Finance Monthly - May 2022

9 Finance Monthly. The Mon t h l y Round -Up Federal Reserve Chairman Jerome Powell has said that bringing down inflation is “absolutely essential” and that aggressive rate hikes may occur as soon as May. Powell’s statements meet market expectations that the Federal Reserve will move away from its usual 25 basis point hikes and instead work quickly to tame inflation that is at its highest rate in over four decades. In its March meeting, the Federal Reserve approved a 25 basis point move, though, in recent days, officials have stated that faster action is necessary, with consumer inflation running at an annual pace of 8.5%. “Our goal is to use our tools to get demand and supply back in synch so that inflation moves down and does so without a slowdown that amounts to a recession,” Powell commented. “I don’t think you’ll hear anyone at the Fed say that that’s going to be straightforward or easy. It’s going to be very challenging. We’re going to do our best to accomplish that.” “It’s absolutely essential to restore price stability […] Economies don’t work without price stability. Jerome Powell Says Taming Inflation is “Absolutely Essential” Netflix lost a substantial number of subscribers for the first time in 10 years at the beginning of the year and expects to lose even more in the spring. The news sent the streaming giant’s share price tumbling again. Netflix Shares Plummet as Subscriptions Drop Amid Cost of Living Crisis Netflix’s share price initially dropped close to 20% on the news that it had lost 200,000 subscribers globally during the first quarter. Wall Street had predicted the company would gain 2.5 million subscribers over the period. In the current quarter, Netflix believes it will lose 2 million global subscribers. Netflix has blamed its sudden drop in subscribers on a range of factors, including increased competition, the cost of living crisis which is leaving households with less disposable income, and the ongoing conflict in Ukraine. In a statement to investors, the streaming giant said: “Streaming is winning over linear, as we predicted, and Netflix titles are very popular globally. However, our relatively high household penetration – when including the large number of households sharing accounts – combined with competition, is creating revenue growth headwinds.”

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