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Fox News
a day ago
- Business
- Fox News
Sen. Rand Paul favors the prospect of abolishing the Federal Reserve
Sen. Rand Paul, R-Ky., explained to Fox News Digital during an interview on Tuesday that he would support abolishing the Federal Reserve System, with the key proviso that the country stop engaging in deficit spending, and instead, run a balanced budget. But the fiscal hawk and son of former U.S. Rep. Ron Paul, a famous Federal Reserve critic, says he does not anticipate that will happen. "I see the opposite," he said, indicating that many in the GOP who previously cared "about deficits under Biden, seem to care less about deficits under Trump." "I frankly think if Congress weren't running deficits you could do without a Fed," he said. Though he added that there would need to be a "clearinghouse" system, indicating that with the Fed out of the picture, the market would need to be allowed to "fill that space" over time. Paul believes that the free market — supply and demand — should dictate interest rates. "Interest rates are a universal price," he explained, opining that they are likely "the most prolific price in all of the economy." The last time the Federal Open Market Committee decided to decrease the target range for the federal funds rate was back in December, and President Donald Trump has been stridently calling for the Fed to move on rate cuts. But Paul compared rate-cut demands to insisting that meat is too expensive, and Trump should lower its price — the senator pointed out that most people would view such a call as "nonsensical" as it pertains to consumer goods, "but for some reason even conservatives sort of lose their mind when it comes to interest rates," he said. The senator noted that he thinks "really what we want is a Federal Reserve that's less involved with manipulating interest rates." Paul, who opined that there is likely "no more powerful and secretive organization in all of government," is pushing a bill to audit the Fed. The proposed legislation, which is also backed by some of Paul's GOP colleagues, calls for the Comptroller General of the U.S. to audit the board of governors of the Federal Reserve System and the Federal Reserve banks. He is also pushing a measure, which has been cosponsored by left-wing Sen. Bernie Sanders, I-Vt., titled the "End the Fed's Big Bank Bailout Act," which includes language stipulating, "No Federal Reserve Bank may pay earnings on balances maintained at a Federal Reserve Bank by or on behalf of a depository institution."
Forbes
3 days ago
- Automotive
- Forbes
Is It Time To Buy A New Car? Auto Loan Rejection Rates Drop
Editorial Note: We earn a commission from partner links on Forbes Advisor. Commissions do not affect our editors' opinions or evaluations. Getting behind the wheel just got easier, as auto loan approvals are picking up speed. July 2025 data from the Federal Reserve Bank of New York shows that rejection rates for auto loans have fallen notably in the past quarter, from 14% in February to 6.7% in June. As access to credit continues to improve, consumers looking to finance a car may find the process smoother this summer. In other words: the green light for new car financing is flashing bright for many. The data from the New York Fed shows a broad decline in loan application rejections, particularly in categories that had been tightened earlier in the rate hike cycle. Auto loan rejection rates fell to 6.7%, down from 14% in February. Mortgage refinance rejections also dropped to 14.6%, compared to a whopping 41.8% in February. Rejection rates are dropping, and at the same time, consumers are feeling better about credit access. Fewer households say it's hard to get credit now, and more expect things to improve over the next year. And while interest rates are still high by pre-pandemic standards, the Fed's pause on further hikes seems to give lenders and borrowers a little breathing room. Several factors are helping loosen the credit spigot. Stable employment: The labor market remains resilient, with unemployment hovering around 4%, according to the Bureau of Labor Statistics. Stable income supports stronger borrower profiles. Federal rate stabilization: Rates are still high, but the Fed's decision to hold steady has added some predictability. That stability, analysts say, can help reduce the risk premium lenders build into approvals, making credit a bit easier to come by. Improving consumer balance sheets: After years of pandemic-era savings and stimulus, some households are still better positioned financially, even with rising costs. With auto loan rejections declining, this could be a good moment to finally trade in that car that's been breaking down weekly. Here are some of the best auto loan providers of 2025 . However, it's not a free-for-all. The same New York Fed survey shows that experienced rejections for credit card limit increases climbed from 30.7% last June to 37.8% this year, signaling growing lender caution around revolving credit. Even with approval odds improving, not everyone should jump at the chance to borrow. Rates for auto financing are still high, around 7% to 8%. Approval rates have improved, but monthly payments can still be a burden, especially with elevated new car prices. For example, let's say you're eyeing a $20,000 car. With a 7% interest rate over five years, you'd pay roughly $400 monthly. If you're eyeing a $35,000 car, that jumps close to $700 a month. Even though getting approved these days is easier, those monthly payments add up quickly, especially when you factor in insurance, taxes, and repairs. Before you sign on the dotted line, ensure you're comfortable with the full cost and that it won't break your wallet. Getting credit approval is easier than earlier this year, especially for auto loans and mortgage refinancing. But that doesn't mean it's cheap. Interest rates are still relatively high, and consumers should approach new debt cautiously. Improved access is a good sign for the broader economy, indicating confidence on both sides of the lending equation. Make sure any credit decision fits your financial picture, not just what's trending in the data.
Yahoo
5 days ago
- Business
- Yahoo
OysterLink Study: Hospitality Graduates Take 5-7 Years to Reach $70K Salary
New York, New York--(Newsfile Corp. - July 27, 2025) - A new analysis by OysterLink reveals that hospitality graduates typically require five to seven years to achieve the $70,000 mid-career wage expected in their field. The findings highlight how long it takes for a hospitality degree to translate into higher earnings. OysterLinkTo view an enhanced version of this graphic, please visit: The study combines labor market outcomes for leisure and hospitality majors (U.S. Census Bureau data, as compiled by the Federal Reserve Bank of New York) with 2020-2024 wage and employment data for 15 hospitality roles. It shows that many graduates begin their careers in roles that pay significantly below the early-career median for degree holders, and this requires steady advancement into higher-paying positions to close the earnings gap. "Hospitality can deliver strong wages, but it takes time," said Milos Eric, founder and general manager of OysterLink. "Many graduates start in frontline roles, which often pay $10,000-$14,000 less than the early-career median for Leisure and Hospitality majors, but with clear advancement paths, they can reach competitive earnings," Eric added. According to data from the Census and the Federal Reserve Bank of New York, leisure and hospitality majors report a median early-career wage of $44,000 and a mid-career wage of $70,000. In comparison, most frontline hospitality roles - such as servers, bartenders, and front desk agents - have 2024 median wages between $30,000 and $34,000. Mid-tier roles, such as event planners and concierges, earn $40,000-$59,000, while management positions, including restaurant and hotel managers, reach $65,000-$68,000, coming closest to the mid-career benchmark. Table 1: 2024 median wages vs. degree benchmarks Career Stage Example Roles Median Wage Gap vs. Degree Benchmarks Entry-Level Server, Bartender, Front Desk $30K-$34K -$10K to -$14K (vs. $44K) Mid-Level Event Planner, Concierge $40K-$59K Still below $70K mid-career Upper-Level Restaurant/Hotel Manager $65K-$68K Approaching $70K benchmark The study estimates that graduates in fast-track programs can reach $65,000-$68,000 in approximately five years, while those following the typical path from frontline to supervisory roles often require six to seven years to achieve similar earnings. Graduates who remain in frontline roles without advancement may take significantly longer or may not reach the $70,000 target at all. Table 2: Estimated time to reach $70k by career path Career Path Starting Wage Years to $70K Typical Progression Fast-Track $34K 5 Mid-Level → Manager Standard Path $30K-$33K 6-7 Front-Line → Supervisor → Manager Extended Path $30K-$32K 8+ Frontline → Multiple lateral moves These estimates use degree-holder wage benchmarks and role-level pay data alongside industry norms for career progression. On average, it takes two to three years to move from frontline to supervisory roles and another two to four years to advance into management. The report urges employers to establish clear career ladders, expand management-track programs, and collaborate with hospitality schools to incorporate more practical leadership training, enabling graduates to secure higher-paying positions more quickly. This study combines U.S. Census Bureau data on leisure and hospitality majors (via the Federal Reserve Bank of New York) with a detailed review of wages, percentile pay, and employee growth (2020-2024) across 15 hospitality roles. About OysterLink OysterLink is a job platform for restaurant and hospitality professionals with over 400,000 monthly visitors. OysterLink connects talent with opportunities across the U.S., including the top server jobs in New York City or bartender jobs in Los Angeles. The platform also offers trend reports, expert insights, and interviews with leaders in hospitality. Media Contact press@ To view the source version of this press release, please visit Sign in to access your portfolio
Washington Post
6 days ago
- Business
- Washington Post
How a Fed tour sparked unexpected Trump praise for Powell
President Donald Trump's tour of the Federal Reserve's expansive office renovations Thursday had the makings of a public relations disaster for the central bank. Instead, the meeting appeared to signal at least a temporary pause in one of the most contentious periods for the Fed, which has faced near-daily criticism from Trump and his advisers. Trump has attacked Fed Chair Jerome H. Powell for not lowering interest rates and more recently for cost overruns on the $2.5 billion project. On Thursday, Trump took the unusual step of visiting the Fed in-person, something a sitting president hadn't done in nearly 20 years. Instead of fireworks, what unfolded was a surprisingly cordial, if sometimes awkward, meeting amid an active construction site, featuring scaffolding, dumpsters and plywood-covered walls and stairs. Trump, wearing a white hard hat alongside Powell, refrained from criticizing the Fed chair, telling reporters he didn't want to make the meeting personal. He later said he wouldn't fire the Fed chair and signaled he wanted the project to proceed. The visit did not produce the kind of dramatic confrontation seen in the Oval Office when Trump has sparred with foreign leaders, such as South African President Cyril Ramaphosa. Trump also departed without any commitments from Powell on lowering interest rates, although Trump tried. And, in a moment that has been widely shared across social media platforms, Powell even publicly corrected Trump on his claims about the project's rising cost. 'I don't think it was as successful as the White House hoped it would be,' said Anne Marie Malecha, chief executive of Dezenhall Resources, a public relations and crisis management firm. 'Powell came off friendly and factual. That doesn't play into the intended narrative of him being the villain.' By Friday, Trump's tone toward Powell had shifted even further. The president — who has previously derided Powell as a 'moron,' 'numbskull' and 'a stiff' — was complimentary. Speaking to reporters before his trip to Scotland, Trump referred to Powell as a 'very good man.' 'We had a very good meeting,' Trump said. 'He said to me very strongly, the country is doing well. He said, 'Congratulations. The country is doing really well.'' Trump went on to suggest he took Powell's comments as a sign he might soon recommend that the Fed lower interest rates, which trickle through the financial sector to influence what millions of consumers and businesses pay for mortgage, autos and other types of loans. Thursday's meeting between Powell and Trump came together abruptly. After White House officials declined a Fed offer to allow Trump's aides to tour the building site last Friday, the Fed offered an alternative Thursday. The Fed only learned that Trump himself planned to participate when the White House updated Trump's public schedule shortly after 10 p.m. Wednesday, according to a person familiar with the matter. While the Fed is not expected to lower rates at its meeting next week, Powell and other top officials have said further cuts are possible later this year, potentially beginning in September — a move that Trump may view as an olive branch. 'The president is still going to be unhappy when the Fed doesn't cut interest rates next week,' said David Wessel, director of the Hutchins Center at the Brookings Institution. 'But in the PR battle, the Fed has fought Trump at least to a draw and may actually have won this round.' At one point, the tour nearly turned confrontational, with Powell fact-checking the president's assertion that renovation costs had ballooned to $3.1 billion — far above the figure the central bank has cited. Powell shook his head and questioned the source of the figure. Trump pulled out a summary of costs that included another building, which reopened in 2021. He and Powell then pored over the document together. 'You just added in a third building, is what that is,' Powell told Trump. 'It was built five years ago.' Trump responded that he was referring to 'overall work,' but quickly lightened the exchange when a reporter asked how Powell could stanch the torrent of criticism from the White House. 'Well, I'd love him to lower interest rates,' Trump said, after slapping the Fed chair on the back. 'Other than that, what can I tell you?' The Fed, for its part, took the opportunity to praise Trump's visit, saying in a statement Friday that it appreciated 'the President's encouragement to complete this important project,' and emphasized its commitment to be 'careful stewards of these resources' as the work continues.
Yahoo
23-07-2025
- Business
- Yahoo
JPMorgan Chase: Homebuyers Now Have To Spend 45% More of Their Incomes on Mortgages — Is Homeownership Still Worth It?
For hopeful homebuyers, the dream of owning property is often shattered by the stark reality that the housing market is nearly unaffordable. New data from JPMorgan Chase shows that homebuyers had to spend an additional 45% of their incomes on mortgage payments in 2024 compared with 2019. Read Next: Learn More: The fact is that potential homeowners face more obstacles than ever and will have to pay almost double each month. Given the economy, is buying a home still worth it? Home Prices and Mortgage Rates Are Rising According to JPMorgan Chase, home price indexes jumped 50% between 2019 and 2024. During this same time, 30-year fixed mortgage rates rose from 3.7% to 6.9%, meaning that monthly mortgage payments nearly doubled for most prospective buyers over the course of five years. Unfortunately, wages did not increase at the same breakneck pace. The financial services company reported that the median income increase for typical first-time homebuyers (people aged 25-44) was only 41% from 2019 to 2024. Therefore, people trying to buy homes today not only are going to face higher mortgage payments but also are doing it on wages that couldn't keep up with increasing costs. Check Out: Preference for Owning Despite these obstacles, many renters would like to still own. As reported by the Federal Reserve Bank of New York, 49% of renters said they would strongly prefer owning. However, only 34% said there was a probability of owning a primary residence in the future. This discrepancy is likely explained by the fact that people, when surveyed, believed mortgage rates and home prices would continue to rise. Hope on the Horizon The housing market is notoriously difficult to predict. The good news is that experts believe the mortgage rates may come down, albeit only slightly, in the near future. While it may not drop to the lows seen in 2019, some forecasts suggest it could drop somewhat by 2027, per U.S. News & World Report. A drop in mortgage rates would help hopeful homeowners. Even a 1-percentage-point change in the rate could save homeowners hundreds of dollars a month and thousands over the course of the loan. To Buy or Not To Buy The question, however, remains whether potential homebuyers should take the leap or wait it out. Housing experts believe that while waiting for a substantial drop in rates might seem like a good idea, it could prove to be costly. U.S. News reported that while rates may come down slightly, they are not expected to drop significantly, and home values are expected to rise. Additionally, if there is a drop in rates or home prices, it could send buyers swarming to the market, creating more competition. Prospective buyers who are financially steady and have a stable income could consider buying now. If rates come down in the future, homeowners can consider refinancing, which could end up saving hundreds of dollars each month. Shop Top Mortgage Rates Personalized rates in minutes Your Path to Homeownership A quicker path to financial freedom On the other hand, potential buyers with unstable finances or uncertain income may want to continue to hold off to ensure they don't end up overextended. Buying a home is really dependent on individual circumstances and should not be handled with a one-size-fits-all approach. 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 How Much Money Is Needed To Be Considered Middle Class in Your State? This article originally appeared on JPMorgan Chase: Homebuyers Now Have To Spend 45% More of Their Incomes on Mortgages — Is Homeownership Still Worth It? Sign in to access your portfolio
