(WASHINGTON) — The Federal Reserve held interest rates steady on Wednesday, opting to keep rates highly elevated as progress toward lower inflation has stalled. The move pushes back rate cuts that the central bank expects to make some time this year.
The Fed Funds rate remains between 5.25% and 5.5%, matching its highest level since 2001.
The decision arrives roughly a week after fresh inflation data showed inflation ticked up in February, the latest sign that progress toward cooling prices had struck a rough patch.
Inflation has fallen significantly from a peak of 9.1% but it remains more than a percentage point higher than the Fed’s target rate of 2%.
The move affords the Fed additional time to observe price movements before going forward with interest rate cuts.
Addressing House members at the Capitol earlier this month, Fed Chair Jerome Powell reaffirmed the Fed’s plans to cut rates this year but cautioned that the central bank first wants to see inflation fall lower.
“The economic outlook is uncertain, and ongoing progress toward our 2% inflation objective is not assured,” Powell told lawmakers.
This is the fifth meeting in a row at which the Fed has left rates unchanged, marking a prolonged pause of the aggressive rate hiking cycle that started in March 2022. The next rate decision will take place at the beginning of May.
Alongside stubborn inflation, the economy has largely defied expectations of a slowdown imposed by elevated borrowing costs. That combination of elevated price increases and stronger-than-expected economic performance puts the central bank in a difficult position.
Interest rate cuts would lower borrowing costs for consumers and businesses, potentially triggering a burst of economic activity through greater household spending and company investment.
But the Fed risks a rebound of inflation if it cuts interest rates too quickly, since stronger consumer demand on top of solid economic activity could lead to an acceleration of price increases.
U.S. job gains far exceeded expectations in February, U.S. Bureau of Labor Statistics data earlier this month showed.
The U.S. added 275,000 jobs in February, surpassing predictions of about 200,000 jobs added, but marking a substantial decline from the hiring of roughly 350,000 workers in January, according to BLS data.
The S&P 500 — the index that most people’s 401(k)’s track — reached a record high earlier this month.
Attitudes about the economy have improved in recent months. Consumer sentiment inched lower in February but preserved much of the large gains achieved in previous months, a University of Michigan survey found.
Still, some areas of the economy have cooled.
The housing market has slowed substantially due in large part to soaring mortgage rates.
The average interest rate for a 30-year fixed mortgage has soared to 6.74%, rebounding after a steady decline at the end of last year, according to a report from Freddie Mac on Thursday.
Taken together, economic performance has not shaken the Fed’s steadfast pursuit of lowering inflation down to its goal of 2%, Powell told federal lawmakers last week.
(WASHINGTON) — The Federal Reserve is set to announce an interest rate decision on Wednesday, revealing its latest move in a yearslong battle to dial back price increases.
The decision arrives roughly a week after fresh inflation data showed inflation ticked up in February, the latest sign that progress toward cooling prices had struck a rough patch.
Inflation has fallen significantly from a peak of 9.1% but it remains more than a percentage point higher than the Fed’s target rate of 2%.
The Fed is expected to leave interest rates unchanged at its meeting on Wednesday, keeping borrowing costs at their current level of between 5.25% and 5.5%, the highest level since 2001.
The move would afford the Fed additional time to observe price movements before undertaking interest rate cuts expected later this year.
Addressing House members at the Capitol earlier this month, Fed Chair Jerome Powell reaffirmed the Fed’s plans to cut rates this year but cautioned that the central bank first wants to see inflation fall lower.
“The economic outlook is uncertain, and ongoing progress toward our 2% inflation objective is not assured,” Powell told lawmakers.
Alongside stubborn inflation, the economy has largely defied expectations of a slowdown imposed by elevated borrowing costs. That combination of elevated price increases and stronger-than-expected economic performance puts the central bank in a difficult position.
Interest rate cuts would lower borrowing costs for consumers and businesses, potentially triggering a burst of economic activity through greater household spending and company investment.
But the Fed risks a rebound of inflation if it cuts interest rates too quickly, since stronger consumer demand on top of solid economic activity could lead to an acceleration of price increases.
U.S. job gains far exceeded expectations in February, U.S. Bureau of Labor Statistics data earlier this month showed.
The U.S. added 275,000 jobs in February, surpassing predictions of about 200,000 jobs added, but marking a substantial decline from the hiring of roughly 350,000 workers in January, according to BLS data.
The S&P 500 — the index that most people’s 401(k)’s track — reached a record high earlier this month.
Attitudes about the economy have improved in recent months. Consumer sentiment inched lower in February but preserved much of the large gains achieved in previous months, a University of Michigan survey found.
Still, some areas of the economy have cooled.
The housing market has slowed substantially due in large part to soaring mortgage rates.
The average interest rate for a 30-year fixed mortgage has soared to 6.74%, rebounding after a steady decline at the end of last year, according to a report from Freddie Mac on Thursday.
Taken together, economic performance has not shaken the Fed’s steadfast pursuit of lowering inflation down to its goal of 2%, Powell told federal lawmakers last week.
(NEW YORK) — The push in Washington, D.C., for a potential TikTok ban has drawn mounting scrutiny toward the app over data privacy risks tied to Chinese-owned parent company ByteDance.
In making their case, some critics point to an allegedly tamer version of the app in China, suggesting that ByteDance unleashed a more potent product in the U.S. to hook consumers and vacuum up their data.
Experts who spoke to ABC News, however, downplayed the content-related differences between TikTok and its Chinese counterpart, Douyin, saying the distinctions largely owe to stiff regulations in China centered on youth social media use and political dissent.
The differences between the two apps highlight a comparatively permissive legal environment for social media in the U.S., protecting free expression but also leaving some users — especially young ones — vulnerable to addictive behavior, the experts said.
TikTok did not immediately respond to ABC News’ request for comment. In response to a previous request, TikTok condemned the push for a possible U.S. ban as an infringement on the right to express oneself freely.
“This legislation has a predetermined outcome: a total ban of TikTok in the United States. The government is attempting to strip 170 million Americans of their Constitutional right to free expression. This will damage millions of businesses, deny artists an audience and destroy the livelihoods of countless creators across the country,” a TikTok spokesperson said.
TikTok has faced growing scrutiny over fears that user data could fall into the possession of the Chinese government and the app could be weaponized by China to spread misinformation.
There is little evidence that TikTok has shared U.S. user data with the Chinese government or that the Chinese government has asked the app to do so, cybersecurity experts previously told ABC News.
The version of Douyin used by Chinese adults resembles U.S.-based TikTok, except for some propaganda in favor of the Chinese Communist Party and a lack of alternative viewpoints on hot-button topics, said Kaiser Kuo, the host of “Sinica Podcast,” a U.S.-based podcast on current affairs in China.
“It’s essentially the same stuff,” Kuo told ABC News. “It’s shredding guitarists and funny skits. People showing off the material accouterments of life. People doing clever recipes.”
“It’s people doing dance moves or unboxing or whatever the hell you find on TikTok here you find there, except that it’s censored,” Kuo added.
More noticeable differences between TikTok and Douyin arise when the respective apps are looked at through the lens of young users, some experts said. In the U.S., children experience the same version of TikTok as adults, while children in China see a modified version of Douyin that includes more educational content, they said.
In recent years, China has cracked down on internet use among children. In 2021, the Chinese government enacted a law calling for “the creation and broadcast of online content conducive to the healthy growth of minors.”
That same year, Douyin imposed a 40-minute daily limit for users under 14. Last year, Chinese regulators introduced a rule that would limit children under age 18 to two hours of smartphone screen time each day.
“There are very different laws about how companies in China can target children,” Aynne Kokas, a professor of media studies at the University of Virginia and author of Trafficking Data: How China is Winning the Battle for Digital Sovereignty, told ABC News.
“The U.S. regulatory environment is highly permissive and allows for profoundly addictive apps to emerge,” Kokas added.
Due to comparatively strict data privacy regulations in China, ByteDance accesses less user data from Douyin than from TikTok, Kokas said. However, she added, Chinese privacy protections limiting corporate conduct do not bar the government from accessing a wealth of data.
“That’s a really important caveat,” Kokas said.
While Congress has yet to regulate youth social media use, lawmakers in some states have begun to push for reforms. In June, Connecticut amended its data privacy law to mandate online platforms undertake child safety assessments and assist young users in staying away from damaging posts. Legislators in a handful of states have followed suit with similar proposals.
Mark Jia, a professor of Law at Georgetown University Law Center, pointed out “substantial similarities” between TikTok and Douyin overall, except for some differences tied to e-commerce and search functions.
But, he added, a prevalence of educational content on the youth version of TikTok likely stems from strict regulations and demand for such videos among children preparing for high-stakes, competitive exams.
The content on the children’s version of Douyin results from “top-down pressure from authorities, as well as bottom-up demand from its users,” Jia said.
While acknowledging similarities between TikTok and Douyin, experts who spoke to ABC News differed over the threat to U.S. security posed by TikTok.
Kokas, of the University of Virginia, said dependence upon TikTok for U.S. economic activity and political dialogue could end up “fundamentally destabilizing.” By contrast, Kuo, of the “Sinica Podcast,” dismissed the backlash against TikTok as a “moral panic.”
Hershey Co. candy bars are displayed for sale inside of the company’s Chocolate World visitor center in Hershey, Pa., Nov. 28, 2017. (Luke Sharrett/Bloomberg via Getty Images)
(NEW YORK) — Easter is on the horizon, but the price of chocolate may leave a bitter aftertaste for some people leading up to the sweet holiday.
Two popular chocolate brands recently indicated they may raise prices on products again due to the rising cost of cocoa, which has gone up following torrential rain in major cocoa-growing regions that affected production.
Executives from Hershey and Cadbury each pointed to possible additional price hikes in recent earning calls, identifying rising cocoa costs as a main culprit behind the increases.
“Given where cocoa prices are, we will be using every tool in our toolbox, including pricing, as a way to manage the business,” said Michele Buck, president and CEO of the Hershey Company, in a Feb. 8 earnings call.
Hershey has already raised prices on some grocery and food service items this year, with the latest increase last month, according to executives.
Mondelēz International, the company behind Cadbury chocolates, announced the possibility of a similar price hike for its products in a fourth quarter earnings call in late January.
Dirk Van de Put, CEO of Mondelēz International, called rising cocoa prices one of the “issues” on the company’s mind and identified the “need to price as needed.”
According to Van de Put, the price of Mondelēz chocolate increased 12% to 15% in Europe last year.
ABC News has reached out to Mondelēz International and The Hershey Company for comment on the possible price increases.
The price of cocoa had skyrocketed to around $8,000 per metric ton as of Monday, more than doubling the price of cocoa from one year ago, according to Trading Economics.
In February, the International Cocoa Organization issued its first quarterly predictions for the year, forecasting “significant declines in [cocoa] production” due to “unfavourable weather conditions and diseases.”
It also noted that “old trees in these countries are producing with lower yields.”
“The low availability of cocoa beans has led to significant increases in cocoa prices. With costs of raw materials increasing, this is likely to affect the operations of processors,” the organization stated.
“Compared to the 2022/23 season, global cocoa supply is anticipated to decline by almost 11% to 4.449 million tonnes. Global cocoa demand is projected to decrease by almost 5% to 4.779 million tonnes,” the organization noted.
(NEW YORK) — More than 70 businesses across the country shut their doors Monday in a show of solidarity to call for federal paid family and medical leave.
The day of action coincided with Women’s History Month, highlighting the value of investing in women in the workforce.
“This is an action meant to signify the value of women’s underpaid, unpaid care and work, and to show what will happen, a symbolic look, if more women are pushed out of the workforce because the United States does not pass paid leave federally,” said Dawn Huckelbridge, founding director of Paid Leave for All, the campaign behind the day of action.
Currently, there are no federal laws in the United States that require employers to provide paid days off. According to the U.S. Bureau of Labor Statistics, in 2023, just 27% of civilian employees — private industry and state and local government workers — had access to paid family leave benefits.
The 1993 Family and Medical Leave Act, or FMLA, entitles some employees to unpaid family and medical leave, up to 12 weeks within a 12-month period. According to the BLS, 90% of civilian employees had access to unpaid family leave in 2023.
Universal paid leave was on the table at the federal level in 2021 with the Build Back Better Act, which passed the House of Representatives but failed in the Senate.
While the Paid Leave For All Campaign calls for federal paid leave for all employees, the campaign has pushed for family and medical leave to support mothers and parents in particular.
Jeanelle Teves, chief commercial officer at parenting solutions company Bugaboo, was among those whose companies participated in Monday’s day of action. She said it was her own experience as a new mother coming into the corporate workforce that informed her passion for creating a supportive environment for parents in the workplace.
“My hope on a greater scale is that every parent has access to that — that financial security and really that time off as they ease into parenthood,” Teves said. “My goal on a deeper level is that this empowers more women to stay in the workforce and to believe that parenthood and motherhood will not come as a compromise to their career.”
Huckelbridge said that there are still some disparities in access and use of paid family and medical leave for women of color. She said that federal paid leave could help address such issues.
According to a 2011 BLS survey, Hispanic and Black non-Hispanic workers were less likely than their white non-Hispanic counterparts to have access to paid parental leave, with 35.7% of Hispanic workers and 42.5% of non-Hispanic Black workers having access to paid parental leave versus 44.7% of white non-Hispanic workers.
“Our economy has been held up by women, particularly women of color, and yet it is women and women of color who continue to be undervalued and underpaid — and a big part of that puzzle is a lack of paid leave. Too often the burden of caregiving falls on women — falls on women of color — again, disproportionately,” Huckelbridge said.
Participants in Monday’s day of action emphasized the importance of investing in employees through paid leave, but also pointed out that not all businesses are equipped to do so on their own.
Dr. Manju Dawkins, founder and CEO of Thimble Health, a health care business focused on solutions for alleviating needle fear and pain, spoke about difficulties she faces as a small business owner.
“One of the most important things to recognize about this movement is that it’s not about putting the onus on businesses,” Dawkins said. “As a small business owner, I’m also very sensitive to that. It’s really hard to keep a business afloat. And so this is really something that the federal government should support, because it is good for the country.”
Target has brought a change into what was considered a quicker alternative for its customers to make purchases at its stores.
The retail corporation announced Thursday via press release that it would switch its regular self-checkout to express self-checkout. The new concept would be reserved for customers with 10 items or fewer.
The change was brought into effect as of Sunday, March 17, at most of the company’s 2000 locations nationwide.
In the release, the company noted that customers began to rely heavily on the self-checkout during the pandemic as it offered them a contactless option.
Speaking to “Good Morning America,” Dominick Reuter, a senior reporter at Business Insider said the change would yield quite a few challenges.
“One of them is this funny little notion called partial shrink,” he explained. “Which is when a shopper perhaps either accidentally or intentionally doesn’t scan all of the items in their order. So, some of the stuff goes out the door without having been paid for.”
Prior to implementing the new self-checkout concept, Target had tested out the program at about 200 of its stores last fall, according to its release.
The company said it saw the effect it brought to the stores, telling, “GMA,” “We did see a reduction of theft in our test stores, but the program wasn’t directed in targeting theft even though we did see it was reduced.”
Target added the swap out was introduced to help improve efficiency and customer experience.
The change comes after other retailers such as Dollar General and Walmart also pulled out some of their self-checkout stands in stores recently.
Last week, Dollar General announced it would remove the options entirely in 300 of its “highest shrink” stores.
Meanwhile, some customers had voiced their opinions on social media after Walmart scaled back its self-checkout options, with one frustrated user calling out the company on TikTok.
In a statement to ABC News, Walmart explained, “During these times of limited access, some stores are designating select self-checkout stations for Walmart+ customers using our Scan and Go service and Spark drivers for quicker access and delivery services.”
(NEW YORK) — A push to slash the standard workweek from 40 hours to 32 achieved a breakthrough this week, gaining a foothold in the Senate with a proposal that would require businesses to offer the 32-hour workweek but preserve employee pay.
The bill, put forward by Sen. Bernie Sanders, I-Vt., drew praise from labor advocates who tout the benefits of the reduced hours not only for workers’ wellbeing but for the productivity benefits enjoyed by their employers.
However, political analysts who spoke to ABC News cast doubt on the measure’s chances of passage in a divided Congress where opposition from Republicans is all but certain and even the extent of support among Democrats remains unclear.
“It’s so hard to get anything passed, especially when you have such high levels of polarization. It doesn’t take a lot to stop legislation,” Richard Hall, a professor of political science at the University of Michigan, told ABC News.
“You’d have to imagine a very different political world than what we have now,” Hall added.
Proponents of the measure point to the output gains generated by workplace technology, including recent improvements in automation and artificial intelligence.
The standard 40-hour workweek became a federal requirement in 1940, when rudimentary machinery made for diminished worker productivity. Today, much more output can be achieved in fewer hours, advocates say.
A study out of the United Kingdom last month found nearly 9 in 10 companies opted to retain a four-day workweek after participating in a temporary pilot program.
Support for the measure in Congress, however, remains scant. The proposal made by Sanders on Wednesday carries the support of just two other lawmakers, California Democrats Sen. Laphonza Butler and Rep. Mark Takano.
“I don’t see this current iteration of the law getting through Congress,” Lynne Vincent, a professor of industrial and labor relations at Syracuse University, told ABC News.
A near-identical bill proposed by Takano in the House last year gained the support of just seven colleagues in that chamber.
Some Republican lawmakers voiced opposition to the newly announced measure in a hearing of the Senate Committee on Health, Education, Labor and Pensions on Thursday.
The proposal amounts to an effective pay increase forced upon businesses, Sen. Bill Cassidy, R-La., said, predicting that the 32-hour workweek would “destroy some employers.”
“They would ship those jobs overseas or they would automate to replace those workers for whom they have an increased expense, or they would dramatically increase prices to stay afloat,” Cassidy added.
Sen. Mike Braun, R-In., said a 32-hour workweek could be appropriate as a voluntary policy adopted by some large businesses, but he expressed strong opposition to a federal requirement.
“I disagree with trying to do anything from this place that would impose upon the preponderance of businesses out there where I just don’t think they could survive,” Braun said.
The push for a shortened workweek has gained momentum in recent years, driven in part by the rise of employee flexibility during the COVID-19 pandemic.
Spain, Iceland and South Africa are among the nations that have implemented a trial of the four-day workweek for select companies and workers.
Belgium enacted a law in 2022 that requires employers to offer full-time workers a right to request a four-day workweek.
At the state level, lawmakers in Massachusetts introduced a bill last year that would provide employers with a tax credit if they shift at least 15 workers to four days a week without cutting their pay.
In California, lawmakers have introduced a bill that would set the standard workweek at 32 hours.
“Reducing the number of working days is not a new idea,” Vincent said. “We have evidence from different sectors and countries that this can work.”
Still, Vincent added, the measure stands little chance of passage under the current Congress. “Whenever there’s anything related to a large change, it’s going to meet a lot of resistance,” Vincent said.
For the bill to reach President Joe Biden’s desk, it would need to garner majority support in the Republican-controlled House as well as a filibuster-proof 60 vote approval in the Senate. If the measure were to reach Biden, it remains unclear whether he would sign it.
“It will never get through Congress — not in my lifetime,” Tracy Roof, a professor of political science at the University of Richmond who focuses on labor issues, told ABC News. “Maybe it will happen in my children’s lifetimes.”
ABC News’ Leah Sarnoff contributed to this report.
(NEW YORK) — The cost of selling a home could soon go down after the National Association of Realtors agreed to a historic settlement.
The powerful trade group, which represents more than 1.5 million real estate agents, reached a nationwide settlement with groups of home sellers who accused the NAR of conspiring to keep broker fees artificially high.
In addition to paying $418 million in damages, the NAR agreed to stop requiring that sellers pay both their broker and a buyer’s broker. Housing experts say the longtime industry standard of a 6% commission is expected to fall 25% to 50%, according to TD Cowen Insights. That could mean significant savings for both buyers and sellers.
At today’s 6% commission, a homeowner selling a $400,000 property will spend about $24,000 on broker fees, a cost that is passed on to the buyer. Depending on how much the new rules reduce commissions, that same homeowner could see their broker’s fee fall to about $12,000.
While the new rules are expected to lower home prices, experts say supply and demand together with the level of mortgage rates, will continue to be the biggest factors impacting the cost of a home.
Among other things, the landmark settlement requires buyers’ brokers to enter into written agreements with their buyers and forbids a broker’s compensation from being included on listings placed on multiple listing services, a move critics say led agents to steer customers to more expensive homes.
The deal brings an end to a multitude of antitrust lawsuits against the group. Last year, a federal jury in Missouri found the NAR and two brokerages liable for $1.8 billion in damages for conspiring to keep agent commissions high. Before Friday’s agreement, the two brokerages settled, but the NAR had vowed to appeal the case.
In a statement, the NAR says, “Continuing to litigate would have hurt members and their small businesses. While there could be no perfect outcome, this agreement is the best outcome we could achieve in the circumstances.”
Housing experts call the settlement the biggest shakeup in the housing industry in nearly a century, offering more transparency and competition. Alternative business models including flat-fee and discount brokerages could become more widespread, realtors will be allowed to advertise their fees and compete on commissions, and buyers will be able to shop around and choose lower-cost agents.
It may also force some realtors out of the industry over time, if more buyers opt to save money and choose not to use an agent in their home search.
A federal judge is expected to approve the settlement in the coming weeks, and experts say sellers and buyers should see those broker fees reduced by mid-July.
TikTok supporters are seen outside the U.S. Capitol before the House passed the Protecting Americans from Foreign Adversary Controlled Applications Act, that could ban TikTok in the U.S., March 13, 2024. — Tom Williams/Getty Images
(NEW YORK) — A fast-moving push in Washington, D.C., that could ban TikTok has thrust the social media platform into the national spotlight, stoking scrutiny about who uses the app and what exactly they do on it.
While eliciting good-faith disagreement, the debate has also resurfaced some misconceptions, including the notion that TikTok only serves young people or that it hooks users with frivolous videos.
The House passed a measure on Wednesday that would ban the app unless it parts ways with its Chinese-owned parent company, ByteDance.
It’s not yet clear if there would be the groundswell of support needed to get 60 votes for the legislation to advance in the Senate. President Joe Biden has vowed to sign the measure into law if it reaches his desk.
TikTok did not immediately respond to ABC News’ request for comment. In response to a previous request, TikTok condemned the bill as an infringement on the right to express oneself freely.
“This legislation has a predetermined outcome: a total ban of TikTok in the United States. The government is attempting to strip 170 million Americans of their Constitutional right to free expression. This will damage millions of businesses, deny artists an audience and destroy the livelihoods of countless creators across the country,” a TikTok spokesperson said.
Here’s a list of prevalent but false claims about the app — and where the truth actually lies.
Myth: TikTok is an app for kids.
Many Americans perceive TikTok as an app where children and young adults post videos of elaborate dances or slapstick pranks. In reality, however, the generational makeup on the app is more diverse.
Roughly 10% of adults 65 and older say they have used TikTok, for instance; while more than 25% of adults between the ages of 30 to 49 say the same, a Pew survey in January showed.
That set of Americans amounts to tens of millions of people, who make up a sizable portion of the TikTok user base.
That said, young people are much more likely to say they’ve used TikTok than their older counterparts, Jeffrey Gottfried, associate director of research at Pew, told ABC News. In all, four in five adults under the age of 30 attest to having used the platform, Pew data shows.
“It’s not that TikTok is exclusively used by the youngest age group,” Gottfried said. “But it’s more likely to be used by younger people.”
Overall, about one in three Americans say they have used TikTok, which marks a sharp increase since 2021, when roughly one in five Americans said the same, according to Pew data. That growth rate outpaces all of TikTok’s rivals, Gottfried said.
“The thing that is really important here is TikTok’s growth,” Gottfried added.
Myth: The accounts that generate revenue on TikTok belong to influencers.
TikTok has broken into popular culture in part through the success of its top influencers, some of whom boast more than 100 million followers and a multi-million dollar annual income.
However, the industry dependent on the app extends well beyond a handful of prominent celebrities. Roughly 5 million businesses have TikTok accounts, the company said last year.
TikTok accounted for $14.7 billion in revenue for small businesses last year, allowing them to add an extra 224,000 jobs in the U.S., an Oxford Business study on Wednesday showed.
Katy King, the owner of a flower farm in Southern Pennsylvania, opened an account on TikTok in 2022 with little anticipation of a business boom.
“I thought it might be something worth pursuing for fun,” King, 37, told ABC News. “I didn’t expect it to be a business strategy.”
Within months, King posted a video that garnered four million views, she said. While her videos only reached a few local customers, King noticed aspiring flower farmers nationwide reaching out for tips.
King launched online courses as well as an e-commerce service for shipping flowers that could survive the trip, like bulbs and peonies. Those revenue streams now make up one-third of her sales, she said.
“There are definitely people that are making a ton of money on the influencer side of things, but there are also a ton of businesses that I see doing actual product sales through social media,” King said.
“It’s kind of great that social media has opened up business to basically anyone,” she added.
Myth: TikTok collects more data than other social media platforms.
Some scrutiny of TikTok has centered on its data collection.
The social media platform has faced growing scrutiny from some government officials over fears that user data could fall into the possession of the Chinese government and the app could be weaponized by China to spread misinformation.
There is little evidence that TikTok has shared U.S. user data with the Chinese government or that the Chinese government has asked the app to do so, cybersecurity experts previously told ABC News.
Critics have also expressed disapproval of the extent of data collection undertaken by TikTok. However, studies have shown that TikTok collects the same set of information as rival social media platforms.
Pellaeon Lin, researcher at the University of Toronto’s Citizen Lab, examined the data collection practices of TikTok and other apps in a 2021 report. “In comparison to other popular social media platforms, TikTok collects similar types of data to track user behavior and serve targeted ads,” Lin wrote.
In 2020, the Washington Post reached the same conclusion in an analysis of privacy policies at mainstream social networks.
Myth: TikTok is a platform for frivolous videos.
After it launched in the U.S. in 2018, TikTok built a reputation as a destination for light, easy-to-consume videos featuring makeup tutorials or animal hijinks.
In recent years, however, the site has increasingly become a place where users get their news, a Pew survey in November showed.
Overall, nearly 15% of U.S. adults regularly get their news on TikTok, up from 3% in 2020. Even more, nearly one-third of adults under age 30 receive their news regularly on TikTok, a major spike from 9% of such people four years ago.
“You see really rapid growth of people on the site using it to get news,” said Gottfried, of Pew.
Many major news outlets feature TikTok accounts, including the New York Times, the Washington Post and the Wall Street Journal. President Joe Biden, meanwhile, recently opened a campaign account on the platform.
Robert Hernandez, a digital journalism professor at USC Annenberg’s School for Communication and Journalism, said videos on TikTok run the gamut.
“TikTok is no doubt all-encompassing from light, ephemeral junk food to really thoughtful and engaging and informational and educational things,” Hernandez said.
The proliferation of informative videos risks the spread of misinformation or disinformation, Hernandez added, noting that users can end up in an “echo chamber” limited to a narrow perspective.
“These are serious concerns,” Hernandez said, but he pointed to issues surrounding false or hateful information on other social media platforms, such as X, formerly known as Twitter. “All platforms have those valid concerns.”
(NEW YORK) — Market reports show the U.S. economy is seeing strong job numbers and a waning inflation rate, but some small business owners tell ABC News they are still feeling the pinch.
When Mia Sakai opened her Chicago bodega in December 2020 she had to deal with the pandemic, supply chain issues and then rising costs of goods — costs that she passed on to her customers.
“It’s not an easy thing to do, and it’s not something we like to do, but we also want to be able to keep our business here and continue to be able to service the neighborhood,” Sakai told ABC News.
Rising grocery store prices are one of the reasons why Americans are down on the economy, according to experts.
Between 2019 and 2023, food inflation increased by 25%, faster than other categories like housing, clothes and medical care, according to government data.
Treasury Secretary Janet Yellen told ABC News that she does notice sticker shock when she buys her goods, but said that she doesn’t expect that to continue.
“Food prices have largely stabilized. They’re not increasing at rapid rates,” she said.
Yellen recently gave a speech in Chicago about the state of the economy and let Americans know that the economy isn’t as bad as they think.
The secretary stressed that wages are finally catching up to rising prices.
The typical American household is now spending $1,019 more every month on the same goods and services compared to three years ago, because of inflation, according to economic data from Moody’s Analytics, but wages are up an average of $1,072 per month during that time, offsetting the higher prices.
Consumer confidence has slowly been rebounding since a low in June 2022, according to recent surveys, and Yellen suggested that the data shows a shift in the public’s sentiment on the economy.
Alexandria Jones, an owner of a Chicago vintage clothes and goods store, however, said she still struggling.
Her landlord increased the monthly rent from $1,400 to $1,750 and she’s been unable to hire additional staff.
“Last year, I clocked not being here 11 days out of 365 days because I had to be here,” she said.
Paul Ruffino, the owner of Rattleback Records, told ABC News he’s lucky to say business has been steady despite a rise in prices.
He said that the problem with the economy now isn’t as much about the message as it is the messenger. Ruffino said the Biden Administration and other leaders need to get the word out more.
“Unemployment is low, inflation has slowed, so I think that things seem to be moving in the right direction and, hopefully, will continue to,” he said.
