Bloomberg - Evening Briefing - The Fed’s painful progress

The US Federal Reserve’s historic if belated war on inflation is already yielding some significant results, and while they’re arguably part of the plan, the fallout means consumer and corporate pain in the immediate term. Credit-card rates have soared past 20%, mortgage costs have climbed to the highest since 2008 and companies are having a harder time borrowing. Economists are still debating if the Fed’s battle against high prices will cause a recession, with President Joe Biden contending it isn’t the fait accompli panicky Wall Street CEOs say it is. At least those rising mortgage rates have a silver lining: The waiting lists for new houses in hot locales are gone. Homebuilders, surprised by suddenly cooling demand, are doing something they haven’t done in years: slashing prices. —David E. Rovella

Bloomberg is tracking the coronavirus pandemic and the progress of global vaccination efforts. 

The White House and congressional Democrats are in advanced talks on legislation that aims to fight inflation, rein in the deficit and revive parts of Biden’s stalled economic agenda. The contours of a potential deal remain under negotiation, but the package would likely include federal investments in both clean energy and fossil fuels. It would also further reduce the deficit and boost taxes on the wealthy, corporations or both.

SpaceX employees this week complained in an open letter about the controversial antics of their increasingly embattled billionaire boss. They urged the groundbreaking company to distance itself from Elon Musk to preserve its stellar reputation. Today, they were fired.

Employees work in a clean room on the Crew Dragon capsule during an event at the SpaceX headquarters in Hawthorne, California, in 2019. Photographer: Bloomberg

Many of those Reddit fans behind the meme stock frenzies of recent years don’t have the stomach for a bear market. Roughly 50% of single-stock retail positions in the Nasdaq 100 and one quarter of those in the S&P 500 that had been accumulated since January 2019 have been sold. As for investors still surfing the dangerous waves of the turbulent market, here’s where they’ve found shelter.

Over in crypto land, the state of affairs is much worse as fans of the funny money turn on each other to squeeze out a profit. As for the “fear of missing out” that’s fueled the wild pursuit of questionable digital assets, it’s now disintegrating into a much simpler emotion: fear.

Starbucks North America President Rossann Williams will be replaced by Sara Trilling, a veteran of the coffee retailer, the company said. Williams had been put in the spotlight amid the increasingly acrimonious battle with union-backing workers. According to multiple labor complaints, Starbucks has allegedly violated federal law by firing, threatening and carrying out surveillance on union activists in New York. Labor Board lawyers have also issued complaints accusing the Seattle-based company of illegally firing activists in Arizona and Tennessee. 

Rossann Williams Photographer: Colin McConnell/Toronto Star

Vladimir Putin is increasingly trying to punish European countries opposed to his bloody war on Ukraine by weaponizing energy supplies. But as he recently tried to justify Russia’s aggression, which has potentially killed tens of thousands, he received some jarringly public pushback from an unexpected quarter. The Ukrainian military has said it hit a Russian military vessel supplying Moscow’s forces off the Black Sea coast. Ukraine officials signaled that the tug carrying reinforcements, weapons and munitions had been hit by Harpoon anti-ship missiles.

World Wrestling Entertainment Chief Executive Officer Vince McMahon will step back from his duties while the company’s board investigates allegations of misconduct. The move comes several days after a news report citing people familiar with the matter depicted  a secret $3 million payment McMahon made to a female ex-employee with whom he allegedly had an affair, as well as nondisclosure agreements with other employees. 

Vince McMahon  Photographer: Ethan Miller/Getty Images North America

• WHO says updated Covid-19 vaccines for omicron may be necessary.
• Sri Lanka’s economic meltdown gets worse: it just ran out of fuel.
• The fertilizer crisis caused by Putin’s war seems to be fading away.
• Banks face push to disclose how their lending leads to pollution.
• Bloomberg Opinion: The US Strategic Oil Reserve is draining fast.
• Distressed deals pile up in Canada’s once-booming housing market.
• How flexible work-from-home is changing summer Fridays.

If ever there were a time to have a professionally made drink in London, it’s this summer. It might be to take advantage of the ability to drink without restriction as nations throw off precautions despite the ongoing Covid-19 pandemic. It may also be to bemoan high inflation, the UK downturn or the fallout of the bear market across the pond. Whatever your reason, these are the 13 places to go.

Walk through an Apple repair shop and you’ll find Natural Philosopher. Photographer: Chris Ratcliffe/BloombergNatural Philosopher

The Bloomberg Evening Briefing will return on Tuesday, June 21.

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