Forbes Daily: Consumers Pull Back On Spending Amid Economic Anxiety

Forbes

5 hours ago

Consumers raced to spend ahead of President Donald Trump's tariffs. Now, they're pulling back.
Retail spending fell 0.9% in May, the second consecutive month of declines as trade wars create economic anxiety. Earlier this year, retail spending accelerated at an unusually high pace, especially for cars. Census Bureau data shows spending on cars and auto parts rose by a massive 8.9% in March, but that boost was short-lived: The May release shows a 3.5% decline.
Economists still expect healthy GDP growth in the second quarter, but the 'outlook for consumer spending is cloudy,' Bill Adams, chief economist for Comerica Bank, said in emailed comments.
Forbes Daily will take a break for Thursday and Friday in honor of Juneteenth. We'll return to your inboxes Monday, June 23.
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Iran's Supreme Leader Ayatollah Ali Khamenei warned any U.S. involvement in its conflict with Israel will have 'serious irreparable consequences,' after President Donald Trump directly threatened him and demanded an 'UNCONDITIONAL SURRENDER.' Trump's comments fueled speculation about U.S. military involvement in the Israel-Iran conflict, as the president told reporters Monday he wanted to see an end to Iran's nuclear program and is 'not too much in the mood to negotiate now.'
Barron Trump is following his family's tradition of cashing in on proximity to power. As the president has made an estimated billion dollars or so on crypto, his 19-year-old son appears to have earned nearly $40 million from his dad's crypto venture—much more money than his older siblings had earned at his age.
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So-called crypto treasury companies—public companies that focus on acquiring digital assets like bitcoin—have become one of the most talked-about trends of the year. Since April, more than 30 public companies have announced such intentions, targeting close to $19 billion in capital raises, according to Elliot Chun from Architect Partners, a Palo Alto-based financial advisory firm.
The Federal Reserve's rate-setting meeting kicked off Tuesday, with the central bank expected to announce its decision on interest rates this afternoon. The Fed will likely keep rates at the 4.25% to 4.5% range they've stood at since December, despite pressure from President Donald Trump, as the U.S.'s top monetary policy makers have cited the uncertain impacts of tariffs.
New rules put into place by the Small Business Administration require businesses to be 100% owned by U.S. citizens or those who have been permanent residents for at least six months to qualify for government-backed small business loans. But buried in the fine print is that the rules also apply to key employees who manage the day-to-day operations of the business, not just the owners. According to a 2023 report, 14% of all managers in the U.S. are immigrants.
Miami's 'billionaire bunker' is getting a new resident: An empty lot on Indian Creek Island sold on Monday for $105 million, a record price for a property on the island, which is home to high-profile residents like Amazon founder Jeff Bezos, Donald Trump's daughter Ivanka and her husband Jared Kushner, and retired NFL star Tom Brady. The seller is Mikhail Peleg, a German developer and investor living in Switzerland, though he declined to share information about the buyer.
President Donald Trump will issue a third extension for ByteDance, TikTok's China-based owners, to divest from the social media app or face a U.S. ban, ahead of the June 19 deadline, said White House press secretary Karoline Leavitt. It's unclear whether he can continue delaying the ban, though the law signed by former President Joe Biden last year gives him the power to postpone the prohibition for up to 90 days if there is 'significant progress' toward a deal.
Senators approved legislation Tuesday to regulate stablecoins, a major win for the crypto industry despite some bipartisan conflict-of-interest concerns related to President Donald Trump's crypto ventures. The bill comes as Trump's family businesses have deepened their involvement in crypto, among a multitude of ways for foreign investors and others who could seek a quid pro quo with the Trump administration could enrich him personally through his family business ventures.
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As the U.S. dollar has sunk to its lowest level in three years, Americans looking for a travel bargain might consider Argentina: The greenback is up 31% against the Argentine peso compared to last year, largely due to the country's economic woes. I was lucky enough to visit recently and can't recommend it enough—make sure to sample the empanadas, Malbec, and of course, steak.
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Neighbors, an app for Ring doorbell users, is mostly used by people looking for lost pets or missing packages. But last week, horrified by the ICE raids in and around Los Angeles, residents started using the Amazon app to alert their communities to immigration agents carrying out searches and arrests.
While social media sites and Nextdoor have been used to highlight ICE activity across the U.S. in recent days, Neighbors has been especially popular, with dozens of posts. It allows anyone to post on safety issues in their locale and users can choose to include footage from their Ring doorbell cameras where relevant.
Forbes spoke to multiple Ring owners who'd shared warnings about ICE with their neighbors. One named Nic said it's been helpful to know what parts of Los Angeles to avoid, saying she'd seen users posting reminders of people's rights and not to open their doors to ICE agents without warrants. 'I feel like in a time when things are so unfamiliar and scary, small peeks of hope are helpful,' she told Forbes.
The posts reviewed by Forbes feature photos and videos of ICE agents, including their locations and, in numerous cases, their vehicle type. Some posts had information on ICE agents near stores like Dollar Tree, McDonald's, Starbucks and Target. Two alerted communities to ICE operations near elementary schools.
Still, there are good reasons to be careful when posting on Neighbors or Nextdoor. While Ring did remove a feature where police could request doorbell camera footage through the Neighbors app last year, police can obtain information on users with a court order. Search warrants and subpoenas could be used to demand data from any business with information on those protesting ICE's actions.
WHY IT MATTERS
The posts pose a dilemma for the Amazon-owned company. Ring prohibits any posts likely to inflame tensions between users, including those discussing politics and 'highly debated social issues.' A Ring spokesperson said those rules haven't changed, declining to provide further comment. ICE didn't respond to requests for comment.
MORE Flock's AI Cameras Are Watching Cars All Over America. They're About To Get A Lot More Powerful.
Medicaid cuts proposed by Senate Republicans in their version of President Donald Trump's signature policy bill are even steeper than those approved by the House, casting doubt on whether the legislation will pass by the July 4 deadline. The Senate version would extend new work requirements:
64%: The share of Medicaid recipients ages 19 to 64 who already work, per the Kaiser Family Foundation
More than $800 billion: The cuts to Medicaid over the next decade in the House version
215-214: The vote tally for the legislation in the House in May, largely along party lines
More and more Americans are quitting the corporate world to become 'solopreneurs.' If that sounds appealing, start by leveraging the market value of the skills you've built on the job. And you can start building your personal brand while still working a 9 to 5—doing so lends to your credibility, not to mention easing any financial pressures. Technology is also a key piece to doing more with less, so don't be afraid to introduce automation into the process.
Four Pennsylvania men were charged in a scheme to steal tens of millions of dollars in government checks from the Post Office. What online platform did they allegedly advertise the stolen checks on for resale?
A. WhatsApp
B. Facebook Marketplace
C. Telegram
D. eBay
Check your answer.
Thanks for reading! This edition of Forbes Daily was edited by Sarah Whitmire and Chris Dobstaff.