U.S. Treasury Yields Little Changed Ahead of CPI Release
Treasury yields were barely moved ahead of the May CPI data at 1230 GMT, with expectations it will be the first to show the initial impact of tariffs being passed onto consumers, Pepperstone said.
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CNBC
34 minutes ago
- CNBC
Education Department wanted Treasury to help manage student loans
The U.S. Department of Education planned for the Treasury Department to take a hand in managing the country's $1.6 trillion student loan portfolio, recent court documents show. "The Department had been negotiating a memorandum of understanding with the Treasury Department regarding student loan management," Rachel Oglesby, the chief of staff at the Education Dept., said in a court declaration filed late on Tuesday. The agreement involved moving nine Education Dept. employees from the agency's Federal Student Aid Default Collections Unit to Treasury "to discuss collections activities," a spokesperson for the Education Department told CNBC. Education Department plans with the Treasury Department are now on hold after U.S. District Judge Myong Joun in Boston blocked the Trump administration on May 22 from its efforts to dismantle the Education Department. Joun ordered the department to rehire the more than 1,300 employees affected by mass layoffs in March, and blocked the department from transferring student loans to the Small Business Administration. More from Personal Finance:Trump's 'big beautiful' bill could curb low-income tax creditWhat a 'revenge tax' in Trump's spending bill means for investorsWhat's happening with unemployed Americans — in 5 charts Experts say the Treasury talks are more evidence that the Trump administration hopes to reduce the role of the Education Department. President Donald Trump said on March 21 that the Small Business Administration, instead of the Education Department, would handle the country's debt. "They're all set for it," the president said of the SBA, speaking to reporters in the Oval Office. "They're waiting for it." At the time of Trump's announcement that student loans would move to the SBA, experts had said the next most logical agency would have been Treasury, since it already plays a role in collecting past-due debts from Americans through the Treasury Offset Program. Still, financial aid expert Mark Kantrowitz pointed out that The Higher Education Act of 1965 is "very clear" that the Education Department's Federal Student Aid office is "responsible for student loans." "It will require an act of Congress," Kantrowitz said, to move the loans to either the SBA or Treasury. Consumer advocates express worries that the mass transfer of accounts to another agency could trigger errors, or compromise borrowers' privacy. They also raised concerns about how a change in agency might affect unique student loan protections, and programs such as Public Service Loan Forgiveness. More than 42 million Americans hold federal student loans.
Yahoo
an hour ago
- Yahoo
Air India crash, Trump tariffs, May inflation data: 3 Things
Boeing shares are falling in Thursday's pre-market trading after an Air India flight bound for London crashed shortly after takeoff from the Ahmedabad airport, killing 242 people. The plane involved was reported a Boeing 787-8 Dreamliner. US stock futures (ES=F, NQ=F, YM=F) move lower after President Trump announced he will set unilateral tariff rates for trading partners in two weeks. May's Producer Price Index (PPI) report saw inflation cooling in business-to-business prices. This comes after the Consumer Price Index (CPI) for last month saw inflation on prices ease following April's "Liberation Day" tariffs. To watch more expert insights and analysis on the latest market action, check out more Morning Brief here. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
an hour ago
- Yahoo
Sector ETFs Likely to Gain on May Inflation Data
Consumer prices in the United States rose modestly in May, indicating that President Donald Trump's tariffs have not yet had a significant impact on inflation, according to the Bureau of Labor Statistics (BLS) report released Wednesday. The Consumer Price Index (CPI) increased by just 0.1% in May, falling short of the 0.2% monthly increase forecasted by a Dow Jones survey, as quoted on CNBC. This puts the annual inflation rate at 2.4%, matching economists' expectations for the year. Excluding the volatile food and energy categories, the core CPI also rose by 0.1% for the month, bringing the year-over-year rate to 2.8%. These figures were lower than forecasts of 0.3% and 2.9%, respectively. A continued decline in energy prices helped offset some of the monthly inflation. Energy prices dropped 1% in May, with gasoline falling by 2.6%, pushing its annual decline to 12%. Meanwhile, new and used vehicle prices fell by 0.3% and 0.5%, respectively—despite expectations that tariffs might drive these categories higher. Against this backdrop, below we highlight a few sector-based exchange-traded funds (ETFs) that may gain in the near term. Technology – Technology Select Sector SPDR ETF (XLK) Given the muted inflation, market expectations suggest the Federal Reserve will wait until at least September before considering interest rate cuts. Trump continues to pressure the Fed to act, citing both easing inflation and signs of labor market softness. Still, low rates are expected to boost high-growth sectors like technology. The underlying Technology Select Sector Index includes companies from the following industries: computers & peripherals; software; diversified telecommunication services; communications equipment; semiconductor & semiconductor equipment; internet software & services; IT services; wireless telecommunication services; electronic equipment & instruments; and office electronics. The fund charges 8 bps in fees and yields 0.65% annually. Healthcare – iShares U.S. Medical Devices ETF (IHI) The index for the medical care commodities rose 0.6% sequentially in May. The index has advanced 0.3% annually. The underlying Dow Jones U.S. Select Medical Equipment Index measures the performance of the medical equipment sector of the U.S. equity market. The fund charges 40 bps in fees and yields 0.44% annually. Restaurants – AdvisorShares Restaurant ETF EATZ The index for the food away from home increased 0.3% sequentially and 2.2% annually in May. However, the gains were higher than the 2.9% annual increase in the food at home index. This disparity may encourage some consumers to opt for eating out. Overall, food prices rose 0.3% on the month. We also expect the restaurants to pass on the increased costs to consumers. The EATZ ETF is an actively managed exchange-traded fund that seeks to achieve its investment objective by investing at least 80% of its net assets in securities of companies that derive at least 50% of their net revenue from the restaurant business. The fund charges 99 bps in fees and yields 0.17% annually. Real Estate – Real Estate Select Sector SPDR ETF XLRE Weighted shelter makes up 32.77% of CPI, of which 7.8% is rent and 23.68% is private housing, per data from MacroMicro. The shelter index jumped 0.3% in May. Costs increased 3.9% annually. The annual shelter inflation rate slowed to its lowest since late 2021. The underlying Real Estate Select Sector Index includes securities of companies from the following industries real estate management and development and REITs, excluding mortgage REITs. The fund yields 3.31% annually and charges 8 bps in the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Technology Select Sector SPDR ETF (XLK): ETF Research Reports Real Estate Select Sector SPDR ETF (XLRE): ETF Research Reports iShares U.S. Medical Devices ETF (IHI): ETF Research Reports AdvisorShares Restaurant ETF (EATZ): ETF Research Reports This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
