Economy

At a Ford dealership in Glendale, California, the Mustang Mach-E takes center stage as part of Ford’s significant strategic shift. From Detroit, the narrative is changing for Ford Motor Company. Traditionally dominated by sales of large trucks and SUVs, the company is now moving toward smaller, more affordable electric vehicles (EVs). Marin Gjaja, Ford’s chief operating officer for Model and EV, describes the shift as a strategic safeguard. The plan aims to increase the presence of hybrid models and introduce affordable EVs, charting a course for a more capital-efficient and profitable future in the EV industry. Gjaja expressed confidence in…

On a crucial Friday, Federal Reserve Chairman Jerome Powell laid out the groundwork for upcoming interest rate cuts, but gave no details on the expected timing or scope of those cuts. In his highly anticipated speech at the Federal Reserve’s annual meeting in Jackson Hole, Wyoming, Powell announced, “It’s time to change our approach.” He explained that while the future course is set, the specifics of the timing and size of rate cuts will depend on new data, future economic projections and risk assessments. Live Update: Chairman Jerome Powell Speaks at Jackson Hole Conference As financial markets anticipate future monetary…

Delta Airlines has announced that Chief Operating Officer Mike Spanos will leave the airline at the end of this month, as detailed in a recent securities filing. CEO Ed Bastian revealed in a company memo that Spanos is ready to join another organization, after a tenure of just over a year with Delta. Spanos’s decision to leave comes shortly after Delta experienced significant operational challenges due to disruptions caused by a major CrowdStrike cyber incident in July, which the airline estimates cost about $500 million. Despite those challenges, CEO Bastian noted that Spanos had expressed interest in exploring outside opportunities…

The U.S. government under the Biden administration announced Friday that it will once again provide free at-home COVID-19 testing kits to American families starting in late September, following a resurgence of the virus across the country this summer. In a press conference, officials said Americans can request up to four free tests per household through COVIDtests.gov. The tests are designed to identify prevalent COVID variants, primarily derivatives of the Omicron JN.1 strain, which is known to be highly transmissible. Dawn O'Connell, assistant secretary for preparedness and response at the Department of Health and Human Services (HHS), highlighted the initiative's role…

At the Federal Reserve's annual conference in Jackson Hole, Wyoming, Philadelphia Fed President Patrick Harker expressed strong support for lowering interest rates at the next meeting in September. This stance was reinforced by recent Federal Reserve minutes, which suggested a potential drop in short-term rates. Officials are more confident about inflation trends and are eager to forestall any potential decline in employment. "We should start the process of cutting rates in September," Harker said in an interview. He stressed the importance of the Federal Reserve making these adjustments methodically and communicating them clearly in advance. Financial markets are fully expecting…

In Milford, Michigan, General Motors’ flagship brand GMC is positioning itself as a leader in the all-electric truck segment in the United States. That effort begins with the introduction of the Sierra electric pickup truck, which joins GMC’s growing lineup of electric vehicles, including several Hummer models. With the Sierra EV, the company expects it to not only complement its existing offerings but also become a best-seller within its electric lineup. That expectation is backed by plans to launch more affordable versions next year, starting with the high-end “Edition 1” model that has already begun customer deliveries priced around $100,000.…

The rapid growth of online sports betting, following its legalization in several states, has significantly affected the dynamics of personal finances, especially among economically vulnerable groups. Study insights A recent analysis titled “Gambling Away Stability: The Financial Repercussions of Sports Betting on At-Risk Families” highlights the dramatic increase in sports betting following the 2018 Supreme Court decision overturning a nationwide ban. With 38 states now allowing the activity, the industry has boasted more than $120 billion in wagers and generated revenues of more than $11 billion in 2023. This influx of funds has benefited government budgets but has placed significant…

A recent survey by the New York Federal Reserve paints a bleak picture of the U.S. labor market, highlighting rising anxiety among workers. The study, conducted in July, revealed falling employment rates, a surge in job seekers, and widespread dissatisfaction with wages and benefits. These results add to growing concerns about the health of the U.S. economy. The unemployment rate, though historically low at 4.3%, has been steadily rising, fueling fears of a broader recession. Additionally, July’s nonfarm payrolls increase of just 114,000 was weaker than expected, further fueling anxiety. The Fed survey results go even deeper, highlighting a significant…