The Fed sees its inflation fight as a success. Will the public eventually agree?
WASHINGTON (AP) — With its larger-than-usual half-point cut to its key interest rate last week, the Federal Reserve underscored its belief that it’s all but conquered inflation after three long years. The public at large? Not so much. Consumer surveys show that most Americans remain unhappy with the economy, still bruised by an inflation rate that hit a four-decade high two years ago as the economy rebounded from the pandemic recession. Yet in the view of some economists, the shift toward steadily lower borrowing rates could eventually boost consumer sentiment. Inflation has sunk for more than two years and is nearly back down to the Fed’s 2% target. Though that means overall prices are still rising, they’re doing so much more slowly.
Tugboat powered by ammonia sails for the first time, showing how to cut emissions from shipping
KINGSTON, N.Y. (AP) — A tugboat powered by ammonia sailed for the first time Sunday in the Hudson River to show how the maritime industry can slash planet-warming carbon dioxide emissions. The tugboat used to run on diesel fuel. The New York-based startup company Amogy bought the 67-year-old ship to power it in a new, carbon-free way using ammonia and an electric fuel cell. The tugboat’s first sail is a milestone in a race to develop zero-emissions propulsion. Emissions from shipping have increased over the last decade — to about 3% of the global total according to the United Nations— as vessels have gotten much bigger, delivering more cargo per trip, using immense amounts of fuel oil.
Before you sign up for a store credit card, know what you’re getting into
NEW YORK (AP) — With holiday shopping season around the corner, experts recommend caution when your favorite store offers you a credit card. According to the Federal Reserve, outstanding credit card balances reached $1.14 trillion as of August 2024, meaning credit card debt is increasingly a concern for millions of Americans. Bankrate found that the average store-only credit card has an average annual percentage rate of 30.45%, significantly higher than the average APR of 20.78% for all credit cards. The APR is how much interest you’ll be charged if you can’t pay your balance in full every month.
For home shoppers, the Fed’s big rate cut is likely just a small step towards affording a home
The Federal Reserve gave home shoppers what they hoped for this week: a big rate cut and a signal of more cuts to come. Even so, aspiring homebuyers and homeowners eager to refinance should temper their expectations of a big drop in mortgage rates from here. That’s because mortgage rates already fell in anticipation of the Fed’s action. So, while mortgage rates are likely to fall further as the Fed implements more cuts, by how much and how quickly is uncertain. The pace of those declines will also affect those who did buy recently at higher rates and are hoping to refinance.
The benefits of a four-day workweek according to a champion of the trend
Working five days a week has long been the corporate cultural norm. But some companies are exploring the option of letting employees work four days a week. The chief executive of an organization that promotes the idea says they’re hoping to reduce workplace burnout and retain talent seeking a better work-life balance. Dale Whelehan is CEO of 4 Day Week Global, which coaches companies through the process of shortening their employees’ work hours. Whelehan says five-day workweeks weren’t designed for jobs requiring a lot of thinking and sitting, and that one less day doing that improves mental and physical health.
Stock market today: Wall Street drifts higher to set more records
NEW YORK (AP) — U.S. stock indexes reached new heights after drifting higher in a quiet day of trading. The S&P 500 rose 0.3% Monday to edge past its record set on Thursday. The Dow Jones Industrial Average added 0.1% to its own all-time high set on Friday, and the Nasdaq composite gained 0.1%. Tesla helped drive the market and eliminated the last of its formerly sharp loss for the year so far. Treasury yields held relatively steady after a report suggested U.S. services businesses are continuing to grow, though manufacturing is continuing to shrink. Stock markets in Europe and Asia were mostly steady amid similarly modest movements.
Struggling Jeep and Ram maker Stellantis is searching for an new CEO
DETROIT (AP) — Struggling Jeep and Ram maker Stellantis is looking for a CEO to succeed Carlos Tavares, but the company says it’s just part of a normal leadership succession plan. Tavares has been under fire from U.S. dealers and the United Auto Workers union after a dismal first-half financial performance. The company was caught off guard with too much high-priced inventory on dealer lots. As head of PSA Peugeot, Tavares took control of the Netherlands-based company in January of 2021 when it merged with Fiat Chrysler. Its North American operations had been the company’s main source of profits, but have struggled this year. In a statement Monday, Stellantis said it’s not unusual for a board to look for a CEO successor. Tavares’ five-year contract is just over a year from expiring in 2026.
Jill Biden reveals $500 million plan that focuses on women’s health at Clinton Global Initiative
NEW YORK (AP) — First lady Jill Biden has unveiled a new set of actions to address health inequities faced by women in the United States. The plans include spending at least $500 million annually on women’s health research. The announcement came Monday at the close of the first day of this year’s Clinton Global Initiative annual meeting. The commitment is one of more than 100 expected at the two-day meeting of political, business and philanthropic leaders gathering in New York to address some of the world’s most pressing issues. Former President Bill Clinton, former Secretary of State Hillary Clinton, and Clinton Foundation Vice Chair Chelsea Clinton have set this year’s theme as “What’s Working,” a way to look for potential solutions and effective programs in tumultuous times.
Kmart’s blue light fades to black with the shuttering of its last full-scale US store
NEW YORK (AP) — Attention, Kmart shoppers, the end is near! The erstwhile retail giant renowned for its Blue Light Specials is shuttering its last full-scale store in mainland United States. The store, located in swank Bridgehampton, New York, on Long Island, is slated to close Oct. 20. That’s according to Denise Rivera, an employee who answered the phone at the store late Monday. That will leave only a small Kmart store in Miami. The retailer closed its last New Jersey store last year. It has a handful of stores in Guam and in the U.S. Virgin Islands. In its heyday, there were more than 2,000 Kmarts in the U.S.
Biden administration seeks to ban Chinese, Russian tech in US autonomous vehicles
NEW YORK (AP) — The U.S. Commerce Department is seeking a ban on the sale of connected and autonomous vehicles in the U.S. that are equipped with Chinese and Russian software and hardware with the stated goal of protecting national security and U.S. drivers. Commerce officials described the rule announced Monday as proactive but necessary given that all the bells and whistles on cars like microphones, cameras and Bluetooth can reveal a range of personal information about car owners. Security concerns around the extensive software-driven functions in Chinese vehicles have arisen in Europe, where Chinese electric cars have rapidly gained market share.
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