The daily business briefing: July 28, 2022
The Fed aggressively raises interest rates again, JetBlue reaches deal to buy Spirit Airlines after Frontier bid collapses, and more
![A hiring sign in Los Angeles](https://cdn.mos.cms.futurecdn.net/Aw2wsPCzbzrJYmcLjQiVP7-415-80.jpg)
- 1. Fed announces another big interest-rate hike to fight inflation
- 2. JetBlue reaches deal to acquire Spirit Airlines
- 3. Hulu, facing complaints from Democrats, says it will accept political ads
- 4. Stock futures retreat after a big post-Fed rally
- 5. One America News loses access to last major TV provider
1. Fed announces another big interest-rate hike to fight inflation
The Federal Reserve announced Wednesday that it would raise interest rates by three-quarters of a percentage point for the second straight month as it continues to aggressively fight the highest inflation in four decades. The 12-member Federal Open Market Committee unanimously approved the unusually large increase, and signaled in a statement issued after its two-day meeting that it expected to make "ongoing increases." The central bank's statement noted that "spending and production have softened" since June's three-quarter-point rate hike, but that strong job gains have continued and prices have continued to rise, "reflecting supply and demand imbalances related to the pandemic, higher food and energy prices, and broader price pressures."
2. JetBlue reaches deal to acquire Spirit Airlines
JetBlue Airways on Thursday agreed to buy Spirit Airlines for $3.8 billion shortly after Spirit scrapped its proposed merger with Frontier Airlines. Spirit on Wednesday called off the Frontier deal moments before it was set to announce the results of a shareholder vote on it. The discount carrier delayed the vote several times, hoping to get shareholders to support it over JetBlue's more lucrative proposal. Based on Wednesday's closing stock price, Frontier's cash-and-stock deal was worth $2.8 billion. JetBlue's acquisition of Spirit would create the nation's fifth largest airline, making it better able to compete with bigger rivals American, Delta, Southwest, and United. The deal could face challenges from antitrust regulators.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
![https://cdn.mos.cms.futurecdn.net/flexiimages/jacafc5zvs1692883516.jpg](https://cdn.mos.cms.futurecdn.net/flexiimages/jacafc5zvs1692883516-320-80.jpg)
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. Hulu, facing complaints from Democrats, says it will accept political ads
The Disney-backed Hulu streaming service said Wednesday it will start accepting political ads, reversing a policy that had angered Democrats after Hulu rejected two of its ads on abortion and guns this month. Hulu will now apply the standards Disney uses for its sports and entertainment cable networks. Hulu said the decision to bring its policy in line with Disney's other networks and the streaming service ESPN Plus came "after a thorough review." "Hulu will now accept candidate and issue advertisements covering a wide spectrum of policy positions, but reserves the right to request edits" or other changes, "in alignment with industry standards," the statement said. Mosaic Communications, a Democratic advertising firm, had announced a day earlier it would stop buying candidate ads with Hulu until it changed the policy.
4. Stock futures retreat after a big post-Fed rally
U.S. stock futures fell early Thursday after Wednesday's rally, which came after the Federal Reserve announced another unusually large three-quarter-point interest rate hike to fight inflation. Futures tied to the Dow Jones Industrial Average and the S&P 500 were down 0.2 percent and 0.3 percent, respectively, at 6:30 a.m. ET. Nasdaq futures were down 0.6 percent. The Dow and the S&P gained 1.4 percent and 2.6 percent, respectively, on Wednesday, while the tech-heavy Nasdaq shot up by 4.1 percent. DoubleLine Capital's CEO Jeffrey Gundlach told CNBC's Closing Bell Overtime the surge showed increased market confidence in the Fed's effort to contain inflation. Meta shares fell 3 percent overnight after the Facebook parent reported disappointing quarterly results.
5. One America News loses access to last major TV provider
One America News' future is in doubt after major carriers decided to drop the conservative cable network, which promoted bogus information about the 2020 election. Verizon will stop carrying OAN on its Fios television service, which has 3.5 million subscribers, starting Saturday. AT&T's DirecTV, which has about 15 million subscribers, dropped OAN in April. OAN will soon be available to just a few hundred thousand subscribers on smaller providers, said Scott Robson, a senior research analyst at S&P Global Market Intelligence. OAN also sells its programming directly through its OAN Live and KlowdTV streaming platforms, but they generate far less revenue than major providers. "I really think this is the death blow for the network," Robson said.
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.
-
The lab-made meat that 'could kill the EU'
Under The Radar Concerned at 'unintended consequences for farming' some farmers are 'turning rabid' over the rise of cultured meat
By Chas Newkey-Burden, The Week UK Published
-
Magazine solutions - August 2, 2024
Puzzles and Quizzes Issue - August 2, 2024
By The Week Staff Published
-
Magazine printables - August 2, 2024
Puzzles and Quizzes Issue - August 2, 2024
By The Week Staff Published
-
It's not your imagination — restaurant reservations are becoming harder to get
In the Spotlight Bots, scalpers and even credit card companies are making reservations a rare commodity
By Justin Klawans, The Week US Published
-
A massive copper shortage is on the horizon
Under the Radar It is estimated that mines will only meet 80% of copper needs by 2030
By Justin Klawans, The Week US Published
-
Epoch Times CFO charged with money laundering
Speed Read Weidong "Bill" Guan stands accused of laundering $67 million
By Peter Weber, The Week US Published
-
FDIC chair out after toxic work culture report
Speed Read The report revealed a trend of sexual harassment and discrimination at the Federal Deposit Insurance Corporation
By Peter Weber, The Week US Published
-
How did Starbucks 'fall from grace'?
The Explainer The coffee giant faces lower quarterly sales. Is it the economy, or have the drinks grown stale?
By Joel Mathis, The Week US Published
-
How Wall Street and Endless Shrimp may have killed Red Lobster
Under the Radar The company's shrimp deal may have worked a little too well
By Justin Klawans, The Week US Published
-
Downtown St. Louis is in a real estate 'doom loop'
Under the Radar The city is rife with abandoned buildings and vacant lots, with its real estate market in dire straits
By Justin Klawans, The Week US Published
-
How will the FTC's ban on noncompete agreements affect the workforce?
The explainer Short answer: Competition will only get fiercer
By Devika Rao, The Week US Published