Business News

US wholesale inflation picks up slightly in sign that some price pressures remain elevated

WASHINGTON (AP) — Wholesale prices in the United States rose last month, remaining low but suggesting that the American economy has yet to completely vanquish inflationary pressure. The producer price index — which tracks inflation before it hits consumers — rose 0.2% from September to October, up from a 0.1% gain the month before. Compared with a year earlier, wholesale prices were up 2.4%, accelerating from a year-over-year gain 1.9% in September. An increase in services prices drove the October increase. Since peaking in mid-2022, inflation has fallen more or less steadily. But average prices are still nearly 20% higher than they were three years ago

Top Federal Reserve official defends central bank’s independence in wake of Trump win

WASHINGTON (AP) — A Federal Reserve official has given a lengthy defense of the central bank’s political independence. It comes just days after former President Donald Trump, previously an outspoken Fed critic, won re-election. Andriana Kugler, a member of the Fed’s board, says economic research shows that an independent central bank typically does a better job keeping inflation low. Kugler spoke just a week after Fed Chair Jerome Powell tersely denied that Trump had the legal authority to fire him, as the president-elect has acknowledged he considered doing during his first term. Powell also said he wouldn’t resign if Trump asked.

Elon Musk says he and Trump have ‘mandate to delete’ regulations. Ethics laws could limit Musk role

Choosing billionaire Elon Musk to be what President-elect Donald Trump calls “our cost cutter” for the U.S. government, is not the first time an American president has empowered a business tycoon to look for ways to dramatically cut federal regulations. Former President Ronald Reagan tapped J. Peter Grace to lead a bureaucratic cost-cutting commission in 1982. But the chemical business magnate had fewer conflicts of interest than the world’s richest man does today. Musk’s SpaceX holds billions of dollars in NASA contracts. His Tesla electric car business benefits from government tax incentives and is subject to auto safety rules. His social media platform X, artificial intelligence startup xAI and other business interests all intersect with the federal government in various ways.

Homeland Security Department releases framework for using AI in critical infrastructure

WASHINGTON (AP) — The Biden administration has released guidelines for using artificial intelligence in the power grid, water system, air travel network and other pieces of critical infrastructure. Private industry would have to adopt and implement the guidelines announced by the Homeland Security Department on Thursday, which was developed in consultation with the department’s advisory Artificial Intelligence Safety and Security Board. The framework recommends that AI developers evaluate potentially dangerous capabilities in their products, ensure their products align with “human-centric values” and protect users’ privacy. The cloud-computing infrastructure would need to vet hardware and software suppliers and protect the physical security of data centers.

Stock market today: Wall Street edges lower as its momentum slows some more

NEW YORK (AP) — U.S. stocks are edging lower as the market’s big burst following Donald Trump’s election continues to cool. The S&P 500 was down 0.3% in Thursday afternoon trading. The Dow Jones Industrial Average fell 112 points, and the Nasdaq composite dipped 0.3%. Several of the areas of the market that bounced highest following Trump’s election reversed their momentum and helped lead the way lower. Tesla is on track for just its second drop since Election Day, and smaller stocks are lagging behind the rest of the market. Treasury yields swung after a report showed inflation at the wholesale level was a bit hotter than expected.

The number of Americans filing for jobless claims falls to lowest level in 6 months

The number of Americans applying for unemployment benefits fell to the lowest level in six months last week as layoffs remain at relatively healthy levels. The Labor Department reported Thursday that jobless claim applications fell by 4,000 to 217,000 for the week of Nov. 9. That’s less than the 225,000 analysts forecast. Weekly applications for jobless benefits are considered representative of U.S. layoffs in a given week. Continuing claims, the total number of Americans collecting jobless benefits, fell to 1.87 million for the week of Nov. 2, in line with analysts’ expectations.

Ford agrees to pay up to $165 million penalty to US government for moving too slowly on a recall

DETROIT (AP) — Ford Motor Co. will pay a penalty of up to $165 million to the U.S. government for moving too slowly on a recall and failing to give accurate recall information. The National Highway Traffic Safety Administration said Thursday that the civil penalty is the second-largest in its 54-year history. Only the fine Takata paid for faulty air bag inflators was higher. The agency says Ford was too slow to recall vehicles with faulty rearview cameras, and it failed to give the agency complete information, which is required by the federal Motor Vehicle Safety Act. Ford said it is committed to continuously improving safety.

New FDA rules for TV drug ads: Simpler language and no distractions

WASHINGTON (AP) — New rules require drugmakers to be clearer about explaining the risks and side effects of prescription drugs. The new guidelines from the the Food and Drug Administration are designed to do away with pharmaceutical industry practices that downplay or distract viewers from risk information. FDA officials spent more than 15 years crafting the rules, which apply to both TV and radio ads. But while regulators were drafting them, a new trend has emerged: pharmaceutical influencers pushing drugs online with little government oversight. A new congressional proposal would compel FDA to police those social media promotions.

The average rate on a 30-year mortgage in the US slips to 6.78%

The average rate on a 30-year mortgage in the U.S. edged lower this week, ending a six-week climb. The rate slipped to 6.78% from 6.79% last week, mortgage buyer Freddie Mac said Thursday. That’s still down from a year ago, when the rate averaged 7.4%. Mortgage rates are influenced by several factors, including the yield on U.S. 10-year Treasury bonds, which lenders use as a guide to price home loans. Bond yields have been rising in recent weeks following encouraging reports on inflation and the economy. Elevated mortgage rates and high prices have helped keep the U.S. housing market in a sales slump going back to 2022.

Food prices worried most voters, but Trump’s plans likely won’t lower their grocery bills

Americans are fed up with the price of food, and many are looking to President-elect Donald Trump to lower their grocery bills. Trump often railed on the campaign trail against hefty price increases for bacon, cereal and other products. But the steep food price inflation that stunned the U.S. and other parts of the world in 2021 and 2022 had complicated causes that are difficult to unwind. Economists say there’s very little a president can do in the short term to get grocery prices down since sustained declines typically only happen during protracted recessions. And many economists think Trump’s plans to put tariffs on imported foods and deport undocumented workers could make food prices rise.