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Singaporean firm Temasek cuts salaries to FTX’s senior management and co-investor team
Singapore state-owned investor Temasek has cut compensation for senior management and the investment team responsible for recommending investments in failed cryptocurrency exchange FTX.
“Although there was no misconduct by the investment team in reaching their investment recommendations, the investment team and senior management, ultimately responsible for the investment decisions made, were collectively held liable and reduced their compensation,” President Lim Boon Heung he said in a statement.
The move by Temasek comes after it launched an internal review to look at its investment in FTX, which resulted in a $275 million writedown.
Lim added that there was fraudulent behavior by FTX that was “intentionally hidden from investors, including Temasek.” The statement did not specify the number of employees affected nor the severity of the pay cuts.
– Lim Hwi Ji
Friday, May 26, 2023, 11:38 a.m. EST
The Fed’s Loretta Mester expects interest rates to rise
Cleveland Fed President Loretta Mester told CNBC on Friday that she expects more interest rate increases will be needed as inflation continues to rise.
“When I look at the data and look at what’s going on with the inflation numbers, I think we’re going to have to tighten up a little bit more,” Mester said on “Squawk on the Street.” “We’ve made progress. Now this is calibration training, and this is the hard one.”
Mester is a non-voting member this year of the Federal Open Market Committee, which sets interest rates.
– Jeff Cox
Friday, May 26, 2023, 8:39 AM EST
The Fed’s preferred measure of inflation is rising more than expected
The core personal consumption expenditures index, the Fed’s preferred measure of inflation, rose 0.4% in April. That’s more than economists polled by Dow Jones expected. On a year over year basis, core personal consumption expenditures rose 4.7%, also more than expected.
– Fred Imbert
Friday, May 26, 2023, 9:19 AM EST
Markets are now anticipating a Fed rate hike in June
Markets have raised bets on a June rate hike from the Federal Reserve after hotter-than-expected inflation data Friday morning.
The odds of a quarter percentage point increase jumped to 56%, according to CME Group data. This came after a report showed that personal consumption expenditures prices rose 0.4% in April and 4.7% from a year ago.
The chances of an increase were only 17% a week ago. The probability of a price hike no later than July has increased to 75%.
– Jeff Cox
Friday, May 26, 2023, 11:13 a.m. EST
Consumer sentiment slightly beat expectations
The final reading of consumer confidence in May was slightly above expectations. University of Michigan consumer confidence index It came in at 59.2, while economists polled by Dow Jones had expected a reading of 57.7.
This level is certainly much lower than the 63.5 in April.
“Consumer sentiment fell 7% amid concerns about the economy’s path, erasing nearly half of the gains made after an all-time low last June. The drop reflects the 2011 debt-ceiling crisis, during which sentiment also slumped,” According to the polls, consumer director Joanne Hsu writes.
– Fred Imbert
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