Latest news with #EconomicClubofChicago
Yahoo
03-06-2025
- Business
- Yahoo
'Trump is steering our economy toward disaster': Here are some expert money moves to protect your retirement
Moneywise and Yahoo Finance LLC may earn commission or revenue through links in the content below. With talk of trade wars, fear of stagflation and slashes to Social Security staffing, you might be justifiably concerned about your retirement savings — especially if you're one of thousands of federal workers now without a job. 'The level of tariff increases announced so far is significantly larger than anticipated, and the same is likely to be true of the economic effects, which will include higher inflation and slower growth,' Jerome Powell, the chair of the Federal Reserve, said at the Economic Club of Chicago in April 2025. 'Both survey and market-based measures of near-term inflation expectations have moved up significantly, with survey participants pointing to tariffs.' Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don't have to deal with tenants or fix freezers. Here's how BlackRock CEO Larry Fink has an important message for the next wave of American retirees — here's how he says you can best weather the US retirement crisis Nervous about the stock market in 2025? Find out how you can access this $1B private real estate fund (with as little as $10) Powell isn't alone in his concern. Almost nine-in-ten (89%) of U.S. adults anticipate price increases as a result of President Donald Trump's tariff policy, according to a new Gallup poll. What's more, the Federal Open Market Committee (FOMC) — the policy-making wing of the Federal Reserve System — is also concerned about the short-term effects of Trump's economic policies. Thanks to Trump's aggressive economic policies, there's now fear of stagflation — simultaneous slow economic growth and elevated inflation — hitting the U.S. economy. 'The Federal Reserve's projections confirm what millions of Americans are already thinking: President Trump is steering our economy toward disaster,' said Alex Jacquez, chief of policy and advocacy at non-profit think tank Groundwork Collaborative, in response to the latest Fed projections. American optimism about their financial prospects fell for the fourth straight month in April, according to the University of Michigan's Consumer Sentiment Report. Consumer expectations — gauging American attitudes towards the future — have tumbled by 32% since January, in the steepest three-month decline since the 1990 recession. Combined, these bleak figures suggest Americans believe things won't get better any time soon. 'Launching chaotic trade wars with our allies and gutting Social Security, Medicaid and other vital programs in order to fund tax breaks for his billionaire donors isn't making life more affordable for working-class families,' Jacquez said. 'It is, however, a perfect recipe for stagflation.' While other economists and industry-watchers are more guarded in their assessments, many agree that Trump's policies could lead to a period of stagflation. Richard Clarida — global economic advisor at Pacific Investment Management Company and former Federal Reserve vice-chairman — told Bloomberg that there's 'already at least a whiff of stagflation right now' in the U.S. Read more: You're probably already overpaying for this 1 'must-have' expense — and thanks to Trump's tariffs, your monthly bill could soar even higher. Once you get your feet underneath you, it's time to start growing your wealth in earnest and ramping up your saving strategy. A good place to start is maxing out any employer contributions to your 401(k). If you're over 50, take advantage of top-up provisions for your retirement accounts. Given the shaky start to 2025's markets, it may also be worth considering inflation-resistant investments, such as gold. While the S&P 500 has had a volatile last six months, the price of gold breached $3,000 per ounce in April. To capitalize on gold's growth potential while also securing tax advantages, one option is opening a gold IRA with the help of Priority Gold. Gold IRAs allow investors to hold physical gold or gold-related assets within a retirement account, thereby combining the tax advantages of an IRA with the protective benefits of investing in gold against economic uncertainties. When you make a qualifying purchase with Priority Gold, you can receive up to $10,000 in free silver. Once you've established a solid foundation it's time to start thinking long-term. Talking to your financial advisor about how to get the most for your money is a key step to securing your golden years, a college fund for your kids or paying down a mortgage quickly. With Vanguard, you can connect with a personal advisor who can help assess how you're doing so far and make sure you've got the right portfolio to meet your goals on time. Vanguard's hybrid advisory system combines advice from professional advisers and automated portfolio management to make sure your investments are working to achieve your financial goals. All you have to do is fill out a brief questionnaire about your financial goals, and Vanguard's advisers will help you set a tailored plan, and stick to it. Once you're set, you can sit back as Vanguard's advisors manage your portfolio. Because they're fiduciaries, they don't earn commissions, so you can trust that the advice you're getting is unbiased. Access to this $22.5 trillion asset class has traditionally been limited to elite investors — until now. Here's how to become the landlord of Walmart or Whole Foods without lifting a finger Rich, young Americans are ditching the stormy stock market — here are the alternative assets they're banking on instead Are you rich enough to join the top 1%? Here's the net worth you need to rank among America's wealthiest — plus a few strategies to build that first-class portfolio This article provides information only and should not be construed as advice. It is provided without warranty of any kind. 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
Business Insider
22-05-2025
- Business
- Business Insider
The Target boycott movement appears to be making a mark. More protests are around the corner.
Target is having little success in convincing shoppers of its stance on DEI. CEO Brian Cornell said Wednesday that public response to changes to its DEI programs — now known as "Belonging" — adversely impacted first-quarter sales, although an exact amount was not quantifiable. "We faced several additional headwinds this quarter, including five consecutive months of declining consumer confidence, uncertainty regarding the impact of potential tariffs, and the reaction to the updates we shared on Belonging in January," he said. The financial results follow weeks of declining foot traffic and sales, punctuated by seasonal holiday bumps during the period. But shifting positions on DEI issues don't appear to doing Target any favors, Global Data retail analyst Neil Saunders said in a note. "The extent of this should not be overstated as many other factors are driving down Target's sales numbers, but the move has certainly not been helpful," he said. A Target spokesperson said in a statement to Business Insider that the company is "absolutely dedicated to fostering inclusivity for everyone — our team members, our guests and our supply partners." "To do that, we're focusing on what we do best: providing the best retail experience for the more than 2,000 communities we're proud to serve," the spokesperson said. While some supporters of DEI have claimed partial victory in their pressure campaign, leaders including pastor Jamal-Harrison Bryant say they're not yet satisfied with the company's response. Bryant said his church would hold a protest in front of an Atlanta-area Target on Sunday, May 25, to mark the fifth anniversary of the murder of George Floyd in Target's hometown of Minneapolis. "We're gonna do it for nine minutes and 40 seconds as the same amount of time they applied pressure to George Floyd that led to his death," Bryant said in a video inviting other churches to join. Target expanded several diversity initiatives in the immediate aftermath of Floyd's murder, and CEO Brian Cornell said the incident highlighted that more work was needed. "It happened only blocks from our headquarters," Cornell told the Economic Club of Chicago a year after Floyd's death. "My first reaction watching on TV was that could have been one of my Target team members." At the time, Target committed to spending more than $2 billion on Black-owned businesses by 2025 by purchasing goods from more than 500 Black-owned businesses and contracting with Black-owned services from marketing to construction. "As CEOs we have to be the company's head of diversity and inclusion," Cornell told the Economic Club of Chicago. "We've got to make sure that we represent our company principles, our values, our company purpose on the issues that are important to our teams." Four years later, Target's message on DEI is less clear. In January, the company said it was rolling back several diversity initiatives, renaming others, and not renewing the spending and sourcing goals it set in 2021. (Target's spokesperson told BI the announcement did not affect existing brand or supplier relationships, and that the company still recruits from a range of schools, including HBCUs.) Target also for the first time donated $1 million to President Donald Trump's inauguration fund, filings showed, even as Trump was gearing up executive orders to strip DEI programs from federal agencies and contractors. Tech giants Google, Meta, and Uber also each donated the same amount. In addition, the company has drastically shrunk its annual LGBTQ Pride collection in recent years, and now offers a small fraction of what it showcased a two years ago. In a note to employees earlier this month, Cornell acknowledged that "silence from us has created uncertainty," and the executive has reportedly met with Bryant and Reverend Al Sharpton to discuss a path forward. Beyond the protests, Saunders said Target continues to face a myriad of other challenges, including still-high tariffs on imports, growing competitive pressures from rivals, and a host of other operational difficulties. "This year will be another soft one and Target enters it in a relatively weak position," he said.
Yahoo
07-05-2025
- Business
- Yahoo
"Can't come fast enough": Trump seeks "termination" of Fed Reserve Chair Powell
Jerome PowellFederal Reserve Chair Jerome Powell is in President Donald Trump's line of fire again. Trump urged Powell's ouster to cut interest rates to soften the economic blow of his tariff plan in a Thursday post to Truth Social and went on to call for the chair's ouster. 'Jerome Powell of the Fed, who is always TOO LATE AND WRONG, yesterday issued a report which was another, and typical, complete mess!'' Trump said. 'He should certainly lower [interest rates] now. Powell's termination cannot come fast enough!' Speaking to reporters in the White House later on Thursday, Trump added, 'If I want him out, he'll be out of there real fast.' The president's attacks came a day after Powell warned that his massive tariffs could send shockwaves through the American economy and complicate growth and stability efforts in a speech to the Economic Club of Chicago. 'The level of tariff increases announced so far is significantly larger than anticipated, and the same is likely to be true of the economic effects, which will include higher inflation and slower growth,' Powell said on Wednesday. 'Tariffs are highly likely to generate at least a temporary rise in inflation. The inflationary effects could also be more persistent.' The president has long sought more control over interest rates and has feuded with Powell over his resistance to White House pressure on the rates. Powell can't be removed from his post until his term ends in May of 2026. Whether Trump, who has moved to fire thousands of federal workers in recent weeks, will attempt to oust Powell remains to be seen. Some politicians are warning that the plan could itself spook markets. 'If Chairman Powell can be fired by the President of the United States, it will crash the economy,' Senator Elizabeth Warren, D-Mass., said on Thursday.
07-05-2025
- Business
Fed expected to hold interest rates steady, defying Trump
The Federal Reserve on Wednesday is set to announce its first decision on the level of interest rates since President Donald Trump last month intensified calls for lower borrowing costs and voiced eagerness about the potential "termination" of Fed Chair Jerome Powell. In recent days, Trump has dialed back his attacks on Powell, saying he will not fire Powell before the end of the top central banker's term next year. Trump has reiterated his displeasure with the level of interest rates, however, urging the central bank to lower them. Despite pressure from the White House, Powell is widely expected to hold interest rates steady, according to the CME FedWatch Tool, a measure of market sentiment. The central bank's benchmark interest rate currently stands at an elevated level of between 4.25% and 4.5%. The rate decision arrives days after fresh data showed robust job growth in April, defying some fears of a hiring slowdown in the aftermath of Trump's "Liberation Day" tariff announcement early last month. Despite flagging consumer sentiment and market turmoil, the labor market has provided a bright spot since Trump took office. Meanwhile, inflation cooled in March, the most recent month for which data is available. Last month, Powell raised the possibility that Trump's tariffs may cause what economists call "stagflation," which is when inflation rises and the economy slows. If the Fed raises interest rates as a means of protecting against tariff-induced inflation under such a scenario, it risks stifling borrowing and slowing the economy further. On the other hand, if the Fed lowers rates to stimulate the economy in the face of a potential slowdown, it threatens to boost spending and worsen inflation. Still, Powell pointed to solid economic performance as reason to take a patient approach as policymakers await the impact of tariffs. "For the time being, we are well positioned to wait for greater clarity," Powell told an audience at the Economic Club of Chicago. "Life moves pretty fast." Recession fears are mounting on Wall Street as Trump's tariffs threaten to upend global trade. Goldman Sachs earlier this month hiked its odds of a recession from 35% to 45%. JPMorgan pegged the probability of a recession this year at 60%. A government report last week showed the U.S. economy shrank over the first three months of 2025, much of which took place as Trump's flurry of tariff proposals stoked uncertainty among businesses and consumers. U.S. gross domestic product, or GDP, declined at a 0.3% annualized rate over three months ending in March, according to government data released on Wednesday. The figure marked a sharp dropoff from 2.4% annualized growth over the final three months of 2024. The rate decision on Wednesday also marks the first adjustment of borrowing costs since Trump's closely watched " Liberation Day" tariff announcement on April 2, which triggered the biggest single-day stock market drop since the COVID-19 pandemic. Days later, Trump suspended a major swathe of the tariffs, sending the market to one of its largest ever single-day increases. A simultaneous escalation of tariffs on Chinese goods kept the effective tariff rate at its highest level in more than a century, the Yale Budget Lab found. The White House is seeking to strike trade agreements with dozens of U.S. trade partners before the 90-day suspension of so-called "reciprocal tariffs" expires in July. "As we gain a better understanding of the policy changes, we will have a better sense of the implications for the economy," Powell said last month.
CNBC
06-05-2025
- Business
- CNBC
The Fed meets with uncertainty permeating the air. Here's what to expect
US Federal Reserve Chair Jerome Powell speaks at the Economic Club of Chicago in Chicago, Illinois, on April 16, 2025. The Federal Reserve heads into its closely watched policy decision Wednesday with a strong incentive to do absolutely nothing. Faced with unresolved questions over President Donald Trump's tariffs and an economy that is signaling both significant strengths and weaknesses, central bank policymakers can do little for now except sit and wait as events unfold. "It's going to be awkward at this meeting. The Fed doesn't have a forecast to convey anything about the next couple meetings," said Vincent Reinhart, a former long-time Fed official and now chief economist at BNY Investments. "The Fed's got to wait for two things: It's to see that the policy actually goes into place ... But then, when it's demonstrated, it's got to see how inflation expectations react. So that's why the Fed's got to delay, then go slow." Indeed, futures market pricing is implying almost no chance of an interest rate cut at this week's meeting, and only about a 1-in-3 probability of a move at the June 17-18 session, according to the CME Group's FedWatch gauge. Market expectations have shifted over the past week in response both to mixed economic signals as well as signs that President Donald Trump is getting at least a bit less aggressive in his tariff approach. The White House has signaled that several trade deals are nearing completion, though none have been announced yet. Reinhart said his firm has two cuts plugged in for this year, a bit tighter of a path than the market expectations for three reductions starting in July. A week ago, markets were betting on as many as four cuts, starting in June. Fed Chair Jerome Powell will be left at his post-meeting news conference to explain the thinking from him and his colleagues on where they see policy heading. "The other unsatisfying part is they don't know what they're going to do in June," Reinhart said. "So he's going to have to say everything's on the table. He always says it, but this time, he's going to have to mean it." Powell, though, is sure to face questioning about how policymakers see the recent barrage of data, which has painted a picture of economy loaded with pessimism from consumers and business executives that has yet to feed into hard numbers such as spending and employment. While gross domestic product fell at a 0.3% annualized rate in the first quarter, it was largely the product of a surge in imports ahead of Trump's April 2 tariff announcement. The April nonfarm payrolls report showed that hiring continued at a solid pace, with the economy adding a better-than-expected 177,000 jobs for the month. At the same time, manufacturing and service sector surveys show deep concern about inflation and supply impacts from tariffs. Also, consumer optimism is at multi-year lows while inflation expectations are at multi-decade highs. It all adds up to a tightrope for Powell and Co. to walk at least through the June meeting. "The Fed is going to project in their statement, in their press conference, patience. Wait to see more data," said Tony Rodriguez, head of fixed income strategy at Nuveen. "Too much uncertainty to act right now, but prepare to act if they begin to see weakness in the employment market." Nuveen also expects just two cuts this year and two more next year as the Fed navigates slowing growth and tariff-fueled price increases. "Our expectation is you're going to see nothing at this meeting," Rodriguez said. "They just need to see more hard data, which we don't think will become really clear until call it June or July. I would think of the September meeting as being the first cut." The Fed at this meeting does not update its economic projections nor its "dot plot" of individual member expectations for interest rates. That will come in June. So the rate-setting Federal Open Market Committee will be left to tweaks in the post-meeting statement and Powell's news conference to drop any possible hints of its collective thinking. "We think it will take a couple of months for enough hard data evidence to accumulate to make the case for a cut," Goldman Sachs economist David Mericle said in a note. Goldman expects the Fed to cut in July, September and October in an effort to head off economic weakness, which the firm expects to take priority over inflation concerns. One wild card in the equation: Trump, as he did during his first term, has been urging the Fed to cut rates as inflation edges closer to the central bank's 2% objective. However, Reinhart, the BNY economist, does not see the Fed bending to Trump's will nor breaking ranks despite public statements from some members showing division on policy. "The White House has done Jay Powell a favor in keeping his committee together. Because generally, when a family is criticized from from the outside, it's less willing to criticize each other," Reinhart said. "Do you criticize Jay Powell now and line yourself up the president? Probably not, if you worked your whole life in the Federal Reserve system."
