The Fed raised its benchmark interest rate by 0.75% on Wednesday, marking its third consecutive 75-basis-point increase. The central bank also signaled that more large increases were likely to come at future meetings as it aims to bring down inflation from 8.3% registered in August to its 2% target. More: - The rate hike brings the federal funds rate to between 3% and 3.25%, its highest level since early 2008.
- Many Fed officials who participated in the policy meeting expect a 1.25% interest rate increase by December, bringing the benchmark rate between 4.25% and 4.5%.
- The Fed has two more meetings scheduled this year.
- Following news of the rate hike, the Dow traded 45 points higher, or 0.2%.
- The S&P 500 added 0.4%, and the Nasdaq gained 0.7%.
- U.S. Treasury yields popped on the news.
- The 2-year rate traded at around 4.1%, its highest level since 2007.
- The 10-year rate rose to about 3.6%.
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Russian President Vladimir Putin has ordered hundreds of thousands of Russian military reservists to mobilize to fight in Ukraine as the nation moves to annex four Ukrainian territories. Russian Defense Secretary Sergei Shoigu said about 300,000 people would be mobilized from a pool of 25 million. More: - The West has referred to the moves as reckless acts of desperation by a leader facing the prospect of defeat.
- Following Putin’s announcements, one-way flights out of Russia sold out on Wednesday at record high prices.
- The partial call-up raised fears that men of fighting age would not be allowed to leave the country.
- Russia’s tourism agency head said no restrictions have been placed on traveling out of the country yet.
- China and India appear to stand by Russia.
- China continues to deepen economic ties with Moscow, and India has increased its purchases of Russian crude.
- India also relies on Russia for military supplies.
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CEOs from the seven top banks in the U.S. appeared before congress on Wednesday to share concerns about the U.S. economy and other matters. Those in attendance included JPMorgan Chase's Jamie Dimon, Citigroup's Jane Fraser, Wells Fargo's Charles Scharf, Bank of America's Brian Moynihan, and U.S. Bancorp's Andy Cecere. More: - According to a memo by the Financial Services Committee, the CEOs will testify on a range of issues, including:
- Consumer protection, compliance issues, diversity, and "issues relating to the public interest" such as worker rights and abortion access.
- Several CEOs highlighted their efforts in addressing climate change, including their commitments to net zero emissions by 2050.
- The hearing was hosted by California Rep. Maxine Waters, the chairwoman of the House Financial Services panel.
- Other participating lawmakers include North Carolina Rep. Patrick McHenry, Illinois Rep. Bill Foster, and Texas Rep. Roger Williams.
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The European Commission, the governing body of the EU, approved up to €5.2B ($5.2B) in public funding for hydrogen projects in the region. The Commission said the financing could unlock an additional €7B ($7B) of investments from the private sector. More: - The project, referred to as IPCEI Hy2Use, was prepared by 13 member states who would supply the public funding.
- According to the Commission, IPCEI Hy2Use would support the construction of “large-scale electrolyzers and transport infrastructure, for the production, storage, and transport of renewable and low-carbon hydrogen.”
- About 29 businesses would participate in 35 projects.
- The Commission aims to have 40 gigawatts of renewable hydrogen electrolyzers installed in the EU by 2030.
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YouTube announced a new revenue-sharing model for YouTube Shorts creators that starts next year. Shorts is the business’ short-form video rival to TikTok. YouTube chief product officer Neal Mohan said the company would begin paying a portion of its ad revenue from Shorts to creators with videos that get the most views. More: - Mohan noted that the move was the first time real revenue sharing was offered for short-form video at scale.
- Before this announcement, creators were compensated for Shorts through a $100M Shorts Fund the company launched last year.
- In a blog post announcing the move, YouTube said Shorts-focused creators would be able to apply to the company’s YouTube Partner Program starting next year.
- Creators must have at least 1,000 subscribers and 10 million Shorts views over 90 days.
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Facebook parent Meta Platforms is looking to cut costs by at least 10% over the next few months. According to sources, the cuts will affect overhead and consulting budgets, particularly staff cuts. The company has also asked many of its employees to apply for other roles within the company. Affected employees were given a limited window to apply for jobs. More: - A Meta spokesman referred to CEO Mark Zuckerberg’s statements from July, which noted the company’s need to reallocate resources.
- At the end of Q2, Meta reported having 83,553 employees, up 32% YoY.
- Some Meta employees refer to the limited application window as a sort of HR purgatory.
- Meta shares closed at $142.12, down nearly 3% for the day; the company is down nearly 60% YTD.
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- During an address at the U.N. General Assembly on Wednesday, President Joe Biden accused Russia of violating the United Nations Charter and sought to rally other nations against Russia.
- Warner Music Group has hired departing YouTube business chief Robert Kyncl as its next CEO. Kyncl will succeed Steve Cooper, who will step down from the role in 2023. Both men will serve as co-CEOs in January.
- Hertz said it will order up to 175,000 electric vehicles from General Motors over the next five years. The car rental company expects to start receiving the first deliveries of Chevy Bolt EVs and EUVs in Q1 2023.
- Walmart plans to hire 40,000 workers for the holiday season. Some workers will be part-time store associates and customer service workers, while the others would be permanent truck drivers. Last year, the retail giant hired more than 150,000 workers for the holiday season.
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 |  | Vanessa Omeokachie is a Freelance Writer for Inside.com. She writes the Inside Business and Inside Cloud newsletters. Her interests include finance, technology, and entrepreneurship. In her free time, she enjoys reading, hiking, attending concerts and music festivals, exploring cities, and traveling. Connect with her on Twitter @VanessaOmeo or on LinkedIn. |   | | Editor | Aaron Crutchfield is based in the high desert of California. Over the last two decades, he has spent time writing and editing at various local newspapers and defense contractors in California. When he's not working, he can often be found looking at the latest memes with his kids or working on his 1962 and 1972 Fords. | |
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