Business Update – March 15, 2023

Welcome back to our Weekly Digest. Read on for the latest updates and some ideas to help us all move forward.

President Biden assures Americans that the banking system is safe amid Silicon Valley Bank collapse

President Biden reassured Americans that their deposits in the banking system are safe and that his administration will take action to contain Silicon Valley Bank’s collapse. He explained how his administration will protect small businesses and workers affected by the bank’s shutdown.

Crypto surges despite the closure of Signature Bank and regulatory pressure on the industry

Cryptocurrencies experienced a surge in value on Monday despite the announcement of the closure of Signature Bank, the last major crypto bank in the US. This move has sparked concerns among crypto investors and entrepreneurs that regulators are putting pressure on banks to shut down their businesses.

Mortgage rates hit a new low, signaling a potential comeback for homebuyers

The 30-year fixed mortgage rate decreased to 6.57% on Monday – potentially encouraging buyers to return to the market. According to Matthew Graham, COO of Mortgage News Daily, a shift in consumer behavior due to the current banking crisis could positively impact rates, which are currently driven by inflation.

California appeals court upholds Proposition 22, allowing Uber and Lyft drivers to remain independent contractors.

An appeals court in California has overturned a previous ruling that deemed Proposition 22 unconstitutional, which would allow ride-sharing apps like Uber and Lyft to continue classifying their drivers as independent contractors.

The political blame game begins following SVB’s spectacular collapse

The collapse of Silicon Valley Bank has become a political issue, with both Republicans and Democrats using it to promote their economic messages in the run-up to the 2024 elections. While the fallout from the bank’s failure seems limited, both parties are wary of a potential backlash against any perceived bailouts.

Investors anticipate slight cooling in February inflation report, with 6% annual gain projected.

Investors will be closely monitoring the February inflation report, which is expected to show consumer prices cooled slightly last month. Headline inflation is forecast to rise 6% over the prior year, a slowdown from January’s 6.4% annual gain is expected.

Danny Werfel Sworn in as the 50th Commissioner of the IRS

Werfel previously served as Acting Commissioner in 2013 and has over 15 years of federal government experience. He expressed gratitude for the opportunity to lead dedicated public servants at a critical moment in IRS history.

Pfizer is ready to take on cancer with Seagen acquisition

Watch Pfizer CEO Albert Bourla discuss the Seagen acquisition, cancer treatments, and profit growth in an interview with Yahoo Finance Live’s Julie Hyman.

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