Latest news with #Moody'sAnalytics
Business Insider
2 days ago
- Business
- Business Insider
The 'Big Beautiful Bill' is headed to Trump's desk
President Donald Trump's Big Beautiful Bill is one step closer to becoming law — and reshaping policy from Medicaid to taxes. The House passed the massive spending bill on Thursday afternoon in a 218-214 vote. Every Democrat voted against the bill, along with two Republicans: Reps. Thomas Massie of Kentucky and Brian Fitzpatrick of Pennsylvania. The final passage came after House Minority Leader Hakeem Jeffries spoke for roughly eight hours and 45 minutes in opposition to the bill, breaking the record for the longest House floor speech in American history. The bill now heads to Trump's desk for signing, which could happen as soon as Friday, July 4. The bill underwent a number of changes since the House passed an initial version in May. That included the eventual removal of a provision aimed at preventing states from regulating AI for 10 years. The bill passed the upper chamber on Tuesday, with Vice President JD Vance casting the tie-breaking vote after three GOP senators opposed it. The bill will have a sweeping impact on Americans' wallets and the country's fiscal health. In addition to extending the 2017 tax cuts, making cuts to Medicaid, and repealing student loan forgiveness, the bill is also expected to add trillions to the deficit over the next ten years. In May, Moody's Analytics downgraded the US's credit rating, citing rising federal debt. This could lead to higher interest rates on mortgages, auto loans, and more down the road. Republicans passed the bill despite vehement opposition from Elon Musk, the former face of DOGE. Musk had criticized the bill's impact on the deficit and its phase-out of green energy tax credits, some of which benefit Tesla. That led to his epic feud with Trump, which remains ongoing to this day. On Monday, Musk vowed to support primary challengers against any Republicans who supported the bill and said that if it passed, he would form a new political party, called the America Party. Republicans have largely brushed all of that off. "Similar threats have been made before, and I'm unsure if anything's come of those threats," Rep. Brian Jack of Georgia told BI on Wednesday.
New York Times
18-06-2025
- Automotive
- New York Times
Live Updates: Fed Expected to Keep Rates Steady
Car prices have been elevated, even before U.S. tariffs threaten to push them up even more. The Federal Reserve is expected to keep its key rate steady on Wednesday, after a series of cuts that lowered rates by a full percentage point last year. That means consumers looking to borrow are likely to have to wait a bit longer for better deals on many loans, but savers will benefit from steadier yields on savings accounts. The central bank has kept its benchmark rate unchanged since January. President Trump's frequently changing stance on tariffs, along with the broader effects of his restrictive immigration policies and widespread federal job cuts, have made forecasting a challenge. 'Until policymakers get some clarity on these policies,' Mark Zandi, chief economist of Moody's Analytics, said in a note, 'they will not know the appropriate monetary policy response and have thus put any further interest rate cuts on hold.' Mr. Trump has publicly attacked the Fed chair, Jerome H. Powell, and his colleagues for not lowering borrowing costs. But the rate-setting committee has signaled it will first need to see clear signs that the job market is softening. The Fed's benchmark rate is set at a range of 4.25 to 4.5 percent. In an effort to tamp down inflation, the central bank began lifting rates rapidly — from near zero to above 5 percent — between March 2022 and July 2023. Prices have cooled considerably since then, and the Fed pivoted to rate cuts, lowering rates in September, November and December. But economists expect Mr. Trump's tariffs to trickle through to prices by this summer, pushing inflation higher. Auto Rates What's happening now: Auto rates have been trending higher and car prices remain elevated, making affordability a challenge. And that is before U.S. tariffs threaten to push prices up even more. Car loans tend to track with the yield on the five-year Treasury note, which is influenced by the Fed's key rate. But other factors determine how much borrowers actually pay, including your credit history, the type of vehicle, the loan term and the down payment. Lenders also take into consideration the levels of borrowers becoming delinquent on auto loans. As those move higher, so do rates, which makes qualifying for a loan more difficult, particularly for those with lower credit scores. The average rate on new car loans was 7.3 percent in May, according to Edmunds, a car shopping website, up slightly from April and unchanged from My 2024. Rates for used cars were higher: The average loan carried an 11 percent rate in May, largely unchanged from April and down slightly from 11.5 percent in May 2024. Where and how to shop: Once you establish your budget, get preapproved for a car loan through a credit union or bank (Capital One and Ally are two of the largest auto lenders) so you have a point of reference to compare financing available through the dealership, if you decide to go that route. Always negotiate on the price of the car (including all fees), not the monthly payments, which can obscure the loan terms and what you'll be paying in total over the life of the loan. Credit Cards What's happening now: The interest rates you pay on any balances that you carry had edged slightly lower after the most recent Fed cuts, but the decreases have slowed, experts said. Last week, the average interest rate on credit cards was 20.12 percent, according to Bankrate. Much depends, however, on your credit score and the type of card. Rewards cards, for instance, often charge higher-than-average interest rates. Where and how to shop: Last year, the Consumer Financial Protection Bureau sent up a flare to let people know that the 25 biggest credit-card issuers had rates that were eight to 10 percentage points higher than smaller banks or credit unions. For the average cardholder, that can add up to $400 to $500 more in interest a year. Consider seeking out a smaller bank or credit union that might offer you a better deal. Many credit unions require you to work or live someplace particular to qualify for membership, but some bigger credit unions may have looser rules. Before you make a move, call your current card issuer and ask them to match the best interest rate you've found in the marketplace that you've already qualified for. And if you do transfer your balance, keep a close eye on fees and what your interest rate would jump to once the introductory period expires. Mortgages What's happening now: Mortgage rates have been volatile. Rates peaked at about 7.8 percent late last year and had fallen as low as 6.08 percent in late September. Solid economic data and concerns about Mr. Trump's potentially inflationary agenda pushed rates a bit higher again, though they've steadied in recent weeks. Rates on 30-year fixed-rate mortgages don't move in tandem with the Fed's benchmark, but instead generally track with the yield on 10-year Treasury bonds, which are influenced by a variety of factors, including expectations about inflation, the Fed's actions and how investors react. The average rate on a 30-year fixed-rate mortgage was 6.84 percent as of June 12, down from 6.85 percent the previous week and 6.95 percent a year ago. Other home loans are more closely tethered to the central bank's decisions. Home-equity lines of credit and adjustable-rate mortgages — which carry variable interest rates — generally adjust within two billing cycles after a change in the Fed's rates. Where and how to shop: Prospective home buyers would be wise to get several mortgage rate quotes — on the same day, since rates fluctuate — from a selection of mortgage brokers, banks and credit unions. That should include: the rate you'll pay; any discount points, which are optional fees buyers can pay to 'buy down' their interest rate; and other items like lender-related fees. Look to the 'annual percentage rate,' which usually includes these items, to get an apples-to-apples comparison of your total costs across different loans. Just be sure to ask what's included in the A.P.R. Savings Accounts and C.D.s What's happening now: Everything from online savings accounts and certificates of deposit to money market funds tend to move in line with the Fed's policy. Savers are no longer benefiting from the juiciest yields, but you can still find returns at online banks of 4 percent or more. 'The Fed taking its foot off the gas with rate cuts means that these yields are likely to stay high for a while, but it won't last forever,' said Matt Schulz, chief consumer finance analyst at LendingTree, the online loan marketplace. Traditional commercial banks' yields, meanwhile, have remained anemic throughout this period of higher rates. The national average savings account rate was recently 0.6 percent, according to Bankrate. Where and how to shop: Rates are one consideration, but you'll also want to look at providers' history, minimum deposit requirements and any fees (high-yield savings accounts don't usually charge fees, but other products, like money market funds, do). part of LendingTree, tracks rates across thousands of institutions and is a good place to start comparing providers. Check out our colleague Jeff Sommer's columns for more insight into money-market funds. The yield on the Crane 100 Money Fund Index, which tracks the largest money-market funds, was 4.1 percent as of Monday, down from 5.13 percent at the end of last June. Student Loans What's happening now: There are two main types of student loans. Most people turn to federal loans first. Their interest rates are fixed for the life of the loan, they're far easier for teenagers to get and their repayment terms are more generous. Rates are about to drop modestly on student loans for the first time in five years, for money borrowed from July 1 through June 30 of next year. Undergraduate loans will now carry a rate of 6.39 percent, down from 6.53 percent. Rates on loans for graduate and professional students eased to 7.94 percent, from 8.08 percent, while rates on PLUS loans — extra financing available to graduate students and to parents of undergraduates — fell to 8.94 percent, from 9.08 percent. These rates reset on July 1 each year and follow a formula based on the 10-year Treasury bond auction in May. Private student loans are a bit of a wild card. Undergraduates often need a co-signer, rates can be fixed or variable and much depends on your credit score. Where and how to shop: Many banks and credit unions want nothing to do with student loans, so you'll want to shop around extensively, including with lenders that specialize in private student loans. You'll often see online ads and websites offering interest rates from each lender that can range by 15 percentage points or so. As a result, you'll need to give up a fair bit of information before getting an actual price quote. Ann Carrns contributed reporting.
New York Times
18-06-2025
- Business
- New York Times
What the Fed's Rate Decision Means for Your Finances
The Federal Reserve is expected to keep its key rate steady on Wednesday, after a series of cuts that lowered rates by a full percentage point last year. That means consumers looking to borrow are likely to have to wait a bit longer for better deals on many loans, but savers will benefit from steadier yields on savings accounts. The central bank has kept its benchmark rate unchanged since January. President Trump's frequently changing stance on tariffs, along with the broader effects of his restrictive immigration policies and widespread federal job cuts, have made forecasting a challenge. 'Until policymakers get some clarity on these policies,' Mark Zandi, chief economist of Moody's Analytics, said in a note, 'they will not know the appropriate monetary policy response and have thus put any further interest rate cuts on hold.' Mr. Trump has publicly attacked the Fed chair, Jerome H. Powell, and his colleagues for not lowering borrowing costs. But the rate-setting committee has signaled it will first need to see clear signs that the job market is softening. The Fed's benchmark rate is set at a range of 4.25 to 4.5 percent. In an effort to tamp down inflation, the central bank began lifting rates rapidly — from near zero to above 5 percent — between March 2022 and July 2023. Prices have cooled considerably since then, and the Fed pivoted to rate cuts, lowering rates in September, November and December. Want all of The Times? Subscribe.
Economic Times
18-06-2025
- Business
- Economic Times
India emerging as prime destination for data centre projects, chip manufacturing: Report
Moody's Analytics reports that AI investments are surging globally, with India, Singapore, and Malaysia emerging as top destinations for data centers and chip manufacturing. Despite slowing global trade, strong AI demand drives capital flows, with US tech firms expanding abroad to meet supply gaps and tap supportive Asian markets. Tired of too many ads? Remove Ads Developed and emerging economies in East and Southeast Asia are key targets for AI investments, with India, Singapore and Malaysia rapidly establishing themselves as prime destinations for data centre projects or chip manufacturing, Moody's Analytics said on its report titled AI Is Beating the Odds, Moody's Analytics said at a time when cross-border investment is slowing and global trade is fracturing, spending on artificial intelligence (AI) is powering against the current."Even though trade and geopolitical tensions are knocking economies, soaring AI demand is outpacing supply. To close the gap, global investors are pouring capital into data centres and semiconductor projects," it report further said that the US share of outbound AI investment outpaces its inbound share, a sign that US tech giants are expanding their global footprint."Developed and emerging economies in East and Southeast Asia are key destinations. In particular, India, Singapore and Malaysia are rapidly establishing themselves as prime destinations for data centre projects or chip manufacturing. These markets offer cost advantages, growing demand and supportive policies for tech investment," Moody's Analytics growing economy and digital talent pool make it an attractive location for data centre providers and chip production, it added.
Time of India
18-06-2025
- Business
- Time of India
India emerging as prime destination for data centre projects, chip manufacturing: Report
Developed and emerging economies in East and Southeast Asia are key targets for AI investments, with India, Singapore and Malaysia rapidly establishing themselves as prime destinations for data centre projects or chip manufacturing, Moody's Analytics said on Wednesday. In its report titled AI Is Beating the Odds, Moody's Analytics said at a time when cross-border investment is slowing and global trade is fracturing, spending on artificial intelligence (AI) is powering against the current. "Even though trade and geopolitical tensions are knocking economies, soaring AI demand is outpacing supply. To close the gap, global investors are pouring capital into data centres and semiconductor projects," it said. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like 23.7% Returns in last 5 years with Shriram Life's ULIP Shriram Life Insurance Undo The report further said that the US share of outbound AI investment outpaces its inbound share, a sign that US tech giants are expanding their global footprint. "Developed and emerging economies in East and Southeast Asia are key destinations. In particular, India, Singapore and Malaysia are rapidly establishing themselves as prime destinations for data centre projects or chip manufacturing. These markets offer cost advantages, growing demand and supportive policies for tech investment," Moody's Analytics said. Live Events Discover the stories of your interest Blockchain 5 Stories Cyber-safety 7 Stories Fintech 9 Stories E-comm 9 Stories ML 8 Stories Edtech 6 Stories India's growing economy and digital talent pool make it an attractive location for data centre providers and chip production, it added.
