2.2.2023

Fed Slows Rate Hikes

The Federal Reserve yesterday slowed its pace of interest rate raises to 0.25%, the lowest increase since March. The move brings the benchmark federal funds rate to a range of 4.5%-4.75%, the highest since 2007. The rate typically affects borrowing costs for businesses and consumers. 

The hike is the Federal Open Market Committee's eighth consecutive raise and comes as US inflation continues to decline from a June high of 9.1% to December's 6.5%. Further quarter-point hikes are expected in March and May. 

Unemployment, which tends to rise as the Fed raises rates, remains at a historic low of 3.5%, while job openings increased by 600,000 to 11 million in December. Learn about the Fed's dual mandate to keep inflation and unemployment down here.

The move came a day after the International Monetary Fund upgraded its outlook on global economic growth to an annual rate of 2.9%, up from 2.7% in October.

Brady Re-Retires

Tampa Bay quarterback Tom Brady announced his retirement yesterday, stating the decision to walk away from the game is "for good." The move comes a year after the 45-year-old Brady retired for the first time, before changing his mind and rejoining the Buccaneers for the 2022 season. 

The future Hall-of-Famer owns records for most career touchdowns (649), most passing yards (89,214), most wins (251), and most playoff wins (35). He played in 10 Super Bowls, winning seven—both records—the first six of which were with the New England Patriots. See his career stats here. 

Brady's final season fell short of the lofty standard set by his career, with Tampa Bay losing to the Dallas Cowboys in the wild-card round of the playoffs. Separately, Brady and Gisele Bündchen finalized a divorce after 13 years of marriage in October. See Brady's retirement announcement here.

All Eyes on Punxsutawney

The nation's attention turns to western Pennsylvania this morning to watch the country's most famous groundhog, Punxsutawney Phil, determine whether 2023 will enjoy an early spring or a longer winter. The prescient land-beaver will pick one of two scrolls, each containing separate wintery prophecies.

As is tradition, the slumberous whistle-pig will join his top-hatted crew to see whether he'll spot his shadow (foretelling six more weeks of winter) or relax a bit with his admiring fans (predicting an early spring). Phil is right about 40% of the time—or an impressive 60% if you flip the somewhat arbitrary rules.

The ceremony was originally conceived of by a local newspaper editor in 1887 but has its roots in Eastern European celebrations of the midway between the winter solstice and spring equinox—and also falls on the lesser-known Christian holiday, Candlemas. 

Historical accounts suggest farmers used the appearance of hibernating mammals to signal spring. In reality, science suggests the salacious marmot appears to check for mates. 

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In-Depth

> What the Ancient Bog Bodies Knew

NY Times | Franz Lidz. The first comprehensive survey of ancient human remains buried in the wetlands and spongy turf of northern Europe thousands of years ago reveals an often violent final ritual. (Read)

> The Origins of Worcestershire Sauce

Epicurious | Matthew Zuras. A look at the history of Worcestershire sauce, the hard-to-pronounce inky brown liquid that is sweet, salty, peppery, and fishy, starting from its creation in the 1830s by English chemists. (Read)

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Historybook: New Amsterdam (present-day New York) becomes a city (1653); First Groundhog Day celebrated (1887); First Groundhog Day celebrated (1887); First Groundhog Day celebrated (1887); Shakira born (1977); Hollywood legend Gene Kelly dies (1996); Philip Seymour Hoffman dies of drug overdose (2014).