Raphael Stevens

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    Bank of America customers are spending more and that’s supporting U.S. employment, CEO says

    The bank’s customers boosted spending by 8% in the first three months of this year compared with the year-earlier period, Moynihan said on Tuesday.
    “They’re spending on things frankly which drive employment, meaning they’re spending on experiences at amusement parks and theaters or restaurants or outside concerts,” Moynihan said.
    Moynihan reiterated that his bank’s economists see a mild recession in the second half of this year.

    Bank of America’s customers are spending freely on dining, entertainment and other experiences, which in turn supports U.S. employment, CEO Brian Moynihan told CNBC’s Becky Quick.
    The bank’s customers boosted spending by 8% in the first three months of this year compared with the year-earlier period, Moynihan told Quick on Tuesday.

    “They’re spending on things frankly which drive employment, meaning they’re spending on experiences at amusement parks and theaters or restaurants or outside concerts,” Moynihan said.
    The current dynamic is part of a virtuous cycle that supports employment, versus an earlier boom in hard goods that mostly supported overseas producers, said the CEO of the second biggest U.S. bank by assets. Earlier Tuesday, Bank of America posted first-quarter results that topped expectations as the bank benefited from higher interest rates.
    Moynihan reiterated that his bank’s economists see a mild recession in the second half of this year.
    If the Federal Reserve can slow inflation while keeping unemployment around 4.5% or less, “it would be a heck of an accomplishment,” he added. More

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    United Airlines posts net loss but forecasts profit for second quarter

    United Airlines reported a loss for the first three months of the year.
    The airline joined Delta in forecasting a profit during the start of the peak travel season.
    United executives will discuss results with analysts and media on Wednesday at 10:30 a.m.

    A view of a United Airlines plane at Barcelona Airport in Barcelona, Spain, on February 27, 2023.
    Joan Valls | Nurphoto | Getty Images

    United Airlines reported a loss for the first three months of the year but forecast a profit for the second quarter, when the peak summer travel season picks up.
    United joined rival Delta Air Lines in reporting strong travel demand for the spring and summer, despite some predictions for an economic slowdown. For the second quarter, United expects adjusted earnings per share of $3.50 to $4 and revenues to rise 14% to 16% from last year, on capacity up 18.5% from last year.

    Here’s how United performed in the first quarter compared with what Wall Street expected, based on average estimates compiled by Refinitiv:

    Adjusted loss per share: loss of 63 cents versus an expected 73 cents
    Total revenue: $11.43 billion versus expected $11.42 billion

    For the three months ended March 31, United generated $11.43 billion in revenue, essentially in line with analysts’ forecasts and up more than 51% from the same period last year. United posted a net loss of $194 million, or a loss 59 cents a share, compared with a loss of $1.4 billion, or a loss $4.24 per share, in the first quarter of last year.  
    Adjusting for one-time items, United had a per-share loss of 63 cents, a narrower loss than the 73 cents that analysts polled by Refinitv were expecting, but at the stronger end of a previously stated range of a loss per share between 60 cents and $1.
    Revenue per available seat mile, a sign of how much money airlines are generating compared with how much they’re flying, was up more than 22% from a year ago.
    Unit costs were up 4% on the year, but down 0.1% when stripping out fuel. The airline paid $3.33 a gallon for jet fuel, up from $2.88 a gallon in the first quarter of 2022.

    United executives will discuss results with analysts and media on Wednesday at 10:30 a.m.
    Executives are likely to face questions about growth constraints during the second and third quarters, when airlines make the bulk of their revenue.
    United and other airlines are planning to reduce flights in the New York area in the coming months in response to a shortage of air traffic controllers, though carriers plan to use larger airplanes where possible. More

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    Supreme Court gives New Jersey, shipping industry and unions a win in New York ports case

    The Supreme Court ruled that New Jersey can withdraw from the Waterfront Commission Compact it had with New York to police corruption in the shipping industry in the waterways the states share.
    All nine of the Supreme Court’s justices voted in favor of the ruling, which dismissed arguments by New York in favor of forcing New Jersey to stay in the compact.
    Justice Brett Kavanaugh wrote the majority opinion.

    The MOL Maneuver container ship sails into port under the Verrazano-Narrows Bridge in the lower bay of New York Harbor on March 25, 2021, in New York City.
    Gary Hershorn | Corbis News | Getty Images

    The Supreme Court ruled Tuesday that New Jersey can unilaterally withdraw from the longstanding Waterfront Commission Compact it has with New York to police corruption in the shipping industry in the major port the two states share.
    All nine of the Supreme Court’s justices voted to dismiss arguments by New York in favor of forcing New Jersey to stay in the compact.

    Justice Brett Kavanaugh wrote the nine-page majority opinion in the case, which is a victory for container shipping companies and the International Longshoreman’s Association, the union that represents dockworkers.
    The ruling, which came after five years of litigation in federal district and appeals courts, hinged on the fact that the Waterfront Commission Compact does not explicitly bar either state from exiting the agreement.
    New Jersey Gov. Phil Murphy in a statement said he was “thrilled” by the unanimous ruling in his state’s favor, and that “New Jersey’s sovereign right to govern our ports has been vindicated.”
    “Since the first hours of our time in office, my Administration has steadfastly pursued the dissolution of the Waterfront Commission because it was the right thing to do,” Murphy said.
    “Over 90 percent of commerce at our ports happens on the New Jersey side, and the New Jersey State Police, one of the finest law enforcement agencies in the nation, is more than capable of taking on the Commission’s law enforcement and regulatory responsibilities.”

    The two-member Waterfront Commission was created in 1953 by New York and New Jersey to address labor corruption in the Port of New York and New Jersey. The entity oversees mandatory employment licensing for waterfront workers and conducts law enforcement probes in the port.
    A year after the commission was created, the Marlon Brando movie “On the Waterfront” depicted the labor-related crime that the commission was set up to combat. The film won eight Academy Awards, including for best picture, best actor and best director.
    New Jersey sought to withdraw from the Waterfront Commission in 2018, arguing that the compact had outlived its usefulness because organized crime no longer controlled hiring on the docks. The state also argued that the compact had throttled hiring on the docks.
    By that time, the vast majority of cargo was being handled by workers on the New Jersey side of the port.
    When the compact began, about 70% of waterfront employees worked on the New York side.
    New York opposed New Jersey’s bid to exit the compact, arguing that would harm efforts to fight crime on the docks.
    New York claimed that the agreement “does not allow either State to unilaterally withdraw,” Kavanaugh noted in his opinion.
    However, Kavanaugh added, while the compact explicitly says that both states must agree on making any amendments or supplements, it “does not address each State’s power to unilaterally withdraw.”
    “It neither expressly allows nor expressly proscribes unilateral withdrawal,” he wrote.
    “That is in contrast to some other interstate companies, which do expressly allow, prohibit or limit unilateral withdrawal,” Kavanaugh wrote.
    Kavanaugh also wrote that “principles of state sovereignty likewise support New Jersey’s position.”
    “Here, the Compact involves the delegation of a fundamental aspect of a State’s sovereign power — its ability to protect the people, property, and economic activity within its borders — to a bistate agency,” he wrote.
    “We draw further guidance from the fact that, as is undisputed, New York and New Jersey never intended for the Compact and Commission to operate forever,” Kavanaugh wrote.
    New York Gov. Kathy Hochul and Attorney General Letitia James said in a statement: “We are disappointed by the Supreme Court’s decision to allow New Jersey to unilaterally withdraw from the Waterfront Commission.”
    “For decades, the Waterfront Commission has been a vital law enforcement agency, protecting essential industries at the port and cracking down on organized crime,” Hochul and James said. “We will continue to do everything in our power to combat corruption and crime, protect the health of our economy, and ensure the safety of New Yorkers.” More

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    Anti-abortion group asks Supreme Court to keep mifepristone restrictions

    Anti-abortion group Alliance Defending Freedom said the Supreme Court should keep restrictions on mifepristone in place as the legal battle over the pill plays out.
    Supreme Court Justice Samuel Alito on Friday temporarily blocked those restrictions until 11:59 p.m. ET on Wednesday.
    Former FDA officials, the pharmaceutical industry, 23 states and hundreds of members of Congress have argued that the lawsuit targeting mifepristone is baseless.

    Anti-abortion demonstrators celebrate outside the United States Supreme Court as the court rules in the Dobbs v Women’s Health Organization abortion case, overturning the landmark Roe v Wade abortion decision in Washington, U.S., June 24, 2022. 
    Evelyn Hockstein | Reuters

    An anti-abortion group on Tuesday asked the Supreme Court to keep restrictions on the abortion pill mifepristone in place while the battle over the medication’s legal status plays out.
    Supreme Court Justice Samuel Alito on Friday temporarily blocked those restrictions until 11:59 p.m. ET on Wednesday in response to an emergency request from the Justice Department and Danco Laboratories, the company that distributes mifepristone.

    The Justice Department and Danco also asked the Supreme Court to review the case on an expedited schedule and make a judgement before its summer recess. The high court, which has a 6-3 conservative majority, could decide at any time how to proceed with the case.
    The group, the Alliance Defending Freedom, asked the Supreme Court, should the justices decide to take the case, to look into whether an 1873 law called the Comstock Act bans mail delivery of mifepristone. The anti-abortion organization also said the court should consider whether the FDA properly approved mifepristone in 2000 if it takes the case.
    Mifepristone, used in combination with a drug called misoprostol, is the most common method to terminate a pregnancy in the U.S., accounting for about half of all abortions. If the lower court rulings against mifepristone ultimately stand, access to abortion could face restrictions even in some states where the procedure remains legal.
    Attorneys with the Alliance Defending Freedom accused the FDA of illegally rolling back restrictions on mifepristone over the years. The organization represents a coalition of doctors who oppose abortion called the Alliance for Hippocratic Medicine.
    Former FDA officials, the pharmaceutical industry, 23 U.S. states, hundreds of members of Congress and leading medical associations all strongly dispute those claims. They say the FDA determined mifepristone was safe and effective based on a rigorous scientific review, and its decision regulating the medication falls well within its authority granted by Congress.

    The former FDA officials and a coalition of drug companies that include Pfizer, in a separate briefs to the Supreme Court, warned that the lower court rulings restricting mifepristone would deliver a severe blow to the FDA’s regulatory powers and chill research, development and investment in new medications.
    Federal Judge Matthew Kacsmaryk of the U.S. Northern District of Texas earlier this month suspended the FDA’s approval of mifepristone and every subsequent action the agency had taken to ease access to the medication.

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    The U.S. 5th Circuit Court of Appeals blocked part of Kacsmaryk’s order and kept the FDA approval in place, but reimposed restrictions on how mifepristone is used and distributed.
    The appeals blocked mail delivery of mifepristone, required patients to visit a doctor to obtain the medication, and shortened the time frame when women can take the drug to the seventh week of pregnancy. They also blocked the 2019 approval of the generic version of mifepristone distributed by another company called GenBioPro.
    Alito hit pause on those lower court decisions and has allowed mifepristone to remain more broadly available for now.
    “Women will still have access to chemical abortion drugs under the same restrictions that existed for the first 16 years of mifepristone’s use,” argued the Alliance Defending Freedom’s attorneys, led by Erik Baptist. “The only effect of the lower court’s order is to restore a modicum of safety for the women and girls who use the drug, including supervision and oversight by a physician.”
    But the Justice Department and Danco, in their emergency requests to the Supreme Court, said the lower court rulings would effectively take mifepristone off the market for months as the FDA adjusts the medication’s labeling to comply with the 5th Circuit’s decision.
    U.S. Solicitor General Elizabeth Prelogar said the litigation and lower court rulings have been “troubling at every level” and would have sweeping consequences for the pharmaceutical industry, women’s health and the FDA’s drug approval powers.
    The government also argued that complying with the appeals court ruling would effectively be in violation of a competing court order by Judge Thomas Rice of the U.S. Eastern District of Washington. Rice has barred the FDA from restricting the availability of mifepristone in 17 states and Washington, D.C. More

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    Boeing CEO stands by plans to increase 737 Max production despite recent flaw

    Boeing’s CEO Dave Calhoun said that a flaw detected in some of its 737 Max planes won’t hinder its plans to increase production.
    The company disclosed a flaw with some of its 737 Max planes last week and said it was likely to delay deliveries.
    The issue was reported just as Boeing was planning to ramp up production.

    A Boeing 737 MAX 8 sits outside the hangar during a media tour of the Boeing 737 MAX at the Boeing plant in Renton, Washington.
    Matt Mcknight | Reuters

    Boeing’s CEO Dave Calhoun said that a flaw detected in some of its 737 Max planes won’t hinder its supply chain plans for increased production of its bestselling jetliner this year.
    On Thursday, Boeing disclosed a problem with two of several brackets in the aft fuselage of some 737 Max planes, including the most popular model, the Max 8, and said it would likely result in reduced deliveries of the planes.

    The company is not changing its schedule with suppliers, including “anticipated rate increases,” Calhoun said at the company’s annual shareholder meeting Tuesday. Boeing is also comfortable holding extra stock of aircraft supplies “so our supply chain can keep its pace,” Calhoun added.
    Shares of Spirit Aerosystems, which makes the fuselages, and Boeing each rose on Calhoun’s comments.
    The latest issue comes as airlines are eager to receive new planes ahead of what’s expected to be a busy summer travel season. Boeing is also planning to increase production of the planes, a goal that has proved challenging as the supply chain recovers from the pandemic.
    Calhoun said Tuesday the company is assessing the impact of the issue on 737 Max deliveries and apologized to customers but didn’t provide more detail. He said the issue doesn’t affect the company’s long-term guidance.
    He said that Max jetliners that aren’t affected by the flaw will continue to be delivered to airlines.

    “We know what we have to do,” he said.
    Boeing is scheduled to report first-quarter results on April 26. More

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    Fewer new cars qualify for $7,500 electric vehicle tax credit. Here are 2 alternatives

    The Inflation Reduction Act, which President Joe Biden signed in August, directed the U.S. Department of the Treasury to write manufacturing rules pertaining to electric vehicle batteries.
    Those rules took effect Tuesday. They temporarily limit the number of EVs that qualify for a $7,500 federal tax credit.
    Twenty-two cars from seven car companies — Cadillac, Chevrolet, Chrysler, Ford, Jeep, Lincoln and Tesla — qualified for at least a partial tax break as of April 18, according to the U.S. Department of Energy.
    Consumers can get separate federal tax breaks by buying a used EV or leasing an electric vehicle, experts said.

    Uwe Krejci | Digitalvision | Getty Images

    The number of new electric vehicles eligible for a $7,500 federal tax credit fell by almost half on Tuesday, as new rules issued by the U.S. Department of the Treasury took effect.
    However, consumers in the market for an electric passenger vehicle can still access a tax break by instead buying a used EV or leasing a vehicle, experts said.

    The Inflation Reduction Act’s EV requirements

    The Inflation Reduction Act, which President Joe Biden signed in August, is the most ambitious climate-spending package in U.S. history.
    Among other measures, the law offered tax incentives to encourage Americans to shift to cleaner cars and trucks that don’t burn fossil fuels.
    It extended an existing nonrefundable tax credit — worth up to $7,500 — through 2032 for consumers who purchase new electric vehicles. But the law also tweaked the eligibility requirements for buyers and automakers.
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    For example, as of Aug. 17, final assembly of the car had to take place in North America.

    The law also directed the Treasury Department to draft two additional rules that apply to the sourcing of car-battery components and critical minerals. Lawmakers’ aim is to encourage carmakers to build batteries using domestic supply chains instead of relying on countries like China for essential parts.
    Those requirements kick in on April 18 and phase in over a few years. Auto and tax experts had expected the number of EVs eligible for the full $7,500 to fall temporarily as automakers ramp up their supply chains.
    Before Tuesday, 41 new vehicles from 14 automakers were eligible for at least a partial tax credit in 2023, according to a list compiled by the U.S. Department of Energy.

    President Joe Biden signs the Inflation Reduction Act of 2022 at the White House on Aug. 16, 2022.
    Mandel Ngan | Afp | Getty Images

    Now, 22 cars from seven car companies — Cadillac, Chevrolet, Chrysler, Ford, Jeep, Lincoln and Tesla — qualify for at least a partial tax break, about half the number of the original list.
    Cars manufactured by Audi, BMW, Genesis, Nissan, Rivian, Volkswagen and Volvo no longer qualify for the time being, according to the Energy Department list.
    Price-conscious consumers who want to buy an electric car or truck and claim a tax break — but don’t see a car they like on the existing list of qualifying new EVs — have other avenues, which come with fewer restrictions.

    A $4,000 tax credit for used EVs

    The Inflation Reduction Act also created a tax credit for consumers who buy used electric or fuel-cell vehicles.
    The tax break for used cars, which took effect this year, is worth $4,000 or 30% of the sale price, whichever is less.
    This “previously owned clean vehicles credit” doesn’t carry any of the manufacturing rules tied to new EVs, making it a potential workaround for consumers who are in the market for an electric vehicle and want to maximize their tax savings.

    Halfpoint Images | Moment | Getty Images

    “If the new vehicle you want isn’t eligible [for the $7,500 credit], you might be able to save some money [by buying a used EV] and get a tax credit,” said Ingrid Malmgren, policy director at Plug In America.
    The used vehicle credit applies to a broad selection of cars, she said. Consumers can consult an IRS list to verify which used vehicles qualify.
    Here are some of the criteria for cars and consumers to qualify for the credit:

    The car must be purchased from a licensed dealer.
    The model year must be at least 2 years old.
    The sale price must be $25,000 or less.
    It’s only available to individuals, not businesses.
    Buyers are ineligible for a credit if their annual income exceeds certain thresholds: $75,000 for singles, $112,500 for heads of household and $150,000 for married couples filing a joint tax return. Buyers assess income for the year in which they acquired the car or the prior year, whichever is less. (Income is measured as “modified adjusted gross income.” You can consult these FAQs to determine how to calculate modified AGI.)

    Those income limits are “much lower” than the one that applies to the $7,500 tax credit for new vehicles, said Katherine Breaks, a managing director in KPMG’s tax credit and energy advisory services group. The income thresholds associated with new cars are double those for used EVs.
    Both the new and used credits are nonrefundable, meaning car buyers need to have a tax liability to get any value from the tax breaks.

    “If I don’t have $4,000 of tax liability, what’s the tax credit worth to me? Not much,” Breaks said of the used vehicle credit.
    Starting in 2024, however, a new mechanism will kick in for new and used cars whereby buyers can transfer their tax credits to dealers — perhaps allowing dealers to turn the tax break into a point-of-sale discount for consumers instead of a benefit that can only be claimed when filing an annual tax return, experts said. The IRS plans to issue additional guidance about this transfer provision.

    A tax break for leased EVs

    Alternatively, consumers also appear poised to get a tax break worth up to $7,500 for leasing new electric passenger vehicles.
    This tax benefit doesn’t carry the manufacturing requirements attached to purchases of new cars, Malmgren said. That means a larger number of vehicles are likely to qualify at first — making the provision somewhat of a loophole for consumers who’d like to lease a car.

    Maskot | Maskot | Getty Images

    “There are very few restrictions that apply,” Malmgren said.
    The Inflation Reduction Act created this “qualified commercial clean vehicles credit” for business owners. Carmakers have affiliate leasing or financing arms that buy electric vehicles for commercial purposes and then lease the cars to consumers, at which point they may pass on the associated tax break, Malmgren said.
    “Most of the manufacturers have been indicating really clearly they’ll pass the whole amount through [to consumers],” Malmgren said of the $7,500. “But you need to check. Because not all of them are passing it on.” More

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    Stocks making the biggest moves midday: Southwest Airlines, Goldman Sachs, Bellus Health and more

    The Lockheed Martin logo is seen on a building in Annapolis Junction, Maryland, on March 11, 2019.
    Jim Watson | AFP | Getty Images

    Check out the companies making headlines in midday trading.
    Lockheed Martin – Shares of the aerospace and defense contractor gained more than 2% on Tuesday after it beat Wall Street’s expectations in the first quarter and reaffirmed its full-year guidance. The company posted earnings of $6.61 per share on revenue of $15.13 billion. Analysts called for earnings of $6.06 per share and revenue of $15.03 billion, according to Refinitiv.

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    PowerSchool Holdings – The educational technology stock added 3.5% after Goldman Sachs upgraded shares to buy from neutral. The firm said the company is a leader in the space and can drive growth through international expansion and cross-selling products.
    Nvidia – The chipmaker saw shares rise more than 3% after HSBC gave them a double upgrade, saying investors aren’t fully pricing in Nvidia’s “incredible AI pricing power” into the stock. The company could extend its 85% year-to-date rally even further, according to HSBC.
    Chubb – Shares climbed 1% after Citi upgraded Chubb to buy from neutral. The Wall Street firm said the property and casualty brokerage is a buying opportunity, given its “incremental strength in reserves.” The firm expects Chubb’s “high-net-worth exposure skew is relatively more insulated from negative inflationary/economic risk.” 
    Microsoft – The tech giant were down slightly with a 0.4% decline in midday trading. Microsoft stock closed about 1% higher on Monday following a weekend report from The New York Times that Samsung phones may move to switch their default search engine to Bing and away from Google.
    Bank of America – The bank stock was about flat even after the firm reported first-quarter earnings and revenue that topped expectations. Its strong results were driven by higher rates as net interest income jumped 25% year over year. CEO Brian Moynihan said he sees a relatively mild recession in the U.S.

    Bank of New York Mellon – The bank’s shares dropped 0.3% after a mixed first-quarter earnings report. While the bank’s earnings came in line with Wall Street’s estimates, its revenue came in below expectations. The company posted $4.36 billion in revenue, compared to the $4.40 billion anticipated by Wall Street, according to Refinitiv.
    Goldman Sachs – Shares slid 1.3% after Goldman Sachs reported first-quarter revenue of $12.22 billion, lower than the $12.79 billion forecasted by analysts polled by Refinitiv. The investment bank also reported a $470 million hit tied to a partial sale of its Marcus loans portfolio.
    Johnson & Johnson – Shares of the health-care products company declined 2.7% despite reporting an earnings and revenue beat for the first quarter. The company reported adjusted earnings of $2.68 per share and revenue of $24.75 billion. Analysts polled by Refinitiv had estimated per-share earnings of $2.50 and $23.67 billion in revenue. The company reported a net loss of $68 million, or 3 cents per share, stemming from its talc-based baby powder troubles and costs from its upcoming spin-off of its consumer health business.
    Southwest Airlines – Shares of the airline fell more than 1% after computer issues on Tuesday led Southwest to ground flights around the country. At least 1,500 flights, or 36% of Southwest’s schedule, were delayed, according to flight-tracking site FlightAware.
    Bellus Health, GSK – Bellus shares roughly doubled after GSK said it would acquire Canada-based biopharmaceutical company Bellus. Bellus’s stock jumped 98%; the U.S.-listed shares of GSK dipped 1.6%. 
    — CNBC’s Brian Evans, Alex Harring, Hakyung Kim, Yun Li, Tanaya Macheel and Pia Singh contributed reporting. More

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    Fed’s Bostic sees one more quarter-point rate hike, then a hold ‘for quite some time’

    Atlanta Federal Reserve President Raphael Bostic said Tuesday that “one more move should be enough for us” on interest rates.
    From there, Bostic told CNBC, he thinks the FOMC can watch and wait as the lags that come with monetary policy work their way through the economy.

    Atlanta Federal Reserve President Raphael Bostic said Tuesday he envisions the central bank approving one more interest rate increase before pausing to see how policy tightening is impacting the economy.
    “One more move should be enough for us to then take a step back and see how our policy is flowing through the economy, to understand the extent to which inflation is returning back to our target,” Bostic said during a live interview on CNBC’s “Squawk on the Street.”

    That 0.25 percentage point increase likely will come at the rate-setting Federal Open Market Committee’s May 2-3 meeting.
    If a majority of the committee has the same view as Bostic, who is a nonvoting member this year, that would take the federal funds rate to a target range of 5%-5.25%, the highest since August 2007.
    From there, Bostic said he thinks the FOMC can watch as the lags that come with monetary policy work their way through inflation, employment and the broader U.S. economic picture.
    “If the data come in as I expect, we will be able to hold there for quite some time,” he said. “Once we get to that point, I don’t have us really doing anything but monitoring the economy for the rest of this year and into 2024.”
    Markets, however, disagree that the Fed will be in a hold posture.

    Current pricing indicates an 87% chance of a quarter-point hike next month, a pause for a few months, then a half percentage point cut by the end of 2023 as the economy slows, according to CME Group estimates. Bostic said inflation is still running too strong to consider cuts.
    “Part of this is really about … inflation’s returning back to our 2% target. I don’t think that’s going to happen as quickly as some of the markets do. And it seems that the question is who’s right on this?” he said. “I don’t see it coming down below maybe 3½. And 3½ is still well above our 2% target.”
    He also noted that he does not foresee the economy tilting into recession, even though Fed economists warned at the March FOMC meeting that a mild contraction is likely later in the year.
    Bostic added that tight monetary policy is likely to persist despite the recent troubles in the banking industry that are forecast to trigger the recession.
    He described the state of banking in his district as “stable,” though he noted that “you never know when the next shoe might drop,” adding that the Fed will remain vigilant “to make sure that we’re ready.” More