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Singapore’s Temasek cuts pay to senior management and investor group involved in FTX
Singapore state-owned investor Temasek has slashed the compensation of senior management and its investment team responsible for recommending an investment in failed cryptocurrency exchange FTX.
“Although there was no fault in reaching the investment committee’s investment recommendation, the investment committee and senior management, ultimately responsible for the investment decisions made, took joint accountability and compensation was reduced.” Chairman Lim Boon Heng said in a statement.
The move by Temasek comes after an internal review was launched to consider its investment in FTX, which resulted in a $275 million write-down.
Lim said FTX was “deliberately hidden from investors, including Temasek”. The report did not specify how many employees were affected or the severity of the pay cuts.
– Lim Hui Jee
Fri, May 26 2023 11:38 AM EDT
The Fed’s Loretta Mester expects interest rates to rise
Cleveland Federal Reserve President Loretta Mester told CNBC on Friday that she expects more interest rate hikes will be needed as inflation continues to rise.
“When I look at the data and what’s going on with the inflation numbers, I think we need to be a little bit more tight,” Mester said on “Squawk on the Street.” “We’ve made progress. Now it’s this calibration exercise, and that’s the hard part.”
Meister is a non-voting member of the rate-setting Federal Open Market Committee this year.
– Jeff Cox
Fri, May 26 2023 8:39 AM EDT
The preferred central bank inflation rate is higher than expected
The core personal consumption expenditure index, the central bank’s preferred measure of inflation, rose 0.4% in April. That’s more than Dow Jones expected and economists. Year-on-year, core PCE rose 4.7%, which was more than expected.
– Fred Imbert
Fri, May 26 2023 9:19 AM EDT
Markets are now expecting a Fed rate hike in June
Markets raised their bets on a June rate hike from the Federal Reserve following warmer-than-expected inflation data on Friday morning.
The odds of a quarter-percentage-point increase rose to 56%, according to CME Group data. That followed a report showing that prices of personal consumption expenditures rose 0.4% in April and 4.7% from a year earlier.
The odds of an increase were only 17% a week ago. The probability of a hike increases to 75% after July.
– Jeff Cox
Fri, May 26 2023 11:13 AM EDT
Consumer sentiment slightly exceeded expectations
The final reading of May consumer sentiment came in slightly above expectations. University of Michigan Consumer Sentiment Index came in at 59.2, while economists polled by Dow Jones had forecast 57.7.
Of course, that level is below April’s 63.5.
“Consumer sentiment fell 7% amid concerns about the economy’s path, wiping out nearly half of the gains made since last June’s record decline. The decline mirrors the 2011 debt ceiling crisis,” consumer director Jon Hsu wrote.
– Fred Imbert
