Latest news with #FederalFunds
CBS News
14 hours ago
- Business
- CBS News
Debt relief moves to explore with interest rates on pause
The news on Wednesday that the Federal Reserve was keeping its benchmark interest rate frozen wasn't exactly unexpected, but it still marked yet another major disappointment for borrowers. Saddled with high rates on everything from credit cards to personal loans to mortgages, the Fed's decision this week all but ensures the status quo for around another two months, or until the central bank meets again in mid-September. Until then, the federal funds rate will remain frozen at a range between 4.25% and 4.50% and lenders who use that as a benchmark will likely keep rates elevated. This is especially troubling for those borrowers coping with high-rate debt, particularly via credit cards. With rates there just under a recent record 23% high, compounding interest to work through and an average balance of around $8,000, these borrowers may find themselves looking for relief, particularly now that the Fed won't be meeting again anytime soon. Fortunately, there are a variety of debt relief moves to consider, some of which can provide the ideal path toward regaining your financial independence. Below, we'll break down three worth considering right now. Start by reviewing your credit card debt forgiveness qualifications here. While each borrower's needs differ, the following moves may help now that any assistance courtesy of rate cuts has been paused: When was the last time you took a detailed look at your budget? Use this time to closely examine it for potential cost savings. Everything from subscription services to food shopping needs should be evaluated for ways to cut costs. You may be surprised at how much unnecessary spending you've been doing each month. And, while this may not help make much of a dent in your existing credit card balances, it can go a long way toward keeping them where they are versus growing them further in the weeks and months to come. Additionally, if you ultimately do choose a debt relief option, you'll need to know where it fits into your overall budget, so this timely move helps in multiple ways. Learn about the debt relief options available to you now. There are multiple attractive debt relief options ranging from credit counseling and debt management programs on one end of the spectrum to credit card debt forgiveness to bankruptcy for extreme cases. Each, however, is associated with risks, of which credit score damage is at the top of the list. Still, there may be fees associated with select debt relief options, and you may need to free up a portion of your budget to make payments as agreed to, for example, if you use a debt management program. Understand all of these risks in advance before getting started; that way, you're in a better position to manage them if you ultimately decide that a specific debt relief strategy is right for you. While reviewing your budget and understanding the risks associated with debt relief options is critical, it's equally important to address the root causes of your debt issues. Without doing so, even the most effective debt relief strategy won't work as intended. You may have built your balances quickly or slowly, but it will take an extended period to erase them, so use this time to understand what caused your debt to grow. By taking a hard look at the causes, you'll be better able to avoid making the same mistakes in the future. It may sound like an obvious next step, but it's an easy one to avoid taking when some debt relief options feel like a complete fresh start. A pause in interest rates may be disappointing, but if it's the motivation to work toward paying down your debt in a more expeditious way, it doesn't have to be. By making the above three moves now, either in conjunction with one another or independently, borrowers can begin the delayed work of tackling their debt once and for all an, critically, regain the financial health that's been diminishing in recent years.
Barnama
3 days ago
- Business
- Barnama
Ringgit Strengthens Broadly On Cautious Trade Sentiment
WORLD By Rosemarie Khoo Mohd Sani KUALA LUMPUR, July 28 (Bernama) -- The ringgit opened marginally higher against the US dollar in early trade on Monday amid cautious sentiment, as traders awaited clarity on a possible extension of the trade truce between the United States (US) and China, said an analyst. At 8 am, the local note stood at 4.2110/2310 versus the greenback, compared with Friday's close of 4.2195/2245. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said that earlier, the US and the European Union (EU) had agreed to a 15 per cent tariff on most EU imports, while most US imports would face zero tariff under the deal. He said markets are also closely watching the upcoming US Federal Open Market Committee (FOMC) meeting scheduled for July 29 and 30, with consensus expecting no change to the Federal Funds Rate, currently at 4.25 per cent to 4.50 per cent. "Based on recent developments, most countries appear accommodative in offering favourable terms to the US. It remains to be seen whether this will effectively narrow the trade balance in the near term. 'However, the cost of doing business in the US is likely to rise, and it also appears the US may be relying on a weaker dollar to boost export competitiveness. 'Against this backdrop, we expect the ringgit to remain within a narrow range of RM4.22 to RM4.23 versus the US dollar,' Mohd Afzanizam told Bernama. At opening here, the ringgit traded mostly higher against a basket of major currencies.
Associated Press
02-07-2025
- Politics
- Associated Press
Columbia student data stolen by politically motivated hacker, university says
NEW YORK (AP) — A politically motivated hacker breached Columbia University's data systems last week, stealing troves of student documents while briefly shutting down the school's computer systems, a university official said. The June 24 cyberattack prompted widespread network outages on campus, locking students and staff out of their email accounts, coursework and video conference software for several hours. On the same day, images of President Donald Trump's smiling face appeared on several public monitors across the Manhattan campus. A spokesperson for Columbia declined to elaborate on the political motivations behind the attack. But they described a highly sophisticated 'hacktivist' who had gained access to private student records in an attempt to further a political agenda. The spokesperson said it was unclear if the Trump photo display was connected to the data breach. 'We are investigating the scope of the apparent theft and will share our findings with the University community as well as anyone whose personal information was compromised,' the school said. The cyberattack comes as Columbia remains in the crosshairs of the Trump administration, which has threatened to pull $400 million in federal funds over what it claims is the school's failure to protect Jewish students. Negotiations over a possible settlement are ongoing. The university has already agreed to a host of changes demanded by Trump, including placing its Middle East studies department under new supervision and overhauling its rules for protests and student discipline. In March, a cyberattack against New York University resulted in student admission records briefly appearing on the school's website. An online hacker who took credit for that action on social media said the intent was to prove the university was not in compliance with the Supreme Court decision banning affirmative action in college admissions. An NYU spokesperson said at the time that the data displayed on its webpage was 'inaccurate and misleading,' adding that the university 'scrupulously complies with the law.'
Yahoo
29-06-2025
- Politics
- Yahoo
Trump threatens to cut off New York City funds if Mamdani ‘doesn't behave'
Donald Trump on Sunday threatened to cut New York City off from federal funds if favored mayoral candidate Zohran Mamdani, a democratic socialist, 'doesn't behave himself' should he be elected. Mamdani, meanwhile, denied that he was – as the president said – a communist. But he reaffirmed his commitment to raise taxes on the wealthiest New Yorkers while saying: 'I don't think that we should have billionaires.' In an interview with Fox News host Maria Bartiromo, Trump argued that a Mamdani victory was 'inconceivable' because he perceived the candidate to be 'a pure communist'. He added: 'Let's say this – if he does get in, I'm going to be president, and he's going to have to do the right thing, or they're not getting any money. He's got to do the right thing or they're not getting any money.' Related: A roadmap to beat Trump? How rise of Zohran Mamdani is dividing Democrats More than $100bn flows to the city from the federal government through different entities and programs, according to the city's comptroller last year. Speaking Sunday with NBC's Meet the Press on Sunday, Mamdani said, 'no, I am not' a communist. He also said that he had 'already had to start to get used to the fact that the president will talk about how I look, how I sound, where I'm from, who I am – ultimately because he wants to distract from what I'm fighting for'. Mamdani said he was inspired by the US civil rights activist Martin Luther King Jr, who once remarked: 'Call it democracy or call it democratic socialism. There has to be a better distribution of wealth for all of God's children in this country.' He then reiterated his intent to raise taxes on New York's wealthiest as part of a campaign pledge 'to shift the tax burden from overtaxed homeowners in the outer boroughs to more expensive homes in richer and whiter neighborhoods'. 'I don't think that we should have billionaires because, frankly, it is so much money in a moment of such inequality – and ultimately what we need more of is equality across our city and across our state and across our country,' Mamdani said. 'And I look forward to work with everyone, including billionaires, to make a city that is fairer for all of them.' Mamdani said the proposal reflected 'a description of what we see right now'. 'It's not driven by race,' he said. 'It's more of an assessment of what neighborhoods are being undertaxed versus overtaxed. 'It is not to work backwards from a racial assessment of neighborhoods or our city. Rather, it's to ensure that we actually have an equal playing field.' Many New Yorkers and moderate Democratic politicians have expressed concern over Mamdani's win over former governor Andrew Cuomo in the 24 June primary for the Democratic nomination. Among those to endorse him was progressive congresswoman Alexandria Ocasio-Cortez. But he has not been endorsed by many other prominent Democratic party figures, including the New York governor, Kathy Hochul, who said coolly after his win: 'Obviously, there's areas of difference in our positions, but I also think we need to have those conversations.' Mamdani said on Sunday that he was looking forward to discussions with Hochul, saying: 'Ultimately, my policies, my vision, it's driven by an assessment of what's actually happening.' Asked if he thought moderate Democrats were afraid of him, Mamdani said: 'I think that people are catching up to this election. 'Ultimately what we're showing is that by putting working people first, by returning to the roots of the Democratic party, we actually have a path out of this moment where we're facing authoritarianism in Washington DC' under the Trump administration. In his comments on Mamdani's having secured the Democrats' nomination in the heavily Democratic city, Trump said: 'It's shocking.' Related: 'It's very concerning': conservatives react to Zohran Mamdani's New York primary showing 'I used to say we will never have a socialist in this country,' the president said, in part. Asked about Mamdani's proposals to oppose his administration's immigration crackdown and to arrest Israeli prime minister Benjamin Netanyahu if he sets foot in New York, Trump said the mayoral candidate would 'be very unsuccessful' on both counts. 'He's a radical left lunatic,' Trump said. Mamdani, for his part, said Democrats 'need to be a party that's not just against Donald Trump – but also for something'. 'And our campaign was for working people, bringing dignity back into those lives,' Mamdani said.
Miami Herald
26-06-2025
- Business
- Miami Herald
Fed Chair Powell sends surprise message on interest rate cuts to Congress
Don't refinance your mortgage just yet. Rumblings from several Federal Reserve Board governors this week indicated support for an interest rate cut next month. Don't miss the move: Subscribe to TheStreet's free daily newsletter That's if the expected tariff inflation is less than forecast and the labor market doesn't weaken. Related: Fed's Powell brings blunt message to Congress on interest rates this week Fed Chair Jerome Powell is testifying on Capitol Hill this week, days after the June meeting kept the Federal Funds Rate at 4.25% to $4.50% Powell repeated his assertion about tariff inflation's potential impact on the supply chain during testimony on June 24 before the House Committee on Financial Services. But he also sounded a tad, well, different, as to when rates might fall again. At the time of the June meeting, Powell said the post-pandemic economy was resilient and stable, but the risk of tariff inflation on prices on the nation's supply chain prompted a "wait-and-see" prudent approach to holding rates steady. This disappointed many Americans, including President Donald Trump, who has been slamming Powell with a vast variety of vile vindictiveness for keeping interest rates steady for all of 2025 thus far. On the fiscal policy side of the U.S. economy, market experts are watching President Trump's trade wars, the tax bill, immigration policies, and the Middle East conflict. So are monetary policy makers. However, the Federal Reserve's dual mandate rules their actions. Related: Fed official makes surprising interest rate cut prediction The Fed's dual mandate is to prudently monitor monetary policy to maintain inflation (at about 2%) and unemployment relatively low to keep the recession-free economy and its GDP humming along. The Federal Open Meeting Committee controls the Federal Funds Rate, which banks charge each other overnight to borrow money. The funds rate is tied to the cost of borrowing money for consumers, investors and businesses. It's everything from your credit-card bill or car loan to 10-year Treasury bonds. Fed watchers say tariff inflation data over the next 30-60 days will indicate whether the Fed will approve two, or maybe one, rate cuts of 0.25% each this year during late 2025. Trump, en route to the NATO meetings, re-hashed his displeasure over the steady interest rates, claiming they are costing the country up to $1 trillion. Both Fed and market watchers had forecast that the next probable rate cut could appear at the central bank's September FOMC meeting. Then in the last few days, Fed Governors Christopher Waller and Michelle Bowman, both Trump appointees, said – with inflation healthy and as long as employment is stable – a funds rate cut could come as early as the Fed's July meeting. Stephen (Steven) Mnuchin, Treasury Secretary in the first Trump Administration, told CNBC that he expected the Fed to cut rates by 0.75% to 1 % over the next year. This is inline with most market expectations and the Fed's own "dot plot" chart through the end of 2026. Federal Reserve Bank of Atlanta President Raphael Bostic disagreed. He told Reuters "we have some space and time'' to learn from the tariff inflation as it ripples through the United States. He also said he expects a single 0.25% rate cut later in 2025. The widely watched CME FedWatch tool puts the likelihood of a July cut in the Federal Funds Rate at 18.8% June 24, down from 22.7% June 23. At the time of the June meeting, Powell said the post-pandemic economy was resilient and stable, but the risk of tariff inflation on prices on the nation's supply chain prompted a "wait-and-see" approach to holding rates steady. Trump's proposed tariffs – essentially an external sales tax to U.S. trading partners that we pay one way or another – face a July 9 deadline. In prepared remarks to the House panel, Powell said despite elevated uncertainty, the economy is in a solid position and there was no hurry for rate cuts. "The unemployment rate remains low, and the labor market is at or near maximum employment. Inflation has come down a great deal but has been running somewhat above our 2 percent longer-run objective," according to the testimony. Then the House panel peppered the Fed chair with questions ranging from impacts on pecan growers in Georgia to the housing industry across America to worried longshore workers. The consensus? Lower interest rates the sooner the better for consumers and businesses back home in their districts as well as all Americans. Powell remained firm: The Federal Reserve "is well-positioned to learn more about price increases before changing interest rates." He repeatedly described the tariff inflation variable as a learning experience for the Fed. And then indicated, perhaps in a less hawkish manner, that interest rate cuts could come once inflation reports for "June and July" show what price increases and tariff pains are doing to "American families." More Federal Reserve: Fed interest rate cut decision resets forecasts for the rest of this yearFederal Reserve prepares strong message on long-term interest ratesFed official revamps interest-rate cut forecast for this year "I think that if it turns out that inflation pressures do remain contained, then we will get to a place where we cut rates sooner rather than later,'' he said in response to a question from U.S. Rep. Mike Lawler (R-NY). TheStreet Pro veteran trader Peter Tchir, in comments prior to Powell's testimony, wrote the "Fed is too worried about inflation and not worried enough about jobs. "The jobs data (as we've highlighted in recent reports), except the headline establishment survey number, has been mediocre to weak and heading in the wrong direction. "At the status quo on tariffs, there will be some inflationary pressure, but this bleeds in over time and won't be the "full" 10%. And any economic slowdown will also offset some pressures as spending slows." Powell presents the bi-annual Monetary Policy Report to Congress to the GOP-led Senate Banking Committee on June 25. Trump in recent months has threatened to install a "shadow" chair until Powell resigns or leaves in May 2026. In addition to musings that perhaps Trump might appoint himself (which he legally can't), Treasury Secretary Scott Bessent is also a recent frontrunner to join the Fed board. Powell has said he has no intention to resign early, which he repeated during the June 24 testimony when quizzed by multiple House members about Trump's barbs and threats. Related: Fed official predicts when to expect interest rate cuts The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
