Overview of What’s News
In this PM edition of What’s News, The Wall Street Journal covers hotter-than-expected inflation and growing expectations of a Federal Reserve rate hike, why beef prices may stay high, and the investigations companies expect from congressional Democrats. The episode also touches on markets, energy emissions, national security and congressional leadership.
Inflation Raises Rate Hike Expectations
Consumer prices rose 0.4% in October, and prices increased at a 5.7% annualized pace over the past three months—well above the Fed’s 2% target. WSJ economics reporter Matt Grossman said the breadth of price increases made the report concerning: gasoline rose only modestly, while televisions, phones and electronic components also became more expensive.
With inflation still elevated and the jobs report strong, investors and economists are watching for a rate increase at the Fed’s December meeting. Dallas Fed President Lori Logan said the Fed may need to move faster; a half-point increase would be larger than the quarter-point move many expect. The report pushed Treasury yields higher, with the 10-year briefly reaching 5%, while stocks fell. The Nasdaq lost 0.7%, and Nvidia shares dropped 5.5%.
Why Beef Prices May Stay High
Beef prices have reached records as strong demand meets a shrinking U.S. cattle herd. Ranchers cut herds after financial strain from the pandemic and the 2022 drought, and rebuilding takes time. Meatpackers have also closed plants, adding pressure to supply.
The administration has looked at expanding smaller processors and increasing beef and cattle imports, including from Brazil and Argentina. Those proposals have drawn concern from ranchers. So far, higher prices have done little to change consumer habits: beef demand remains relatively resilient, with many people unwilling to replace it with chicken every night.
Business and Market News
Anthropic is moving ahead with a planned IPO and is seeking a valuation of about $1.3 trillion, according to the episode. Its seven founders reportedly plan to sell about $250 million each while retaining stakes valued at roughly $18 billion apiece. The company is meeting with prospective investors, with trading expected to begin the following week.
Energy, Security and Congress
- Emissions: A group of climate scientists expects global fossil-fuel emissions to fall 0.4% this year, to about 38 billion metric tons. The episode links the decline partly to countries’ growing use of renewable energy, even as the Iran war has raised energy costs.
- UK arrest: British police arrested a senior U.S. Army member on suspicion of spying for Russia. Authorities said the arrest followed collaboration with U.S. officials.
- Hegseth impeachment effort: Defense Secretary Pete Hegseth defended himself against impeachment allegations brought forward by Representative Thomas Massie. The allegations include unlawfully starting the Iran war and ordering strikes on suspected drug boats that lawmakers say may violate the laws of war.
- Republican leadership: House Republicans chose Ohio Representative Jim Jordan to lead them in the next Congress, defeating current Majority Leader Steve Scalise. In the Senate, John Thune won another term as majority leader.
Democrats Prepare Corporate Investigations
Democratic-led congressional committees have begun notifying companies that they may be asked to provide records when the new Congress convenes. Reported areas of interest include corporate support for Trump administration projects, sponsorships and potential effects on consumers. Companies named in the episode include Apple, Amazon, Walmart and Toyota, alongside banks under scrutiny from the Senate Banking Committee.
Companies are preparing by hiring or consulting law firms with congressional investigation expertise, assessing possible exposure, interviewing employees and, in some cases, simulating how they might respond to investigations. Democrats are moving early, in part because they expect a limited window to pursue their agenda.