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(NEW YORK) — Stuck in house arrest and awaiting trial, disgraced crypto executive Sam Bankman-Fried spoke out on Thursday with the most extensive remarks since his arrest a month ago.

The fallen former CEO of FTX issued a 2,300-word rebuke of fraud and conspiracy charges, replete with charts and graphs. He said that he didn’t steal customer funds, instead blaming the company’s woes on a sharp downturn in the cryptocurrency market.

“I didn’t steal funds, and I certainly didn’t stash billions away,” said Bankman-Fried, who pleaded not guilty last week. He’s tentatively scheduled to stand trial in October.

The account marked Bankman-Fried’s first post on the newsletter platform Substack, which prompts readers to subscribe to receive future messages from Bankman-Fried directly in their inbox.

Federal prosecutors charged Bankman-Fried last month in an eight-count indictment for fraud, conspiracy and campaign finance violations linked to tens of millions of dollars in political donations.

He was released on a $250 million bond in late December, when he traveled to live at his parents’ home in Palo Alto, California.

Here are five takeaways from the account posted by Bankman-Fried on Thursday:

Bankman-Fried says he ‘did not steal’

In his post, Bankman-Fried contends that he did not steal customer funds, saying instead that he would have offered some of his own assets to help make investors whole before the company declared bankruptcy.

Federal prosecutors and government agencies accused Bankman-Fried of defrauding customers and investors in FTX as well as lenders to his hedge fund, Alameda Research.

Customers sent billions of dollars to FTX believing their assets were secure but, from the start, Bankman-Fried “improperly diverted customer assets to his privately-held crypto hedge fund, Alameda Research LLC, and then used those customer funds to make undisclosed venture investments, lavish real estate purchases, and large political donations,” according to a civil complaint from the Securities and Exchange commission.

In response to such allegations, Bankman-Fried on Thursday denied taking customer funds for personal use.

Further, he said investments made by Alameda Research did not amount to an inappropriate use of customer funds. Instead, the conduct comprised an unsuccessful but legal form of margin trading, in which an individual or institution makes an investment using borrowed funds.

“All of which is to say: no funds were stolen,” Bankman-Fried said.

Customers can still recover their money, Bankman-Fried said

After denying wrongdoing, Bankman-Fried said that he could help undo the damage that resulted from the alleged fraud: Billions in customer losses.

If the company had tried to raise money from new investors before declaring bankruptcy, it could have restored funds to its customers, he said.

Gretchen Lowe, acting director of the division of enforcement at the Commodity Futures Trading Commission, estimated last month that FTX customers lost more than $8 billion.

According to Bankman-Fried, the company received billions in offers of additional liquidity when it declared bankruptcy in November, and more than $4 billion came in afterward.

Before FTX declared bankruptcy, Bankman Fried was willing to offer up some of his own wealth, he said. “Nearly all of my assets were and still are utilizable to backstop FTX customers,” he said.

“I think it’s likely that FTX could have made all customers whole if a concerted effort had been made to raise liquidity,” he said.

Bankman-Fried does not provide details of the supposed billions in potential investments.

Moreover, the reliability of Bankman-Fried’s account defies characterizations of shoddy record-keeping at FTX from current CEO John Ray.

Ray, who oversaw the dissolution of Enron, testified before House members on Tuesday that FTX lacked corporate controls to an extent he had never witnessed.

“I’ve never seen an utter lack of record keeping,” Ray said. “Absolutely no internal controls.”

A market crash brought down Alameda Research and FTX, Bankman-Fried said

Financial impropriety is not to blame for the downfall of Alameda Research and FTX, Bankman-Fried said on Thursday. Rather, a crash in the crypto market sent the firms reeling, exposing their leverage and forcing a series of losses that they could not reverse, he said.

“FTX International and Alameda were both legitimately and independently profitable businesses in 2021, each making billions,” Bankman-Fried said. “And then Alameda lost about 80 percent of its assets’ value over the course of 2022, due to a series of market crashes.”

Alameda Research failed to adequately hedge against such losses, leaving the hedge fund with no way to offset the crunch, he said.

While the market downturn likely hastened the demise of FTX, the issue stands apart from the alleged misuse of customer funds.

A tweet from a rival CEO delivered the final blow to FTX, Bankman-Fried said

Bankman-Fried attributed the ultimate failure of FTX to a post on social media from Changpeng Zhao, the CEO of rival crypto exchange Binance.

On Nov. 6, Zhao, often referred to as “CZ,” said in a tweet that he would sell all of the company’s holdings in FTT, a token created by FTX.

The major exit from a crypto heavyweight triggered a wider sell-off, akin to a bank run, placing immense pressure on FTX to meet the sudden demand for customer withdrawals. Due to a lack of funds, FTX halted customer withdrawals altogether.

In his remarks on Thursday, Bankman-Fried described the social media post from Zhao as “CZ’s fateful tweet.”

The message of caution from an industry titan brought about “an extreme, quick, targeted crash,” Bankman-Fried said.

Bankman-Fried did not run Alameda Research, he said

Bankman-Fried asserts that in recent years he did not run Alameda Research, which he founded in 2017.

The contention rebukes allegations that Bankman-Fried abused his role as the de facto head of Alameda Research, the hedge fund that traded with FTX customer money.

The statement from Bankman-Fried conflicts with testimony last month from Ray, the current FTX CEO.

Ray, who is overseeing the company’s bankruptcy proceedings, told House members that no separation existed between the operations of FTX and Alameda Research, a crypto hedge fund also founded by Bankman-Fried.

“There were virtually no internal controls and no separateness whatsoever,” Ray said.

“The owners of the company could run free reign,” he added, noting that Bankman-Fried owned 90% of Alameda Research.

Copyright © 2023, ABC Audio. All rights reserved.

(NEW YORK) — Consumer prices rose 6.5% last month compared to a year ago, extending a months-long slowdown of price hikes and bolstering hopes that the U.S. can avert a recession.

Year-over-year inflation has fallen for six consecutive months since it reached a peak of 9.1% in June. Despite the slowdown in price increases, inflation continues to hover near a 40-year high.

Economists had predicted a CPI increase of 6.7%.

The Federal Reserve imposed a string of aggressive rate hikes last year that aim to slow price increases by cooling the economy and choking off demand. The approach, however, risks tipping the U.S. into a recession and putting millions out of work.

A further slowdown in price increases would allow the Federal Reserve to taper off interest rate hikes, positioning the U.S. economy to avoid a severe downturn, Dana Peterson, chief economist at The Conference Board, told ABC News.

“If inflation continues to slow and especially is slowing in areas that the Fed has the most control over, then that’s a good thing,” she said.

In early February, the Federal Reserve will decide whether to raise interest rates again and, if so, how much. At a meeting last month, the central bank raised its benchmark rate by 0.5%, softening its approach after a series of jumbo-sized 0.75% increases.

Still, Fed Chair Jerome Powell vowed to continue imposing rate hikes until inflation returns to the central bank’s target level of 2%.

“Fifty basis points is still a historically large increase, and we still have some ways to go,” Powell said last month. “We will stay the course until the job is done.”

So far, the labor market has proven resilient, buoying the hopes of policymakers seeking to cool prices without causing significant job losses.

Hiring remained strong last month as employers added 233,000 jobs and wages grew a robust 4.6% compared to a year earlier.

While the wage gains offered welcome relief for workers strained by price hikes, they marked a slowdown from 5.1% annual growth recorded in November, reassuring some observers who fear that rising wages could push companies to hike prices and deepen inflation.

The labor market has struck a balance between strong hiring that keeps Americans employed and moderate wage growth that prevents runaway inflation, Iwan Barankay, a professor of business economics and public policy at University of Pennsylvania’s Wharton School of Business, told ABC News.

“We still see healthy increases in hiring month to month. It’s not too hot and not too cold,” he said. “I really don’t see any merit in scaremongering.”

Despite the robust job market, growing evidence suggests the Fed’s rate hikes have put the brakes on some economic activity.

Home sales fell for the 10th month in a row in November, the most recent month on record. Sales of existing homes, such as single-family homes and condominiums, were down about 35% from a year earlier.

Meanwhile, new orders for U.S.-manufactured goods fell more than expected in November, suggesting that consumer demand had slowed, according to Commerce Department data released last week.

Similarly, the country’s factory activity shrank for a second consecutive month in December, according to an Institute for Supply Management survey.

Copyright © 2023, ABC Audio. All rights reserved.

(NEW YORK) — Inflation data set for release Thursday will show whether months of cooling price increases continued in December.

Evidence of further slowing would ease the strain on household budgets and bolster hopes that the U.S. can avert a recession.

A sign that inflation turned upward, however, would indicate that the path to normal price levels may require prolonged interest rate hikes and significant job losses.

Year-over-year inflation has fallen for five consecutive months since it reached a peak of 9.1% in June. Despite the slowdown in price increases, inflation continues to hover near a 40-year high.

Analysts expect year-over-year inflation to continue its slide, dropping to 6.7% after standing at 7.1% in November.

The Federal Reserve imposed a string of aggressive rate hikes last year that aim to slow price increases by cooling the economy and choking off demand. The approach, however, risks tipping the U.S. into a recession and putting millions out of work.

A further slowdown in price increases would allow the Federal Reserve to taper off interest rate hikes, positioning the U.S. economy to avoid a severe downturn, Dana Peterson, chief economist at The Conference Board, told ABC News.

“If inflation continues to slow and especially is slowing in areas that the Fed has the most control over, then that’s a good thing,” she said.

In early February, the Federal Reserve will decide whether to raise interest rates again and, if so, how much. At a meeting last month, the central bank raised its benchmark rate by 0.5%, softening its approach after a series of jumbo-sized 0.75% increases.

Still, Fed Chair Jerome Powell vowed to continue imposing rate hikes until inflation returns to the central bank’s target level of 2%.

“Fifty basis points is still a historically large increase, and we still have some ways to go,” Powell said last month. “We will stay the course until the job is done.”

So far, the labor market has proven resilient, bolstering the hopes of policymakers seeking to avert a downturn.

Hiring remained strong last month as employers added 233,000 jobs and wages grew a robust 4.6% compared to a year earlier.

While the wage gains offered welcome relief for workers strained by price hikes, they marked a slowdown from 5.1% annual growth recorded in November, reassuring some observers who fear that rising wages could push companies to hike prices and deepen inflation.

The labor market has struck a balance between strong hiring that keeps Americans employed and moderate wage growth that prevents runaway inflation, Iwan Barankay, a professor of business economics and public policy at University of Pennsylvania’s Wharton School of Business, told ABC News.

“We still see healthy increases in hiring month to month. It’s not too hot and not too cold,” he said. “I really don’t see any merit in scaremongering.”

Despite the robust job market, growing evidence suggests the Fed’s rate hikes have put the brakes on some economic activity.

Home sales fell for the 10th month in a row in November, the most recent month on record. Sales of existing homes, such as single-family homes and condominiums, were down about 35% from a year earlier.

Meanwhile, new orders for U.S.-manufactured goods fell more than expected in November, suggesting that consumer demand had slowed, according to Commerce Department data released last week.

Similarly, the country’s factory activity shrank for a second consecutive month in December, according to an Institute for Supply Management survey.

Copyright © 2023, ABC Audio. All rights reserved.

(NEW YORK) — If you were banking on a hefty tax refund this year, think again. The expiration of COVID-era tax breaks means millions of Americans may get smaller refunds when they file their tax returns for 2022, and those who received refunds in recent years, may now owe the government money.

“Stimulus payments are a thing of the past,” Bankrate.com’s senior industry financial analyst Ted Rossman tells ABC News. “Last year, many people got an extra-large refund because they claimed a stimulus payment they didn’t receive in 2021.”

According to the IRS, the average refund last year was nearly $3,200. That was up from about $2,800 in 2021. Tax experts say refund amounts this year will more likely resemble refunds from 2019 or 2020. Depending on a taxpayer’s situation, tax experts say refunds could shrink by a few hundred to a few thousand dollars.

Federal stimulus checks dry up

The biggest reason tax refunds may be smaller this year is because Congress did not hand out COVID-related federal stimulus checks in 2022.

While most taxpayers received their stimulus checks automatically, some got the money as a recovery rebate credit of $1,400 per person on their 2021 income tax return. That means that for a family of four, that $5,600 credit won’t be there on this year’s tax return.

Paying taxes on state rebates/refunds

While federal stimulus may have gone away, over a dozen states issued taxpayer rebates and refunds last year.

Some states, including California, New Jersey and Massachusetts expect to finish handing out those checks in the first half of this year.

While these payments don’t count as taxable income on a state return, they will often count as taxable income on federal returns. For example, about three million homeowners in New York state were automatically sent a property tax rebate of up to $1,050 in June. The IRS may count that payment as income on federal returns.

No more expanded child tax credit

In 2021, Congress gave families a boost with the expanded child tax credit, which has since expired.

The child tax credit reverted back to $2,000 last year for children under age 17. That’s down from the previous year’s enhanced child tax credit of $3,600 for children under age 6 and $3,000 for children under age 18.

Child and dependent care tax breaks

The American Rescue Plan Act of 2021 made the tax credit for child and dependent care expenses substantially more generous (up to $8,000 for two or more children), but that credit went back to the old limit of $2,100 for 2022.

Taxpayers who participate in their employer’s pretax child and dependent care flexible spending accounts may also see lower refunds because contribution limits for those accounts were increased to a maximum $10,500 in 2021 but reverted to the previous limit of $5,000 last year.

There are still ways to maximize the existing, albeit smaller, child and dependent care credits.

“An especially good tip is that summer camps can count for the dependent care credit,” said Rossman.

“Parents sometimes only think school-year care is eligible, but if your kids are in day camp while you’re working, that can be fair game,” he said. “The Earned Income Tax Credit is extremely popular, especially among low- and medium-earners.

He added, “The American Opportunity Tax Credit and the Lifetime Learning Credit are good ones in the education space.”

Charitable contribution deductions

Unlike last year, charitable donations are no longer giving most taxpayers a tax break.

Congress didn’t extend the temporary tax break that allowed a special charitable deduction for taxpayers who take the standard deduction instead of itemizing.

The $300 deduction individuals could take ($600 for married couples), wasn’t available for tax year 2022 and could result in a small increase in tax bills.

Quicker tax refunds

Tax day this year is April 18. Even if you file for a six-month extension, you still need to pay any tax you expect to owe by April 18, otherwise, you can get hit with penalty and interest charges from the IRS.

If you expect a tax refund, Rossman says you can improve your chances of getting it quickly by filing early and electronically. Opting to have your refund directly deposited into a checking or savings account can also speed up your return.

“Filing via paper really slows things down,” said Rossman. “Especially if you’re anticipating a refund, aim to get your return in soon after the filing window opens in late January. It’s your money, after all. Don’t give the government an interest-free loan for any longer than you have to.”

How to spend your tax refund

As for what to do with that refund once you get it? While it may be tempting to use it towards a vacation or big-ticket purchase, like a television or car, Rossman says the most prudent thing to do is use at least some of the refund to pay down debt.

“The average credit card rate is a whopping 19.59% so if you have credit card debt, using some or all of your refund to pay down that debt would be a very smart choice,” said Rossman.

Increasing your emergency savings is another popular way to put your tax refund to work. Almost 6 in 10 U.S. adults (58%) told Bankrate.com that they’re concerned about their level of emergency savings.

“So especially with recession worries looming, boosting your savings would be wise,” he said. “You could perhaps do some of both – use some of your refund to pay down debt and put some into savings.”

Copyright © 2023, ABC Audio. All rights reserved.

(MIAMI) — The arena where the Miami Heat play can now get a new name following the collapse of cryptocurrency exchange FTX.

A federal bankruptcy judge in Delaware agreed to terminate the naming-rights agreement between Miami-Dade County and FTX on Wednesday. The order terminates the 2021 contract that enabled the downtown facility to be called FTX Arena, retroactively to Dec. 30, 2022.

Miami-Dade County now must stop referring to the arena as FTX Arena in all public references and remove signage, advertisements and promotional materials. It is unclear when that process will begin.

The 19-year, $135 million sponsorship agreement between FTX and Miami-Dade County went into effect in June 2021.

The Miami Heat and Miami-Dade County announced that they were “immediately taking action to terminate our business relationships with FTX” in November, on the same day the cryptocurrency exchange began its bankruptcy proceedings.

“The reports about FTX and its affiliates are extremely disappointing,” the team and county said in a statement at the time, adding that they are working to find a new naming rights partner for the arena.

FTX collapsed from a multibillion-dollar crypto darling into a bankrupt cautionary tale within a matter of weeks. The number of FTX investors and customers who prosecutors have said collectively lost $8 billion is likely to exceed 1 million.

FTX founder Sam Bankman-Fried was charged last month in an eight-count indictment with defrauding customers of and lenders to the crypto exchange. He was also charged with defrauding lenders to his privately-controlled hedge fund Alameda Research.

Bankman-Fried pleaded not guilty last week to the federal charges. Prosecutors have accused him of using FTX like a personal slush fund to make risky investments and political donations and to buy lavish real estate.

Copyright © 2023, ABC Audio. All rights reserved.

(NEW YORK) — As cooling inflation offers consumers much-needed relief, many car owners are in for a rude awakening when insurance renewal arrives this year, a new report found.

Car insurance rates are expected to increase by 8.4% across the U.S. in 2023, the largest rate increase in six years, according to the report from research firm ValuePenguin.

The average cost of full coverage car insurance is expected to be $1,780 per year, but rates will vary dramatically between states, the report found.

In Michigan, the state with the highest average price, car insurance will cost $4,788 a year. In Vermont, the state with the lowest average price, car insurance will cost $1,104, the report said.

Vehicle owners in 45 states will see their rates increase by at least 1%, with rates jumping the most in Illinois, Arizona and New Hampshire, the report said. The states that will experience a rate increase below 1% include California, Hawaii, Vermont and Wyoming.

Car insurance companies Geico, Progressive and State Farm did not immediately respond to a request for comment.

The significant nationwide price jump owes to a return to driving patterns resembling pre-pandemic life, as many workers come back to offices and families resume travel, said Divya Sangam, an insurance spokesperson at LendingTree, the parent company of Value Penguin.

“When more people are driving, you have more accidents and a higher volume of claims and that raises insurance rates,” Sangam told ABC News.

The effect of an elevated volume of claims has been exacerbated by the heightened cost of car repairs since a supply chain bottleneck continues to raise the cost of auto parts. A worker shortage adds labor costs too, Cate Deventer, an insurance writer and editor at Bankrate, told ABC News.

Meanwhile, an uptick in medical costs has heightened the amount that insurance companies pay to cover accident-related injuries, she added.

“Inflation is hitting everything across the board,” Deventer said. “It drives up the cost of claims.”

The price of a new car has surged nearly 8% over the past year, while the cost of tires and auto parts have jumped more than 10%, government data shows.

The pandemic-related price pressures tied to pent up demand and supply shortages arrive roughly three years after the outbreak of the coronavirus. The average car insurance rate jumped only 1.3% last year, the report found.

“We were surprised that it took so long for premiums to increase,” Sangam said. “This has been a little overdue.”

The prevalence of extreme weather events makes up another key driver of the insurance price increase, Sangam said.

“With climate change, the biggest story tends to be around homes getting destroyed,” she said. “But in reality, when there’s a massive flood, like in California right now, cars get destroyed. And with weather damage, we’re talking about cars getting totaled.”

The rise of electric vehicles has also contributed to the price spike, since insurance costs total about 28% more for electric vehicles than gas-powered ones, the report said.

The financial pain for car owners will likely prove temporary, Sangam said, predicting that the price increases would slow in the coming years as inflation softens further and the cost of car parts declines.

“It’s not going to rise at the same clip as it has this year,” she said.

Deventer cautioned that a slowdown in rate increases next year will depend on the easing of supply chain bottlenecks and a further cooling of inflation.

“It’s hard to say because we don’t know what’s going to happen with the economy,” she said.

Copyright © 2023, ABC Audio. All rights reserved.

(NEW YORK) — House Speaker Kevin McCarthy, R-Calif., emerged with gavel in hand on Saturday after fierce Republican negotiations, but the concessions he made in the process have heightened concern over a potential economic crisis later this year.

The empowerment of far-right House members in recent days has raised the risk of contentious, high-stakes negotiations over how the federal government should pay for past debts and allocate future spending, economists and budget experts told ABC News.

Failure to reach an agreement before fast-approaching deadlines would send financial markets into turmoil, raise interest rates at a moment when elevated borrowing costs already weigh on economic activity and all but ensure a recession, they added.

Within months, Congress will need to pass two measures in order to avert economic disruption: a debt-limit increase that allows the U.S. government to borrow money for past expenditures, ensuring that the nation continues paying creditors what it owes; as well as a budget that keeps the government funded for next fiscal year.

The faction of conservative Republicans that exerted leverage in the speaker vote has indicated it would not raise the debt limit unless Democrats agree to significant spending cuts; the Biden administration, however, has said it will not take part in policy negotiations conditioned upon the annual borrowing hike.

Sharp spending cuts put forward by some Republicans, meanwhile, risk gridlock over next year’s budget, which could cause a government shutdown that halts some federal payments, economists and budget experts said.

“The events of last week are quite disconcerting,” Shai Akabas, director of economic policy at the Bipartisan Policy Center. “It’s going to make passing any legislation more difficult than usual, and it’s never easy under a divided government to start with.”

“It is a serious risk for the U.S. economy and for Americans’ financial wellbeing,” he added.

Here’s what you need to know about what recent turmoil in the House of Representatives means for the U.S. economy:

Debt limit

The dispute among Republicans over McCarthy centered in part on the party’s approach to the nation’s debt limit, the amount of money that the U.S. is legally permitted to borrow in order to cover its debt.

Since yearly spending by the federal government exceeds tax revenue, the U.S. has accrued tens of trillions of dollars in debt, requiring the country to make ongoing payments so that it doesn’t default on outstanding loans.

In turn, Congress annually passes a measure that allows the U.S. Treasury to increase the amount it can borrow. In some years, the debt-limit increase has become a political lightning rod, setting off debate over the nation’s fiscal responsibility. In 2011, for instance, Congressional Republicans pressured then-President Barack Obama to agree to some spending cuts in order to win their support for a debt-limit hike.

In his effort gain the support of far-right House members, McCarthy agreed to refuse an increase in the debt limit unless Democrats agree to major spending cuts, the New York Times reported.

A dispute over the debt limit will reach a tipping point within months, according to Akabas, who said the organization projects the government will fail to meet its debt obligations at some point in the middle of this calendar year.

Failure to raise the debt limit and ensuing default on U.S. debt — which have never happened before — would cause immense harm to the U.S. and global economies, since the trustworthiness of U.S. Treasury bonds amounts to a cornerstone of domestic and international investment, economists and budget analysts said.

As confidence in U.S. borrowers falls, interest rates on loans for some businesses would rise, slowing economic activity as the U.S. already faces elevated recession risk, they said. Moreover, the stock market would falter, threatening the retirement savings of millions of Americans, they added.

“A default on the debt would be a catastrophe for financial markets and a catastrophe for America’s standing in the world,” Daniel Bergstresser, finance professor at the Brandeis International Business School, told ABC News.

“The American political and economic system is great enough that many treat US Treasury obligations as being as close to a sure thing as exists,” he added, noting that consequences would likely include a fall in the value of the U.S. dollar.

A default on U.S. debt could shed three million jobs from the economy, drive up the cost of a 30-year mortgage by an average of $130,000 and shrink 401(k) savings for a typical worker near retirement by $20,000, according to a report from center-left think tank Third Way.

“If we violate the debt limit for any significant portion of time, we’re almost certain to push the economy into a recession,” Zach Moller, director of the economic program at Third Way, told ABC News.

Akabas, of the Bipartisan Policy Center, described the economic consequences of U.S. debt default as a “conflagration of risks.”

“It’s uncharted waters,” he added. “It would likely bring costs for the U.S. taxpayer, the American economy and the global economy.”

Government shutdown

In addition to covering its previous expenses, the federal government will need to reach an agreement on how it should allocate money for next fiscal year, which begins in October.

If Congress does not pass a budget by then, the U.S. government will shut down, as agencies struggle to sustain government programs and pay federal employees.

A group of far-right Republicans has called for major cuts to government spending that would set the nation on course to balance its budget in 10 years.

As part of concessions made to the conservative faction, McCarthy has vowed to advocate for sharp cutbacks that include a shrinking of entitlement programs like Medicare and Social Security — bulwarks of financial health for many older Americans, the New York Times reported.

Spending cuts on the scale demanded by far-right Republicans would dramatically curtail federal programs, though specifics remain murky since lawmakers have yet to put forward a detailed proposal, economists and budget analysts said.

“Balancing the budget in 10 years is too heavy a lift to be a serious policy proposal,” Maya MacGuineas, president of the Committee for a Responsible Federal Budget in Washington, which advocates for fiscal responsibility through spending cuts and tax hikes.

“The policy they’re asking for needs to be achievable,” she told ABC News.

Meanwhile, if Congress fails to hash out a budget and the government shuts down, the turmoil could have far-reaching effects, including the closure of some national parks and cuts to government services like passport processing.

“While disruptive, shutdowns aren’t disastrous,” she said.

A government shutdown would also impose some economic pain, as the nation sees a reduction of some programs on which Americans rely and a pause in work for some federal employees, Akabas said.

“It’s certainly not good for the economy,” he said.

MacGuineas said concessions made to far-right Republicans in recent days have left her uncertain about how negotiations over the debt limit and budget will be resolved.

“It makes my head hurt,” she said. “I don’t know – and that makes me very uncomfortable.”

Copyright © 2023, ABC Audio. All rights reserved.

(NEW YORK) — The formula for success with Super Bowl commercials in the past has ranged from outrageous and funny to nostalgic, but this year one brand is betting big on fans for a creative twist to play out during the big game.

Doritos announced its return to the Super Bowl for the 23rd year with a “mystery superstar and one lucky customer” to make their debut during Super Bowl LVII.

The brand previously enlisted A-list talent like Lil Nas X for its 2020 cowboy and Cool Ranch campaign, as well as actors Peter Dinklage and Morgan Freeman in its 2016 fire and ice ad.

“A bag of Doritos BBQ, paparazzi and a mysterious person walk into a bar…” the brand tweeted alongside an image of screaming fans looking into a car window where an unidentified eater is about to enjoy a chip.

A bag of Doritos BBQ, paparazzi and a mysterious person walk into a bar… pic.twitter.com/tK4YZW0qXA

— Doritos (@Doritos) January 9, 2023

Now, Doritos has asked fans to create a bold and energetic “triangle-inspired dance on TikTok” inspired by the one from @vibin.wit.tay.

To submit a dance, users can upload the video on TikTok along with hashtags “DoritosTriangleTryout” and “entry.”

The competition is underway and three finalists will be selected by Jan. 13, with the winner announced the following week.

The commercial will air on Sunday, Feb. 12 during the game featuring the new Doritos Sweet & Tangy BBQ, which hit store shelves this month.

Fox, the network broadcasting the Super Bowl, has already sold ads for above $7 million for the 2023 broadcast, according to Variety, which represents a possible record-breaking price for a 30-second in-game spot.

Last year during a conference call ahead of the game, Dan Lovinger the now-president of ad sales and partnerships for NBC Sports Group, said 30-second Super Bowl ad spots were selling in record time for upwards of $6.5 million.

Fox has yet to declare whether ads are sold out for the to-be-determined NFL match-up.

Copyright © 2023, ABC Audio. All rights reserved.

(NEW YORK) — Frequent flyers will quickly recognize Biscoff as the addictive in-air treat from Delta airlines, but the brand has three new delicious doughnuts landing on the menu at Krispy Kreme you can try without taking flight.

For a limited time in the U.S., fans can taste the new Biscoff Doughnut Collection, which includes three new doughnuts with Krispy Kreme’s original glaze and Lotus Biscoff’s cookies and cookie butter.

The Biscoff Iced Doughnut is an original glazed doughnut dipped in Biscoff Cookie Butter icing.​

The Biscoff Cookie Butter Cheesecake Doughnut​ is an original glazed doughnut that gets dipped in Biscoff Cookie Butter icing and topped with a swirl of cream cheese buttercream and Biscoff Crumble.​

And finally, the Biscoff Cookie Butter Kreme Filled Doughnut​ is a round doughnut filled with the new cookie butter filling, dipped in cookie butter icing and topped with a swirl of dark chocolate icing and Biscoff Crumble.

“Our doughnuts made with Lotus Biscoff are popular around the world and it’s definitely time for our U.S. fans to get a taste,” Dave Skena, global chief brand officer for Krispy Kreme, said in a statement.

Customers who purchase any of the Krispy Kreme Biscoff doughnuts will also receive a free Biscoff cookie packet, just like the ones served in the air.

Krispy Kreme also sells these doughnuts in six packs, delivered fresh daily to select grocery stores, including Walmart, Kroger, Food Lion, Publix, Stater Brothers, Wakefern and more.

Copyright © 2023, ABC Audio. All rights reserved.

(NEW YORK) — Millions of Americans have had to struggle to find a new jobs due to a measure in their contracts that prevents them from working for a direct competitor following a set period of time.

These non-compete agreements have been controversial for years, as some economic experts contend they hurt competition within the labor market. Lina Khan, the chair of the U.S. Federal Trade Commission, openly called for ending those clauses in a New York Times op-ed published on Monday.

ABC News’ “Start Here” podcast spoke with Sarah Miller, the executive director of the American Economics Liberties Project, a non-profit that advocates for antitrust regulations, about this proposal.

START HERE: Sarah, you’ve applauded this move. Why?

SARAH MILLER: Absolutely so. Last week, the FTC proposed a new rule that would ban full stop non-compete agreements in employment contracts. So non-compete agreements apply to roughly 30 million Americans. That’s one in five workers. And originally, they were conceived to apply to a kind of very senior level executives who might have access to proprietary or sensitive information. But today, they really proliferated and become an incredibly common part of an employment contract. So they tend to bind workers to jobs and prohibit them from really selling their labor into a competitive labor market. And so that sort of kind of anti-competitive impact in the labor market is part of what FTC Chair Lina Khan is taking aim at.

START HERE: That’s interesting, this idea that it’s not just people that have like big-time company secrets. I mean, how far down the food chain are we talking here? Who has non-compete?

MILLER: So that’s something that we’re going to, I think, [get] at a much fuller picture of during the kind of 60 day comment period that the FTC has just opened.

But we know from anecdotal experience and from kind of talking to working people all around the country that non-compete have applied to everyone from employees at fast food chains like Jimmy Johns, who makes sandwiches to janitors, to engineers, to journalists, to fitness instructors. It really is an incredibly pervasive part of employment causes. Now, like I said…that has a real cost, because what happens when you are essentially bound to a job is you aren’t able to compete with your labor. So you can’t say, move to a job that pays better. You can’t leverage another offer at another firm to increase your salary at know your existing firm.

So the FTC estimates that eliminating [a] non-compete would add about $300 billion cumulatively to workers’ wages. That’s an increase of three or 4%. So we are talking about a significant kind of drain on the pocketbooks of millions and millions of working people from these non-compete agreements.

START HERE: So, I mean, that’s what the FTC says, is that you’d see all the sort of economic growth. You’ve also seen the U.S. Chamber of Commerce immediately came and said this is terrible. In fact, it gives less security to everyone. It means that companies won’t feel as confident when they’re offering contracts in the first place. They’ll actually make less hiring. It’ll hamstring the entire not just they say, not just the entire business community, but also workers themselves. Since companies won’t be as likely to offer that job in the first place. I mean, what’s your response to that?

MILLER: I couldn’t disagree more with that assessment. I think from the Chamber of Commerce— I mean, what we are arguing here is that workers deserve a free market for labor. Workers should be able to start new firms if they have a good idea, and there really shouldn’t be these kind of artificial constraints put on the labor market through the use of non-compete agreements. There’s simply, and kind of on their face, very unfair. And we think that this will create a much more dynamic environment in general when it comes to economic growth by freeing up working people to take the job that’s right. For them to start a new business and serve consumers in a new or different way and to kind of increase economic and business dynamism in the U.S., which has really been on a pretty significant decline over the past 30 or 40 years.

START HERE: Well, can I ask you about the other big criticism of this? I mean, can the FTC even do this? I mean, the U.S. Chamber of Commerce also said this is just blatantly unlawful. The Wall Street Journal had an editorial calling this an air kiss to unions because. Mainly you’d have to tear up if you were getting rid of this right now, you’d have to tear up millions and millions of people’s contracts. Is that possible? Is that feasible and is that legal?

MILLER: I think the FTC has clear authority to make this move. I mean, most of the workers that are subject to non-compete are not unionized. So I would take issue with the categorization of this as an air kiss in general. But what we have seen and what research bears out is that the use of non-compete actually lowers wages for everybody because they are so pervasive, because they put such a chill on the labor market that even if you are not subject to a non-compete yourself, there are jobs that should be available to you that you could compete for that are not available because they are so pervasive across the economy.

START HERE: And like, if you don’t put in a non-compete. Great. Well, will this pay you $10,000 like that, seen as a favor to the employee all of a sudden?

MILLER: Yes, exactly. And so I think that the FTC has authority granted to it from Congress to prohibit unfair methods of competition. That authority, I think, applies in this case. You know, the name of these agreements are non-compete, right? So if the FTC’s mission, if part of its mission is to address kind of anti-competitive practices, I think this falls clearly in the in the purview of that authority.

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