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Gmail - What I Read This Week

Chamath Palihapitiya discusses recent significant economic developments, including the Federal Reserve's first rate cut since 2020 by 50 basis points to support economic growth amid rising consumer financial stress. He highlights consumer uncertainty, with many Americans feeling pessimistic about their financial futures due to rising costs and job security concerns. Additionally, Microsoft has made a landmark agreement to purchase power from the reopened Three Mile Island nuclear plant, marking a significant move towards zero-emissions electricity for its operations.

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13 views5 pages

Gmail - What I Read This Week

Chamath Palihapitiya discusses recent significant economic developments, including the Federal Reserve's first rate cut since 2020 by 50 basis points to support economic growth amid rising consumer financial stress. He highlights consumer uncertainty, with many Americans feeling pessimistic about their financial futures due to rising costs and job security concerns. Additionally, Microsoft has made a landmark agreement to purchase power from the reopened Three Mile Island nuclear plant, marking a significant move towards zero-emissions electricity for its operations.

Uploaded by

Adriano Dsa
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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What I Read This Week…

1 message

Chamath Palihapitiya <[email protected]> Mon, Sep 23, 2024 at 5:17 AM


Reply-to: Chamath Palihapitiya
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What I Read This Week…


The Fed cut rates by 50 basis points, recent data show uncertainty
and financial stress among consumers, and Microsoft has agreed to
purchase all the power from a reopened nuclear plant
CHAMATH PALIHAPITIYA
SEP 23

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Caught My Eye…

The Federal Reserve has lowered interest rates for the first time since
2020, cutting the federal funds rate by 50 basis points. This move brings
the federal funds rate to a target range of 4.75% to 5%. Looking ahead,
the Fed has signaled two more 25 basis point cuts in 2024, followed by
further reductions of 100 basis points in 2025 and 50 basis points in
2026. The decision was driven by the Fed's increased confidence that
inflation is approaching its 2% target. By reducing rates, the Fed aims to
support economic growth while maintaining price stability, balancing its
dual mandate of maximum employment and stable prices.

Recent data show increasing uncertainty and financial stress among


American consumers. About one-third of consumers in a recent
University of Michigan survey indicated they do not expect their real
income to increase in the next five years. The same survey found that
people feel less likely that they will retire comfortably compared to five
years ago. Since 2019, the Consumer Price Index (CPI) has risen by over
20%, leading to a higher cost of living for households. Combined with
higher borrowing costs and greater concerns about job security and
stable employment, these factors have collectively reduced Americans'
optimism about their financial situations.

Microsoft has agreed to purchase all the power from a reopened Three
Mile Island nuclear plant for 20 years, aiming to secure zero-emissions
electricity to power its AI operations. The plant, which shut down in
2019, is set to reopen by 2028 at an estimated cost of $1.6 billion,
relying partly on tax breaks provided by the 2022 Inflation Reduction Act.
Once operational, the facility will generate 835 megawatts of power for
Microsoft, enough to supply 800,000 homes. This arrangement is
unprecedented in two ways. First, no U.S. nuclear plant has ever
resumed operations after being decommissioned, and second, never
before has a single commercial customer claimed all of a nuclear plant's
output. The deal still requires approval from regulators, including safety
inspections from the Nuclear Regulatory Commission.

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Other Reading…

Newsom Signs California Bill to Limit ‘Addictive’ Social Media Feeds for
Kids (LA Times)

Perplexity in Talks with Top Brands on Ads Model (Financial Times)

Amazon's Silent Sacking (Justin Garrison)

Zoom to Cut Back on Stock-Based Compensation, Joining Salesforce,


Workday (Bloomberg)

Here’s What Goes on Inside A Data Center in the Industry’s Largest Hub
(Washington Post)

Biden Administration to Prepare Ban on Chinese Car Software


(Bloomberg)

Meta has a Major Opportunity to Win the AI Hardware Race (The Verge)

War in the Age of AI Demands New Weaponry (Financial Times)

On X…
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© 2024 Chamath Palihapitiya
Menlo Park, CA
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