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CNBC
a day ago
- Business
- CNBC
Most companies are already raising prices or plan to because of tariffs, data shows
Data from the New York Federal Reserve shows a majority of companies have passed along at least some of President Donald Trump's tariffs onto customers, the latest in a growing body of evidence indicating the policy change is likely to stretch consumers' wallets. In May, about 77% of service firms that saw increased costs due to higher U.S. tariffs tariffs passed through at least at least some of the rise to clients, according to a survey conducted by the New York Fed that was released Wednesday. Around 75% of manufacturers surveyed said the same. In fact, more than 30% of manufacturers and roughly 45% of service firms passed through all of the higher cost to their customers, according to the New York Fed's statics. Price hikes happened quickly after Trump slapped steep levies on trading partners, whether large or small. More than 35% of manufacturers and nearly 40% of service firms raised prices within a week of seeing tariff-related cost increases, according to the survey. Trump announced in early April that he would impose "reciprocal" tariffs on more than 180 countries and territories, sending the stock market into a tailspin. But Trump soon rolled back or paused those levies for three months, unleashing the equity market to claw back most of its initial losses. Companies and investors alike are now looking to a July 9 deadline for the return of those suspended tariffs, coping in the meantime with continued confusion regarding to trade policy. The U.S. has already announced one trade deal with the United Kingdom, and Deputy Treasury Secretary Michael Faulkender said this week that the Trump administration is "close to the finish line" on some other agreements. The New York Fed's survey is the latest in a salvo of data releases and anecdotal reports that have shown companies' willingness to pass down cost increases despite pressure from Trump not to do so. Nearly nine out of 10 of the 300 CEOs surveyed in May said they have raised prices or planned to soon, according to data released last week by Chief Executive Group and AlixPartners. About seven out of 10 chief executives surveyed in May said they plan to hike prices by at least 2.5%. Corporate executives have been careful in how they speak about the impact of Trump's policies on their business, especially when it comes to trade, to avoid getting caught in the president's crosshairs. Last month, for example, Trump warned Walmart in a social media post that the retailer should "eat the tariffs" and that he would "be watching." Consequently, survey data and anonymous commentary offer insights into how American business leaders are discussing the tariffs behind closed doors. "The administration's tariffs alone have created supply chain disruptions rivaling that of Covid-19," one respondent said in the Institute for Supply Management's manufacturing survey published Monday. Another respondent said "chaos does not bode well for anyone, especially when it impacts pricing." While another pointed to the agreement between the U.S. and China to temporarily slash tariffs, they said the central question is what the landscape will look like in a few months. "We are doing extensive work to make contingency plans, which is hugely distracting from strategic work," this respondent said. "It is also very hard to know what plans we should actually implement." Responses to the ISM service sector survey released Wednesday revealed a similar focus on the uncertainty stemming from controversial tariffs. "Tariffs remain a challenge, as it is not clear what duties apply," one respondent wrote. "The best plan is still to delay decisions to purchase where possible."
Yahoo
a day ago
- Business
- Yahoo
3 ways to conduct your mid-year credit check-in
Americans sat on over $1.2 trillion in credit card balances in the first quarter of 2025, according to the New York Federal Reserve. Clint Henderson, The Points Guy managing editor, breaks down how to maximize credit card rewards and avoid costly fees in the second half of the year. To watch more expert insights and analysis on the latest market action, check out more Wealth here. According to the New York Fed, Americans credit balances totaled 1.2 trillion dollars in the first quarter. And as part of our mid-year financial checkup, I want to bring in Clint Henderson, who's the points guy managing editor. Clint, good to see you once again. What should consumers be checking in on at this halfway point of the year? So you want to make sure that you're squeezing every last drop of your statement credits that you get for some of the premium credit cards. Uh you want to check to see if you're in the market for a credit card. So, know your credit score, you know, maybe shop around. We've seen some insanely good uh offers right now in the in the past couple of months. I know several off the top of my head where you can get 100,000 points or miles for signing up for a credit card. Um, but right now you want to be checking that you're getting the maximum value from all your cards. Make sure you set up some uh automatic payment schedules so you're not missing any payments because that really dings your credit score. Uh, you want to make sure you're paying off the balances every month and then like I said, squeeze every, you know, a lot of cards now have, we call it couponning. So, you have to make sure that you're getting all the statement credits that you're eligible for. You can see some of the rules on your screen. Um, you want to not carry balances, avoid foreign transaction fees, a lot of cards have no foreign transaction fees. Um, you want to check to see if you're paying fees for making payments. So, increasingly we're seeing like a 2% or 3% charge to use a credit card. Uh, that's exorbitant and you shouldn't be paying that cuz then you you're erasing any of the benefits you get from having a rewards credit card. Uh, but there are cards out there like the Wells Fargo built card that actually comes, uh, you can pay your rent with that with no transaction fees, uh, some some billing will let you pay without a transaction fee. So make sure you're not getting hit with a transaction fee when you're using your credit cards. If you're in a good position to sign up for a new card, what should you be looking for? Look for a giant sign-up bonus. You know, we just saw a huge sign-up bonus from Chase. I have a feeling more coming down the pike. You know, 100,000 points or miles for for a low annual fee card is a no-brainer in my mind. I think the American Airlines executive card right now has 100,000 American Airlines miles. Uh, you know, some of these cards have really valuable sign-up bonuses and you know, I'm kind of the outlier because I have 27 credit cards. Uh, but you know, that's how I'm able to travel the world in business class because I'm signing up for a lot of credit cards, earning those sign up bonuses, and then downgrading the card after a year if I don't want to pay the annual fee, but you can bet I have a spreadsheet where I track every single card and its benefits and make sure I'm getting all those benefits. Dozens of cards you've told me you had before here. So once you do get a new card, how do you accumulate those points by the end of the year? So, the main thing is you want to meet the terms of the signup bonus. So a lot of the cards, you have to spend a certain amount of money in the first three months of card opening. So make sure you're tracking that. I have made that mistake myself where I signed up for a business credit card, and then I spent $998 instead of a thousand and I did not get the sign-up bonus. So make sure you're getting those sign-up bonuses. And then use the cards that come with bonuses on on certain categories of spending. So the Chase Sapphire preferred card for example, gives you extra points on travel, uh, on things like ride shares and taxis. So you want to make sure that you're using the right card. You know, some people in this hobby go to the length of putting little stickers on their partners cards to make sure they know what to use which card for which store because of the bonus categories. So there's lots of ins and outs. You don't have to get quite that deep into the hobby, but, uh, make sure at least for the main card that you're using that you know what category bonuses it might have. 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
a day ago
- Business
- Yahoo
3 ways to conduct your mid-year credit check-in
Americans sat on over $1.2 trillion in credit card balances in the first quarter of 2025, according to the New York Federal Reserve. Clint Henderson, The Points Guy managing editor, breaks down how to maximize credit card rewards and avoid costly fees in the second half of the year. To watch more expert insights and analysis on the latest market action, check out more Wealth 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
3 days ago
- Business
- Yahoo
Becoming a millionaire is more realistic than you'd think — here's how to get it done even on a modest salary
It's easy to assume that wealth and income are deeply intertwined. After all, how does anyone become wealthy without a high-income stream? However, data gathered by Dave Ramsey's team suggests the link between wealth and income may be weaker than most people assume. 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 I'm 49 years old and have nothing saved for retirement — what should I do? Don't panic. Here are 5 of the easiest ways you can catch up (and fast) Nervous about the stock market in 2025? Find out how you can access this $1B private real estate fund (with as little as $10) According to The National Study of Millionaires, conducted by Ramsey Solutions, only 31% of American millionaires earned an average annual income of $100,000 over the course of their careers. Perhaps even more surprising is that one-third of these millionaires never reached the six-figure income milestone throughout their careers. In other words, it's completely realistic to reach a seven-figure net worth without earning a six-figure salary. However, this modest income path to millionaire status does require more effort and discipline. The key to accumulating wealth is managing expenses. Many ultra-high-income individuals struggle to break into the millionaires club because they let lifestyle inflation consume them. In fact, 36% of Americans earning more than $200,000 a year said they were living paycheck to paycheck, according to a PYMNTS survey from 2024. By comparison, someone with a modest five-figure income coupled with better savings and investing skills could be more likely to reach millionaire status. However, a high-savings rate isn't a silver bullet. To break into the millionaires club with a mid-range income, you'll need to invest wisely and start as early as you can. The magic fuel that drives the compounding growth effect is time. In a long enough time frame, even modest savings and lacklustre investment returns can turn into serious wealth. For instance, an 18-year-old would need to save only $250 a month and earn a modest 7% annual return on investment to reach $1 million by the age of 66. Put simply, if you want to accumulate exceptional wealth without an exceptional income, starting as early as possible is essential. Read more: Want an extra $1,300,000 when you retire? Dave Ramsey says — and that 'anyone' can do it Another essential ingredient in your modest-income-to-millionaire journey is reducing your exposure to debt. After all, a high-interest loan can effectively offset all the positive impacts of a diligent savings and investing strategy. For most people, avoiding debt — especially the expensive type — is their biggest challenge. As of early 2025, American households collectively had nearly $5 trillion in non-housing debt such as student loans, auto loans and credit card balances, according to the New York Federal Reserve. Serving this debt could be one of the key reasons why the average personal savings rate in America is only 4.9%, according to the Federal Reserve Bank of St. Louis. By limiting or eliminating consumer debt, you can save more. That could be the key to your financial freedom, regardless of your income. Life can be messy and even if you follow all the traditional financial advice, your journey to financial freedom could be derailed by health issues, divorce, bankruptcy or emergencies. If you're approaching retirement without much savings or a high-paying career, your chances of becoming a millionaire are greatly diminished. However, this doesn't mean it's impossible to enter the club. Creative solutions could help you get there despite the odds. For instance, you could boost your savings rate by temporarily moving to a town or country with a lower cost of living. Working remotely while paying modest rent in Mexico, for example, could help you accumulate wealth faster. You could also consider delaying retirement. Adding five or even 10 years to your retirement plan could make a significant difference, especially if you're starting to build your nest egg later in life. A 40-year-old would need to save just $900 a month and earn a 7% return on investment to reach millionaire status at 75. Finally, you could boost your investment returns by investing in alternative assets such as rental property, farmland, small businesses or high-growth tech stocks. There's always a practical path to the seven-figure club, regardless of your age or income. Here are 5 'must have' items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you? Rich, young Americans are ditching the stormy stock market — here are the alternative assets they're banking on instead Robert Kiyosaki warns of a 'Greater Depression' coming to the US — with millions of Americans going poor. But he says these 2 'easy-money' assets will bring in 'great wealth'. How to get in now This is how American car dealers use the '4-square method' to make big profits off you — and how you can ensure you pay a fair price for all your vehicle costs Like what you read? Join 200,000+ readers and get the best of Moneywise straight to your inbox every week. This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
Business Insider
5 days ago
- Business
- Business Insider
Thousands of student-loan borrowers are at risk of losing a portion of their Social Security checks starting this month
Thousands of student-loan borrowers are at risk of getting a smaller Social Security check this month. President Donald Trump's Department of Education said that, beginning in early June, thousands of student-loan borrowers in default could start facing garnishment of their federal benefits. "The first monthly benefit checks subject to offset are those scheduled for early June," the department said in early May. "Later this summer, all 5.3 million defaulted borrowers will receive a notice from Treasury that their earnings will be subject to administrative wage garnishment." The department said it sent 30-day notices to 195,000 defaulted student-loan borrowers in May, warning them of benefits garnishment. This move results from the Trump administration restarting collections on defaulted student loans on May 5. Under a pause first put in place by Trump during the pandemic, borrowers were free of collections and negative credit reporting for falling behind on their payments. Those protections are now over, which Education Secretary Linda McMahon said is necessary to restore accountability to the student-loan system. "Borrowing money and failing to pay it back isn't a victimless offense. Debt doesn't go away; it gets transferred to others," McMahon wrote in a May opinion piece. A federal student-loan borrower typically enters default after missing payments for more than 270 days. In addition to the 5 million borrowers currently in default, the New York Federal Reserve said that the number of borrowers who transitioned into serious delinquency surged from 0.8% in 2024 to 8.04% in 2025, putting those borrowers at risk of defaulting this summer. Borrowers in default have a few options to return to good standing, but they are time-consuming. One option is loan rehabilitation, in which a borrower has to sign an agreement to make nine payments within 20 days of their payment due date for 10 consecutive months. With this option, payments can be as low as $5 a month, and after rehabilitation, the defaulted loan will be removed from the borrower's credit reports. Other options include loan consolidation, in which borrowers can consolidate their defaulted loans into a federal direct loan, or the borrower can file for bankruptcy. Some student-loan borrowers, both in default and delinquent on their loans, previously told Business Insider that they're concerned about their ability to stay afloat financially if some of their wages and benefits are withheld. For example, James Southern, a 63-year-old in serious delinquency, said that he received a $1,414 bill for his student loans that he cannot pay. "There will be no retirement. I'll die on the job," Southern said. "Even if I were at my full retirement age, they'd garnish the Social Security, so I'm still going to have to work in order to survive."
