Feelings of the Boeing strike continue with staff furloughs

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I’m Conway Gittens reporting from the New York Stock Exchange. Here’s what we’re watching today on TheStreet.

Stocks ended lower in a volatile session on Wednesday after the Federal Reserve made its first interest rate cut since pandemic policymakers cut the so-called Fed Funds Rate by 50 basis points to range of 4.75 to 5%. This is the lending rate that determines how much borrowers have to pay for business loans, mortgages, auto loans and credit cards.

In a press conference, Federal Reserve Chairman Jerome Powell said that inflation had “declined substantially” while risks to the labor market had increased enough to justify this cut in interest rates.

In other news, Boeing has made the decision to lay off a large number of executives, managers and other staff members in the US. The move comes just days after more than 30,000 Boeing machinists went on strike over a new labor contract. The company said the furloughs would affect tens of thousands of employees. Boeing had already announced it would institute a hiring freeze because of the strike.

About the furloughs, Boeing CEO Kelly Ortberg said: “While this is a difficult decision that affects everyone, it is in an effort to preserve our long-term future and help us get through this very difficult time. difficult. We will continue to communicate transparently as the dynamic situation evolves and we are doing everything we can to limit this difficulty.”

Ortberg revealed that affected employees will be furloughed for one week every four weeks until the labor dispute is resolved. He also said his executive team would take “commensurate” pay cuts.

The strike has already put Boeing’s credit rating in jeopardy, which would mean higher borrowing costs at a time when earnings will be gone. more tenuous.

That will do for your daily briefing. From the New York Stock Exchange, this is Conway Gittens with TheStreet.