Inflation has persisted at 3.5% despite the Federal Reserve's target of 2%, leaving markets on edge. While the economy remains strong, the Fed prioritizes inflation control over interest rate cuts, posing a dilemma. Experts discuss the possibility of the Fed's policy being too loose, while others advise maintaining it due to inflation and financial risks. The ongoing inflation has resulted in falling real incomes, becoming a political challenge for the Biden administration as it affects consumers and households.
Tensions between Iran and Israel are flaring up, causing major concerns for investors. Fears of war have rattled Wall Street and sent oil prices soaring, with analysts predicting they could top $100 per barrel. Investors are now turning to safer assets like bonds and gold for shelter, as the situation threatens to disrupt oil supply and impact global markets and the economy.
President Biden has announced a new plan to forgive student loan debt. This revised plan aims to target specific groups of borrowers, including those facing financial hardship. It offers up to $20,000 of debt forgiveness for undergraduate loans and $20,000 for unpaid interest on federal loans. The plan is expected to face legal challenges, as the Supreme Court previously struck down a similar attempt.
College student Seth Berkowitz started a cookie delivery business late at night, using only $150. Insomnia Cookies took off, expanding into cities and being acquired by Krispy Kreme Doughnuts. With over 260 stores and growing revenue, Insomnia Cookies is now a global brand known for its warm, satisfying snacks available even in the wee hours.
The US housing market is facing a downturn due to high interest rates. Mortgage payments have hit record highs, making homeownership expensive. While home prices remain high, there are signs of a slow down. More homes are going on the market, and pending sales are decreasing. New home prices are dropping, but existing home prices are still near record lows. Buyers are facing longer wait times to sell their homes, and more homes are being sold below the asking price.
Earnings reports from major banks have raised concerns about the economy. The Federal Reserve's interest rate path is uncertain, with varying probabilities of rate cuts. Experts predict that the market may enter a holding pattern if rates remain unchanged. Tech giants, notably Microsoft and Amazon, are expected to perform well due to their diverse operations. Interestingly, retail investors are showing an increased interest in individual stocks, with General Electric emerging as a popular choice due to its improved performance after separating its financial operations.
The latest inflation report has stirred up financial markets, with key indicators exceeding expectations. This has led to a drop in Bitcoin and Ethereum values. Experts attribute the inflation surge to rising gas and housing costs. The report suggests that the Federal Reserve may rethink its plans for cutting interest rates this year. Despite the inflation concerns, Bitcoin has continued to rise due to factors such as ETFs and speculative demand. However, the market awaits the Fed's March minutes for further guidance on interest rate decisions.
Tesla's self-driving technology, Autopilot, caused a wrongful death lawsuit and settlement, raising concerns about its limitations. Despite inflation and reduced investor confidence, government support for chip production continues, with a focus on supporting the surrounding ecosystem.
For the second year in a row, fewer students earned college degrees, a trend fueled by rising costs and student debt. Despite this decline, more students than ever earned certificates. This suggests a shift towards shorter-term and vocational programs, as students prioritize job training over traditional four-year degrees. The decline in degrees is also attributed to the ongoing pandemic, a problematic FAFSA process, and state funding cuts for higher education.
When we think of allowances, we usually think of parents giving money to their children. However, in some romantic relationships, financial management resembles an "allowance." Instead of following this outdated terminology, couples can establish a check-in number, where both partners agree on a spending limit before consulting each other. This avoids creating an imbalance of power, promotes communication, and ensures both parties feel valued and respected within their relationship.
If you can't pay your taxes in full by April 15th, you should still file your return and pay what you can. The IRS offers payment plans that allow you to spread out the payments over time, reducing the late-payment penalty by half. These plans can be applied for online, by phone, or by mail, and can take up to 180 days for short-term plans and up to 72 months for long-term plans.
The Federal Reserve (Fed) may lower interest rates this year despite ongoing high inflation. This is according to BlackRock CEO Larry Fink, who believes the Fed may struggle to meet its 2% inflation target. Fink suggests inflation could stabilize around 2.8-3%, which he would consider a victory. Despite current market expectations for a more dovish Fed, some officials remain cautious until they witness a significant decline in inflation.