In February, the US unemployment rate rose slightly to 3.9%, despite a decrease for Black women to 4.4% due to job growth in sectors with high Black female employment. However, Hispanic women saw an increase in unemployment to 5%. Overall, the labor market remains strong, with economists anticipating stability in the coming months.
Inflation is decreasing, but wages remain low, making basic necessities unaffordable for many. Lower-income households are particularly vulnerable despite recent wage growth and consumer confidence improvements. Controlling inflation without triggering a recession proves challenging. Despite strides in combating inflation, purchasing power has declined. Reaching the Federal Reserve's 2% inflation target is difficult without jeopardizing economic growth.
The future of Social Security and Medicare is a crucial topic in the presidential election. President Biden plans to protect the programs by increasing taxes on the wealthy, while Republicans are considering a commission that could potentially reduce benefits. Democrats support higher taxes for the wealthy, whereas Republicans favor a bipartisan commission. Advocates are concerned that the commission could lead to benefit cuts. Additionally, Biden has suggested empowering the government to negotiate drug prices and enforcing minimum staff levels in nursing homes.
ESG funds invest in companies prioritizing environmental, social, and governance factors while aiming for industry-leading performance. Despite tech giants' dominance in S&P 500 ETFs, they are also heavily invested in ESG funds due to the sector's perceived "cleanliness." ESG funds avoid excluding key sectors like energy, acknowledging their economic significance. Investor interest in ESG funds continues to rise, particularly among those seeking sustainable and long-term investments.
President Biden has signed a $460 billion spending bill that averts a government shutdown. The bill funds various departments and extends funding for food assistance programs. Democrats compromised with Republicans on certain issues, including agency funding cuts and veterans' gun rights, to secure the measure. Despite this agreement, additional negotiations are needed to secure funding for the remaining fiscal year beyond March 22.
The Justice Department is investigating Boeing's compliance with its settlement agreement related to the 737 Max crashes. The probe stems from a mid-air door panel blowout on an Alaska Airlines flight last month. The investigation could impact the previous DOJ agreement. Alaska Airlines is cooperating and denies being a target. Passengers have filed a lawsuit against Boeing and Alaska Airlines, alleging negligence and ignoring warnings.
Aramco's 2023 earnings of $121.3 billion, though lower than 2022's record, mark its second-best year due to a strong oil market. Despite reduced costs in refining and chemical production, the company raised its dividend payout. Aramco plans to increase gas production while maintaining its oil output at 12 million barrels per day, anticipating a robust oil market despite economic challenges.
Chinese authorities will not intervene to rescue debt-ridden real estate companies; instead, they will allow bankruptcy or restructuring according to market principles. This move aims to curb reliance on the real estate sector, which has been contributing heavily to the economy. The government prioritizes promoting affordable housing and ensuring long-term stability in the industry while penalizing developers who breach public interests.
UK exchanges receive approval to offer ETNs backed by cryptocurrencies, including Bitcoin and Ethereum. These products are deemed high-risk and only suitable for professional investors. Retail investors may consider managed funds to gain exposure to cryptocurrencies.
Inflation remains elevated despite a recent slowdown, with February prices rising 3.2% year-over-year. Gasoline, shelter, and services like sporting events and tax preparation saw significant increases. While real wages are improving, inflation has eroded purchasing power. Interest rates, used by the Federal Reserve to combat inflation, may not be cut soon, affecting borrowers with high-interest debt.
Furniture manufacturing has shifted towards prioritizing lower cost over quality, leading to a decline in durability. The use of composite materials like plywood and MDF, as well as flat-pack designs, has compromised repairability and shortened the lifespan of furniture. Despite rising demand during the pandemic, furniture prices have not increased significantly, but consumers are more inclined to choose affordable pieces despite their lower quality. Nevertheless, experts emphasize the importance of researching and inspecting furniture to find pieces that offer value and durability.
Trump and Biden have differing views on the future of Social Security. Trump suggests cutting "entitlements," while Biden has released a budget proposal strengthening Social Security and Medicare. This will directly affect beneficiaries, with Trump's potential cuts reducing benefits and Biden aiming to enhance them.
