US Says Signed Trade Agreement With China
'Bloomberg: The China Show' is your definitive source for news and analysis on the world's second-biggest economy. From politics and policy to tech and trends, Yvonne Man and David Ingles give global investors unique insight, delivering in-depth discussions with the newsmakers who matter. (Source: Bloomberg)
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Yahoo
21 minutes ago
- Yahoo
Fed's Kashkari expects two rate cuts this year, with pause possible
(Reuters) -Federal Reserve Bank of Minneapolis President Neel Kashkari is sticking to his view that cooling inflation will allow the world's most important major central bank to cut its policy rate twice this year, starting in September. In an essay released on Friday, Kashkari also signalled that if progress on inflation stalls or reverses the Fed could simply pause its rate-cutting cycle until prices ease again. Tariffs suggest an inflation boost is "likely coming," he said, as more goods from Asia, subject to the biggest tariff increases, arrive on the shelves of U.S. businesses. While businesses may not want to risk angering customers by charging more for their wares, they will start passing on price increases in the absence of trade deals lowering tariffs, he said. In this scenario, the effect of tariffs on inflation may simply arrive later than expected, Kashkari said. At the same time, Kashkari said, the economic data so far has revealed "only a modest imprint of the effects of tariffs on prices, activity or the labor market," with inflation making renewed progress toward the Fed's 2% goal. That may suggest, he said, that companies have won exemptions, have adjusted their supply routes, or are otherwise finding ways to avoid the tariffs altogether, limiting the impact on inflation. "Those opposing signals have led me to maintain my outlook for two cuts over the remainder of 2025, implying a possible first cut in September, barring some surprising development before then," Kashkari said. "If we were to cut in September and then the effects of tariffs showed up this fall, I believe we should not be on a preset easing course" but could adjust to fit the new data, he added. "If the data called for it we could hold the policy rate at the new level until we gained greater confidence that inflation was headed back to our target." For now, though, Kashkari said: "We should put more emphasis on the actual inflation and real economic data that we are seeing without committing to an easing policy path in case the effects of tariffs are merely delayed." Last week, Fed policymakers left their overnight target rate for lending between banks unchanged at between 4.25% and 4.5%. Uncertainty over the outlook is keeping the central bank on the sidelines amid expectations the tariffs will push up inflation this year while depressing growth and hiring.
New York Times
24 minutes ago
- New York Times
What Business Is Watching in Negotiations Over Big Policy Bill
Andrew here. We're focused on the scramble to salvage Republicans' major policy bill and how it could affect business and the economy. We've also got more on the New York mayoral race moves by business leaders and reporting by Danielle Kaye on the financial health of Saks Global. A.I. is also on our minds. Check out some fun excerpts from an interview with Patrick Collison, the co-founder of Stripe, conducted by my colleagues Kevin Roose and Casey Newton of The Times's 'Hard Fork' podcast. And Sarah Kessler finds out how the C.E.O. of Twilio uses A.I. ministration — are making it harder to salvage the legislation, which corporate America is closely watching, in time. Here are the latest big changes: The Senate parliamentarian, a nonpartisan official who is reviewing whether the legislation complies with the chamber's budget rules, rejected a provision that would limit states' ability to get more federal Medicaid funds. (For the wonkily minded, they relate to a 'provider tax' loophole that nearly all states use.) Critics of the bill say it could lead to the shuttering of many rural hospitals. The administration directed lawmakers to remove the so-called revenge tax, which would have raised taxes for many companies based in countries that impose a global minimum tax or additional taxes on American tech giants. Business lobbyists have argued that it would chill international investment in America. Treasury Secretary Scott Bessent said he had reached international agreements exempting U.S. companies from the global minimum tax. The Senate parliamentarian also asked lawmakers to rework a 10-year moratorium on the enforcement of state laws regulating artificial intelligence, according to Senator Maria Cantwell, Democrat of Washington and the ranking member of the Senate Commerce Committee. Here's a running list of other provisions the parliamentarian has rejected. Still unaddressed: the tax changes at the core of the legislation. Trump is turning up the heat on lawmakers. The White House held an event on Thursday to rally support for the legislation, at which the president praised the 'hundreds of things' to like about the bill. Trump has also been calling up individual senators, according to Punchbowl News. Whether or when that happens is unclear, however. Republican leaders are seeking to salvage many of the provisions with wording tweaks. (They've already done so with proposed cuts in federal funding for food assistance programs.) But Senator John Thune, the majority leader, has said that the chamber won't override the parliamentarian's rulings. Meanwhile, lawmakers still disagree on key provisions like caps on deductions for state and local taxes. And it's unclear whether House Republicans will approve whatever the Senate decides on. Want all of The Times? Subscribe.
Yahoo
27 minutes ago
- Yahoo
5 Money Worries That Hold Back the Middle Class from Becoming Upper Class
Nowadays, social mobility can feel akin to endlessly climbing up a down escalator — especially for the middle class. Certified financial planner, Stoy Hall, put it best: 'The system is not built for the middle class to level up. It's built to keep them in a loop of just enough stability to keep chasing the dream — but never quite catching it.' Be Aware: For You: With the deck stacked against them, the middle class are bound to feel beaten down. And while many of their hardships are grounded in reality, some of the resulting helplessness becomes internalized. As senior consultant at Nextpins, Lucia Lu, explained, sometimes the issue stops being about money and starts being about mindset. Here are five money worries holding back the middle class from reaching upper class status. Stuck in survival mode, the middle class is often afraid to take a risk and fail because it could mean losing everything they've worked hard for. They don't have a financial cushion to fall back on. 'When you finally reach a place where your bills are paid, you've got health insurance and maybe a little savings, the last thing you want to do is blow it all chasing a bigger dream,' stated Hall. As a result, individuals settle for 'good enough,' choosing not to leave a toxic job or start that new business venture. Safety becomes more enticing if financial growth comes with the possibility of complete destruction. And who could blame them? Explore More: While not a universal truth of middle-class individuals, many are in fact in the middle class because they remain constrained by their lack of financial knowledge and good decision-making. When it comes to leveling up, a salary bump is only as good as one's knowing what to do (or not do) with that extra money. Unfortunately, many individuals remain uneducated because not only does learning about money feel foreign and overwhelming, but knowing whose advice to listen to gets complicated in a landscape of unqualified finfluencers. So, they never really start the process of learning about money. This makes them vulnerable to financial scams and fraud, as well as making hasty decisions based on short-term gain rather than long-term growth. Living beyond one's means is something many middle-class families fall victim to in a futile attempt to keep pace with flashy and successful peers. After all, social pressure is real. And who wants to say they're the poor family that has a used car and rent an apartment when all their fancy friends own new cars and expensive homes? So credit card debt and mortgages it is! Unfortunately, those flashy peers may be cash poor. As Lu explained, the true upper class generally lives below their means and concentrates on putting their money toward investments and other money-making endeavors. Wealth simply isn't flashy. As Hall explained, lifestyle inflation can choke the middle class. Even if they get a raise, they spend it trying to keep up with others: 'they never get a chance to invest the difference–because there isn't one.' Those stuck in the middle class are often on a hamster wheel figuring out how to generate more and more income without considering how to acquire assets. But money is essentially static in value (and may even decrease over time as a result of inflation); assets will continue to appreciate over time. Passive income is one of the largest drivers of wealth for the upper class — and passive income is the result of assets. Unfortunately, many in the middle class are doing more work yet earning less money by failing to strategize effectively. Lu advised shifting perspective: Divert some energy away from one's paycheck and toward asset-creating endeavors like investing in stocks or real estate. 'A long-term perspective is a must for anyone seeking to level up,' stated Lu. Unfortunately, many in the middle class are keeping themselves there by failing to plan for the future or perhaps stick to their future plan. The upper class isn't intending to wing it, they are thinking long-term: Retirement planning, family assets, long-term investments, etc. By starting early and keeping an eye towards the future, the upper class is able to incrementally set aside money and allow that money to compound over time. While it can be difficult for middle-class parents to think about the future or set aside any money while they're busy trying to put food on the table, they are robbing their future selves (and their legacy) of wealth accumulation. Setting aside even small amounts of money for retirement can make all the difference down the road. More From GOBankingRates Mark Cuban Warns of 'Red Rural Recession' -- 4 States That Could Get Hit Hard 9 Downsizing Tips for the Middle Class To Save on Monthly Expenses The 5 Car Brands Named the Least Reliable of 2025 This article originally appeared on 5 Money Worries That Hold Back the Middle Class from Becoming Upper Class 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
