywire.com/news/inflation-reaches-8-6-setting-new-four-decade-high">8.6%</a>, while inflation faced by producers remained elevated at <a href="https://www.dailywire.com/news/inflation-for-businesses-continues-at-double-digit-pace">10.8%</a>.
Nearly 80% of Americans earning less than $50,000 reported living paycheck-to-paycheck — 36% “with difficulty” and 44% remaining “comfortable.” Among Americans earning between $50,000 to $100,000, more than 63% said they were living paycheck-to-paycheck. Struggles with making monthly costs extended to higher income brackets, with 36% of those earning over $250,000 reporting the same tight financial lifestyle.
High inflation in the month of May was <a href="https://www.dailywire.com/news/here-are-the-products-gutting-your-bank-account-as-inflation-soars">largely driven</a> by soaring energy costs. The price of fuel oil rose 107% year-over-year, gasoline rose 49%, utility gas service rose 30%, and electricity rose 12%. Likewise, food prices continued to increase, with the cost of meat, poultry, and fish rising 14.2% year-over-year.
Rising price levels are a significant factor behind consumer sentiment plummeting to its lowest level in seven decades, according to the University of Michigan’s benchmark Survey of Consumers. Because the United States economy largely centers upon consumer spending, the economic pessimism could point toward a looming <a href="http://dailywire.com/topic/recession">recession</a>.
“Consumers across income, age, education, geographic region, political affiliation, stockholding and homeownership status all posted large declines,” Survey of Consumers Director Joanna Hsu said in a statement, per <a href="https://www.cnn.com/2022/06/24/economy/consumer-sentiment-final-read-june/index.html">CNN</a>. “About 79% of consumers expected bad times in the year ahead for business conditions, the highest since 2009.”
President Joe Biden has deflected on the issue of rising price levels, <a href="https://www.dailywire.com/news/biden-claims-inflation-is-worse-everywhere-but-here-thats-not-even-close-to-true">claiming</a> that “Putin’s Price Hike” is the primary cause of skyrocketing inflation.
“High gas prices at the pump, energy, and food prices accounted for around half of the monthly price increases, and gas pump prices are up by $2 a gallon in many places since Russian troops began to threaten Ukraine,” Biden said. “Even as we continue our work to defend freedom in Ukraine, we must do more — and quickly — to get prices down here in the United States.”
President Biden also recently <a href="https://www.dailywire.com/news/thats-not-true-peter-doocy-throws-cold-water-on-white-house-claim-inflation-is-worse-everywhere-but-here">alleged</a> that inflation is “worse everywhere but here.” Indeed, several other developed countries — including Germany, the United Kingdom, Canada, Italy, and South Korea — are enduring higher inflation than the United States, according to recent data from the Organization for Economic Cooperation and Development (OECD). The international organization recently hiked its inflation forecasts for the United States from 4.4% to 5.9% — a level exceeding expected rates for Australia, France, South Korea, Norway, Switzerland, and Japan.

Savings from broken piggy bank.

Soaring Inflation Has Made Living Paycheck-To-Paycheck The ‘Main Financial Lifestyle’ In America

More Than 150 Million Americans Living Paycheck-To-Paycheck As Inflation Soars

Recession

Americans’ sentiment about the <a href="http://dailywire.com/topic/economy">economy</a> is more pessimistic than at any time in the past seven decades, according to the University of Michigan’s most recent Survey of Consumers.
The index reading of 50 in June reflects a severe drop since May and the lowest level since 1952, according to <a href="https://www.wsj.com/articles/consumer-sentiment-at-record-low-is-another-ominous-sign-for-economy-11656093116">The Wall Street Journal</a>, and is a key indicator of a looming <a href="http://dailywire.com/topic/recession">recession</a>.
“Consumers across income, age, education, geographic region, political affiliation, stockholding and homeownership status all posted large declines,” Survey of Consumers Director Joanna Hsu said in a statement, per <a href="https://www.cnn.com/2022/06/24/economy/consumer-sentiment-final-read-june/index.html">CNN</a>. “About 79% of consumers expected bad times in the year ahead for business conditions, the highest since 2009.”
The influential survey has seen a <a href="https://fred.stlouisfed.org/series/UMCSENT">significant decline</a> beginning in the spring of 2021, when inflation started to <a href="https://fred.stlouisfed.org/series/CPIAUCSL#0">rise</a> beyond the roughly 2% level seen over the last few decades. As of May, the Consumer Price Index (CPI) has <a href="https://www.dailywire.com/news/inflation-reaches-8-6-setting-new-four-decade-high">risen</a> 8.6% year-over-year — the highest <a href="http://dailywire.com/topic/inflation">inflation</a> rate witnessed since the 1980s.
“As higher prices become harder to avoid, consumers may feel they have no choice but to adjust their spending patterns, whether through substitution of goods or foregoing purchases altogether,” Hsu added. “The speed and intensity at which these adjustments occur will be critical for the trajectory of the economy.”
To contend with skyrocketing inflation, the <a href="http://dailywire.com/topic/federal-reserve">Federal Reserve</a> increased <a href="https://www.dailywire.com/news/federal-reserve-takes-most-aggressive-action-to-fight-inflation-in-three-decades">interest rates</a> earlier this month by 0.75% — the largest rate hike increment since 1994. The central bank already <a href="https://www.dailywire.com/news/the-fed-jacks-key-rate-up-half-point-as-inflation-surges">hiked rates</a> by 0.5% in May — the largest such increase since 2000 — after a 0.25% rate hike from near-zero levels in March. Interest rates are now at 1.5% to 1.75%, with <a href="https://www.dailywire.com/news/expect-higher-unemployment-as-federal-reserve-tackles-inflation-warns-top-policymaker">more increases likely</a> on the way.
Fears of a recession have gripped American consumers and businesses. Last week, a bout of <a href="https://www.dailywire.com/news/wall-street-sees-worst-carnage-since-2020">stock market selloffs</a> caused the Dow Jones Industrial Average and the Nasdaq Composite to fall 4.8%, while the S&amp;P 500 was down 5.8% — marking its worst week since 2020, according to <a href="https://www.cnbc.com/2022/06/16/stock-market-news-futures-open-to-close.html">CNBC</a>.
President Joe Biden, however, said in a recent interview that a recession is by no means “inevitable” and told Americans to <a href="https://www.dailywire.com/news/biden-claims-recession-not-inevitable-tells-americans-they-shouldnt-believe-economist-warnings">wait before concluding</a> that economists’ forecasts are true.
“They shouldn’t believe a warning. They should just say: ‘Let’s see. Let’s see which is correct.’ And from my perspective, you talked about a recession. First of all, it’s not inevitable,” Biden told Associated Press reporter Josh Boak before pointing to a survey taken last year to allege that households have robust savings.
Meanwhile, Biden has deflected on the issue of rising price levels, <a href="https://www.dailywire.com/news/biden-claims-inflation-is-worse-everywhere-but-here-thats-not-even-close-to-true">claiming</a> that “Putin’s Price Hike” — a reference to the Russian invasion of Ukraine and its role in soaring <a href="https://www.dailywire.com/news/gas-prices-hit-grim-national-average-of-5-per-gallon">global energy costs</a> — is the primary pressure behind inflation.
“High gas prices at the pump, energy, and food prices accounted for around half of the monthly price increases, and gas pump prices are up by $2 a gallon in many places since Russian troops began to threaten Ukraine,” Biden said. “Even as we continue our work to defend freedom in Ukraine, we must do more — and quickly — to get prices down here in the United States.”
When questioned by a recent Harvard <a href="https://www.dailywire.com/news/poll-95-of-voters-say-inflation-is-somewhat-or-very-serious">survey</a> about rising price levels, 95% of respondents said that inflation is “very serious” or “somewhat serious.” A plurality — 47% — said that the Biden administration is responsible.

8C36A07C-5EC9-4000-9157-317D3523A106_1_201_a

Consumer Sentiment Plummets To Lowest Level Since 1950s

Consumer Sentiment Plunges To Lowest Level In 70 Years

Biden Administration

Supply Chain

The <a href="http://dailywire.com/topic/federal-reserve">Federal Reserve</a> announced on Thursday that the American <a href="http://dailywire.com/topic/banks">banking</a> system is projected to be able to weather the next <a href="http://dailywire.com/topic/recession">recession</a>.
The central bank’s <a href="https://www.federalreserve.gov/newsevents/pressreleases/bcreg20220623a.htm">stress test</a> of major financial institutions involved a scenario in which <a href="http://dailywire.com/topic/unemployment">unemployment</a> rises up to 10% amid a decline in economic output. Because the banks have “strong capital levels,” they can “continue lending to households and businesses during a severe recession” — despite weathering $612 billion in predicted losses.
“The individual bank results from the stress test will factor directly into a bank&#8217;s capital requirements, mandating each bank to hold enough capital to survive a severe recession,” the Fed press release explained. “If a bank does not stay above its capital requirements, it is subject to automatic restrictions on capital distributions and discretionary bonus payments.”
In 2008, bank insolvency threatened to plunge the <a href="http://dailywire.com/topic/economy">economy</a> into a deeper recession, forcing the federal government to <a href="https://www.investopedia.com/insights/too-big-fail-banks-where-are-they-now/">purchase toxic assets</a> from investment banks through the $700 billion Emergency Economic Stabilization Act. The Fed <a href="https://www.nytimes.com/2022/06/23/business/fed-banks-recession.html">began</a> conducting its annual stress test in 2011 after the financial crisis.
The stress test comes as several economic phenomena — including <a href="https://www.dailywire.com/news/inflation-reaches-8-6-setting-new-four-decade-high">record-breaking</a> inflation — have eroded <a href="https://www.dailywire.com/news/everything-is-too-high-right-now-in-west-philadelphia-residents-battle-inflation-and-gas-prices">consumer</a> and <a href="https://www.dailywire.com/news/majority-of-manufacturers-predict-recession-within-the-next-year">business</a> confidence. The stock market has also endured weeks of <a href="https://www.dailywire.com/news/wall-street-sees-worst-carnage-since-2020">heavy losses</a>, with some analysts predicting that more <a href="https://www.dailywire.com/news/investment-banks-predict-how-much-more-stock-market-could-plummet">falling asset prices</a> are in the near future.
Earlier this week, Fed Chair Jerome Powell <a href="https://www.dailywire.com/news/fed-chair-jerome-powell-says-recession-is-a-possibility-but-remains-strongly-committed-to-killing-inflation">testified</a> before members of the Senate that there is a “possibility” of recession.
“At the Fed, we understand the hardship high inflation is causing. We are strongly committed to bringing inflation back down, and we are moving expeditiously to do so,” the policymaker explained. “We have both the tools we need and the resolve it will take to restore price stability on behalf of American families and businesses. It is essential that we bring inflation down if we are to have a sustained period of strong labor market conditions that benefit all.”
Last week, the Fed <a href="https://www.dailywire.com/news/federal-reserve-takes-most-aggressive-action-to-fight-inflation-in-three-decades">increased interest rates</a> by 0.75% — the largest rate hike increment since 1994. The central bank already <a href="https://www.dailywire.com/news/the-fed-jacks-key-rate-up-half-point-as-inflation-surges">hiked rates</a> by 0.5% in May — the largest such increase since 2000 — after a 0.25% rate hike from near-zero levels in March. Interest rates are now at 1.5% to 1.75%, with <a href="https://www.dailywire.com/news/expect-higher-unemployment-as-federal-reserve-tackles-inflation-warns-top-policymaker">more increases likely</a> on the way.
Rate hikes are intended to cut inflation by increasing the <a href="https://www.dailywire.com/news/the-federal-reserve-just-raised-interest-rates-how-will-it-impact-your-family">cost of borrowing money</a> — a move that tends to slow economic activity. Many investors, however, have nevertheless urged the Fed to tighten its monetary policy.
“The only way to stop today’s raging inflation is with aggressive monetary tightening or with a collapse in the economy,” Pershing Square Capital Management CEO Bill Ackman <a href="https://www.dailywire.com/news/top-hedge-fund-manager-sees-two-ways-out-of-soaring-inflation-and-neither-one-is-pretty">said</a> last month. “There is no prospect for a material reduction in inflation unless the Fed aggressively raises rates, or the stock market crashes, catalyzing an economic collapse and demand destruction.”
Meanwhile, key policymakers have started to acknowledge that they <a href="https://www.dailywire.com/news/janet-yellen-admits-she-could-have-used-a-better-term-than-transitory-to-describe-unacceptable-inflation">failed</a> to accurately predict soaring inflation. Treasury Secretary Janet Yellen admitted that she and Jerome Powell “could have used a better term than transitory” to describe higher prices.
“There’s no question that we have huge inflation pressures, that inflation is really our top economic problem at this point and that it’s critical that we address it,” she told Congress earlier this month. “I do expect inflation to remain high, although I very much hope that it will be coming down now.”

Stocks Continue To Slide As Concerns Rise Over Conflict In Ukraine

Federal Reserve ‘Stress Test’ Shows Big Banks Will Be Fine Through The Next Recession

'Stress Test' Of American Banks Shows They Can Weather A Recessionary Storm

Banks

<a href="https://www.dailywire.com/topic/netflix">Netflix</a> made another major cut to its staff Thursday, laying off 300 employees as the streaming company reels from hundreds of thousands of lost subscriptions.
Most of those losing their jobs will be in the U.S. and from multiple different departments within the company, <a href="https://variety.com/2022/tv/news/netflix-layoffs-fired-jobs-lost-1235301553/">according</a> to a report from Variety.
“Today we sadly let go of around 300 employees,” a Netflix spokesperson told the outlet. “While we continue to invest significantly in the business, we made these adjustments so that our costs are growing in line with our slower revenue growth. We are so grateful for everything they have done for Netflix and are working hard to support them through this difficult transition.”
Variety noted that this is the second mass layoff at the company in as many months. Netflix, which has roughly 11,000 staffers worldwide, laid off 150 employees and dozens of part-time and contract workers in May.
The cuts at the streaming giant come following dismal <a href="https://www.dailywire.com/news/netflix-to-fast-track-ad-supported-content-amid-financial-losses-report">reports</a> showing Netflix lost 200,000 subscribers in the first quarter of 2022 and is expecting 2 million more to end their subscriptions in the second quarter. The major subscription losses dealt a blow to the company’s stock, which lost roughly 70% of its value.
In response to the subscription losses, Netflix reportedly looked to fast-track ad-supported content, according to a May <a href="https://www.nytimes.com/2022/05/10/business/media/netflix-commercials.html?partner=slack&amp;smid=sl-share">report</a> in The New York Times.
“Executives said they were aiming to introduce an ad-supported, lower-priced subscription tier in the last three months of the year, quicker than originally indicated,” the Times wrote.
Many of the company&#8217;s competitors offer cheaper streaming options that earn revenue through ads. Netflix co-CEO Reed Hastings told investors that Netflix would be introducing a similar offering “over the next year or two,” but now an internal memo appears to indicate that the change could happen by the end of this year instead, The Daily Wire previously <a href="https://www.dailywire.com/news/netflix-to-fast-track-ad-supported-content-amid-financial-losses-report">reported</a>.
The surprising internal revelation came after Netflix had promised subscribers for years it would never run ads on the platform, but more competition from streaming services like Disney, Paramount, Peacock, and others has seemingly caused Netflix executives to reevaluate their strategy.
“With more new platforms for customers to choose from, and splashy and high-budget titles popping up on those services, increased pressure has been put on Netflix to attract and retain subscribers as it’s been losing valuable library content to companies bringing their content back home for their own streamers,” Variety added.

Netflix

Netflix Lays Off Hundreds More Amid Major Subscription Losses

Netflix Lays Off Hundreds Amid Major Subscription Losses

Enterainment

Hollywood

Jobs

<a href="http://dailywire.com/topic/tesla">Tesla</a> CEO <a href="http://dailywire.com/topic/elon-musk">Elon Musk</a> said that the electric automaker’s factories are now “gigantic money furnaces” thanks to persistent <a href="http://dailywire.com/topic/supply-chain">supply chain</a> issues.
Logistics bottlenecks have plagued American businesses since COVID-19 and the lockdown-induced economic issues, especially due to key Asian manufacturing <a href="http://dailywire.com/topic/economy">economies</a> shuttering production.
“Just been trying to keep the factories operating the last couple years has been a very difficult thing, like supply chain interruptions have been severe, like extremely severe,” Musk said in a Tesla Owners Silicon Valley interview published Wednesday, per <a href="https://www.cnbc.com/2022/06/23/musk-says-tesla-berlin-and-austin-factories-losing-billions-of-dollars.html">CNBC</a>. “The past two years have been an absolute nightmare of supply chain disruptions, one thing after another, and we are not out of it yet.”
In one recent National Association of Manufacturers <a href="https://www.dailywire.com/news/majority-of-manufacturers-predict-recession-within-the-next-year">survey</a>, almost 60% of business leaders said that inflationary pressures “make a recession more likely in the next 12 months,” while more than 90% pointed to higher raw material costs as one of their “primary business challenges” in the second quarter of 2022. The Producer Price Index (PPI) rose <a href="https://www.dailywire.com/news/inflation-for-businesses-continues-at-double-digit-pace">10.8%</a> from May 2021 to May 2022, according to a report released earlier this month by the U.S. <a href="https://www.bls.gov/news.release/ppi.nr0.htm">Bureau of Labor Statistics</a>.
Indeed, Musk said that the shortages are causing Tesla’s facilities around the world to hemorrhage cash.
“Both Berlin and Austin factories are gigantic money furnaces right now… It should be like a giant roaring sound which is the sound of money on fire,” Musk said in the interview. “Berlin and Austin are losing billions of dollars right now because there’s a ton of expense and hardly any output. Getting Berlin and Austin functional and getting Shanghai back in the saddle fully are overwhelmingly our concerns. Everything else is a very small thing basically.”
Though the worldwide supply chain bottlenecks began overseas, economic phenomena in the United States also delayed consumer goods from reaching shelves. Trucking companies — which were already battling to hire more drivers before the economic downturn — faced a <a href="https://www.dailywire.com/news/at-the-edge-of-a-cliff-trucking-industry-leader-says-rewarding-people-not-to-work-vaccine-mandates-are-worsening-supply-chain">labor shortage</a> exacerbated by government stimulus money and the return of consumer demand.
President Joe Biden’s attempted COVID-19 vaccine mandate <a href="https://www.dailywire.com/news/trucking-groups-could-lose-37-of-drivers-over-biden-vaccine-mandate-worsening-supply-chain-crisis">threatened</a> to shutter nearly 40% of truckers from the job market. The policy, however, was <a href="https://www.dailywire.com/news/we-said-do-not-comply-we-won">overturned</a> by the Supreme Court thanks in part due to a lawsuit from The Daily Wire.
Tesla and other automakers have been particularly threatened by a global shortage of semiconductors. Between May 2021 and May 2022, the price of <a href="https://www.dailywire.com/news/here-are-the-products-gutting-your-bank-account-as-inflation-soars">new and used vehicles</a> soared 13% and 16%, respectively.
Companies are therefore racing to increase semiconductor production in the United States. Last year, for example, Samsung <a href="https://www.dailywire.com/news/hyundai-to-build-5-5-billion-electric-vehicle-plant-in-georgia-marking-the-states-largest-ever-economic-development-project">announced</a> that it would build a $17 billion semiconductor factory in Texas, representing the largest foreign direct investment in the state’s history.
Meanwhile, Gov. Ron DeSantis (R-FL) <a href="https://www.dailywire.com/news/desantis-ill-invest-in-microchip-semiconductor-manufacturing-so-chinese-cannot-hold-our-supply-chain-hostage">said</a> earlier this year that he would invest the state’s funds to increase microchip manufacturing so that the Chinese Communist Party cannot “hold our supply chain hostage.”
“We have to start standing up as Floridians and Americans,” DeSantis said at a press conference. “We cannot be captive. Key sectors of our economy should not be captive to some of these foreign nations, particularly outfits like the Communist Party of China.”

Tesla Motors Inc. Chief Executive Officer Elon Musk News Conference

Elon Musk Laments Tesla Factories Becoming ‘Gigantic Money Furnaces’ Thanks To Supply Chain Issues

Elon Musk: Tesla Factories Are Now 'Gigantic Money Furnaces'

Elon Musk

Tesla

<a href="http://dailywire.com/topic/federal/reserve">Federal Reserve</a> Chair Jerome Powell testified before members of the Senate on Wednesday that the central bank remains “strongly committed” to combating record-high <a href="http://dailywire.com/topic/inflation">inflation</a>, although there is a “possibility” of a <a href="http://dailywire.com/topic/recession">recession</a>.
Last week, the Fed <a href="https://www.dailywire.com/news/federal-reserve-takes-most-aggressive-action-to-fight-inflation-in-three-decades">increased interest rates</a> by 0.75% — the largest incremental rate hike since 1994. The central bank already <a href="https://www.dailywire.com/news/the-fed-jacks-key-rate-up-half-point-as-inflation-surges">hiked rates</a> by 0.5% in May — the largest such increase since 2000 — after a 0.25% rate hike from near-zero levels in March. Interest rates are now at 1.5% to 1.75%, with <a href="https://www.dailywire.com/news/expect-higher-unemployment-as-federal-reserve-tackles-inflation-warns-top-policymaker">more increases likely</a> on the way.
“At the Fed, we understand the hardship high inflation is causing. We are strongly committed to bringing inflation back down, and we are moving expeditiously to do so,” Powell <a href="https://www.federalreserve.gov/newsevents/testimony/powell20220622a.htm">told</a> the Senate Banking, Housing, and Urban Affairs Committee. “We have both the tools we need and the resolve it will take to restore price stability on behalf of American families and businesses. It is essential that we bring inflation down if we are to have a sustained period of strong labor market conditions that benefit all.”
While the Consumer Price Index (CPI) increased <a href="https://www.dailywire.com/news/inflation-reaches-8-6-setting-new-four-decade-high">8.6%</a> year-over-year as of May, the Producer Price Index (PPI) — which tracks <a href="http://dailywire.com/topic/inflation">inflation</a> for businesses — increased <a href="https://www.dailywire.com/news/inflation-for-businesses-continues-at-double-digit-pace">10.8%</a> over the same period, according to two recent reports from the U.S. Bureau of Labor Statistics.
During the hearing, Sen. Elizabeth Warren (D-MA) noted that the rate hikes could “tip this economy into recession” without stopping inflation, according to <a href="https://www.cnbc.com/2022/06/22/powell-tells-congress-the-fed-is-strongly-committed-to-bringing-inflation-down.html">CNBC</a>. Rate hikes are meant to curb rising price levels, but they also have the effect of increasing borrowing costs and thereby dampening economic activity.
“You know what’s worse than high inflation and low unemployment is high inflation and a recession with millions of people out of work, and I hope you’ll reconsider that before you drive the economy off a cliff,” Warren said.
The Federal Open Market Committee, which handles the Fed’s monetary policy interventions, has a dual mandate to maximize employment while keeping inflation low. Historically, there has been a tradeoff between the two goals, with low unemployment associated with higher inflation and high inflation associated with lower unemployment.
“It’s certainly a possibility,” Powell told Warren. “It’s not our intended outcome at all, but it’s certainly a possibility, and frankly the events of the last few months around the world have made it more difficult for us to achieve what we want, which is 2% inflation and still a strong labor market.”
Although rate hikes pose new risks, high inflation is creating hesitance among consumers and other economic actors. When questioned by a Harvard <a href="https://www.dailywire.com/news/poll-95-of-voters-say-inflation-is-somewhat-or-very-serious">survey</a> about rising price levels, 95% of respondents said that inflation is “very serious” or “somewhat serious.” A plurality — 47% — said that the Biden administration is responsible.
President Biden, however, has <a href="https://www.dailywire.com/news/biden-claims-inflation-is-worse-everywhere-but-here-thats-not-even-close-to-true">argued</a> that “Putin’s Price Hike” — a reference to the Russian invasion of Ukraine and its role in soaring global energy costs — is behind the inflationary pressures.
“High gas prices at the pump, energy, and food prices accounted for around half of the monthly price increases, and gas pump prices are up by $2 a gallon in many places since Russian troops began to threaten Ukraine,” Biden said. “Even as we continue our work to defend freedom in Ukraine, we must do more — and quickly — to get prices down here in the United States.”

Fed Chair Jerome Powell Delivers Semiannual Monetary Report At Senate Hearing

Fed Chair Jerome Powell Says Recession Is A ‘Possibility’ But Remains ‘Strongly Committed’ To Killing Inflation

Jerome Powell Testifies Before The Senate On Recession, Inflation

President <a href="http://dailywire.com/topic/biden-administration">Joe Biden</a> called for a three-month pause to the federal <a href="http://dailywire.com/topic/oil-and-gas">gas</a> <a href="http://dailywire.com/topic/taxes">tax</a> on Wednesday to contend with “Putin’s Price Hike.”
The federal government imposes a gas tax of $0.184 per gallon of gasoline and $0.244 per gallon of diesel, according to the U.S. <a href="https://www.eia.gov/tools/faqs/faq.php?id=10&amp;t=10">Energy Information Administration</a>. President Biden is asking for a suspension of the tax through September without interruptions to the $10 billion required to bankroll the Highway Trust Fund.
“President Biden understands that high gas prices pose a significant challenge for working families,” a <a href="https://www.whitehouse.gov/briefing-room/statements-releases/2022/06/22/fact-sheet-president-biden-calls-for-a-three-month-federal-gas-tax-holiday/">White House</a> statement said. “Today, he is calling on Congress and states to take additional legislative action to provide direct relief to American consumers who have been hit with Putin’s Price Hike.”
Combined with state taxes, the average American driver pays $0.571 in gas taxes per gallon, according to the <a href="https://www.api.org/oil-and-natural-gas/consumer-information/motor-fuel-taxes/gasoline-tax">American Petroleum Institute</a>. While New York and Connecticut temporarily paused their gas taxes in response to the soaring energy prices, Illinois and Colorado delayed scheduled tax and fee hikes, according to the White House statement.
On Sunday, Treasury Secretary <a href="http://dailywire.com/topic/janet-yellen">Janet Yellen</a> <a href="https://www.dailywire.com/news/yellen-gives-opinion-on-pausing-federal-gas-tax-to-bring-prices-down">told</a> ABC News host George Stephanopoulos that pausing the federal gas tax was on the table for the Biden administration. “Gas prices have risen a great deal, and it’s clearly burdening households. So he stands ready to work with Congress, and that’s an idea that’s certainly worth considering,” Yellen said of President Biden.
Gas prices are currently $4.96 per gallon, according to <a href="https://gasprices.aaa.com/">AAA</a>. Earlier this month, gas prices <a href="https://www.dailywire.com/news/gas-prices-hit-grim-national-average-of-5-per-gallon">hit</a> $5.00 per gallon, rising from the $2.39 per gallon witnessed when Biden took office.
Along with the proposed gas tax suspension, however, the White House clarified that “our efforts to increase energy production in the near-term must be coupled with medium- and long-term efforts to transition our economy away from fossil fuels produced by autocrats and to clean energy.” Likewise, Yellen said on Sunday that “the way in which we can ensure reasonable energy expenses for households is to move to renewables, to address climate change.”
In recent months, multiple White House officials — including Transportation Secretary <a href="https://www.dailywire.com/news/buttigieg-electric-cars-will-make-it-so-americans-never-have-to-worry-about-gas-prices-again">Pete Buttigieg</a>, Energy Secretary <a href="https://www.dailywire.com/news/bidens-energy-secretary-on-gas-crisis-if-you-drove-an-electric-car-this-would-not-be-affecting-you">Jennifer Granholm</a>, and President <a href="https://www.dailywire.com/news/white-house-slammed-over-comments-on-electric-cars-fairy-dust-and-unicorns">Joe Biden</a> himself — have even argued that high prices for nonrenewable energy will accelerate a transition to green energy, especially as more Americans buy electric cars.
Meanwhile, multiple Republican lawmakers have <a href="https://www.cruz.senate.gov/newsroom/press-releases/cruz-senators-demand-commerce-secretary-stop-permitting-delays-on-existing-oil-and-gas-leases-to-boost-production">criticized</a> Biden for a “de facto ban on new drilling” achieved by “sitting idle on over 9,000 drilling permits” and millions of acres of inactive leases. Likewise, the White House faced backlash last year for <a href="https://www.dailywire.com/news/peter-doocy-asks-for-a-straight-answer-on-keystone-gets-the-runaround-from-jen-psaki">revoking</a> a permit for the Keystone XL Pipeline. More recently, former White House Press Secretary Jen Psaki said that the Biden administration had “no plans” to reconsider opening pipeline construction.
President Biden recently <a href="https://www.dailywire.com/news/biden-sends-letter-to-oil-companies-blasting-them-for-profits-demanding-they-increase-oil-production">sent a letter</a> to oil companies asking them to increase production and slash their profits.
“There is no question that Vladimir Putin is principally responsible for the intense financial pain the American people and their families are bearing,” Biden wrote. “But amid a war that has raised gasoline prices more than $1.70 per gallon, historically high refinery profit margins are worsening that pain.”

Screen Shot 2022-06-08 at 11.40.25 AM

Biden Calls For Three-Month Pause To Federal Gas Tax

Biden Calls For Federal Gas Tax Holiday

Gas Prices

Oil and Gas

Taxes

Billionaire entrepreneur Elon Musk made it clear on Tuesday that he did not agree with the current administration officials — including President Joe Biden himself — who have claimed that a recession was &#8220;not inevitable.&#8221;
<a href="https://dailywire.com/news/i-dont-even-care-if-it-lowers-my-life-expectancy-elon-musk-raves-about-diet-coke-popcorn-and-movies/">Musk</a> made the comments during an appearance at the Qatar Economic Forum, saying, &#8220;A recession is inevitable at some point. As to whether there is a recession in the near term, that is more likely than not. It is not a certainty, but it appears more likely than not.&#8221;
The Tesla CEO&#8217;s assessment is diametrically opposed to the one embraced by the White House, with President Biden saying as recently as Monday that he did not believe the United States was doomed to face a <a href="https://dailywire.com/news/watch-biden-pushes-back-at-reporter-over-recession-warnings-dont-make-things-up/">recession</a> in the near term.
&#8220;Economists are saying that a recession is more likely than ever,&#8221; one reporter prompted Biden, who responded by saying that the question made the reporter sounded &#8220;like a Republican politician.&#8221;
&#8220;Now you sound like a Republican politician, I&#8217;m joking, that was a joke, that was a joke. But all kidding aside, no I don&#8217;t think it is. I was talking to Larry Summers this morning, there&#8217;s nothing inevitable about a recession,&#8221; Biden said — but Summers has said on several occasions that he believes a recession is likely coming, and soon.
&#8220;Look, nothing is certain, and all economic forecasts have uncertainty. My best guess is that a recession is ahead. I base that on the fact that we haven’t had a situation like the present with inflation above 4 percent and unemployment beyond 4 percent without a recession following within a year or two,&#8221; <a href="https://thehill.com/homenews/3529163-larry-summers-my-best-guess-is-that-there-is-a-recession-ahead/">Summers</a> told NBC&#8217;s Chuck Todd on Sunday&#8217;s &#8220;Meet the Press.&#8221;
Treasury Secretary <a href="https://dailywire.com/news/yellen-recession-not-inevitable-russias-war-to-blame-for-soaring-inflation/">Janet Yellen</a> <a href="https://www.politico.com/news/2022/06/19/recession-biden-administration-officials-00040719">agreed</a> with Biden during a Sunday appearance on ABC&#8217;s &#8220;This Week,&#8221; saying that although she did expect the economy to slow, she did not believe recession was inevitable.
&#8220;I expect the economy to slow. It’s been growing at a very rapid rate as the economy, as the labor market is recovered and we reached full employment,&#8221; she said. &#8220;It’s natural now that we expect to transition to steady and stable growth. I don’t think recession is at all inevitable.&#8221;
Musk, for his part, predicted major upheaval in May — but he seemed confident that the disruption would bring about a much-needed correction. &#8220;[This] is actually a good thing. It has been raining money on fools for too long. Some bankruptcies need to happen,&#8221; he <a href="https://twitter.com/elonmusk/status/1529983508206190592">tweeted</a>. &#8220;Also, all the COVID stay-at-home stuff has tricked people into thinking that you don’t actually need to work hard. Rude awakening inbound!&#8221;

Key Speakers At The Qatar Economic Forum

Elon Musk Splits With Biden Advisers, Says ‘Recession Is Inevitable’

Elon Musk Splits With Biden Advisors, Says 'Recession Is Inevitable'

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The S&amp;P 500, a key <a href="http://dailywire.com/topic/wall-street">stock market</a> index, could drop another 15% to 20% before fully adjusting to a looming <a href="http://dailywire.com/topic/recession">recession</a>, according to a recent analysts’ note from investment bank Morgan Stanley.
“The bear market will not be over until recession arrives or the risk of one is extinguished,” the note predicted, per <a href="https://www.bloomberg.com/news/articles/2022-06-21/goldman-morgan-stanley-strategists-see-more-stock-market-losses?sref=3REHEaVI">Bloomberg</a>. Meanwhile, analysts from Goldman Sachs said stock traders were only pricing in a mild recession, “leaving them exposed to a further deterioration in expectations.”
The month of June has been marked by a <a href="https://www.dailywire.com/news/wall-street-sees-worst-carnage-since-2020">series of selloffs</a> amid dismal news on <a href="http://dailywire.com/topic/inflation">inflation</a>, as well as the <a href="https://www.dailywire.com/news/federal-reserve-takes-most-aggressive-action-to-fight-inflation-in-three-decades">most aggressive move</a> to combat inflation from the <a href="http://dailywire.com/topic/federal-reserve">Federal Reserve</a> in nearly 30 years. While the Dow Jones Industrial Average and the Nasdaq Composite fell 4.8% during the week ending on June 17, the S&amp;P 500 was down 5.8% — marking its worst week since 2020, according to <a href="https://www.cnbc.com/2022/06/16/stock-market-news-futures-open-to-close.html">CNBC</a>.
More <a href="https://www.dailywire.com/news/bloodbath-on-wall-street-as-stock-market-plunges-into-bear-territory">selloffs occurred</a> during the week ending on June 10 — the day upon which the U.S. <a href="https://www.bls.gov/news.release/cpi.nr0.htm">Bureau of Labor Statistics</a> announced that the Consumer Price Index (CPI) rose 8.6% between May 2021 and May 2022, meaning that <a href="https://www.dailywire.com/news/inflation-reaches-8-6-setting-new-four-decade-high">inflation hit new four-decade record highs</a> and once again surpassed economists’ expectations. The Dow fell 2.5%, the Nasdaq fell about 3%, and the S&amp;P 500 fell 2.7% by the end of the week, according to <a href="https://www.nbcnews.com/business/markets/dow-falls-inflation-hits-40-year-high-consumer-sentiment-rcna32950">NBC News</a>.
On June 14, a <a href="https://www.dailywire.com/news/wall-streets-key-recession-indicator-just-went-off">yield curve inversion</a> — a phenomenon in the bond market that <a href="http://dailywire.com/topic/wall-street">Wall Street</a> watches as a key recession indicator — made the financial world uneasy. An inverted yield curve historically precedes recessions by six months to two years, as indicated by data from the <a href="https://fred.stlouisfed.org/series/T10Y2Y">Federal Reserve Bank of St. Louis</a>.
The Federal Reserve’s benchmark interest rate is now between 1.5% and 1.75%. Although rate hikes increase the cost of borrowing money and thereby slow economic activity, central bankers are <a href="https://www.dailywire.com/news/expect-higher-unemployment-as-federal-reserve-tackles-inflation-warns-top-policymaker">prepared to hike interest rates again</a> next month if high inflation persists.
While Democratic officials inside the Biden administration have insisted that a recession is not inevitable, former Democratic economic advisers lean in the opposite direction.
Larry Summers, who led the Treasury Department under the Clinton administration and served as National Economic Council director under the Obama administration, <a href="https://www.dailywire.com/news/top-obama-economic-advisor-whole-range-of-indicators-point-to-coming-recession">said over the weekend</a> that “a whole range of indicators” point to a contraction.
“The dominant probability would be by the end of next year we will be seeing a recession in the American economy,” Summers told NBC News host Chuck Todd, noting that his view is widely shared among forecasters.
However, current Treasury Secretary Janet Yellen acknowledged the economic woes while remaining <a href="https://www.dailywire.com/news/yellen-recession-not-inevitable-russias-war-to-blame-for-soaring-inflation">as optimistic as possible</a>.
“I expect the economy to slow,” Yellen told ABC News host George Stephanopolous. “It’s been growing at a very rapid rate, as the economy, as the labor market, has recovered. We have reached full employment. It’s natural now that we expect a transition to steady and stable growth, but I don’t think a recession is at all inevitable.”
President Joe Biden <a href="https://www.dailywire.com/news/watch-biden-pushes-back-at-reporter-over-recession-warnings-dont-make-things-up">shot down a question</a> from a reporter on Monday about recessionary risks during his walk on Rehoboth Beach in Delaware.
“The majority of them aren’t saying that,” Biden said. “Come on, don’t make things up, okay? Now you sound like a Republican politician. I’m joking. That was a joke, but all kidding aside, I don’t think it is.”

Times Square As U.S. Stocks Climb On Earnings

Investment Banks Predict How Much More Stock Market Could Plummet

Morgan Stanley Says Stock Market May Fall Up To 20% More

Stock Market

Wall Street

Two former <a href="http://dailywire.com/topic/tesla">Tesla</a> employees filed suit against the automaker on Sunday for allegedly violating federal law through its decision to <a href="http://dailywire.com/topic/unemployment">lay off</a> much of its staff.
Earlier this month, Tesla CEO <a href="http://dailywire.com/topic/elon-musk">Elon Musk</a> <a href="https://www.dailywire.com/news/elon-musk-has-a-super-bad-feeling-about-the-economy-wants-a-massive-layoff-at-tesla">told executives</a> that he had a “super bad feeling” about the <a href="http://dailywire.com/topic/economy">economy</a> and asked them to begin dismissing 10% of employees. According to a <a href="https://www.courthousenews.com/wp-content/uploads/2022/06/lynch-tesla-complaint-usdc-texas.pdf">class action complaint</a> filed by John Lynch and Daxton Hartsfield — who worked at Tesla’s Gigafactory 2 plant in Sparks, Nevada — the company violated the Worker Adjustment and Retraining Notification (WARN) Act by failing to provide 60 days of advance written notice regarding the mass layoff.
“Plaintiffs and all similarly situated employees have been damaged by Tesla’s conduct constituting violations of the WARN Act,” the lawsuit argues, “and are entitled to damages for their back pay and associated benefits for each day of the violation because Tesla has not acted in good faith nor with reasonable grounds to believe their acts and omissions were not a violation of the WARN Act.&#8221;
Lynch and Hartsfield were allegedly informed of their dismissals on June 10 and 15, respectively, and laid off on the same days. They believe that “more than 500” coworkers were placed in the same situation.
“It&#8217;s pretty shocking that Tesla would just blatantly violate federal labor law by laying off so many workers without providing the required notice,” Shannon Liss-Riordan, a lawyer representing the workers, <a href="https://www.reuters.com/business/tesla-sued-by-former-employees-over-mass-layoff-2022-06-20/">told</a> Reuters.
The Nevada employees are not the only ones affected by the layoffs. A Monday <a href="https://electrek.co/2022/06/20/tesla-lay-off-head-lgbtq-diversity-elon-musk-woke-mind-virus/">report</a> from electric vehicle news outlet Electrek showed that two employees involved in volunteer LGBTQ and diversity roles at the automaker also <a href="https://www.dailywire.com/news/lgbtq-diversity-officials-heads-roll-at-elon-musks-tesla">lost their jobs</a>. Electrek made clear that both separations were part of the “broader wave of layoffs,” but repeated that both employees had received multiple promotions in their relatively short tenures, seemingly indicating that their performance was not a cause for concern.
Regarding Tesla’s overall layoff plans, Musk has since clarified that he intends to decrease salaried headcount by 10% while increasing hourly staffing — ultimately affecting 3.5% of the overall workforce. “A year from now, I think our head count will be higher in both salaried and obviously in hourly,” Musk <a href="https://www.cnbc.com/2022/06/21/elon-musk-clarifies-tesla-layoffs-after-ex-employees-sue-company.html">said</a> at a Bloomberg conference on Tuesday, per CNBC.
According to CNBC, Musk, the world’s richest man, also said that Lynch and Hartsfield’s lawsuit has “no standing.”
“That is a small lawsuit of minor consequence,” he commented. “Anything that relates to Tesla gets big headlines, whether it is a bicycle accident or something much more serious.”
Meanwhile, at SpaceX — which Musk also leads — multiple <a href="https://www.dailywire.com/news/get-woke-go-broke-spacex-fires-employees-who-wrote-a-letter-blasting-elon-musks-behavior-and-values">employees were fired</a> for drafting and circulating a letter blasting the billionaire for his “behavior” and “values.”
“Elon’s behavior in the public sphere is a frequent source of distraction and embarrassment for us, particularly in recent weeks,” the letter asserted. “As our CEO and most prominent spokesperson, Elon is seen as the face of SpaceX — every tweet that Elon sends is a de facto public statement by the company.”
SpaceX President and COO Gwynne Shotwell said in an email that the employees had been fired. “We have too much critical work to accomplish and no need for this kind of overreaching activism,” she wrote.

Elon Musk visits construction site of the Tesla Giga Factory

Employees Sue Elon Musk’s Tesla Over Mass Layoffs

Tesla Employees Hit By Mass Layoffs Say Company Violated Federal Law

Unemployment

President Joe Biden was caught on video pushing back at a reporter on Monday who asked about a possible upcoming recession.
The incident occurred while Biden answered questions from media while walking on Rehoboth Beach in Delaware when a female journalist asked about some economists who have predicted such a downturn is looming.
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">
WATCH: Biden snaps at a reporter for asking about economists warning of a recession.
“C’mon, don’t make things up&quot; <a href="https://t.co/eqEh2f9fEh">pic.twitter.com/eqEh2f9fEh</a>
&mdash; RNC Research (@RNCResearch) <a href="https://twitter.com/RNCResearch/status/1538924537852661762?ref_src=twsrc%5Etfw">June 20, 2022</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
&#8220;The majority of them aren&#8217;t saying that. Come on, don&#8217;t make things up, okay? Now you sound like a Republican politician. I&#8217;m joking. That was a joke, but all kidding aside, I don&#8217;t think it is,&#8221; Biden responded.
The exchange came after a Wall Street Journal <a href="https://www.wsj.com/articles/recession-probability-soars-as-inflation-worsens-11655631002?mod=hp_lead_pos1" target="_blank" rel="noopener">survey</a> of a group of economists reported on Sunday that the odds of the nation entering a recession in the next 12 months rank at 44%.
&#8220;Forecasters have raised recession probability due to a number of factors: higher borrowing costs, a blistering pace of inflation, supply-chain problems and commodity-price shocks stemming from the war in Ukraine,&#8221; the report stated.
&#8220;Mostly, however, they see dimming chances that a steeper path of rate increases by the Fed can cool inflation without inducing higher unemployment and an economic downturn,&#8221; the Wall Street Journal added.
In addition to record-breaking gas prices and high inflation, the nation&#8217;s gross domestic product (GDP) declined by 1.5% during the first quarter of 2022.
&#8220;The U.S. economic contraction to start the year was worse than expected as weak business and private investment failed to offset strong consumer spending, the Commerce Department reported Thursday,&#8221; CNBC <a href="https://www.msn.com/en-us/money/markets/first-quarter-gdp-declined-15-25-worse-than-thought-jobless-claims-climb/ar-AAXKVmD?ocid=uxbndlbing" target="_blank" rel="noopener">reported</a> last month.
&#8220;First-quarter GDP declined at a 1.5% annual pace, according to the second estimate from the Bureau of Economic Analysis. That was worse than the 1.3% Dow Jones estimate and a writedown from the initially reported 1.4%,&#8221; the report added.
CEOs of some of the nation&#8217;s largest companies have also expressed concern regarding a coming recession.
&#8220;That hurricane is right out there, down the road, coming our way. We just don&#8217;t know if it is a minor one, or Superstorm Sandy, or Andrew, or something like that. And you better brace yourself,&#8221; JPMorgan Chase CEO Jamie Dimon recently said about a coming recession, NPR <a href="https://www.npr.org/2022/06/14/1104601336/recession-inflation-federal-reserve-ceos-elon-musk-jamie-dimon" target="_blank" rel="noopener">reported</a>.
Tesla CEO Elon Musk wants to slash 10% of jobs at the company due to his “super bad feeling” about the economy, according to a Friday report from <a href="https://www.reuters.com/technology/exclusive-musk-says-tesla-needs-cut-staff-by-10-pauses-all-hiring-2022-06-03/">Reuters</a>.
The United States economy shrank at a 1.5% annualized rate in the first quarter of 2022, according to the <a href="https://www.bea.gov/sites/default/files/2022-05/gdp1q22_2nd.pdf">Bureau of Economic Analysis</a>, which associates recessions with <a href="https://www.bea.gov/help/glossary?title_1=All&amp;title=&amp;page=6#:~:text=The%20NBER%20recession%20is%20a,well%20as%20quarterly%20GDP%20growth.">two consecutive quarters</a> of negative growth.
In a recent email to executives seen by Reuters, Musk instructed Tesla to “pause all hiring worldwide” and said that the company needs to cut 10% of jobs. Tesla currently has more than 99,000 employees, <a href="https://www.nytimes.com/2022/06/01/technology/elon-musk-tesla-spacex-office.html">The New York Times</a> reported.
Microsoft, Coinbase, and other tech companies have also recently <a href="https://www.dailywire.com/news/recession-fears-lead-big-tech-companies-to-pause-hiring-cut-jobs" target="_blank" rel="noopener">announced</a> recent plans to slow hiring over a potential recession.

Joe Biden

Watch: Biden Pushes Back At Reporter Over Recession Warnings: ‘Don’t Make Things Up!’

Watch: Biden Pushes Back At Reporter Over Recession Warnings

Delaware

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