All articles tagged with #economy
New York City Mayor Zohran Mamdani unveiled an ambitious plan to add about 200,000 affordable homes, convert hotels and offices into low-cost apartments, and protect tenants from bad landlords, drawing on the success stories of Austin and Minneapolis. Pro‑housing advocates say expanding supply can lower rents, while funding, zoning, and rent-stabilization trade-offs pose challenges as NYC eyes a transformative housing transformation.
China’s factory activity slowed in May, signaling cooling momentum in the manufacturing sector amid softer demand for exports and slower domestic activity.
A BEA/BEA report shows the U.S. personal savings rate fell to 2.6% in April (the lowest since June 2022) while core retail spending rose 5.7% year over year and personal income grew 2.5%. The gap between spending and income widened to 3.2 percentage points, meaning Americans are drawing down savings to maintain living standards. Even with strong markets and low unemployment, this shrinking cushion suggests consumer-driven growth may be unsustainable and could pose risks to the economy and to the political narrative surrounding Trump’s agenda.
Sen. Andy Kim warned that proposals to punish airports for immigration enforcement—such as pulling customs staff from sanctuary cities—would cause widespread economic damage, potentially affecting Newark and national travel ahead of World Cup events in New Jersey. Homeland Security Secretary Mullin floated the idea, but it drew limited support and pushback from Transportation Secretary Duffy. Kim’s remarks followed his visit to Newark's Delaney Hall detention center amid protests and a hunger strike, with the administration denying major issues while Democrats criticized conditions. The debate highlights tensions over sanctuary policies and immigration enforcement.
U.S. new-car sales are expected to top out around 16 million this year—down from 17 million in 2020 and not likely to return to that level until 2030—while the number of new-car buyers has fallen by more than a million since 2020. Automakers are chasing profits with pricier vehicles, no fewer sedans left in production, and inflation pushing prices toward or beyond $50,000, making a first new car increasingly out of reach for many. Meanwhile, consumer sentiment is at a record low and spending leans toward the wealthy, signaling a broader shift in the economy beyond just car buying.
CBS News outlines five warning signs that U.S. consumers are feeling the squeeze: after-tax income is shrinking relative to inflation, credit card delinquencies are at their highest since 2011, the personal savings rate has dropped to a 22-year low, more workers are taking 401(k) loans or hardship withdrawals, and households are cutting back on gas purchases as prices rise. Despite ongoing spending and a 1.6% GDP pace in Q1, many households face reduced purchasing power and potential slower momentum if inflation persists.
As the Senate returns from the Memorial Day recess, GOP lawmakers float proposals to modify or scrap President Trump’s nearly $1.8 billion payout fund for those claiming DOJ targeting; more than a dozen Republican senators have privately urged the White House to end the fund, with potential legal challenges and ongoing White House input shaping the debate.
Gas above $4 a gallon amid Middle East tensions is fueling broader inflation, with the PCE index up 3.5% year over year in March and the core PCE rising as well, signaling that higher energy costs are affecting housing, utilities and everyday spending. April’s CPI jumped 3.8% with energy prices up sharply, underscoring that inflation is spreading beyond gasoline. With a new Fed chair, policymakers face a delicate balance between rate hikes to curb inflation and the risk of slowing growth, as energy prices influence borrowing costs and inflation expectations; AI-driven investment adds a mixed layer of support that complicates the outlook. The takeaway: higher energy prices may be durable enough to keep inflation pressures broadening and the Fed determining how long to keep policy tight.
Fed policymakers signaled that higher rates could be on the table later this year if the Iran‑driven energy shock keeps inflation above target. Bowman leaned toward tightening, while others like Daly urged patience, and markets expect a year‑end rate move. Several officials also discussed using balance-sheet tools if the oil shock persists, though views on that approach vary as inflation momentum remains elevated.
A May Politico-commissioned Public First poll finds Americans blaming Trump for the economy, with 53% saying the cost of living is the worst they remember and nearly half blaming Trump; 18% of Trump’s 2024 voters say their finances worsened since he took office. Inflation is at its highest since he returned and first-quarter growth was revised downward, while a majority say the Iran war has driven up prices. Even Trump voters are split on whether he’s done enough to curb costs, fueling GOP anxiety as the White House touts short-term disruption relief and economists warn gas prices may stay elevated for months.
Tomato prices have jumped about 40% over the past year, making them a public-facing sign of America’s affordability squeeze as tariffs, policy shifts, and global factors push up groceries; the spike affects restaurants and shoppers, with economists expecting some relief later as domestic harvests increase.
New POLITICO/Public First polling shows Americans remain skeptical of Trump’s economic message even as the economy shows some positive indicators; most respondents say the cost of living has worsened and inflation is driving that pressure. Republicans’ attempts to blame Biden aren’t resonating, with only about 28% attributing the economy primarily to Trump, while the Iran war dominates economic questions and risks dragging Trump’s midterm prospects as gas, food, and travel prices stay high. The May survey sampled 2,065 U.S. adults, underscoring the challenge of translating economic signals into political support amid foreign-policy headwinds.
Trump’s immigration crackdown is tied to a slowing U.S. population gain, with economists noting weaker labor-force growth and job gains that could translate into long-run productivity drag. Federal Reserve analysis shows breakeven job gains near zero, while Yale Budget Lab projects up to 4.6 million fewer working-age people by 2033 and productivity losses of about 0.25%–0.44% by 2052; state data also link slower population growth to more sluggish employment, though the current labor market isn’t deemed weak yet.
Brookings’ States of Affordability introduces a county‑level cost‑of‑living measure and finds that 45.5% of US households could not make ends meet in 2024, with wide variation by state and race; the report shows wages haven’t kept pace with productivity, reveals persistent racial disparities, and estimates that raising wages by $10/hour or cutting costs by $500/month could bring millions more households into affordability, underscoring the need for tailored state policies as the series explores drivers of affordability.
Futures hover near flat as reports of a 60-day extension to the US-Iran ceasefire buoy market sentiment, with Hormuz shipping set to resume as talks continue. Oil prices are slipping for the week amid the optimism, while Anthropic disclosed a $65 billion Series H that pushes its post-money valuation to about $965 billion, fueling expectations of a wave of massive IPOs. Separately, SpaceX is reportedly targeting an IPO valuation around $1.8 trillion. The developments highlight a market environment focusing on geopolitical risk, AI-sector funding, and potential blockbuster public offerings.