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The Federal Reserve left its key short-term interest rate unchanged for the fifth time this year, brushing off repeated calls from President Donald Trump for a cut. The Feds decision Wednesday leaves its key short-term rate at about 4.3%, where it has stood after the central bank made three cuts last year. Chair Jerome Powell has said the Fed would likely have cut rates already if not for Trumps sweeping tariffs. Powell and other Fed officials say they want to see how Trumps duties on imports will impact inflation and the broader economy. So far the duties have lifted costs of some goods, such as appliances, furniture, and toys, and overall inflation has risen a bit, though less than many economists had expected. There were some signs of splits in the Feds ranks: Governors Christopher Waller and Michelle Bowman voted to reduce borrowing costs, while 9 officials, including Powell, favored standing pat. It is the first time in more than three decades that two of the seven Washington-based governors have dissented. One official, Governor Adriana Kugler, was absent and didnt vote. The choice to hold off on a rate cut will almost certainly result in further conflict between the Fed and White House, as Trump has repeatedly demanded that the central bank reduce borrowing costs as part of his effort to assert control over one of the few remaining independent federal agencies. Trump argues that because the U.S. economy is doing well, rates should be lowered. But unlike a blue-chip company that usually pays lower rates than a troubled start-up, the Fed adjusts rates to either slow or speed growth, and would be more likely to keep them high if the economy is strong to prevent an inflationary outbreak. Earlier Wednesday, the government said the economy expanded at a healthy 3% annual rate in the second quarter, though that figure followed a negative reading for the first three months of the year, when the economy shrank 0.5% at an annual rate. Most economists averaged the two figures to get a growth rate of about 1.2% for the first half of this year. Some of the disagreement likely reflects jockeying to replace Powell, whose term ends in May 2026. Waller, in particular, has been mentioned as a potential future Fed chair. Bowman, meanwhile, last dissented in September 2024, when the Fed cut its key rate by a half-point. She said she preferred a quarter-point cut instead, and cited the fact that inflation was still above 2.5% as a reason for caution. Waller also said earlier this month that he favored cutting rates, but for very different reasons than Trump has cited: Waller thinks that growth and hiring are slowing, and that the Fed should reduce borrowing costs to forestall a weaker economy and a rise in unemployment. There are other camps on the Feds 19-member rate-setting committee (only 12 of the 19 actually vote on rate decisions). In June, seven members signaled that they supported leaving rates unchanged through the end of this year, while two suggested they preferred a single rate cut this year. The other half supported more reductions, with eight officials backing two cuts, and two widely thought to be Waller and Bowman supporting three reductions. The dissents could be a preview of what might happen after Powell steps down, if President Donald Trump appoints a replacement who pushes for the much lower interest rates the White House desires. Other Fed officials could push back if a future chair sought to cut rates by more than economic conditions would otherwise support. Overall, the committees quarterly forecasts in June suggested the Fed would cut twice this year. There are only three more Fed policy meetings in September, October, and December and some economists forecast that a cut will occur in September. Wall Street investors also expect cuts in September and December, according to futures pricing. When the Fed cuts its rate, it often but not always results in lower borrowing costs for mortgages, auto loans and credit cards. Some economists agree with Waller’s concerns about the job market. Excluding government hiring, the economy added just 74,000 jobs in June, with most of those gains occurring in health care. We are in a much slower job hiring backdrop than most people appreciate, said Tom Porcelli, chief U.S. economist at PGIM Fixed Income. Michael Feroli, an economist at JPMorgan Chase, said in a note to clients this week if the pair were to dissent, it would say more about auditioning for the Fed chair appointment than about economic conditions. The Fed’s two-day meeting comes after a week of extraordinary interactions with the Trump White House, which has accused Powell of mismanaging an extensive, $2.5 billion renovation of two office buildings. Trump suggested two weeks ago that the rising cost for the project could be a firing offense but has since backed off that characterization. Notably, Trump argues that the Fed should cut because the economy is doing very well, which is a different viewpoint than nearly all economists, who say that a healthy, growing economy doesn’t need rate cuts. If your economy is hot, you’re supposed to have higher short-term rates, Porcelli said. Christopher Rugaber, AP economics writer
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E-Commerce
The barriers between legacy financial institutions and cryptocurrency upstarts continue to crumble. JPMorgan Chase and Coinbase announced a new partnership on Wednesday that will make it easier for the banking giants customers to buy cryptocurrency. The first fruit of the deal will arrive this fall, allowing Coinbase users to buy digital currencies using a Chase credit card. A new bridge between banks and blockchain Next year, Chase will begin allowing customers to leverage their Chase Ultimate Rewards points to buy cryptocurrency through Coinbasea first for a major credit card rewards program. Through the program, 100 Chase Ultimate Rewards points can be redeemed for $1 toward USDC, a so-called stablecoin pegged to the price of the U.S. dollar that serves as a connection point between volatile cryptocurrencies and the U.S. dollar. From there, Chase customers will be able to move their redeemed rewards points between Coinbases crypto offerings, which include Bitcoin, Ethereum, and a wide selection of more obscure altcoins. This partnership marks a significant step forward in empowering our customers to take control of their financial futures, Melissa Feldsher, JPMorgan Chase’s head of payments and lending innovations, said in a press release announcing the partnership. The partnership, she added, would allow its loyalty program members to use their money and rewards in new and exciting ways. Chase customers will also be able to connect their bank accounts directly to their Coinbase wallets sometime in 2026. JPMorgan and Coinbase characterized the new features as the first phase of a strategic collaboration that will deepen over time. We believe crypto is for everyone, and are excited to be working with JPMorgan to expand access, lower barriers to entry, and onboard the next wave of users into crypto, Coinbase wrote in a blog announcement. As the most trusted bridge from traditional finance to crypto, were always looking for more seamless options for customers to get into crypto and make economic freedom a reality for millions of Americans. Running of the bulls JPMorgans decision to integrate deeply with Coinbase is yet another sign that big banks have overcome their jitters around crypto and are opting to plunge in. While critics still view cryptocurrencies as risky speculative investments that lack even the few safeguards present in the traditional stock market, that view is again unpopular in 2025. With President Trump back in office and cashing in himself, another crypto hype cycle is in full swing. Earlier this month, Trumps social media company said that it had purchased roughly $2 billion in Bitcoin and other cryptocurrencies that it plans to use as a strategic investment. The current climate has yet again sent Bitcoin to the moon, with the leading cryptocurrency hitting a fresh all-time high north of $120,000 this month and any concerns about crypto exchange FTXs spectacular collapse just a few short years ago long forgotten.
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E-Commerce
The gospel according to fitness influencers: drink three liters of water per day, get a minimum of eight hours of sleep, and walk at least 10,000 steps per day. From the hot girl walk, to wearing weighted vests and arm weights on said walk, to those taking it oneor 5,000steps further and marching up to 15,000 or even 25,000 steps a day, these once-simple strolls have morphed into full-blown social media trends. When did something as basic as going for a walk become so intimidating? @alexrose_ My top podcast recommendations for the wellness or health / beauty / pop culture girlies who want to increase their step goals and not get bored out of their minds #walkingforfatloss #podcastreccomendations #podcastsforyour20s #10ksteps original sound – Lex While mostly sage advice, if youve been struggling to hit the gold standard of 10,000 steps a day (which roughly equates to five miles) or found yourself doing laps around the block to get those final few hundred under your belt, just know that unofficial target isnt actually based in science. The 10,000 steps-a-day walking target originated as a 1960s marketing slogan by Japanese company Yamasa to sell pedometers. It has since become accepted wisdom, promoted heavily by the online fitness community. That is until new scientific analysis in The Lancet Public Health officially confirmed that this aspirational goal, while by no means harmful, isnt the magic number its promoted to be, and even thousands fewer steps a day could still yield big health rewards. The researchers analyzed data from more than 160,000 adults to examine how step counts were linked with the risk of developing a number of health conditions. They discovered the overall mortality for people walking 7,000 steps was 47% lower than for those who walked only 2,000. Walking this amount daily also reduced the risk of health problems including death from cardiovascular disease and cancer, as well as incidence of type 2 diabetes and dementia. But after 7,000 steps, as the step count increased, the payoff rate slowed. The overall mortality for people notching 10,000 steps was 48%just a 1% increase from 7,000compared with 2,000. Now, thats not to say you should give up on your 10,000-step goal, or worse, cut back on the steps you are already doing. Hitting 10,000 steps was found to be better than 7,000 for some health conditions, such as reducing the risk of depression. Also, those clocking in 12,000 steps a day saw their overall mortality drop 55% compared with 2,000. But pushing for a minimum of 5,000 to 7,000a more practical target for those who are currently inactivewill make the biggest difference for the least amount of effort. While 10,000 may still be the gold standard, just know that you are still reaping the health benefits if you only make it to 9,999.
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E-Commerce
Europe’s economy barely grew in the April-June quarter as frantic earlier efforts to ship goods ahead of new U.S. tariffs went into reverse and output fell for the continent’s biggest economy, Germany. Gross domestic product grew an anemic 0.1% compared to the previous quarter in the 20 countries that use the euro currency, the EU statistics agency Eurostat reported Wednesday. Growth was 1.4% over the same quarter a year ago. And prospects are mediocre for the coming months, given the 15% tariff, or import tax, imposed on European goods in the U.S. under the EU-U.S. trade deal announced Sunday. The higher tariff will burden European exports with higher costs to either be passed on to U.S. consumers or swallowed in the form of lower profits. The economy sagged after stronger than expected 0.6% growth in the first quarter, a figure inflated by companies trying to move product ahead of U.S. President Donald Trump’s additional tariff onslaught that was announced April 2, two days after the first quarter ended. Output fell 0.1% in Germany and Italy, while growth of 0.3% in France was boosted by a rise in auto and aircraft inventories while domestic demand was otherwise stagnant. That left Spain as the only strong performer among the four largest eurozone economies at 0.7% With the 15% U.S. universal tariff likely to subtract around 0.2% from the regions GDP, growth is likely to remain weak in the rest of this year, said Franziska Palmas, senior Europe economist at Capital Economics. Germany’s economy remains roughly the same size as it was before the pandemic six years ago, as its export-dominated business sector struggles with multiple issues including stronger competition from China, a lack of skilled workers, higher energy prices, lagging infrastructure investment, and burdensome regulation and bureaucracy. Economist Palmas said that Germany “is likely to be hit harder than other major economies by tariffs and continue to struggle this year” before increased government spending from the new government under Chancellor Friedrich Merz, aimed at making up the infrastructure gap, starts to boost the economy in 2026. On Wednesday, Germanys Cabinet approved a draft 2026 budget that foresees a second consecutive year of record government investment in priorities such as modernizing transport infrastructure, building homes, security and digitization. Spending is set to rise to 126.7 billion euros ($146.2 billion) next year from 115.7 billion euros in 2025. Our top priority is to secure jobs and ensure new economic strength, Finance Minister Lars Klingbeil said. David McHugh, AP business writer Geir Moulson contributed to this report.
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E-Commerce
Chinas top leaders have pledged to help companies slammed by higher U.S. tariffs but held back on major moves after trade talks with the U.S. this week kept businesses and planners in limbo. At their summer economic planning meeting, the powerful Politburo of the ruling Communist Party pledged to stabilize foreign trade and investment. We must assist foreign trade enterprises that have been severely impacted, strengthen financing support, and promote the integrated development of domestic and foreign trade, the official Xinhua News Agency said in reporting the closed door meeting. It mentioned export tax rebates and free trade pilot zones but gave no other specifics. The inconclusive outcome of two days of trade talks in Stockholm, Sweden, leaves open the question of higher tariffs on Chinese exports to the United States. Chinese Vice Premier He Lifeng said the two sides had agreed to work on extending a deadline for higher tariffs. The U.S. side said the extension was discussed, but not decided. U.S. Treasury Secretary Scott Bessent told reporters after the talks that President Donald Trump would decide whether to extend the Aug. 12 deadline for reaching an agreement or to let tariffs that have been paused for 90 days to boomerang back to a higher level. We haven’t given the sign-off, Bessent said, though he emphasized that the talks had been very constructive. China remains one of the biggest challenges for the Trump administration after it has struck deals over elevated tariff rates with other key trading partners including Britain, Japan and the European Union. Many analysts had expected that the Stockholm talks would result in an extension of current tariff levels, which currently stand at a U.S. tariff of 30% on Chinese goods and a Chinese tariff of 10% on U.S. products, far lower than the triple-digit percentage rates raised in April. The truce in the tariffs war to allow time for talks, agreed on in early May to allow time for negotiations, allowed exporters and other traders to ramp up shipments in hopes of beating any higher tariffs that might follow. The meeting headed by Chinese leader Xi Jinping mostly reiterated Beijing’s priorities for the year, including a need to unleash domestic demand which has lagged, leading to a surge of exports by industries unable to find growth at home. It also stressed the need to promote jobs and prevent a large scale relapse into poverty. The economy has demonstrated strong vitality and resilience, the Xinhua report said. But it acknowledged many risks and challenges. That includes reining in brutal competition that has led to damaging price wars among automakers and some other manufacturers and managing excess capacity in some industries, it said. China’s economy expanded at a 5.2% annual pace in April-June, slowing slightly from the previous quarter. But analysts have said actual growth may have been significantly slower. Even with the hiatus in higher tariffs, companies are feeling a pinch. Industrial profits in China fell 1.8% in the first half of the year and 4.3% in June, according to data released earlier this week. It’s unclear what level of tariffs might eventually be imposed on Chinese exports to the United States. Chinese Foreign Ministry spokesman Guo Jiakun said Thursday that Beijing hopes the U.S. side would follow through on the important consensus reached between Trump and Xi in a phone call to promote stable relations between the world’s two largest economies. But Guo reiterated China’s stance on its U.S. objections to its purchases of oil and gas from Russia, which Bessent raised during the talks in Stockholm, threatening more tariffs. China will take reasonable measures to ensure energy security in accordance with its national interests, Guo said. There are no winners in a tariff war. Coercion and pressure will not solve the problem. China will resolutely safeguard its sovereignty, security and development interests. Elaine Kurtenbach, AP business writer
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E-Commerce
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