Business News

The Fed sees its inflation fight as a success. Will the public eventually agree?

WASHINGTON (AP) — With its larger-than-usual half-point cut to its key interest rate last week, the Federal Reserve underscored its belief that it’s all but conquered inflation after three long years. The public at large? Not so much. Consumer surveys show that most Americans remain unhappy with the economy, still bruised by an inflation rate that hit a four-decade high two years ago as the economy rebounded from the pandemic recession. Yet in the view of some economists, the shift toward steadily lower borrowing rates could eventually boost consumer sentiment. Inflation has sunk for more than two years and is nearly back down to the Fed’s 2% target. Though that means overall prices are still rising, they’re doing so much more slowly.

Tugboat powered by ammonia sails for the first time, showing how to cut emissions from shipping

KINGSTON, N.Y. (AP) — A tugboat powered by ammonia sailed for the first time Sunday in the Hudson River to show how the maritime industry can slash planet-warming carbon dioxide emissions. The tugboat used to run on diesel fuel. The New York-based startup company Amogy bought the 67-year-old ship to power it in a new, carbon-free way using ammonia and an electric fuel cell. The tugboat’s first sail is a milestone in a race to develop zero-emissions propulsion. Emissions from shipping have increased over the last decade — to about 3% of the global total according to the United Nations— as vessels have gotten much bigger, delivering more cargo per trip, using immense amounts of fuel oil.

Before you sign up for a store credit card, know what you’re getting into

NEW YORK (AP) — With holiday shopping season around the corner, experts recommend caution when your favorite store offers you a credit card. According to the Federal Reserve, outstanding credit card balances reached $1.14 trillion as of August 2024, meaning credit card debt is increasingly a concern for millions of Americans. Bankrate found that the average store-only credit card has an average annual percentage rate of 30.45%, significantly higher than the average APR of 20.78% for all credit cards. The APR is how much interest you’ll be charged if you can’t pay your balance in full every month.

For home shoppers, the Fed’s big rate cut is likely just a small step towards affording a home

The Federal Reserve gave home shoppers what they hoped for this week: a big rate cut and a signal of more cuts to come. Even so, aspiring homebuyers and homeowners eager to refinance should temper their expectations of a big drop in mortgage rates from here. That’s because mortgage rates already fell in anticipation of the Fed’s action. So, while mortgage rates are likely to fall further as the Fed implements more cuts, by how much and how quickly is uncertain. The pace of those declines will also affect those who did buy recently at higher rates and are hoping to refinance.

The benefits of a four-day workweek according to a champion of the trend

Working five days a week has long been the corporate cultural norm. But some companies are exploring the option of letting employees work for days a week. The chief executive of an organization that promotes the idea says they’re hoping to reduce workplace burnout and retain talent seeking a better work-life balance. Dale Whelehan is CEO of 4 Day Week Global, which coaches companies through the process of shortening their employees’ work hours. Whelehan says five-day workweeks weren’t designed for jobs requiring a lot of thinking and sitting, and that one less day doing that improves mental and physical health.

A new coalition of aid groups supporting Sudan will launch at this year’s Clinton Global Initiative

NEW YORK (AP) — A wide-ranging group of 15 nonprofits, humanitarian aid organizations and other funders plan to open this year’s Clinton Global Initiative annual meeting Monday morning by announcing new investments to address the humanitarian crisis in Sudan following more than a year of conflict. The commitment is one of more than 100 expected at the two-day meeting of political, business and philanthropic leaders gathering to address some of the world’s most pressing issues. Former President Bill Clinton, former Secretary of State Hillary Clinton, and Clinton Foundation Vice Chair Chelsea Clinton have set this year’s theme as “What’s Working,” a way to look for potential solutions and effective programs in tumultuous times.

Ban sought for Chinese, Russian software and hardware used in autonomous vehicles on US roads

NEW YORK (AP) — The Commerce Department said Monday it’s seeking a ban on the sale of connected and autonomous vehicles in the U.S. that are equipped with Chinese and Russian software and hardware with the stated goal of protecting national security and U.S. drivers. Commerce officials described the rule as proactive but necessary given that all the bells and whistles on cars like microphones, cameras and Bluetooth can reveal a range of personal information about car owners. Security concerns around the extensive software-driven functions in Chinese vehicles have arisen in Europe, where Chinese electric cars have rapidly gained market share.

More shelter beds and a crackdown on tents mean fewer homeless encampments in San Francisco

SAN FRANCISCO (AP) — San Francisco’s sidewalks were once notorious for sprawling tents belonging to homeless people but are now largely clear. There are still thousands of homeless people living in RVs and cars and in expanded shelter beds. But Mayor London Breed’s office says the nearly 3,000 people counted sleeping outdoors in tents is the lowest figure in a decade. And even fewer people are likely living on sidewalks after Breed ramped up enforcement of anti-camping laws following a U.S. Supreme Court decision this summer. Part of the decrease in tents is also due to San Francisco adding thousands of new shelter beds and affordable housing units.

Britain’s Treasury chief tries to turn on the economic optimism after months of gloomy talk

LIVERPOOL, England (AP) — British Treasury chief Rachel Reeves has promised not to return to an era of public spending cuts despite the dire state of the U.K.’s national finances. She tried to inject a dose of optimism after weeks of negative headlines for the country’s new Labour Party government. Reeves used a speech to Labour’s annual conference on Monday to try and reassure party members that her first budget next month won’t be all doom and gloom. Reeves promised “there will be no return to austerity” and said the government will invest in industry, infrastructure and green energy to reverse declines in “growth, productivity and family incomes.” The center-left party is gathering in Liverpool after returning to power in Britain’s July 4 election.

Stock market today: Wall Street drifts around its record highs

NEW YORK (AP) — U.S. stock indexes are hanging near their all-time highs in quiet trading. The S&P 500 was 0.2% higher in midday trading Monday, coming off its fifth winning week in the last six, and flitting around its record set on Thursday. The Dow Jones Industrial Average added 17 points to its own record set Friday. The Nasdaq composite edged up by 0.1%. Treasury yields were holding relatively steady after a report suggested U.S. services businesses are continuing to grow, though manufacturing is continuing to shrink. Stock markets in Europe and Asia were mixed amid relatively modest movements.