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Fed holds rates steady, flags rising risks of inflation and unemployment

Fed holds rates steady, flags rising risks of inflation and unemployment
The Fed said it would continue to shrink its balance sheet at the reduced pace announced at the March meeting. The monthly cap on the amount of Treasury securities that can mature without being reinvested held at billion, while the cap for mortgage-backed securities was also unchanged at billion.
Economists say it will take time for the full effect of the new tariffs to work through the economy. So far, the impact has mainly included a sharp decline in sentiment and a surge in imports. The US economy contracted at the start of the year for the first time since 2022, but a gauge of underlying demand stayed firm.But the president has since insisted that he does not intend to fire Powell.The central bank announced Tuesday that Kansas City Fed President Jeff Schmid would miss the May meeting due to the recent death of his wife. Kansas City was represented by First Vice President Kim Robbins. Schmid’s vote passed to alternate member Neel Kashkari, president of the Minneapolis Fed.“Although swings in net exports have affected the data, recent indicators suggest that economic activity has continued to expand at a solid pace,” the statement said.Officials voted unanimously to keep the benchmark federal funds rate in a range of 4.25 per cent to 4.5 per cent, where it has been since December.More stories like this are available on bloomberg.comRecession concerns have grown, and some businesses have reported pausing investment decisions given the uncertainty. Still, the labor market remains resilient, with employers adding 177,000 jobs in April. Fed officials described labor market conditions as “solid,” according to the statement.President Donald Trump‘s trade policy has unleashed a wave of uncertainty across the economy. While the levies are still being negotiated, economists widely expect the expansive tariffs to boost inflation and weigh on growth. That would pit policymakers’ two goals – price stability and maximum employment – against one another.

Economic picture

With unemployment still low and demand steady, Fed officials have said they are comfortable keeping rates unchanged until they have a better understanding of where the economy is headed. Trump, however, has repeatedly said the central bank should lower borrowing costs.Trump, meanwhile, has ramped up his criticism of Powell in recent weeks. At one point, Trump said in a social media post that “Powell’s termination cannot come fast enough!” Federal Reserve officials held interest rates steady for a third-straight meeting and emphasised they see a growing risk of both higher inflation and rising unemployment.Companies scrambled in the first quarter to import merchandise ahead of the tariffs, and a surge in consumer spending in March suggested households also sought to frontload purchases. Key inflation gauges cooled in the month.Chair Jerome Powell will hold a press conference with reporters at 2:30 p.m. in Washington.Powell and his colleagues are determined to keep tariffs from sparking a persistent rise in inflation, and several officials have signaled they would not support lowering interest rates preemptively to protect against a slowing economy.The S&P 500 index of US stocks and Treasury yields fell following the announcement, while the dollar pared gains.“Uncertainty about the economic outlook has increased further,” the Federal Open Market Committee said in a statement Wednesday at the conclusion of a two-day meeting in Washington. “The committee is attentive to the risks to both sides of its dual mandate and judges that the risks of higher unemployment and higher inflation have risen.”US Federal Reserve Chair Jerome Powell

Published on May 8, 2025

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Fed holds rates steady, flags rising risks of inflation and unemployment

Fed holds rates steady, flags rising risks of inflation and unemployment
Federal Reserve officials held interest rates steady for a third-straight meeting and emphasised they see a growing risk of both higher inflation and rising unemployment.
Published on May 8, 2025 With unemployment still low and demand steady, Fed officials have said they are comfortable keeping rates unchanged until they have a better understanding of where the economy is headed. Trump, however, has repeatedly said the central bank should lower borrowing costs.Recession concerns have grown, and some businesses have reported pausing investment decisions given the uncertainty. Still, the labor market remains resilient, with employers adding 177,000 jobs in April. Fed officials described labor market conditions as “solid,” according to the statement.Powell and his colleagues are determined to keep tariffs from sparking a persistent rise in inflation, and several officials have signaled they would not support lowering interest rates preemptively to protect against a slowing economy.Chair Jerome Powell will hold a press conference with reporters at 2:30 p.m. in Washington.More stories like this are available on bloomberg.com“Uncertainty about the economic outlook has increased further,” the Federal Open Market Committee said in a statement Wednesday at the conclusion of a two-day meeting in Washington. “The committee is attentive to the risks to both sides of its dual mandate and judges that the risks of higher unemployment and higher inflation have risen.”The Fed said it would continue to shrink its balance sheet at the reduced pace announced at the March meeting. The monthly cap on the amount of Treasury securities that can mature without being reinvested held at billion, while the cap for mortgage-backed securities was also unchanged at billion.

Economic picture

The central bank announced Tuesday that Kansas City Fed President Jeff Schmid would miss the May meeting due to the recent death of his wife. Kansas City was represented by First Vice President Kim Robbins. Schmid’s vote passed to alternate member Neel Kashkari, president of the Minneapolis Fed.“Although swings in net exports have affected the data, recent indicators suggest that economic activity has continued to expand at a solid pace,” the statement said.President Donald Trump‘s trade policy has unleashed a wave of uncertainty across the economy. While the levies are still being negotiated, economists widely expect the expansive tariffs to boost inflation and weigh on growth. That would pit policymakers’ two goals – price stability and maximum employment – against one another.Trump, meanwhile, has ramped up his criticism of Powell in recent weeks. At one point, Trump said in a social media post that “Powell’s termination cannot come fast enough!” Companies scrambled in the first quarter to import merchandise ahead of the tariffs, and a surge in consumer spending in March suggested households also sought to frontload purchases. Key inflation gauges cooled in the month.Officials voted unanimously to keep the benchmark federal funds rate in a range of 4.25 per cent to 4.5 per cent, where it has been since December.US Federal Reserve Chair Jerome Powell

Economists say it will take time for the full effect of the new tariffs to work through the economy. So far, the impact has mainly included a sharp decline in sentiment and a surge in imports. The US economy contracted at the start of the year for the first time since 2022, but a gauge of underlying demand stayed firm.The S&P 500 index of US stocks and Treasury yields fell following the announcement, while the dollar pared gains.But the president has since insisted that he does not intend to fire Powell.

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Wipro announces Innovation Network; launches new 60,000 sq. ft. Innovation Lab in Bengaluru

Wipro announces Innovation Network; launches new 60,000 sq. ft. Innovation Lab in Bengaluru
“At Wipro, we believe that collaboration fuels innovation,” said Srini Pallia, CEO and Managing Director, Wipro Ltd. “The Wipro Innovation Network is a catalyst for AI-powered co-innovation. By bringing together our global clients, partners, academia, and tech communities, we aim to accelerate innovation that solves real-world challenges, unlocks bold new possibilities, and drives competitive edge for our clients.”
Wipro’s Innovation Labs, located globally, are designed to deliver immersive experiences that showcase industry solutions and explore the future of technology. These Labs are collaborative environments where clients can engage with its experts, often through immersive workshops, to identify and co-create use cases. They can also experience a range of advanced solutions, including agentic systems for software engineering, Smart Factories powered by embodied AI, the Cloud Car, Inspect AI, Wealth AI, Earnings AI, and quantum computing applications for drug discovery, among others.

Wipro Innovation Network

Wipro has announced the launch of its global Wipro Innovation Network designed to accelerate strategic, client-centric co-innovation. The network will leverage frontier technologies ranging from AI to Quantum Computing. The company also announced the opening of its newest 60,000 sq. ft. Innovation Lab at its Kodathi campus in Bengaluru.Published on May 29, 2025 The network will leverage frontier technologies ranging from AI to Quantum Computing

The Wipro Innovation Network is said to focus on five strategic frontier technology themes: Agentic AI, robotics with embodied AI, quantum computing, digital ledger technology, and quantum-safe cyber resilience.It will bring together Wipro’s innovation ecosystem, including the Innovation Labs, the Partner Labs, Wipro Ventures, its crowdsourcing platform Topcoder, alliances with leading academic and research institutions, and its deep technology talent to create an ongoing loop of ideation, research and innovation.Companies to follow

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Wipro announces Innovation Network; launches new 60,000 sq. ft. Innovation Lab in Bengaluru

Wipro announces Innovation Network; launches new 60,000 sq. ft. Innovation Lab in Bengaluru
“The Wipro Innovation Network reflects our commitment to client-centric co-innovation,” said Sandhya Arun, Chief Technology Officer, Wipro Ltd. “The Wipro Innovation Network and our Innovation Labs offer our clients direct access to our global repertoire of innovations that inspire new ideas. Our teams of technologists, scientists, designers, and domain experts are always eager to collaborate with clients to imagine, envision, and rapidly prototype solutions, that can be scaled with measurable business impact.”
Wipro’s Innovation Labs, located globally, are designed to deliver immersive experiences that showcase industry solutions and explore the future of technology. These Labs are collaborative environments where clients can engage with its experts, often through immersive workshops, to identify and co-create use cases. Wipro has announced the launch of its global Wipro Innovation Network designed to accelerate strategic, client-centric co-innovation. The network will leverage frontier technologies ranging from AI to Quantum Computing. The company also announced the opening of its newest 60,000 sq. ft. Innovation Lab at its Kodathi campus in Bengaluru.

Wipro Innovation Network

“At Wipro, we believe that collaboration fuels innovation,” said Srini Pallia, CEO and Managing Director, Wipro Ltd. “The Wipro Innovation Network is a catalyst for AI-powered co-innovation. By bringing together our global clients, partners, academia, and tech communities, we aim to accelerate innovation that solves real-world challenges, unlocks bold new possibilities, and drives competitive edge for our clients.”They can also experience a range of advanced solutions, including agentic systems for software engineering, Smart Factories powered by embodied AI, the Cloud Car, Inspect AI, Wealth AI, Earnings AI, and quantum computing applications for drug discovery, among others. Published on May 29, 2025 Companies to followThe network will leverage frontier technologies ranging from AI to Quantum Computing

The Wipro Innovation Network is said to focus on five strategic frontier technology themes: Agentic AI, robotics with embodied AI, quantum computing, digital ledger technology, and quantum-safe cyber resilience.

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Israel confirms use of laser weapons to defend against drone attacks

Israel confirms use of laser weapons to defend against drone attacks
The ministry did not provide specifics about when the systems were tested or data about interception rates. Defense Minister Israel Katz praised the futuristic weapon, saying its adoption was poised to “change the rules of the game in the region.” 
The announcement suggests that Israel may soon pull ahead of other countries in the race for laser weapons. Nations have pursued the technology for decades, but efforts to scale lasers have been complicated by significant technical difficulties. Published on May 28, 2025 Israel’s air defenses have faced over 26,000 aerial attacks from missiles, drones and rockets since Oct. 2023. Most of the projectiles, which were fired from Gaza, Lebanon, Syria, Iran, Iraq and Yemen, were intercepted by the Iron Dome and long-range Arrow shield systems. Many drones, however, penetrated its defenses.According to the Israeli Defence Ministry, footage shows lasers successfully shooting down drones. Defense Minister Israel Katz called the weapon a regional “game-changer.” 

The larger Iron Beam laser, developed by Rafael Advanced Defense Systems and Elbit Systems Ltd., will be integrated into Israel’s multi-level air defenses in the next six months. The technology has been touted as a cheaper way to repel drones and short-range projectiles, with each interception costing less than . The system, however, still has numerous technical limitations and can’t work in cloudy weather.More stories like this are available on bloomberg.comIsrael has deployed laser weapons during its ongoing war to deflect “scores” of aerial attacks, including from drones, the Defence Ministry said in a statement on Wednesday. This is the first time the country has acknowledged the use of directed-energy technologies in the battlefield.The systems were described as a less powerful “prototype” of the 100-kilowatt Iron Beam laser interceptor that will be operational in Israel by the end of the year. The Defence Ministry also released footage of what it said were the lasers intercepting fixed-wing drones in the sky. 

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Israel confirms use of laser weapons to defend against drone attacks

Israel confirms use of laser weapons to defend against drone attacks
Israel has deployed laser weapons during its ongoing war to deflect “scores” of aerial attacks, including from drones, the Defence Ministry said in a statement on Wednesday. This is the first time the country has acknowledged the use of directed-energy technologies in the battlefield.
More stories like this are available on bloomberg.comThe ministry did not provide specifics about when the systems were tested or data about interception rates. Defense Minister Israel Katz praised the futuristic weapon, saying its adoption was poised to “change the rules of the game in the region.” The larger Iron Beam laser, developed by Rafael Advanced Defense Systems and Elbit Systems Ltd., will be integrated into Israel’s multi-level air defenses in the next six months. The technology has been touted as a cheaper way to repel drones and short-range projectiles, with each interception costing less than . The system, however, still has numerous technical limitations and can’t work in cloudy weather.Published on May 28, 2025 According to the Israeli Defence Ministry, footage shows lasers successfully shooting down drones. Defense Minister Israel Katz called the weapon a regional “game-changer.” 

The announcement suggests that Israel may soon pull ahead of other countries in the race for laser weapons. Nations have pursued the technology for decades, but efforts to scale lasers have been complicated by significant technical difficulties. The systems were described as a less powerful “prototype” of the 100-kilowatt Iron Beam laser interceptor that will be operational in Israel by the end of the year. The Defence Ministry also released footage of what it said were the lasers intercepting fixed-wing drones in the sky. Israel’s air defenses have faced over 26,000 aerial attacks from missiles, drones and rockets since Oct. 2023. Most of the projectiles, which were fired from Gaza, Lebanon, Syria, Iran, Iraq and Yemen, were intercepted by the Iron Dome and long-range Arrow shield systems. Many drones, however, penetrated its defenses.

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Trump admin moves to cancel all federal contracts with Harvard in antisemitism crackdown

Trump admin moves to cancel all federal contracts with Harvard in antisemitism crackdown
“The U.S. General Services Administration (GSA) is assisting all federal agencies in a review for termination or transition of their federal government contracts with Harvard University and affiliates,” the letter says. “This review aligns with the Administration’s directive that all federal contracted services steadfastly uphold and advance agency strategic priorities.”
Federal Acquisition Service Commissioner Josh Gruenbaum, in a letter seen by Bloomberg News, is directing federal agencies to review their contracts, terminate those that they deem not critical and transition to other vendors if necessary. The contracts are worth an estimated 0 million, according to a person with knowlege of the matter, who asked not to named discussing the administration’s moves. Harvard didn’t immediately respond to a request for comment.Homeland Security Secretary Kristi Noem has argued that Harvard’s responses to the government’s requests to provide information about misconduct by foreign students were insufficient.To regain its program certification, Harvard was given 72 hours to provide six categories of information about foreign students over the past five years, including disciplinary records and video of those engaged in protests. Harvard still hasn’t turned over the requested information.Trump on Monday also threatened to also divert billions in grant dollars away from the university.More stories like this are available on bloomberg.com“I am considering taking Three Billion Dollars of Grant Money away from a very antisemitic Harvard, and giving it to TRADE SCHOOLS all across our land,” Trump said in a post on social media. “What a great investment that would be for the USA, and so badly needed!!!”The government has sought a series of changes as a condition of continuing its financial relationship with the university. It has demanded the university remake its governance, transform admissions and faculty hiring — which the administration has called discriminatory — as well as stop admitting international students who officials say are hostile to American values. The letter, first reported by the New York Times, asks agencies to report on their “actions or intended actions with respect to each referenced contract” by June 6.The letter alleges that Harvard has continued to “engage in race discrimination, including in its admissions process and in other areas of student life” and says that the government is “aware of recent events at Harvard University involving anti-Semitic action that suggest the institution has a disturbing lack of concern for the safety and wellbeing of Jewish students.”Harvard President Alan Garber, who’s Jewish, has apologized for Harvard’s handling of antisemitism on campus and acknowledged that he has experienced prejudice himself at the school. But he has also said the extent of the government’s demands show that “the intention is not to work with us to address antisemitism.” The university has sued the US government over the cuts to funding as well as the block on enrolling international students. The university last week won a temporary court order blocking the government from enforcing the foreign student ban.President Donald Trump’s administration is moving to cancel all remaining federal contracts with Harvard University, marking the latest escalation of its battle against the oldest and richest US school. Gruenbaum referred to alleged discrimination at the Harvard Law Review. A federal task force recently called out the Review’s award of a ,000 fellowship to a protester who faced criminal charges for assaulting a Jewish student on campus, a decision that the government claims was “reviewed and approved” by a faculty committee. The Trump administration has already moved to freeze funding and block Harvard’s ability to enroll international students in an intensifying battle over what the president has cast as a failure by the university and other academic institutions to crack down on antisemitism, and part of a broader campaign against diversity efforts and left-wing bias.  “We needed to move quickly because the consequences of revocation of visas for our international students were dire,” Garber told the Harvard Gazette. There will be a court hearing this week where Harvard will seek to extend the restraining order, he said.Administration officials are pressuring schools including Columbia, Cornell, Northwestern and other elite universities to institute broad policy changes, raising concerns over academic freedom, free speech and government interference. On Tuesday, Secretary of State Marco Rubio ordered US embassies worldwide to stop scheduling new interviews for student-visa applicants as the Trump administration weighs stricter vetting of social-media profiles, a move that will impact higher education across the country.Published on May 27, 2025  The Trump administration is escalating its campaign against Harvard University, directing federal agencies to terminate or transition all non-critical contracts with the Ivy League school, potentially affecting over 0 million in funding.

Harvard though has been front and center in the White House’s campaign, with the administration suspending more than .6 billion in federal research money and saying the school won’t be able to receive new funding. Trump has also repeatedly called for Harvard to lose its tax-exempt status, which would have significant financial implications, even with the school’s billion endowment.

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Trump admin moves to cancel all federal contracts with Harvard in antisemitism crackdown

Trump admin moves to cancel all federal contracts with Harvard in antisemitism crackdown
“The U.S. General Services Administration (GSA) is assisting all federal agencies in a review for termination or transition of their federal government contracts with Harvard University and affiliates,” the letter says. “This review aligns with the Administration’s directive that all federal contracted services steadfastly uphold and advance agency strategic priorities.”
“I am considering taking Three Billion Dollars of Grant Money away from a very antisemitic Harvard, and giving it to TRADE SCHOOLS all across our land,” Trump said in a post on social media. “What a great investment that would be for the USA, and so badly needed!!!”Trump on Monday also threatened to also divert billions in grant dollars away from the university.Harvard didn’t immediately respond to a request for comment.Gruenbaum referred to alleged discrimination at the Harvard Law Review. A federal task force recently called out the Review’s award of a ,000 fellowship to a protester who faced criminal charges for assaulting a Jewish student on campus, a decision that the government claims was “reviewed and approved” by a faculty committee. To regain its program certification, Harvard was given 72 hours to provide six categories of information about foreign students over the past five years, including disciplinary records and video of those engaged in protests. Harvard still hasn’t turned over the requested information.The letter alleges that Harvard has continued to “engage in race discrimination, including in its admissions process and in other areas of student life” and says that the government is “aware of recent events at Harvard University involving anti-Semitic action that suggest the institution has a disturbing lack of concern for the safety and wellbeing of Jewish students.”The Trump administration has already moved to freeze funding and block Harvard’s ability to enroll international students in an intensifying battle over what the president has cast as a failure by the university and other academic institutions to crack down on antisemitism, and part of a broader campaign against diversity efforts and left-wing bias.   The Trump administration is escalating its campaign against Harvard University, directing federal agencies to terminate or transition all non-critical contracts with the Ivy League school, potentially affecting over 0 million in funding.

“We needed to move quickly because the consequences of revocation of visas for our international students were dire,” Garber told the Harvard Gazette. There will be a court hearing this week where Harvard will seek to extend the restraining order, he said.Harvard though has been front and center in the White House’s campaign, with the administration suspending more than .6 billion in federal research money and saying the school won’t be able to receive new funding. Trump has also repeatedly called for Harvard to lose its tax-exempt status, which would have significant financial implications, even with the school’s billion endowment.Homeland Security Secretary Kristi Noem has argued that Harvard’s responses to the government’s requests to provide information about misconduct by foreign students were insufficient.Administration officials are pressuring schools including Columbia, Cornell, Northwestern and other elite universities to institute broad policy changes, raising concerns over academic freedom, free speech and government interference. On Tuesday, Secretary of State Marco Rubio ordered US embassies worldwide to stop scheduling new interviews for student-visa applicants as the Trump administration weighs stricter vetting of social-media profiles, a move that will impact higher education across the country.The letter, first reported by the New York Times, asks agencies to report on their “actions or intended actions with respect to each referenced contract” by June 6.More stories like this are available on bloomberg.comPublished on May 27, 2025 President Donald Trump’s administration is moving to cancel all remaining federal contracts with Harvard University, marking the latest escalation of its battle against the oldest and richest US school. Federal Acquisition Service Commissioner Josh Gruenbaum, in a letter seen by Bloomberg News, is directing federal agencies to review their contracts, terminate those that they deem not critical and transition to other vendors if necessary. The contracts are worth an estimated 0 million, according to a person with knowlege of the matter, who asked not to named discussing the administration’s moves. The government has sought a series of changes as a condition of continuing its financial relationship with the university. It has demanded the university remake its governance, transform admissions and faculty hiring — which the administration has called discriminatory — as well as stop admitting international students who officials say are hostile to American values. Harvard President Alan Garber, who’s Jewish, has apologized for Harvard’s handling of antisemitism on campus and acknowledged that he has experienced prejudice himself at the school. But he has also said the extent of the government’s demands show that “the intention is not to work with us to address antisemitism.” The university has sued the US government over the cuts to funding as well as the block on enrolling international students. The university last week won a temporary court order blocking the government from enforcing the foreign student ban.

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