Business News

US wholesale inflation accelerated in November in sign that some price pressures remain elevated

WASHINGTON (AP) — Wholesale costs in the United States picked up sharply last month, signaling that price pressures are still evident in the economy even though inflation has tumbled from the peak levels it hit more than two years ago. The producer price index — which tracks inflation before it reaches consumers — rose 0.4% last month from October, up from 0.3% the month before. Measured from 12 months earlier, wholesale prices climbed 3% in November, the sharpest year-over-year rise since February 2023. Higher food prices helped fuel the November wholesale inflation reading, which was higher than economists had expected.

Senate begins final push to expand Social Security benefits for millions of people

WASHINGTON (AP) — The Senate is pushing toward a vote on legislation that would provide full Social Security benefits to millions of people. Senate Majority Leader Chuck Schumer began the process on Thursday for a final vote on the bill, known as the Social Security Fairness Act. It would eliminate policies that currently limit Social Security payouts for roughly 2.8 million people. The legislation has passed the House. The bill would add more strain on the Social Security Trust funds, which are already estimated to be unable to pay out full benefits beginning in 2035. The measure would add an estimated $195 billion to federal deficits over 10 years, according to the Congressional Budget Office.

IRS recovers $4.7 billion in back taxes and braces for cuts with Trump and GOP in power

WASHINGTON (AP) — IRS leadership on Thursday announced that the agency has recovered $4.7 billion in back taxes and proceeds from a variety of crimes. The announcement comes under the backdrop of a promised reckoning from Republicans who will hold a majority over both chambers of the next Congress and have long called for rescinding the tens of billions of dollars in funding provided to the agency by Democrats. IRS Commissioner Danny Werfel said improvements made to the agency will help the incoming administration and new Republican majority congress achieve its goals of administering an extension of the 2017 Tax Cuts and Jobs Act.

Trump is named Time’s Person of the Year and rings the New York Stock Exchange’s opening bell

NEW YORK (AP) — President-elect Donald Trump rang the opening bell at the New York Stock Exchange after being recognized by Time magazine as its person of the year. The honors Thursday for the businessman-turned-politician are a measure of Trump’s remarkable comeback from an ostracized former president who refused to accept his election loss four years ago to a president-elect who won the White House decisively in November. At the stock exchange, Trump was accompanied by his wife, Melania Trump, daughters Ivanka and Tiffany and Vice President-elect JD Vance. Trump grinned as people chanted “USA” before he opened the trading day and raised his fist.

ECB cuts rates a quarter point amid concerns of tepid growth, impact of Trump trade policies

FRANKFURT, Germany (AP) — The European Central Bank is cutting interest rates by a quarter percentage point amid signs of weakening growth and concern about the impact of political chaos in France and the possibility of new U.S. import tariffs. The bank’s rate-setting committee made the decision Thursday at its skyscraper headquarters in Frankfurt to lower the benchmark rate from 3.25% to 3%. Lower rates should support growth amid signs that the post-pandemic recovery is slowing in the 20 countries that use the euro currency and concerns that U.S. President-Elect Donald Trump might impose new tariffs, or import taxes, on goods imported to the US after he is inaugurated Jan. 20.

Head of the Federal Aviation Administration to resign, allowing Trump to pick his successor

The head of the Federal Aviation Administration says he will step down next month to let President-elect Donald Trump name his choice to lead the agency. Mike Whitaker announced his pending resignation in a message to FAA employees on Thursday. Since taking the helm at the FAA in October 2023, Whitaker has dealt with challenges that include a surge in close calls between planes, a shortage of air traffic controllers and antiquated equipment. He has led a tougher enforcement policy against Boeing since a panel blew off a jetliner in January.

The White House is cracking down on overdraft fees

NEW YORK (AP) — The Consumer Financial Protection Bureau is capping the fees at $5 with a rule set to take effect in October 2025, if it isn’t overturned by Congress or altered under a Trump administration. President Joe Biden had called the fees, which can be as high as $35, “exploitative,” while the banking industry has lobbied extensively to keep the existing fee structures in place.

Average rate on 30-year mortgage hits 6.6%, its third straight weekly decline

The average rate on a 30-year mortgage in the U.S. has eased for the third week in a row. That’s a welcome trend for prospective homebuyers during what’s typically a less competitive time of the year for the housing market. Mortgage buyer Freddie Mac said Thursday that the rate dropped to 6.6% from 6.69% last week. A year ago, the rate averaged 6.95%. Mortgage rates are influenced by several factors, including the moves in the yield on U.S. 10-year Treasury bonds, which lenders use as a guide to price home loans.

UK leader Starmer invited to EU meeting in latest sign of post-Brexit thaw

LONDON (AP) — U.K. Prime Minister Keir Starmer will attend a meeting of European Union leaders early next year. He’ll be the first U.K. leader to do so since the country’s departure from the bloc in 2020. Starmer was invited to the “informal” Feb. 3 meeting in Brussels by European Council President António Costa on Thursday. The two officials met for talks at Starmer’s office at 10 Downing St. Starmer’s office said that the prime minister was “pleased to accept the invitation and looked forward to discussing enhanced strategic cooperation with the EU, notably on defense.” Starmer was elected in July and wants to reset U.K. relations with the 27-nation EU after years of acrimony over Brexit.

US appeals court rejects Nasdaq’s diversity rules for company boards

An appeals court in Louisiana has ruled that Nasdaq can’t require diversity on the boards of companies that list on the exchange. The decision comes more than three years after the Securities and Exchange Commission approved Nasdaq’s proposal to boost the number of women, racial minorities and LGBTQ people on U.S. corporate boards.