A worker hands food to a customer at the drive-thru window of a Burger King fast food restaurant in Hialeah, Florida, April 18, 2024. Eva Marie Uzcategui/Bloomberg via Getty Images
(NEW YORK) — Burger King is throwing its crown into the summer savings fast food ring as customers continue to voice frustrations over high costs of food.
The Miami-based burger chain confirmed to ABC News that it will be accelerating value offers, like its $5 Your Way deal. This follows McDonald’s adding a value bundle for a limited time this summer.
The deal at Burger King will include a choice of one of three sandwiches, a Whopper Jr., Chicken Jr. or Bacon Cheeseburger, with chicken nuggets, fries and a soft drink for just $5.
Unlike the Golden Arches, which is expected to launch its option for just four weeks in June, Burger King said it plans to run the $5 deal for several months.
Many companies have been implementing new types of pricing models as customers crave discounts, especially with fast food prices up 33% in March compared to 2019, according to the U.S. Department of Labor.
For example, Wendy’s recently announced a new $3 English muffin meal combo that includes a small portion of seasoned potatoes and choice of either a bacon, egg and cheese English muffin sandwich or a sausage, egg and cheese English muffin sandwich, the company stated.
The latest Consumer Price Index data showed a growing difference between the cost of going out to eat vs. buying groceries, with experts explaining to “GMA” that “When you buy food away from home, 70% of that is overhead and labor, so you’re really only buying 30% of the food with the dollar that you spend.”
Wells Fargo’s Chief Agriculture Economist Dr. Michael Swanson told “GMA” he expects competitive discounts “to continue, because from what we’ve seen, all these companies are really battling for market share — and this usually reflects either quality or price and hopefully both.”
Restaurant Brands, the parent company of Burger King, has yet to release any further information on the new Burger King promo as of time of publication.
(WASHINGTON) — The Biden administration announced this week that it is releasing 1 million barrels of gasoline from a Northeast reserve in an effort to reduce prices when drivers hit the road this summer.
The gasoline will be sold in 100,000-barrel tranches over a six-week stretch between Memorial Day and July 4, bolstering the nation’s fuel supply during the busiest driving season of the year, the U.S. Department of Energy said in a statement.
“The Biden-Harris Administration is laser focused on lowering prices at the pump for American families,” Secretary of Energy Jennifer Granholm said.
However, experts who spoke to ABC News rejected the notion that the release of gasoline reserves would meaningfully lower prices at the pump. The move will likely result in a modest reduction for drivers in the mid-Atlantic and Northeast but will have little effect nationwide, they said.
“This is not a needle-mover,” Patrick de Haan, the head of petroleum analysis at GasBuddy, told ABC News. “It will not impact prices for the majority of Americans.”
The White House did not immediately respond to ABC News’ request for comment.
Since the beginning of the year, the average national price for a gallon of unleaded regular gas has jumped about 16%, amounting to an increase of more than 50 cents per gallon, according to AAA data shared with ABC News.
The national average price for a gallon of unleaded regular stands at $3.61, which marks a slight uptick from where the price stood a year ago, AAA data showed.
The move by the Biden administration will lower gasoline prices for drivers in the mid-Atlantic and Northeast by 5 to 15 cents, de Haan said, characterizing the release as a relatively small injection of additional supply.
The release of 1 million barrels, or 42 million gallons, is roughly equivalent to the amount of gasoline consumed by the U.S. every two-and-a-half hours, de Haan said.
Price increases so far this year match the typical bounce in spring when warm-weather travelers drive up demand and refineries switch to a more expensive blend of summer fuel.
By adding gasoline to the marketplace at this time of year, the Biden administration aims to mitigate the risk of further price increases as even more drivers travel over the coming months, experts told ABC News.
“It’s a perfect time of year for this release,” Timothy Fitzgerald, a professor of business economics at Texas Tech University who studies the petroleum industry, told ABC News.
Still, Fitzgerald added, the ultimate price effect of the move will be modest, in part because the added supply will not make its way to regions like the West Coast where drivers are suffering the highest prices.
In California, the state with the nation’s stiffest gasoline prices, an average gallon costs $5.15, according to AAA data. In nearby Washington, AAA said, an average gallon runs $4.58.
“This gasoline [release] is unlikely to help in those markets,” Fitzgerald said, pointing to a lack of pipeline capacity necessary to transport gasoline from the Northeast to the West.
The Northeast Gasoline Supply Reserve was established in the mid-2010s in the aftermath of Superstorm Sandy when refinery damage left some New York gas stations without fuel for 30 days, the Department of Energy said.
The decision to empty gasoline from the reserve comes after Congress called for the closure of the facility as part of a spending measure enacted in March.
In a statement this week, White House Press Secretary Karine Jean-Pierre said the move makes up part of the Biden administration’s effort to lower energy prices for American consumers.
“This builds on other actions by President Biden to lower gas and energy costs — including historic releases from the Strategic Petroleum Reserve and the largest-ever investment in clean energy,” Jean-Pierre said.
Despite the rise in gasoline prices, U.S. oil production has surged in recent years.
The U.S. set a record for crude oil production in 2023, averaging 12.9 million barrels per day, according to the U.S. Energy Information Administration, a federal agency.
Rising gas prices can hurt perceptions of an incumbent president and damage the prospects for reelection, experts previously told ABC News.
In 2016, a study in the academic journal, Political Psychology examined the relationship between gas prices and presidential approval rating between the mid-1970s and mid-2000s, finding that elevated gas prices drove a president’s approval downward.
To be exact, each 10-cent increase in the gas price was associated with more than half a percentage point decline in presidential approval, the research showed.
In this April 17, 2024, file photo, the Live Nation website is shown on a laptop in New York. (Bloomberg via Getty Images)
(WASHINGTON) — The Justice Department and dozens of state and district attorneys general filed a major antitrust lawsuit Thursday seeking the breakup of Ticketmaster owner Live Nation Entertainment over what they allege is the company’s unlawful dominance over the concert ticket sales industry.
The lawsuit, filed in federal court in the Southern District of New York, accuses the company of creating a monopoly over the live entertainment market that has harmed music fans, artists and promoters around the United States through higher prices and frustrating consumer experiences.
“The result is that fans pay more in fees, artists have fewer opportunities to play concerts, smaller promoters get squeezed out, and venues have fewer real choices for ticketing services,” Attorney General Merrick Garland said in a statement announcing the lawsuit. “It is time to break up Live Nation.”
“For too long, Live Nation and Ticketmaster have unfairly and illegally run the world of live events, abusing their dominance to overcharge fans, bully venues, and limit artists,” New York Attorney General Letitia James said in a statement. “When companies like Live Nation control every aspect of an event, it leads to bad blood — concertgoers and sports fans suffer and are forced to pay more. Everybody agrees, Live Nation and Ticketmaster are the problem and it’s time for a new era. Today, we are taking this important action to protect consumers and force big companies to stop abusing their influence and get in formation.”
The sweeping lawsuit is a product of a more than two-year-long investigation into the company that has come under growing public scrutiny since late 2022, following a fiasco over presales for Taylor Swift’s Eras Tour.
Ticketmaster, which controls more than 70% of the market for ticketing and live events, crashed during the first day of sales, leaving millions of fans out of luck or seeking higher-priced tickets on the secondary market.
The Justice Department’s lawsuit accuses LiveNation of seeking to lock out competitors to protect what the company dubs its “flywheel,” described in court documents as “a self-reinforcing business model that captures fees and revenue from concert fans and sponsorship, uses that revenue to lock up artists to exclusive promotion deals, and then uses its powerful cache of live content to sign venues into long-term exclusive ticketing deals, thereby starting the cycle all over again.”
Live Nation did not immediately respond to ABC News’ request for comment on the lawsuit, though its president, Joe Berchtold, has otherwise defended the company’s business practices — including during a contentious appearance before Congress early last year.
Live Nation released a statement Thursday following the lawsuit, saying, in part, that it’s “absurd to claim that Live Nation and Ticketmaster are wielding monopoly power.”
The lawsuit “blames concert promoters and ticketing companies — neither of which control ticket prices — for high ticket prices,” said Dan Wall, executive vice president of corporate and regulatory affairs of Live Nation Entertainment, Inc. “It ignores everything that is actually responsible for higher ticket prices, from increasing production costs to artist popularity, to 24/7 online ticket scalping that reveals the public’s willingness to pay far more than primary tickets cost. It blames Live Nation and Ticketmaster for high service charges, but ignores that Ticketmaster retains only a modest portion of those fees. In fact, primary ticketing is one of the least expensive digital distributions in the economy.”
“The defining feature of a monopolist is monopoly profits derived from monopoly pricing. Live Nation in no way fits the profile. Service charges on Ticketmaster are no higher than elsewhere, and frequently lower. And even accounting for sponsorship, an advertising business that helps keep ticket prices down, the company’s overall net profit margin is at the low end of profitable S&P 500 companies,” Wall said.
“It is also clear that we are another casualty of this administration’s decision to turn over antitrust enforcement to a populist urge that simply rejects how antitrust law works,” Wall said, in part. “Some call this ‘anti-monopoly,’ but in reality it is just anti-business.”
Among the practices singled out by the DOJ are allegations Live Nation exploited its relationship with the company Oak View Group that the lawsuit says describes itself as a “hammer” for Live Nation and has avoided bidding against the company for exclusive agreements with artists and major venues.
The company, according to the Justice Department, also allegedly carried out a pattern of threatening potential competitors seeking to enter the concert promotions market and creating a climate where venue owners would fear entering into contracts with Live Nation-Ticketmaster’s rivals.
Live Nation-Ticketmaster is also accused of using lengthy exclusive contracts with venues that the lawsuit claims prevent them from switching to better or cheaper ticketing systems, and, in certain instances, allegedly blocked venues from even being able to use multiple ticketers for events.
Live Nation was already under a consent decree with the Justice Department after it approved its merger with Ticketmaster during the Obama administration in 2010 — under conditions that included prohibiting the company from threatening concert venues that opted to use competing ticket firms. That decree was extended in 2019 after the department found the company violated its conditions.
The lawsuit is the latest in a series of aggressive antitrust efforts by the Biden administration, which has brought similar enforcement efforts challenging companies like Apple, Google and Amazon over what it alleges are clear anti-competitive practices that have served to harm American consumers.
This is a developing story. Please check back for updates.
In this April 17, 2024, file photo, the Live Nation website is shown on a laptop in New York. (Bloomberg via Getty Images)
(WASHINGTON) — The Justice Department and 30 states filed a major antitrust lawsuit Thursday seeking the breakup of Ticketmaster owner Live Nation Entertainment over what they allege is the company’s unlawful dominance over the concert ticket sales industry.
The lawsuit, filed in federal court in the Southern District of New York, accuses the company of creating a monopoly over the live entertainment market that has harmed music fans, artists and promoters around the United States through higher prices and frustrating consumer experiences.
“The result is that fans pay more in fees, artists have fewer opportunities to play concerts, smaller promoters get squeezed out, and venues have fewer real choices for ticketing services,” Attorney General Merrick Garland said in a statement announcing the lawsuit. “It is time to break up Live Nation.”
“For too long, Live Nation and Ticketmaster have unfairly and illegally run the world of live events, abusing their dominance to overcharge fans, bully venues, and limit artists,” New York Attorney General Letitia James said in a statement. “When companies like Live Nation control every aspect of an event, it leads to bad blood — concertgoers and sports fans suffer and are forced to pay more. Everybody agrees, Live Nation and Ticketmaster are the problem and it’s time for a new era. Today, we are taking this important action to protect consumers and force big companies to stop abusing their influence and get in formation.”
The sweeping lawsuit is a product of a more than two-year-long investigation into the company that has come under growing public scrutiny since late 2022, following a fiasco over presales for Taylor Swift’s Eras Tour.
Ticketmaster, which controls more than 70% of the market for ticketing and live events, crashed during the first day of sales, leaving millions of fans out of luck or seeking higher-priced tickets on the secondary market.
The Justice Department’s lawsuit accuses LiveNation of seeking to lock out competitors to protect what the company dubs its “flywheel,” described in court documents as “a self-reinforcing business model that captures fees and revenue from concert fans and sponsorship, uses that revenue to lock up artists to exclusive promotion deals, and then uses its powerful cache of live content to sign venues into long-term exclusive ticketing deals, thereby starting the cycle all over again.”
Live Nation did not immediately respond to ABC News’ request for comment on the lawsuit, though its president, Joe Berchtold, has otherwise defended the company’s business practices — including during a contentious appearance before Congress early last year.
Among the practices singled out by the DOJ are allegations Live Nation exploited its relationship with the company Oak View Group that the lawsuit says describes itself as a “hammer” for Live Nation and has avoided bidding against the company for exclusive agreements with artists and major venues.
The company, according to the Justice Department, also allegedly carried out a pattern of threatening potential competitors seeking to enter the concert promotions market and creating a climate where venue owners would fear entering into contracts with Live Nation-Ticketmaster’s rivals.
Live Nation-Ticketmaster is also accused of using lengthy exclusive contracts with venues that the lawsuit claims prevent them from switching to better or cheaper ticketing systems, and, in certain instances, allegedly blocked venues from even being able to use multiple ticketers for events.
Live Nation was already under a consent decree with the Justice Department after it approved its merger with Ticketmaster during the Obama administration in 2010 — under conditions that included prohibiting the company from threatening concert venues that opted to use competing ticket firms. That decree was extended in 2019 after the department found the company violated its conditions.
The lawsuit is the latest in a series of aggressive antitrust efforts by the Biden administration, which has brought similar enforcement efforts challenging companies like Apple, Google and Amazon over what it alleges are clear anti-competitive practices that have served to harm American consumers.
This is a developing story. Please check back for updates.
(NEW YORK) — For more than three years, rapid inflation has frustrated shoppers scanning store shelves for deals. But a host of prominent companies are finally delivering relief.
Target, Ikea, Aldi, McDonald’s and Wendy’s are among several well-known brands that have announced lower prices in recent weeks.
“We know consumers are feeling pressured to make the most of their budget,” Rick Gomez, an executive vice president at Target, said in a statement this week after the company lowered prices for 5,000 items, including frozen pizza and butter.
The rapid-fire series of customer-friendly announcements isn’t a coincidence, economists told ABC News, as many companies fight over customers who are pinching pennies after a prolonged bout of elevated prices.
The competition is most intense between companies, like fast food joints and big-box stores, that cater to low- and middle-income people, experts added.
“After the shell shock of seeing the buying power of their dollar fall so dramatically, consumers are most likely to consider price, price and price as their three most important factors,” Jason Taylor, an economics professor at Central Michigan University, told ABC News.
“It should not be surprising to see firms competing so strongly on price,” Taylor added.
Last week, McDonald’s announced a $5 value meal set to hit stores next month. Wendy’s followed suit on Monday, releasing a $3 deal that features a breakfast sandwich and potatoes.
Aldi, a nationwide grocery chain, said earlier this month that it would lower prices on 250 items, reducing, for instance, the price of sirloin steak from $8.49 to $6.99.
The price cuts come at a time when many customers have few dollars to spare.
In response to accelerated price increases, the Federal Reserve embarked on an aggressive series of interest rate hikes and has yet to ease them. For nearly a year, the Fed has held interest rates at their highest level since 2001.
Price increases, meanwhile, have slowed significantly from a peak of about 9%, but inflation still stands more than a percentage point higher than the Federal Reserve’s target rate of 2%.
The persistence of elevated inflation alongside high interest rates has squeezed many consumers, who grapple with stiff prices but face expensive borrowing costs for loans that could help ease the financial pain.
Over the first three months of 2024, U.S. household debt ballooned to a record $12.44 trillion, climbing $184 billion over that period, or about 1.1%, according to the New York Federal Reserve.
Credit card debt, meanwhile, climbed to a record high $1.13 trillion at the end of last year, New York Federal Reserve data showed.
“Debt burdens are much heavier given the aggressive borrowing these households have done to supplement their income and maintain their purchasing power in the face of their higher costs,” Mark Zandi, chief economist at Moody’s Analytics, told ABC news.
In turn, strapped shoppers have become more sensitive in their spending, putting pressure on companies to lower their prices or risk losing out on business, Zandi added.
“Price competition among businesses that generally cater to lower income households is heating up,” Zandi said. “Lower income households are under significant financial pressure.”
Meanwhile, many companies can lower prices without suffering losses, since the outbreak of inflation in the aftermath of the COVID-19 pandemic brought about a surge in profitability, experts said.
In 2021, corporate profit margins skyrocketed from about 11% in the first quarter to 19% in the second, eventually stabilizing at an elevated level of 15% over the ensuing year, Fed data showed.
The profit margins also spur competition, inducing companies to enter a new market or lower prices as a means of capturing some of the lucrative business, Steve Hanke, a professor of applied economics at Johns Hopkins University, told ABC News.
“If profits start getting fat in a free market system, that invites competition and competition whittles the profit margins down,” Hanke said.
He went on, “Target is not insulated. Neither is Aldi, McDonald’s or Wendy’s.”
The discounts may also offer reason to be optimistic about the outlook for inflation, Hanke said, noting that the lower prices suggest an expectation among business leaders that their input costs are unlikely to accelerate.
“They won’t be facing costs that are rising as fast as they are now,” Hanke said. “The hot costs have come out of their expectations.”
(NEW YORK) — As inflation continues to worry Americans, Aldi CEO Jason Hart said the discount grocery chain is focused on keeping grocery prices low as the summer season heats up.
Hart joined ABC News’ Good Morning America live Thursday to discuss the summer grocery outlook ahead of Memorial Day.
“We don’t really focus on what the competition is doing. We’re focused on what consumers want and need,” Hart said. “Before the consumer was stressed with inflation, we were still about low prices, but those low prices become even more important as value is even more top of mind for the consumer.”
“So our actions are all based on consumer demand,” Hart continued. “We’re always looking for opportunities to lower prices to reduce our cost of doing business, to reduce our cost of product and to lean in on our lower prices. So that’s what we’re all about.”
Earlier this month, Aldi announced it would cut prices on over 250 summer essentials, including barbecue basics like chicken and steak and other family favorites like frozen blueberries and granola bars.
“It’s focused on, as you can imagine, fresh meat, snacks for the summer road trip and our fresh meat prices are lower than they were last year and our sales are up 30%,” Hart said, adding that low prices are part of the “DNA” of Aldi. “We’ve got our boneless, skinless chicken breasts at $2.19 a pound. Since we’ve marked that product down, it’s up 50% in movement and that’s just showing the popularity of low prices and the popularity of Aldi is as high as it’s ever been.”
Other major stores followed suit, including Walmart and Target, with the Minneapolis-based store saying it would lower prices on 5,000 items, including “everyday items” such as milk, meat, fresh fruit, vegetables and snacks.
Hart said lower prices are driving Aldi’s growth. The discount grocery chain announced this May it would open 800 more stores over the course of the next five years, especially in the Southeast.
“Twenty-five percent of U.S. customers now shop at Aldi. That’s twice what it was just six years ago,” Hart said. “And Aldi’s built to fight inflation. Our business model, which is based on simplicity and efficiency, really provides savings for customers and also saves them time when they’re shopping with their grocery lists.”
In this April 17, 2024, file photo, the Live Nation website is shown on a laptop in New York. (Bloomberg via Getty Images)
(WASHINGTON) — The Justice Department and a group of state attorneys general are expected to announce an antitrust lawsuit against Live Nation as soon as Thursday over Ticketmaster’s dominance over the concert ticket sales market, two sources familiar with the matter told ABC News on Wednesday.
Details of the pending lawsuit were not immediately clear.
The Justice Department’s antitrust suit follows a more than two-year investigation that probed whether the company created a monopoly over the concert ticket market through its exclusive contracts with venues.
The Justice Department declined to comment on the investigation. Live Nation did not immediately comment about the probe.
The Washington Post and Bloomberg first reported news of the expected lawsuit.
The company has come under increased scrutiny since late 2022 following a fiasco over pre-sales for Taylor Swift’s “Eras Tour.”
Ticketmaster, which controls more than 70% of the market for ticketing and live events, crashed during the first day of sales, leaving millions of fans out of luck or seeking higher-priced tickets on the secondary market.
A StubHub secondary ticket for the show sold as high as $22,000.
Live Nation acknowledged the issues over the presales and said high demand for the show, technical issues and bots were behind it. The company said that every customer with a “Verified Fan” code was able to purchase an “Eras Tour” ticket.
Swift addressed the incident, without naming Live Nation or Ticketmaster, and chastised the system.
“It’s really difficult for me to trust an outside entity with these relationships and loyalties, and excruciating for me to just watch mistakes happen with no recourse,” Swift said in a statement.
Ticketmaster and Live Nation have been accused of mistreating customers with speculative ticket sales, deceptive websites and large hidden fees ever since they merged in 2010.
In 2019, the company paid fines pertaining to the company violating the agreed-upon terms of a Justice Department consent decree during the final merger.
Swift fans have filed a lawsuit against Live Nation over the Eras Tour debacle contending that the company violated antitrust laws and deceived customers.
In January 2023, Joe Berchtold, Live Nation’s president and CFO, testified before the Senate Judiciary Committee and was grilled by members of both sides of the aisle over these issues.
Berchtold apologized for the fiasco and blamed ticket scalping as the cause behind it.
“There are problems in the ticketing industry — problems that we believe can and should be addressed through legislation,” he said.
Last June, representatives from Live Nation met with President Joe Biden and later announced “upfront all-in” pricing that discloses fees when a consumer is shopping for a ticket.
The Federal Deposit Insurance Corp. (FDIC) headquarters in Washington, D.C., May 20, 2024. (Al Drago/Bloomberg via Getty Images)
(WASHINGTON) — The head of the Federal Deposit Insurance Corporation said this week that he would leave his role in the aftermath of a probe that documented widespread allegations of sexual harassment and discrimination at the federal agency.
Martin Gruenberg, a Democrat who began a five-year term in 2023, said he will remain in the top post at the FDIC until a replacement can be confirmed by the Senate, which could take months. President Joe Biden will announce a nominee for FDIC chair soon, the White House told ABC News in a statement this week.
“In light of recent events, I am prepared to step down from my responsibilities once a successor is confirmed,” Gruenberg said. “Until that time, I will continue to fulfill my responsibilities as Chairman of the FDIC, including the transformation of the FDIC’s workplace culture.”
The plan to maintain Gruenberg’s leadership until a replacement can be installed presents a setback for efforts to overhaul the organization’s toxic culture and prevent further harm, experts told ABC News. The toxic workplace culture at the FDIC took hold alongside complaints about Gruenberg’s own alleged temper, which may hinder his ability to establish trust with employees as the organization pursues the necessary changes, the report said.
The report acknowledged that Gruenberg’s conduct did not make up a “root cause” of the pervasive sexual harassment and discrimination at the agency. But, the report added, “culture starts at the top.”
A fix for the pervasive misconduct at the agency, experts said, requires long-term reform and employee protections that extend well beyond the departure of Gruenberg.
“Leaders underestimate the shadows that they cast,” Allison Gabriel, a professor of management in the business school at Purdue University, told ABC News. “We look to people at the top of an organization or anybody who holds a leadership role as a beacon for what behavior is accepted and rewarded.”
“The reality is that it will take a leadership change,” Gabriel added. “It will also take a lot of time.”
The FDIC and Gruenberg did not respond to ABC News’ requests for comment.
In a statement to ABC News, White House Deputy Press Secretary Sam Michel commended Gruenberg for his service at the FDIC and his commitment to implement workplace changes outlined in the investigation.
“In his long tenure of service at the FDIC, Chairman Gruenberg has helped protect the economy from financial instability and worked to ensure the banking system serves more Americans fairly,” Michel said. “While the FDIC is an independent agency, as we have said, the President of course expects the Administration to reflect the values of decency and integrity and to protect the rights and dignity of all employees.”
A 234-page report, issued by law firm Cleary Gottlieb Steen & Hamilton earlier this month, detailed a culture of widespread misconduct at the agency that disproportionately harmed women and minority workers.
Wrongdoers often avoided punishment and, in some cases, received promotions after their misbehavior had been reported, according to the report, which relied on testimony from 500 current and former employees. Hundreds of employees shared their complaints by calling a hotline set up by investigators, the report said.
In one field office, a supervisor routinely commented to women employees about their sexual relationships and bodies, the women told investigators, according to the report. In another instance, a woman examiner received a picture of a senior examiner’s genitals out of the blue while working in a field office, the report said, noting that the woman later found out that the senior examiner had a “reputation.”
Some allegations detailed in the report focused on Gruenberg, who led the agency for 10 of the last 13 years. Some people interviewed over the course of the investigation recounted “deeply unsettling exchanges during which he was extremely ‘harsh,’ ‘aggressive,’ and ‘upset,'” the report said.
Gruenberg told investigators that he did not recall ever getting angry with FDIC employees, the report said. In November, he told the Wall Street Journal that harassment and discrimination are “completely unacceptable” and the agency doesn’t tolerate them.
Lisa Avalos, a professor at Louisiana State University Law School who focuses on sexual offenses, said the preservation of Gruenberg as the head of the FDIC for the time being will hamstring efforts to prevent further misconduct and repair the agency’s culture.
“The person at the top is always setting an example for everybody else,” Avalos said. “Part of it is what he has actively done, which caused discomfort for people. The other part is how he’s contributed to the culture through his omissions.”
She added, “It’s very unlikely that anything is going to change during this time waiting for his replacement.”
Gabriel, of Purdue University, agreed.
“Keeping the status quo can continue to harm people,” Gabriel said. “It’s putting people in a really difficult position now that they’ve unearthed these problems.”
Still, the extensive misconduct at the agency will demand structural and cultural changes that go much further than a swap in leadership, according to recommendations in the report as well as expert analysis shared with ABC News.
The report advises several fixes, including the appointment of a team of staff devoted to addressing the cultural problems as well as bolstered policies covering sexual harassment and discrimination.
“My primary concern when I hear about cases like this is they’re going to fire this person and then they’re going to do company-wide harassment training and do some other thing that does not have long-term returns,” Jennifer Griffith, a professor of organizational behavior and management at the University of New Hampshire, told ABC News.
“I would really, really urge anyone who is trying to make actual, meaningful progress in this area to consider the structural elements in the organization,” Griffith added. “Who’s being rewarded and who’s being penalized, and what are people’s daily jobs like?”
(NEW YORK) — Wendy’s is enticing its customers with a new deal amid increased prices at fast food chains.
Beginning Monday, May 20, customers can get a breakfast combination deal from Wendy’s for only $3, according to a press release from the chain.
The meal combo includes a small portion of seasoned potatoes and a choice of either a bacon, egg and cheese English muffin or a sausage, egg and cheese English muffin, the release added.
Wendy’s did not immediately respond to ABC News’ request for comment.
Earlier this month, Wendy’s competitor McDonald’s announced that it would be launching a new $5 value meal that will hit the menu this summer.
The upcoming promotion offers four items including a McDouble or McChicken sandwich, small fries, small soft drink and four-piece Chicken McNuggets for just $5, beginning June 25 for a limited time, as first reported by the Wall Street Journal.
“We know how much it means to our customers when McDonald’s offers meaningful value and communicates it through national advertising. That’s been true since our very beginning and never more important than it is today,” the company said in an emailed statement to ABC News.
The new deals from the chains came amid complaints over surging fast food prices prompting consumers to express their frustration on social media.
Colleen Pipes, whose video went viral after she spent $14 on a fast food order, told ABC News, “I joked that this was fine dining now, because I might as well go at a sit down restaurant and be served [to] pay those type of prices.”
In March, fast food prices were 33% higher compared to 2019, according to the Department of Labor, while grocery prices were up 26%.
A Target store stands in Manhattan on March 5, 2024 in New York City. (Spencer Platt/Getty Images)
(NEW YORK) — Retail giant Target announced Monday it is lowering prices on around 5,000 items in its stores across the country.
The Minneapolis-based retailer said the price cuts are meant to both make sure its prices stay competitive and help consumers who are feeling financially strapped in today’s economy.
“We know consumers are feeling pressured to make the most of their budget, and Target is here to help them save more,” Rick Gomez, Target’s executive vice president and chief food, essentials and beauty officer, said in a statement announcing the price changes. “Our teams work hard to deliver great value every day, and these new lower prices across thousands of items will add up to additional big savings for the millions of consumers that shop Target each week for their everyday needs.”
Target said the price cuts will take effect “over the course of the summer,” and noted that prices on around 1,500 items in its stores have already been cut.
Lower prices to come on ‘everyday items’
The products that Target customers will soon see lower prices on include what Target describes as “everyday items,” including:
Milk
Meat
Bread
Soda
Fresh fruit
Vegetables
Snacks
Yogurt
Peanut butter
Coffee
Diapers
Paper towels
Pet food
Target said in some stores around the country, the price of a frozen pizza has already dropped to $3.99 from $4.19, for example.
A container of Clorox scented wipes is now $4.99 compared to $5.79, according to the company.
Target said the lowered prices will be found online and on the Target app as well as in stores.
Where else can shoppers find savings?
Target’s announcement of lower prices comes just weeks after Aldi announced its own price reduction on more than 250 grocery items.
The retail chain said customers will see lower prices this summer on items including meat, bread, organic avocado oil, organic granola bars and dried cranberries.
McDonald’s also announced a price reduction this month in the form of a $5 value meal that will hit menus in time for summer.
The fast food chain plans to offer a bundle that includes four items: a McDouble or McChicken sandwich, small fries, small soft drink and a four-piece Chicken McNuggets for just $5.
Overall, data shows that grocery prices are falling for the first time in one year.
In April, the food at home index — food purchased at grocery stores – decreased by 0.2%, according to the U.S. Department of Labor consumer price index findings.
Some staple food at home products, including bread, poultry and eggs, fell in April compared to a year ago, the CPI data showed.
Prices for other items like breakfast sausage and ice cream, however, increased at a pace near the level of overall inflation.
