A US recession seemed avoidable even earlier this month. But central banks that fell behind the curve as prices skyrocketed are scrambling to catch up, and the Fed under Chair Jerome Powell raised interest rates aggressively this week. Even the Swiss National Bank jumped on the bandwagon. Now Bloomberg Economics models indicate odds of a recession by 2024 have jumped to at least 72%, and the S&P 500 and Nasdaq fell into bear markets, all of which may bode ill for President Joe Biden in the next election. This despite consumers being flush with cash and jobless rates remaining near historic lows. While an economic contraction and higher unemployment might be what it takes to finally ease inflation, there are some factors the Fed can’t control.

China has alarmed US officials with private warnings to avoid the Taiwan Strait, doubling down on its claim that the waterway isn’t international waters amid increased rhetoric over the risk of war. As China continues to pursue the elusive goal of Covid-zero, Shanghai, which reported just a handful of Covid-19 cases, will conduct mass weekly testing and enforce fresh lockdowns.  

The giant “Sky Eye” telescope in China may have picked up signs of alien civilizations, according to a report that was quickly taken down. China has been using the telescope to search for extraterrestrial life since 2020. On Earth, a now-suspended software engineer on Google’s artificial intelligence development team has gone public with claims of encountering “sentient” AI. But some experts say the discussion is a distraction from deeper issues with the technology. 

China’s “Sky Eye” Photographer: China News Service/China News Service

Twitter users should be allowed to say “pretty outrageous things,” according to Elon Musk. The Tesla CEO, in his first meeting with Twitter employees since signing a proposed $44 billion deal to acquire the company, also said “excellent” workers don’t have to worry about changes to their jobs. Meantime, employees at Musk’s SpaceX have been fired for criticizing him. 

What will it take to get road transport on track for net zero? Busses are on a positive trajectory and so too are sales of electric vehicles. But heavy trucks are still heavy polluters. Closing the EV adoption gap between wealthy and emerging economies would also help realize a 2050 net-zero goal. And for the (ultra) wealthy driver, Ferrari is retooling its sleek Maranello factory to make battery-powered vehicles.

Anna Sorokin, the scammer who inspired a Netflix series, is exploring a new gig—NFTs. A total of 10 NFTS will be offered to the public under the name “Reinventing Anna,” a nod to the Netflix title. For lovers of more traditional art with a tech-flare, immersive exhibits are all the rage. 

Anna Sorokin is led away in May 2019 after being sentenced in New York State Supreme Court in Manhattan to four to 12 years in prison. Photographer: Timothy A. Clary/AFP/Getty Images

• Juneteenth is observed in the US on Monday; markets are closed.
• Big geopolitical meetings: G-7, EU, NATO—with a focus on Ukraine. 
• Two UK by-elections will gauge damage to Boris Johnson.
• Fed’s Powell goes before Congress with inflation at 40-year high.
• The second annual Qatar Economic Forum takes place in Doha.

Facebook Has Bigger Problems On Its Plate

Meta Chief Operating Officer Sheryl Sandberg’s decision to leave the company reportedly coincided with an internal probe into her use of corporate resources for personal expenses, including wedding planning. Sandberg has denied any misappropriation. But Facebook has a well-established policy of spending extreme sums of money to ensure the comfort of its senior executives, and it should have bigger fish to fry, including antitrust scrutiny and questions about potential abuses of power.

Sheryl Sandberg Photographer: David Paul Morris/Bloomberg

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