The Fed’s rate hikes succeeded in one way – it reduced wealth inequality, the analysis found | Jobs Vox


Maybe Santa hasn’t completely given up on the idea of ​​visiting Wall Street this year. After all, on the last central bank surprise day for 2022, the Bank of Japan widened its bond yield target, the S&P 500 SPX;
+ 1.51%
He still made a (small) profit.

However, the outlook for the beginning of next year is not good, to say the least. “The Federation and the [Bank of England] Walking rates are not finalized, the [European Central Bank] The pressure and the [Bank of Japan] It’s just getting started. The global peak of this cycle is still ahead,” said Tim Duy, chief US economist at SGH Macro Advisors.

So far, there has been some good news from the federal rate hike campaign. As Wolf Richter of the Wolf Street blog points out, wealth inequality has declined.

Drawing on data from the Federal Reserve and the Commerce Department, it calculated the average change in wealth per household between the end of 2021 and the third quarter of 2022.

Wealth category

Average wealth

Dollar change

change in %

top 0.1%

132.4 million dollars

– 13 million dollars


the remaining 1%

19.3 million dollars

– 2.4 million dollars


next 9%

4.4 million dollars

– 269,000 dollars


next 40%

768,000 dollars

– 16,500 dollars


bottom 50%

70,800 dollars

+ 10,800 dollars


“The bottom 50% don’t own stocks or mutual funds, which is why stock market manipulation doesn’t faze them. Most of their assets are their homes and ‘consumer durables.’

Of course, he says, the feds helped increase inequality in the first place. “The reversal of the federation [quantitative easing] And interest-rate suppression in 2022 is deflating the bubble of everything and narrowing the dire wealth gap that the Fed has been working on with its easy-money policies in previous years,” Saud said.

You can read his full analysis here.

The market

US Stock Futures ES00;
+ 1.66%

They indicate a second day of profit. Oil Futures CL.1,
rise up. The yield on the 10-year Treasury note TMUBMUSD10Y;
It was 3.64%.

Subscribe to MarketDiem by Investor’s Business Daily for more market updates and actionable trading ideas for stocks, options and crypto.

The noise

FedEx FDX,
+ 4.28%
Shares rose 5% in premarket trading as the delivery service pledged to cut $1 billion in costs. Year-over-year, overnight delivery volume in the US fell 12.7%, but revenue growth was flat due to price increases.

Nike NK,
+ 13.28%
Shares rose 13 percent after the apparel maker’s earnings and sales beat expectations, as the company showed signs of controlled production.

Tesla TSLA
It was up 2 percent in premarket trading, down 8 percent on Tuesday. Tesla CEO Elon Musk has said he will step down as CEO of Twitter while he finds a replacement.

Current home sales data is due to be released at 10:00 a.m. Eastern, with the Conference Board’s consumer confidence report due out at the same time.

Starbucks SBUX,
Shares were downgraded from buy by Jefferies after the coffee retailer’s 40% rally in May brought it closer to the brokerage’s $100 price target.

six flags entertainment six,
+ 11.95%
It jumped 6% after reports that an activist shareholder wanted the theme-park operator to sell land.

Alphabet GOOGL,
YouTube is in talks to acquire the rights to the AT&T-owned NFL Sunday Ticket program from DirecTV.
+ 0.28%
and TPG, the Wall Street Journal reported.

Ukrainian President Volodymyr Zelensky is scheduled to address Congress today, meeting with President Joe Biden on his first trip abroad since the Russian invasion.

The best of the web

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Here’s what a big JPMorgan fund options position means for the market (subscription required).

The bumpy road to alternative energy: A German city gives up on hydrogen fuel-cell buses after just one year.

High tickers

Here are the most active stock market tickers as of 6 am Eastern.


Security name




Stop the game

+ 4.11%

AMC Entertainment






Camber Energy


The health of the cosmos

+ 2.25%

Mullen Automotive


AMC chooses entertainment

+ 13.28%


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A Banksy mural worth more than £1 million ($1.2 million) could be demolished to make way for new housing.

An Idaho man has set a record with 710 baubles – in his beard.

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