The daily business briefing: November 23, 2021
Biden says he's nominating Fed Chair Jerome Powell for a second term, federal contractors' minimum wage rises to $15 an hour, and more
- 1. Biden nominates Fed Chair Jerome Powell for second term
- 2. Federal contractors' minimum wage rises to $15 an hour
- 3. Elizabeth Holmes testifies that studies indicated Theranos devices had promise
- 4. Stock futures mixed after Monday's tech rout
- 5. Retailers start Black Friday sales early to counter supply, staffing problems
1. Biden nominates Fed Chair Jerome Powell for second term
President Biden said Monday that he is nominating Federal Reserve Chair Jerome Powell to serve a second term. The choice of Powell sent a message of continuity at the central bank that pleased investors. "Put directly: At this moment both of enormous potential and enormous uncertainty for our economy, we need stability and independence at the Federal Reserve. Jay has proven the independence that I value in a Fed chair," Biden said at the White House on Monday. The decision upset many progressives who wanted someone who would be tougher on bank regulations and climate change and had lobbied for Biden to pick Fed Governor Lael Brainard. Biden said he would nominate Brainard to be vice-chair of the Fed's board of governors.
2. Federal contractors' minimum wage rises to $15 an hour
The Labor Department on Monday released a new rule that will require federal contractors to raise the minimum wage to $15 an hour for more than 300,000 maintenance, security, and child care workers. President Biden directed the department to raise the workers' pay level in an April executive order. The wage hike will be tied to inflation, so it will rise in the following years along with consumer prices. The new pay floor applies to all federal contracts starting Jan. 30 or later. "Federal contract workers are essential workers," Labor Secretary Marty Walsh said in a call with reporters. "The people who we're going to be covering clean and maintain federal buildings. They provide child care for kids, they repair roads and bridges all across this country."
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
3. Elizabeth Holmes testifies that studies indicated Theranos devices had promise
Theranos founder Elizabeth Holmes testified for a second day in her fraud trial on Monday, pushing back against allegations that she lied about the company's work with drug companies on its blood-testing technology. Holmes said she based her enthusiasm and predictions of her Silicon Valley startup's success on positive studies conducted with several major pharmaceutical companies from 2008 to 2010 showing encouraging results from the third generation of a Theranos device known as the Edison. "We thought this was a really big idea," Holmes said. Theranos sought to revolutionize medical tests by offering machines that scanned for multiple maladies using a few drops of a patient's blood.
The New York Times The Associated Press
4. Stock futures mixed after Monday's tech rout
U.S. stock futures were mixed early Tuesday following Monday's tech sell-off. Futures tied to the Dow Jones Industrial Average were up by about 0.1 percent several hours before the opening bell. Futures for the S&P 500 were flat, and those of the tech-heavy Nasdaq were down by 0.2 percent. The S&P 500 and Nasdaq Composite fell on Monday by 0.3 percent and 1.3 percent, respectively, as tech and other growth stocks dropped due to a spike in bond yields. Stocks initially rose after the announcement that President Biden was nominating Federal Reserve Chair Jerome Powell for a second four-year term, which investors took as a sign the Fed would stay the course as it boosts the economic recovery through the pandemic and fights inflation.
5. Retailers start Black Friday sales early to counter supply, staffing problems
Major retailers are spreading out "Black Friday," offering discounts through November to soften the blow from supply-chain disruptions and a shortage of workers. Walmart said Monday it had already started offering price cuts that typically hit on the day after Thanksgiving. The world's largest retailer, which said it would close stores on Thanksgiving for the second straight year, said its discounts included $30 off AirPods and KidKraft dollhouses. Rival big-box retailer Target on Sunday started offering 30 percent off Samsung and TCL flat-screen TVs, and 50 percent off headphones. Target said Monday it would close its stores on Thanksgiving from now on. In-store shopping on Black Friday has been dropping in recent years, with the day's online sales surpassing brick-and-mortar sales in 2019.
Create an account with the same email registered to your subscription to unlock access.
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
Harold Maass is a contributing editor at The Week. He has been writing for The Week since the 2001 debut of the U.S. print edition and served as editor of TheWeek.com when it launched in 2008. Harold started his career as a newspaper reporter in South Florida and Haiti. He has previously worked for a variety of news outlets, including The Miami Herald, ABC News and Fox News, and for several years wrote a daily roundup of financial news for The Week and Yahoo Finance.
-
Duchess of Gloucester: the hard-working royal you've never heard of
Under The Radar Outer royal 'never expected' to do duties but has stepped up to the plate
By Chas Newkey-Burden, The Week UK Published
-
Are 'judge shopping' rules a blow to Republicans?
Today's Big Question How the abortion pill case got to the Supreme Court
By Joel Mathis, The Week US Published
-
Climate change is driving Indian women to choose sterilization
under the radar Faced with losing their jobs, they are making a life-altering decision
By Theara Coleman, The Week US Published
-
Visa and Mastercard agree to lower swipe fees
Speed Read The companies will cap the fees they charge businesses when customers use their credit cards
By Peter Weber, The Week US Published
-
Reddit IPO values social media site at $6.4 billion
Speed Read The company makes its public debut on the New York Stock Exchange
By Peter Weber, The Week US Published
-
Disney is engaged in a proxy battle against activist investors
Under the Radar Members of the Disney family are backing the company's leadership in the fight
By Justin Klawans, The Week US Published
-
Chinese electric cars may be coming to spy on you
Talking Points The Biden administration investigates Chinese electric cars as a potential economic and national security threat
By Harold Maass, The Week US Published
-
Wendy's dynamic pricing change could upend the fast food industry
Under the Radar But the fast food chain will not be implementing the change in the typical manner
By Justin Klawans, The Week US Published
-
4-day workweek gets boost from UK study
Speed Read Following a six-month trial, the majority of participating British companies are still using the truncated schedule
By Peter Weber, The Week US Published
-
Boeing's problems have become an opportunity for China's plane manufacturer
Under the Radar COMAC is looking to pass both Boeing and Airbus in the international market
By Justin Klawans, The Week US Published
-
Nvidia sees historic stock rise on AI chips success
Speed Read U.S. chipmaker Nvidia achieved the biggest one-day increase in value of any company in history
By Peter Weber, The Week US Published