Fed Cuts Interest Rates, Stock Markets Continue To Fall

This is a published version of the Forbes Daily newsletter, you can sign-up to get Forbes Daily in your inbox here.

Good morning,

When Forbes first ranked the Wealthiest Black Americans in 2009, only one was a billionaire: Oprah Winfrey, then worth an estimated $2.7 billion.

But net worth isn’t the only way to measure impact and influence in the community and world at large. Today, Forbes launched its inaugural ForbesBLK 50, which includes some of the richest Black Americans, as well as entrepreneurs, activists and innovators.

Many of the 2009 list members, like Oprah and Michael Jordan, are still on there. But this year’s list also features leaders like Ken Chenault, chair of global VC firm General Catalyst and former CEO of American Express, and Thasunda Brown Duckett, CEO of New York-based retirement services giant TIAA, one of only two Black female chief executives at a Fortune 500 company.

Let’s get into the headlines,

FIRST UP

The Federal Reserve cut interest rates for the third consecutive time Wednesday, a widely anticipated move, but indicated fewer rate cuts are on the table for next year than previously forecasted. The median Fed staff forecasts call for rates to end 2025 at 3.75%-4%, signaling that Americans may need to get comfortable with higher rates for the foreseeable future.

MORE: The Fed’s more hawkish stance prompted a market selloff, with the blue chip Dow Jones Industrial Average staggering to its longest losing streak since 1974. The S&P 500 and tech-heavy Nasdaq stock indexes also declined 3% and 3.6%, respectively.

Tesla’s stock has surged since CEO Elon Musk helped bankroll President-elect Donald Trump’s victory, but its auto business has been sluggish, prompting the company to offer discounts in the hopes of juicing sales. Even though deliveries continue to grow in China, a decline in orders in the U.S. and Europe this year may be enough for the EV maker to see its first-ever drop in sales globally.

BUSINESS + FINANCE

Amazon’s unionized workers across seven U.S. warehouses went on strike Thursday after failed contract bargaining efforts. The International Brotherhood of Teamsters, which says it represents about 10,000 Amazon workers, said the company was given a “clear deadline” to discuss “better working conditions and wages.” Still, the company said it does not expect the strike to impact its operations.

WEALTH + ENTREPRENEURSHIP

When billionaire Amazon founder and chairman Jeff Bezos announced his move to Florida in a sentimental Instagram post explaining he wanted to be closer to his parents, he didn’t mention the tax savings: likely an estimated $1 billion this year alone. Bezos has sold more shares in dollar terms this year than ever before, and had he remained in Washington, such sales would have resulted in a $954 million state capital gains tax bill.

TECH + INNOVATION

Supreme Court justices announced they will hear challenges to the federal law that would ban TikTok unless it separates from parent company ByteDance, scheduling oral arguments for January 10, just days before the ban is slated to take effect on January 19. The timing indicates that the Court may plan to rule on the law’s constitutionality, or at least on whether it should be paused before a ban would be implemented.

MORE: The Court’s order suggests that it was unpersuaded by TikTok’s argument that it should wait and see what incoming President Donald Trump thinks of the law before letting it go into effect. By setting oral arguments for January 10—and requiring the parties to brief the case before then—the Court has ensured that the law is defended by President Joe Biden’s Department of Justice rather than Trump’s DOJ.

MONEY + POLITICS

President-elect Donald Trump and Vice President-elect JD Vance released a statement Wednesday opposing a proposed funding bill in Congress backed by House Speaker Mike Johnson, R-La., that would avoid a government shutdown. Trump claimed the “ridiculous and extraordinarily expensive” bill was “dying fast” in a post on Truth Social, and the New York Times reported that his criticism has fueled a revolt from Republicans. If lawmakers don’t intervene with new legislation, the government will shut down Saturday at 12:01 a.m.

The House Ethics Committee “secretly” voted to release its ethics report detailing allegations of sexual misconduct against former Rep. Matt Gaetz, who withdrew his bid to be President-elect Donald Trump’s next attorney general, CNN first reported. The document will reportedly be released before the current session of Congress ends, a decision that comes as a surprise after lawmakers had initially resisted making the report public.

SCIENCE + HEALTHCARE

The CDC confirmed a patient in Louisiana has been hospitalized with the first “severe case” of avian influenza, and California Governor Gavin Newsom declared a state of emergency to “streamline and expedite the state’s response to” the spread of bird flu. The CDC said in a press release no person-to-person spread of the bird flu has been detected, and this case doesn’t change the overall public health risk from avian flu—which is low.

TRENDS + EXPLAINERS

Among the charges that Luigi Mangione, the 26-year-old suspect in the killing of UnitedHealthcare CEO Brian Thompson, faces is killing as an act of terrorism. The move from prosecutors adds a new dimension to the crime some believe was motivated by a hatred of the U.S. health insurance industry. But one expert told Forbes the terrorism charge is “performative” and may make it harder to convict Mangione.

DAILY COVER STORY

The Mysterious Phoenix Ghost Drones Of The Ukraine War

TOPLINE At a factory in Tampa, Florida, a little-known U.S. defense contractor, Aevex Aerospace, is producing its Phoenix Ghost drones for Ukraine.

Secrecy has shrouded the project since it was first publicly mentioned by the Department of Defense in April 2022, two months after Russia’s invasion of Ukraine, as part of a package of military aid that was being rushed to the beleaguered country.

But in October, Forbes was able to visit Aevex’s Florida factory to learn how a small defense contractor with no experience building drones landed contracts to churn out a motley family of armaments that, along with similar aerial weapons, have come to define the now almost three-year-long battle over Ukraine.

Aevex showed Forbes four different drones it’s produced for the Phoenix Ghost program, but there are more it’s not ready to bring out of the shadows. Aevex says it’s delivered over 5,000 to Ukraine—more than any other U.S. drone maker—with the Pentagon ponying up $582 million for them through the middle of October. Cofounder and CEO Brian Raduenz expects to book $500 million in revenue this year, up from “well over $100 million” in 2021, the lion’s share from the new drone business.

Now, Raduenz is looking to become a major supplier to the U.S. military and allies as they ramp up acquisitions of drones following the bloody evidence of their effectiveness in Ukraine.

He believes the private Southern California-based company’s nimbleness in rapidly developing low-cost drones at quantity and improving them in response to Russian countermeasures will give the company a leg up over competitors like billionaire Palmer Luckey’s defense tech startup Anduril and the longtime DoD drone supplier AeroVironment.

WHY IT MATTERS “The Ukraine-Russia war has been a deadly laboratory for new aerial armaments that are changing how war is conducted,” says Forbes senior editor Jeremy Bogaisky. “It’s opening up lucrative opportunities for innovative new players like Aevex.”

MORE This U.S. Company Is Cashing In On Ukraine’s War With Killer Drones That Fit In A Backpack

FACTS + COMMENTS

Snow and rain storms late this week and into the weekend could hamper early travelers’ Christmas plans, forecasts warn. But warmer-than-average temperatures are expected closer to the holiday:

Between 3 and 6 inches: The amount of snow a storm system crossing the northern plains into the upper Midwest and Great Lakes region could bring between now and Saturday morning

‘15 to 20 degrees below normal’: The drop in temperatures expected in New England when the storm reaches the region later this week, according to the Weather Prediction Center

119.3 million: The number of people AAA is expecting will travel 50 miles or more from home to celebrate the holidays between December 21 and January 1

STRATEGY + SUCCESS

While it might feel overwhelming, it is possible to start a business from nothing. The first step is to have a positive mindset. Then, choose a profitable niche, and identify the skills you have and tools you need to get started. A strong business plan is key to turning your idea into a viable business.

VIDEO

QUIZ

The U.S. is probing whether devices from Chinese company TP-Link Technologies threaten national security. What kind of device is under investigation and facing a possible ban?

A. Routers

B. Laptops

C. Phones

D. Wearables

Check your answer.

Thanks for reading! This edition of Forbes Daily was edited by Sarah Whitmire, Chris Dobstaff and Caroline Howard.