Wall Street staggers back to offices, Fed moves up outlook for rate hikes, and advice for finance internship season: This Week in Finance

Welcome to This Week in Finance, your weekly roundup of the conversations trending among financial professionals on LinkedIn. Click Subscribe to be notified of each edition. This week:

Wall Street's gap on return to office

While Goldman Sachs employees flooded back into their Manhattan office after being?called back Monday, just a short distance away, Citigroup's headquarters were bare. Citigroup said it won't recall more of its staff?until July, offering employees alternate options like hybrid schedules. Meanwhile, JPMorgan Chase has moved quickly to refill its office, but Bank of America isn't expecting a broad return of staff until the fall. With no two Wall Street firms?taking the same approach, economic optimism is being met with anxieties inside workplaces, including the fear of losing work flexibility. ?? Here's what people are saying.

• 'Almighty standoff' over WFH looms: Morgan Stanley CEO James Gorman warned?that employees need to voluntarily return to the office by Labor Day or risk a "different kind of conversation."

Fed suggests rate hikes in 2023

The Federal Reserve is keeping its benchmark short-term interest rate unchanged, but it?significantly raised its inflation forecast?and pushed up its timeline on expected rate rises. Officials now suggest two rate hikes are possible in 2023, even though in March they predicted rate increases weren't likely until 2024. The Fed also increased its inflation forecast by a full percentage point, to 3.4% from 2.4%, while maintaining that inflation pressures are "transitory." A Bank of America survey shows close to three-quarters of fund managers?agree with the Fed?and expect prices to stabilize.

• Central banks around the world are weighing how the Fed is responding to U.S. inflation as America's economy rebounds. Some have already raised interest rates, which?"risks stifling the economic recovery in some places."
• Here's what people are saying.

• In Canada, inflation hits a decade high: Canada's consumer price index saw a year-over-year gain of 3.6% in May, the largest since 2011, led by rising prices for housing and passenger vehicles. Homeowner replacement costs, including prices for new housing, rose 11% and vehicles were up 4.4%.

Swiss have most competitive economy

Switzerland has the world's most competitive economy,?according to a global index?by the Institute for Management Development. The country climbed two spots in the business school's annual ranking and dethroned Singapore, which dropped to fifth.?Four other European nations?were among the six best-performing economies, in part due to?policies supporting economic activity?and their preparedness for a global crisis. ?? Here's what people are saying.

UK's unicorn startups on the rise

The recent $1 billion valuation of British AI startup Tractable, following a $60 million funding round, racks up a milestone for the UK tech sector:?100 unicorn startups, worth $1 billion or more. The 100 firms have raised about $32 billion in VC funding across e-commerce, insurtech, cyber security, energy, and more, with 13 reaching the magic marker in 2021, compared with seven in 2020. The UK joins the U.S. and China as the only nations with triple-digit unicorn startups, leading European countries such as Germany (42), France (22), and the Netherlands (18). ?? Here's what people are saying.

Real estate bubble signs flash red

Real estate prices in a number of places around the globe are flashing warning signs,?says Bloomberg. Canada, New Zealand, and Sweden are looking particularly frothy, according to indicators from Bloomberg Economics, with the U.S. and UK not far behind. What's driving these markets upward? Low interest rates, fiscal stimulus, and pandemic savings accounts. The report notes, however, that unlike 2008, lending standards have improved in many countries. ?? Here's what people are saying.

• First-time homebuyers squeezed out: The housing market is so hot right now that half of existing-home buyers who used mortgages in April made at least a 20% down payment. That level of upfront investment has only been seen three times over 10 years, all of them happening since last fall. A quarter of existing-home buyers paid cash in April, the highest level since 2017. Big down payments and other tactics, such as "whisper listings" directed at certain buyers, are squeezing first-timers out of the market.

• Renting cheaper than buying in UK: Renting a property in parts of the UK is?now cheaper than buying. London in particular saw the biggest shift.

California economy outperforms

California gloom and doom has been a hallmark of this pandemic, but was it premature??A recent Bloomberg article?notes that the state is excelling in a host of economic measures:?rapidly growing GDP, rising household incomes,?high-tech manufacturing employment, small business valuations, and investments in innovation, among others. Despite dire predictions, the state's operating budget hit a staggering $75 billion surplus,?driven mainly by a soaring tech sector, rising share prices, and remote workers staying employed during the pandemic. ?? Here's what people are saying.

Finance rewards 'mediocre' men: study

Some women in finance believe their careers have been stonewalled by "mediocre" male managers,?according to a study out of the UK.?Researchers found that dozens of women across the financial services sector offered this sentiment, along with the claim that these managers tend to fake empathy as it's now considered a valuable managerial trait. Women often feel overlooked due to?men being "gatekeepers" of social groups, as well as their tendency to "always" be around, while women are more likely to take parental leave. If trends continue, a Deloitte analysis finds that gender equality in leadership roles in finance may not come until 2085. ?? Here's what people are saying.

Advice for finance internship season

Summer internships have kicked off, and many look and feel different than ever before. Some programs remain virtual, while others are onsite or a hybrid, as pandemic conditions improve. ?? Senior members of the finance sector are sharing their advice for newcomers.

With?Gianna Prudente,?Jake Perez,?Pieter Cranenbroek, Cathy Anderson, Alexander Besant, Emma Hudson, and?Monica Fike.

What's your take on the week's news and other developments impacting you or your business? Join the conversation in the comments below.