Citigroup fined $60.6 million by Federal Reserve – What You Need to Know

New York, NY – The Federal Reserve Board imposed a fine of $60.6 million on Citigroup for failing to address issues with data quality management identified in a 2020 enforcement action. The Board expressed concern about Citigroup’s lack of progress in rectifying the problems and implementing necessary controls to mitigate ongoing risks. This fine, alongside penalties from the Office of the Comptroller of the Currency, brings the total amount charged to the bank to around $135.6 million.

Economists are anticipating the release of the June consumer price index report, with expectations that inflation will decrease to approximately 3%. This development could have significant implications for the market and the Federal Reserve’s decisions on interest rates. Federal Reserve Chair Jerome Powell has suggested that the central bank may not wait for inflation to reach its 2% target before considering rate cuts, particularly given recent signs of a cooling labor market.

In a surprising turn of events, the S&P 500 has seen seven consecutive days of gains in July, marking the first instance of such a streak since September 2013. The index has surged by 3.2% at the start of the month, breaking a 22-session trend without a 1% up or down movement. This shift in momentum could indicate a changing landscape for investors.

Meanwhile, notable stocks such as WD-40 Company, PriceSmart, and Costco have experienced significant movement in after-hours trading. WD-40 Company saw an 11% increase in share value after exceeding analysts’ expectations in their fiscal third-quarter results. PriceSmart also saw a 6% rise following a positive earnings and revenue report for the same quarter. Costco witnessed a 3% increase after announcing its first membership fee hike since 2017, reflecting changes in consumer behavior and economic conditions.

Looking ahead, stock futures remained relatively neutral on Wednesday night, with Dow futures slipping slightly, while S&P 500 and Nasdaq 100 futures hovered around flat levels. Investors are closely monitoring these indicators for insights into the market’s direction moving forward.