Business – Page 66

April jobs report misses expectations, signaling a possible slowdown

May 4, 2024 by WDNY Radio

(NEW YORK) — A worse-than-expected jobs report on Friday offered the latest evidence of an economic slowdown that could help ease inflation and trigger interest rate cuts. The trend, however, threatens to downshift the nation’s brisk economic growth.

Employers hired 175,000 workers last month, falling short of economist expectations of 240,000 jobs, U.S. Bureau of Labor Statistics data showed. The unemployment rate ticked up to 3.9%, which remains near a 50-year low.

The hiring in April marked a steep slowdown from the previous month and delivered the lowest monthly reading so far this year.

Economists who spoke to ABC News characterized the fresh data as a mild cooldown that may ease fears of stubborn inflation fueled by an economy running too hot.

The slowdown, they added, could help allow the Federal Reserve to cut interest rates this year without worrying about triggering a rebound of rapid price increases.

“This is the jobs report the Fed would have scripted,” Seema Shah, chief global strategist at Principal Asset Management, told ABC News.

“Of course, today’s weaker numbers need to mark the start of a new slower trend for multiple rate cuts to seriously be back on the agenda — but, by then, the new fear could be a slowing economy,” Shad added.

The major stock indexes ticked upward in early trading on Friday morning.

The cooldown in the job market matches a similar trend in another major measure of economic health: gross domestic product.

U.S. output slowed dramatically at the outset of 2024, though it continued to grow at a solid pace, U.S. Commerce Department data last week showed.

The cooldown has followed a prolonged period of high interest rates. Since last July, the Fed Funds rate has stood between 5.25% and 5.5%, matching its highest level in more than two decades.

The Fed decided to hold its benchmark interest rate steady for the sixth consecutive time at a meeting on Wednesday, citing a lack of recent progress in slowing price increases.

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 fresh jobs data on Friday could reassure the central bank that the U.S. has moderated its blistering growth, easing upward pressure on prices, Mark Hamrick, senior economic analyst at Bankrate, told ABC News.

“Worried that the U.S. economy is overheating?” Hamrick said. “The April employment report throws a bit of cold water on that idea.”

Despite the cooldown, economists largely avoided alarm over the potential emergence of a weak jobs market.

“The April jobs report feels really good,” Mark Zandi, chief economist at Moody’s Analytics, said in a post on X. “The job market is strong but is cooling off.”

Hawaii counties get more say over short-term rentals amid housing crisis in aftermath of Maui wildfires

May 3, 2024 by WDNY Radio

(HONOLULU) — Hawaii Gov. Josh Green signed a bill into law to give counties more authority to regulate short-term vacation rentals amid the ongoing state housing crisis and aftermath of the Maui wildfires.

Now, a day after the bill signing, local advocates from Lāhainā Strong are joining County Maui Mayor Richard Bissen to announce a new policy aimed at regulating and phasing out “thousands of transient vacation rentals that have not gone through the traditional permitting process.”

It’s time we take a stand to house our people by phasing out illegal short term rentals.

Today, alongside Lahaina Strong, Hawai‘i’s Hoteliers and Hotel Labor Unions, we united in support of counties’ authority to phase out Short Term Rentals (STRs). pic.twitter.com/Yy9yFgcQbL

— Governor Josh Green (@GovJoshGreenMD) April 24, 2024

The Maui wildfires in August 2023 exacerbated the island’s housing crisis, burning thousands of structures and displacing thousands of residents.

Residents have long complained about the impact of tourism and luxury home and resort development on housing accessibility, as well as the lack of affordable housing and rentals for residents.

In Lahaina, 25% of the region’s housing units are listed as short-term rentals, according to the University of Hawaii Economic Research Organization. To the south of Lahaina, that percentage jumps to 41.8%. To the north, it jumps to 87%.

Additionally, Hawaii residents have some of the highest housing costs in the nation — about 2.7 times higher than the national average — according to the University of Hawaii Economic Research Organization.

In Maui Thursday, Mayor Bissen announced that he directed the Planning Commissions to consider phasing out and prohibiting the use of transient vacation rentals in the Apartment District, which allows condos, apartments and planned developments that are not hotels to operate as short-term rentals without any state or county permit.

“This was won through the struggle of our grassroots movement, which put the opportunity and need to tackle our Maui vacation rental crisis into the dialogue through relentless advocacy, public education, community organizing — and even a 174-day and counting sustained occupation of Kā‘anapali Beach,” said Jordan Ruidas, founder and campaigns coordinator of Lāhainā Strong.

“Now, we call on the Maui County Planning Commissions and County Council to swiftly join us in action to ensure dignified housing for fire survivors and return our communities to local people.”

Interest rates could be high for much longer. Here’s what it means for your finances

May 2, 2024 by WDNY Radio

(NEW YORK) — For months, the Federal Reserve has forecasted interest rate cuts that would deliver much-needed relief for Americans burdened by high mortgage and credit card loans.

At a press conference this week, however, Fed Chair Jerome Powell cast doubt on whether those rate cuts would arrive after all, saying the Fed needs to “gain greater confidence” that inflation is headed toward an acceptable level.

The prospect of high interest rates for a longer period of time could exacerbate the financial pain already imposed by elevated borrowing costs, making loans expensive even as consumers still weather elevated prices, experts told ABC News.

Americans with savings accounts and other cash funds will continue to benefit from solid returns, though they tend to be well-off people, the experts added.

“Everyday people are suffering the most,” James Cox, a financial adviser and managing partner of Virginia-based Harris Financial Group, told ABC News. “Not only are the high interest rates gobbling up their excess income but inflation is really killing them on everyday items.”

The Fed decided to hold its benchmark interest rate steady at a meeting on Wednesday, citing a lack of recent progress in price increases. 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%.

Since last July, the Fed Funds rate has stood between 5.25% and 5.5%, matching its highest level in more than two decades.

Over that period, borrowing costs have risen for everything — from credit cards to student loans to mortgages.

By the end of 2023, Americans held more than $1 trillion in credit card debt, which marked a record high, according to a report released by the Federal Reserve Bank of New York in February.

As high interest rates persist, credit card borrowers risk ballooning costs, Jason Taylor, an economics professor at Central Michigan University, told ABC News.

As of Wednesday, average credit card interest rates stood at a staggering 20.6%, Bankrate data showed.

“Having interest rates higher for a longer period of time is going to hurt people who have a lot of credit card debt,” Taylor said.

In similar fashion, mortgage rates are likely to remain costly, posing difficulty for prospective homebuyers who’ve faced elevated loan costs for two years.

The 30-year fixed-rate mortgage averaged 7.22% over the week ending on Thursday, matching the highest level since November, Freddie Mac data showed.

When the Fed imposed its first rate hike of the current series in March 2022, the average 30-year fixed mortgage stood at just 3.85%, according to Freddie Mac data.

“It’s very difficult for a first-time homebuyer to get into a property,” Cox said. “It’s very difficult to build the American dream.”

Some people, however, would benefit from a prolonged period of high interest rates.

The rates directly benefit savers, who stand to gain from an uptick in the interest yielded by accounts held at banks. Well-off and older Americans tend to hold a larger share of their assets in savings or other cash funds.

Some high-yield savings accounts are offering interest rates of more than 5%, which far exceeds the inflation rate of 3.5%, NerdWallet data shows.

“Money is appearing out of nowhere with no risk, which just adds to your wealth,” Cox said.

He added, “Interest is like energy — there’s an equal and opposite reaction. If you’re a borrower, the effect is horrible; if you’re a saver, the effect is fantastic.”

Ahead of election, Lyft CEO details company’s newest efforts to boost voter turnout

May 2, 2024 by WDNY Radio

(NEW YORK) — Ahead of the upcoming election in November, the popular ride-sharing service Lyft announced a partnership that its CEO said he hopes continues the company’s mission to bring more people — especially younger voters — to the polls.

Lyft CEO David Risher told ABC News in an interview that ahead of the upcoming election, he wanted to increase the company’s footprint when it comes to increasing voter turnout.

“One of the most important things you can do to keep the community active and engaged is to make sure they have easy access to the polls,” Risher said in the company’s Washington, D.C., office.

That includes a partnership between Lyft and Levi Strauss & Co., Showtime and MTV to launch a new non-partisan initiative to increase voting among community college students.

The new initiative, the Community College Commitment, comes as community colleges’ enrollments are expected to swell over the next seven years. The National Center for Education Statistics said that by 2031, enrollment in two-year institutions is projected to increase from 4.7 million students in the fall of 2021 to 5.3 million students by fall 2031. The Community College Commitment aims to increase voter turnout by 500,000 new voters by 2028.

Starting good voting habits when you’re young is important, Risher said, and one of the reasons the partnership is targeting college students.

“If you start voting when you’re young, it becomes part of your life. It’s a habit to build,” Risher said.

The Community College Commitment works to address that effort through a Get Out The Vote community college competition, which will allow community colleges that host registration drives and voter education events to be entered into a competition to have a live on-campus concert on Oct. 29 to coincide with Vote Early Day.

Also, Lyft announced earlier this week that it will offer discounted rides to the polls on Election Day — a move it has made in previous years as well.

For Lyft, focusing on voting access has been a decadelong effort, Risher said. Back in 2014, the ride-share company began focusing on voting access to the polls, which it says has helped more than 3 million people vote over the past decade.

“For me, it was more about doubling down on something we’re already pretty good at,” Risher said of the company’s ability to transport people via ride-share, bikes and scooters all in one app.

Lyft has several other initiatives that the company hopes will increase voter turnout. For the election in November, Lyft will be working with several nonprofit organizations to get voters to the polls through the distribution of special ride codes to people in their respective networks who are in need of transportation. One of the nonprofit organizations is the National Association for the Advancement of Colored People.

National Director of the NAACP Youth & College Division Wisdom Cole said in a statement to ABC News that “it is crucial that college students have access to the tools they need to bring their power to the polls.”

“The reality is, many young people, especially young Black people, are disenfranchised by a lack of basic knowledge and resources,” Cole said. “That’s why we’re proud to continue partnering with Lyft to ensure that obstacles such as transportation do not become barriers to casting an effective ballot.”

In addition to ride-sharing plans, Lyft will work with partners such as the League of Women Voters, When We All Vote and VoteRiders to help riders, drivers and Lyft team members register to vote and educate them on voting ID requirements. Additionally, Lyft employees will be able to volunteer to become poll workers.

“There’s a great saying, which is ‘if you want to go fast, go alone, if you want to go far, go together,'” Risher said. “So you find coalitions that can advance whatever it is you’re trying to get done to impact the world.”

Tipping point: Viral video sparks questions about gratuities

May 2, 2024 by WDNY Radio

(NEW YORK) — Tipping has seen a shift, especially compared to pre-pandemic, when the cost of food and everything else was lower, but one man’s recent experience that went viral on social media has sparked new questions around gratuities.

Mark O’Brien shared a video on Instagram showing an electronic screen that displayed the suggested tip percentages on his $27 check total. The problem he said, “15% of $27 is not $6, 18% of 27 is not $7, 20% is not $8.”

The fuzzy math prompted hundreds of varied comments from viewers, with some writing that “restaurants need to pay their employees, not us,” and one person arguing that “tipping is out of control.”

The payment device in the video, however, displays a disclaimer that states “tip is calculated after tax and before discounts.”

The unnamed restaurant said that O’Brien received a discount for the cost of an entree, which he sent back to the kitchen. And while he wasn’t charged for that item, the discounted cost was included in the tipping calculations.

“This is not a scam. We have a disclaimer that alerts guests that the tip is calculated before discounts. We also allow for a custom tip for guests’ convenience,” a representative for the restaurant told ABC News.

O’Brien claimed the discount wasn’t made clear to him.

“I just want people to be alert to it,” he told ABC News about why he chose to speak out. “But definitely don’t take it out on the servers for sure, because they’re just trying to make a living like everybody else.”

John Waldmann, founder and CEO of restaurant software Homebase, told ABC News the confusion and frustration surrounding tipping these days is not totally surprising.

“Part of the consumer frustration is the expectations and behaviors around tipping changed dramatically in the last four years,” Waldmann said. “I think that that has really confused a lot of people.”

Airbnb launches stays at “Up” house, “Inside Out” headquarters and more ‘Icons’

May 2, 2024 by WDNY Radio

(NEW YORK) — Looking for a unique vacation destination?

Airbnb is offering customers an opportunity to stay in famous homes and places such as a re-creation of the Up house from Pixar’s 2009 animated movie.

Photos show the Up house, home to the fictional Carl Fredricksen and his late wife Ellie, brought to life with photos of the couple and just like in the movie, held up by 8,000 balloons among the red rocks of Abiquiu, New Mexico.

The Up house is part of Airbnb’s new “Icons” series, launched May 1, with 11 special locations. Airbnb expects to offer additional listings later this year.

“Icons take you inside worlds that only existed in your imagination—until now,” Airbnb co-founder and CEO Brian Chesky said in a statement. “As life becomes increasingly digital, we’re focused on bringing more magic into the real world. With Icons, we’ve created the most extraordinary experiences on Earth.”

Alongside the Up house, Airbnb has listings for stays at the headquarters from Disney and Pixar’s Inside Out, Prince’s Purple Rain house in Minneapolis, Marvel’s X-Mansion from the X-Men franchise in Westchester, New York, Kevin Hart’s pop-up Coramino Live Lounge and more, including a few abroad, such as the Musée d’Orsay in Paris and Ferrari Museum in Maranello, Italy.

Airbnb customers can request to book “Icons,” which are free or under $100, but listings are limited to “lucky guests” who are chosen to receive one of over 4,000 digital golden tickets.

The Walt Disney Company is the parent company of ABC News, “Good Morning America” and Pixar.

Martinelli’s apple juice recalled over high arsenic levels, sold at Whole Foods, Kroger and more

May 2, 2024 by WDNY Radio

(NEW YORK) — Martinelli’s has voluntarily recalled a single lot of its apple juice that was distributed to five major retailers after it tested for arsenic levels higher than U.S. Food and Drug Administration standards.

S. Martinelli & Co. stated in a recall notice dated April 16, 2024, that the recall was initiated as “a result of sampling by the State of Maryland that found samples from one production lot of Martinelli’s apple juice, sold in one-liter glass bottles, tested above the guidance action level for inorganic arsenic in apple juice set by the FDA in June 2023.”

Last year the FDA issued guidance that lowered the industry action level for inorganic arsenic in apple juice from 23 parts per billion to 10 ppb, which is in line with the requirements for water.

“The Maryland Department of Health reported that test results for the March 2023 production lot at issue showed 11.6 ppb for inorganic arsenic, which is 1.6 ppb higher than the industry action level,” the company said.

S. Martinelli & Company sent the letter to alert retail partners of the affected products, which include 33.8-ounce bottles with a “Best By” date of March 9, 2026, or March 10, 2026, as seen on the front of the bottle above the label.

“The product was shipped between March 13, 2023, and September 27, 2023, with the majority of the product shipped before July 28, 2023,” the company said.

As of time of publication, no illnesses or complaints tied to the recalled products had been reported, according to the company. No other production dates or Martinelli products are impacted by this recall.

The California-based beverage producer did not immediately respond to ABC News’ request for comment.

According to the store locator on Martinelli’s website, the 1-liter glass bottles are sold at Kroger, Publix, Target, Winn-Dixie and Whole Foods.

The beverage maker asked partners in its letter to examine inventory and “immediately discontinue distributing and selling the identified lot.”

“If any of this lot remains in your stores, please remove it from your shelves,” the company added.

Consumers with additional questions or concerns about the recall can call Martinelli’s toll free at 1-800-662-1868.

Fed expected to hold interests rates steady at highest level since 2001

May 1, 2024 by WDNY Radio

(WASHINGTON) — The Federal Reserve is set to announce a decision on Wednesday about whether to adjust its benchmark interest rate, just days after new government data showed that the economy is cooling off.

The slowdown has coincided with a months-long stretch of stubborn inflation, putting pressure on the Fed to keep interest rates high despite a risk of hindering economic activity with expensive borrowing costs.

Economists widely expect the Fed to leave interest rates unchanged. Such a move would push back rate cuts that the central bank expects to make some time this year.

At its most recent meeting, in March, the Fed stuck to its previous projection of three rate cuts by the end of 2024, even as it opted to hold interest rates steady for the fifth consecutive time.

That approach has amounted to a prolonged pause of the aggressive rate hiking cycle that began roughly two years ago when the central bank sought to rein in rapid price increases.

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%.

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.

The recent economic cooldown, meanwhile, could complicate the posture taken up by the Fed.

The U.S. economy slowed dramatically at the outset of 2024, though it continued to grow at a solid pace, according to data released by the U.S. Commerce Department last week.

Gross domestic product, a measure of all the goods and services produced in the economy, recorded 1.6% annual growth over the first three months of the year, the Commerce Department said this week.

That figure came in well below expectations, marking a steep slowdown from a 3.4% annual rate measured over the final quarter of last year.

In March, before the latest GDP data, Fed Chair Jerome Powell said a combination of elevated inflation and economic fortitude offered the Fed an opportunity to hold rates steady at highly elevated levels, since the central bank ran little immediate risk of triggering a downturn.

“On inflation, it’s too soon to say whether the recent readings represent more than just a bump,” Powell told a business conference at Stanford University.

“Given the strength of the economy and progress on inflation so far, we have time to let the incoming data guide our decisions on policy,” Powell added.

Economists who recently spoke to ABC News downplayed any alarm raised by the GDP finding last week, saying resilient consumer spending continues to propel stable growth.

But, they added, the Fed could face a difficult position if a gradual cooldown persists alongside elevated inflation. That trend could force the Federal Reserve to keep interest rates high even as the economy falters.

The Fed Funds rate stands between 5.25% and 5.5%, matching its highest level since 2001.

Fed expected to hold interest rates steady at highest level since 2001