MONEY MASTER

The union representing over  10,000 Starbucks baristas  announced strikes in  Los Angeles, Chicago, and Seattle starting Friday, citing unresolved issues around wages, staffing, and schedules. The five-day strike is the latest in a series of escalating labor actions across service industries. Key Points Strike Scale:  Workers United, the union representing Starbucks employees at  525 stores , plans to escalate walkouts, potentially involving  hundreds of stores  nationwide by Christmas Eve. Negotiation Deadlock: Talks began in April under a February framework, with  nine bargaining sessions  and agreements on  30+ topics  to date. The union rejected Starbucks' offer of no immediate wage hike and a 1.5% increase in future years, calling it insufficient. The union is demanding a  64% immediate wage increase  and  77% over a three-year contract , which Starbucks deems "unsustainable." Broader Labor Context Rising Labor A...

Three US Federal Reserve officials indicated on Monday that they expect interest rates to continue declining over the next year, but stopped short of committing to a rate cut at their upcoming meeting on Dec. 17-18 . Key Remarks from Fed Officials Christopher Waller (Fed Governor) Leaning Towards a Cut : Inclined to support a rate cut in December but emphasized that his decision will depend on upcoming data, particularly on inflation and economic activity. “Policy remains significantly restrictive, and cutting again will mean pressing the brake pedal less hard,” Waller said. Inflation Concerns : Highlighted the risk of inflation stalling above the 2% target , though he sees no evidence of persistent price increases in key service categories. John Williams (New York Fed President) Cautious Approach : Stressed that the path for policy depends on data , emphasizing the uncertainty of the economic outlook . Raphael Bostic (Atlanta Fed President) Keeping Options Open : Said he would wait...

Former Federal Reserve Bank of New York President William Dudley has suggested a compelling case for a half-point interest rate cut at the Federal Reserve's meeting next week. Speaking at a forum organized by The Bretton Woods Committee in Singapore, Dudley stated, "I think there’s a strong case for 50," highlighting his preference for a more aggressive monetary policy move. Dudley, who led the New York Fed until 2018 and now chairs the Bretton Woods Committee, pointed to a slowing US labor market and emphasized that the risks to jobs are more significant than ongoing inflation challenges. He referenced Fed Chairman Jerome Powell's comments at Jackson Hole last month, which underscored a desire to prevent further weakening in the labor market. Dudley's remarks arrive as recent data showed core US inflation unexpectedly rose in August , reinforcing the likelihood of a quarter-point rate cut next week. Despite this, Dudley believes there is room for a more subs...