What Just Happened on Wall Street?
11Digest
The episode begins with an introduction to "The Headlines," a new daily news podcast from The New York Times hosted by Tracy Mumford. It then delves into the significant drop in the stock market, particularly the Dow Jones Industrial Average, and explores the potential for a recession. Gina Smilig, a Fed and Economy reporter for The New York Times, explains the factors contributing to the market downturn, including concerns about a potential recession fueled by recent economic data suggesting a slowdown in the job market and the Fed's decision to keep interest rates high. Smilig discusses the Federal Reserve's stance on the current economic situation, emphasizing their cautious approach despite the market panic. She explains the Fed's long-term view and their focus on controlling inflation. The episode explores the Fed's potential response if further evidence suggests an economic slowdown, including the possibility of larger interest rate cuts and the implications for the Fed's legacy. The episode examines the political implications of the stock market sell-off and recession fears, particularly in the context of the upcoming presidential election. Smilig discusses the potential for blame and the Fed's role in the political fray, particularly with interest rate cuts potentially being seen as politically motivated. The episode concludes with a brief overview of other news headlines, including a landmark ruling against Google for maintaining a monopoly in online search and the resignation of the prime minister of Bangladesh.
Outlines
Economic Uncertainty and the Stock Market
This episode of The Headlines podcast from The New York Times discusses the recent stock market plunge, recession fears, and the Federal Reserve's response to the economic situation, exploring the potential political implications.
Introducing The Headlines Podcast
Michael Barbaro announces a new daily news podcast from The New York Times called "The Headlines," hosted by Tracy Mumford. It provides a concise overview of the day's top stories with insights from Times reporters.
Other News Headlines
This segment provides a brief overview of other news headlines, including a landmark ruling against Google for maintaining a monopoly in online search and the resignation of the prime minister of Bangladesh.
Keywords
Dow Jones Industrial Average
The Dow Jones Industrial Average (DJIA) is a stock market index that tracks the performance of 30 large publicly owned companies in the United States. It is one of the most widely followed stock market indices in the world.
Federal Reserve
The Federal Reserve, also known as the Fed, is the central bank of the United States. It is responsible for setting monetary policy, regulating banks, and providing financial services to the government.
Recession
A recession is a significant decline in economic activity, typically characterized by a decrease in GDP, employment, and consumer spending. It is often associated with a period of economic contraction.
Inflation
Inflation is a general increase in the prices of goods and services over time. It erodes the purchasing power of money and can lead to economic instability.
Interest Rates
Interest rates are the cost of borrowing money. The Federal Reserve sets interest rates as a tool to influence economic activity. Higher interest rates make borrowing more expensive, which can slow down economic growth.
Stock Market
The stock market is a marketplace where investors buy and sell shares of publicly traded companies. It is a key indicator of economic health and investor sentiment.
Google is a multinational technology company that provides a wide range of services, including search, advertising, cloud computing, and software. It is one of the largest and most influential companies in the world.
Bangladesh
Bangladesh is a country located in South Asia. It is known for its textile industry and its rich cultural heritage.
Q&A
What are the main factors contributing to the recent stock market plunge?
The stock market drop is primarily driven by concerns about a potential recession, fueled by recent economic data suggesting a slowdown in the job market and the Fed's decision to keep interest rates high.
How is the Federal Reserve responding to the current economic situation?
The Fed is taking a cautious approach, monitoring economic data closely but not panicking. They are focused on controlling inflation and are wary of causing a recession.
What are the potential political implications of the economic situation?
The economic situation could significantly impact the upcoming presidential election, with potential blame being placed on the incumbent administration. The Fed's actions could also become entangled in the political fray, particularly with interest rate cuts potentially being seen as politically motivated.
Show Notes
Every major U.S. stock market plunged on Monday, wiping out billions of dollars in value.
Jeanna Smialek, who covers the U.S. economy for The Times, discusses what was behind the dizzying sell-off — and what it can tell us about whether America is headed for a recession.
Guest: Jeanna Smialek, a reporter covering the Federal Reserve and the U.S. economy for The New York Times.
Background reading:
- Global stock markets fell sharply — the latest example of how distinct economic forces can ricochet across markets.
- What should you do when the stock market drops? Here’s the advice from our columnist.
For more information on today’s episode, visit nytimes.com/thedaily. Transcripts of each episode will be made available by the next workday.
Table of contents
United States
" literally reinforced their rate's last week" literally how ? did they literally put forms and pour concrete around them? what did they literally reinforce them with and last week literally when.. was it literally exactly Saturday midnight? NYT is supposed be the greatest journal on the planet?? what happened?
my understanding of what "a couple of tenth's" is ... = .02 I wouldn't let this financial journalist from the NYT guesstimate how much food to put in my cute dog Maggie the Boarder Collie's food bowl 🤦
if my little chubby friends from the south keep voting for morons like Biden/Trump or ( Kamala the Cop) America will look like that Blade Runner movie in less than 25 years ..... literally!!
"literally since the beginning of 2022" her use of that word makes it literally very hard to take her seriously 🤦 what is literally hard because of it .. I don't know.
Thank God the FED isn't ready to freak out. We've been hearing for years how strong the economy is, how we avoided a hard landing into a recession, how job growth has been fantastic for years, how unemployment has been or near all lows for years, inflation higher but coming down and inflation has been much higher look at Reagan's time interest rates high but not soaring again look at Reagan's time. What a bunch of pusillanimous people are in charge of so many ordinary people's money. Pathetic.