(NEW YORK) — A fresh inflation report on Wednesday will show whether price increases have continued a monthslong cooldown as they fall toward normal levels.
Economists expect prices to have increased 2.6% over the year ending in August. That figure would mark a notable slowdown from the year-over-year rate of 2.9% recorded in the previous month.
After six consecutive months of slowing price increases, inflation stands at its lowest level since March 2021. However, inflation remains nearly a percentage point higher than the Federal Reserve’s target rate of 2%.
The new price data on Wednesday holds major implications for the course of widely expected interest rate cuts.
The chances of an interest rate cut at the Fed’s meeting next week are all but certain, according to the CME FedWatch Tool, a measure of market sentiment. Market observers are divided over whether the Fed will impose its typical cut of a quarter of a percentage point, or opt for a larger half-point cut.
So far this year, the job market has slowed alongside cooling inflation. That trend was underscored last week by a weaker-than-expected jobs report, though employers added a solid 142,000 jobs. The unemployment rate has ticked up this year from 3.7% to 4.2%.
The Fed is guided by a dual mandate to keep inflation under control and maximize employment. In theory, low interest rates help stimulate economic activity and boost employment, while high interest rates slow economic performance and ease inflation.
Recent trends have shifted the Fed’s focus away from controlling inflation and toward ensuring a healthy job market.
Speaking at an annual gathering in Jackson Hole, Wyoming last month, Fed Chair Jerome Powell said the “time has come” for the Fed to adjust its interest rate policy.
At previous meetings, Powell said the Fed needed to be confident that inflation had begun moving sustainably downward to its target rate of 2% before instituting rate cuts. Last month, Powell appeared to indicate that the Fed had achieved that objective.
“My confidence has grown that inflation is on a sustainable path down to 2%,” Powell said.
Since last year, the Federal Reserve has held interest rates at their highest level in more than two decades. High borrowing costs for everything from mortgages to credit card loans have helped slow the economy and lower inflation, but the policy risks tipping the U.S. into a recession.
Last month, Goldman Sachs economists raised the probability of a U.S. recession in the next year from 15% to 25%. However, economists disagree about whether current economic conditions warrant serious concern.
(NEW YORK) — For any Google users who send and receive emails thanks to the software company’s free Gmail service, it may be time to take stock of your account to ensure it’s not deleted.
The search engine site’s popular Gmail app has more than 1.5 billion active users worldwide, according to the company, and while it doesn’t limit the number of accounts a user can create, they must follow a set of guidelines to maintain an active status.
Google has an inactive account policy, which states that users with “an account that has not been used within a 2-year period” can be deleted due to inactivity.
“This policy applies to your personal Google Account. This policy doesn’t apply to any Google Account that was set up for you through your work, school, or other organization,” the company said.
How to prevent your Gmail account from being deleted
For users with a single Google account that has not been used within the last two years, here are some helpful steps from the company to reconnect and stay online.
Read or send an email.
Share a photo or watch a YouTube video while signed into the relevant Google account.
(NEW YORK) — Keurig, the company behind the popular home brewing and single-serving coffee maker systems, will pay the SEC a $1.5 million civil penalty after it failed to disclose concerns from two major recycling companies about the K-Cup pods in its annual reports.
The Securities and Exchange Commission announced Tuesday that Keurig Dr Pepper Inc. will settle with the agency for the hefty fine after it was “charged with making inaccurate statements regarding the recyclability of its K-Cup single use beverage pods.”
“Public companies must ensure that the reports they file with the SEC are complete and accurate,” John T. Dugan, Associate Director for the regional Boston office of the SEC said in a press release. “When a company speaks to an issue in its annual report, they are required to provide information necessary for investors to get the full picture on that issue so that investors can make educated investment decisions.”
A spokesperson at Keurig Dr Pepper told ABC News that the company was “pleased to have reached an agreement that fully resolves this matter.”
“Our K-Cup pods are made from recyclable polypropylene plastic (also known as #5 plastic), which is widely accepted in curbside recycling systems across North America. We continue to encourage consumers to check with their local recycling program to verify acceptance of pods, as they are not recycled in many communities. We remain committed to a better, more standardized recycling system for all packaging materials through KDP actions, collaboration and smart policy solutions,” the statement continued.
In consecutive annual reports for the company’s fiscal years 2019 and 2020, the SEC found that “Keurig stated that its testing with recycling facilities ‘validated that [K-Cup pods] can be effectively recycled.’ But Keurig did not disclose that two of the largest recycling companies in the United States had expressed significant concerns to Keurig regarding the commercial feasibility of curbside recycling of K-Cup pods at that time and indicated that they did not presently intend to accept them for recycling.”
According to the government agency’s review of the 2019 report, “sales of K-Cup pods comprised a significant percentage of net sales of Keurig’s coffee systems business segment, and research earlier conducted by a Keurig subsidiary indicated that environmental concerns were a significant factor that certain consumers considered, among others, when deciding whether to purchase a Keurig brewing system.”
The SEC order found that “Keurig violated Section 13(a) of the Securities Exchange Act of 1934 and Rule 13a-1 thereunder.
Keurig agreed to a cease-and-desist order, according to the SEC, without admitting or denying the findings in the order.
The SEC investigation was conducted by Michael Franck, Cassandra H. Arriaza, Susan Cooke, and Michele T. Perillo of the Boston Regional Office.
(NEW YORK) — Apple is unveiling its new iPhone 16 on Monday replete with artificial intelligence-driven features as the company introduces the buzzy technology into its signature smartphone.
The Cupertino, California-based company is also releasing fresh versions of its Apple Watch and Apple AirPods.
The announcements arrive months after Apple raised the curtain on an AI-fueled operating system to be used across many of its products.
The generative AI capability, called Apple Intelligence, will allow users to summarize messages and enhance photos, among other features, the company said.
The product rollout on Monday marks the first time consumers get a look at exactly how the firm is incorporating AI into some of its top items, analysts told ABC News.
“There is still a large question mark around AI of, ‘Should I care?’” Ben Bajarin, an analyst at research firm Creative Strategies, told ABC News. “That’s the question that the industry has to address.”
For Apple, Bajarin added, the latest round of product updates are a “big deal.”
Investors, however, appeared unimpressed about an hour after the product release event began. The stock dipped roughly 1.5%.
Here are the new products released by Apple on Monday:
Apple Watch Series 10
Nearly 10 years after Apple announced the debut of its Apple Watch, the company released its Series 10 model, featuring a wider display, brighter screen and new processor.
The display screen on the Series 10 is as much as 30% larger than previous models of the Apple Watch, the company said. The larger display eases typing and reading on the product, Apple said.
Meanwhile, the screen is nearly 40% brighter than previous models. The display updates once per second in always-on mode instead of once per minute.
The updates are powered by a new chip: the S10 SiP. The improved processing enables better crash and fall detection, among other benefits, the company said.
The Series 10 Apple Watch starts at $399. It can be preordered today and will be available beginning on Sept. 20, the company said.
The company also released a new model of its high-powered Apple Watch Ultra. The Apple Watch Ultra II starts at $799. It can also be preordered today and will be available on Sept. 20.
AirPods 4
The company released AirPods 4, the latest model of its ear-bud headphones. The new product features the capacity for noise cancellation, as well as an upgraded processor and improved surround sound, the company said.
AirPods 4 allows users to nod their head “yes” or “no” in response to prompts from Siri, Apple said. Meanwhile, the product uses what Apple calls “noise isolation” in order to automatically remove background noise during a phone conversation.
When a user begins a conversation with someone in his or her immediate environment, AirPods 4 automatically turns down music or other media perviously playing through the ear buds, the company said.
A new H2 chip fuels the new features, Apple said.
AirPods 4 begin at $129. A version of the ear buds that includes noise cancellation will cost $179. The product is available for preorder and will go on sale on Sept. 20, the company said.
An enhanced version of the product, AirPods 4 Max, will begin at $249.
iPhone 16
The iPhone 16 will incorporate Apple Intelligence for summaries of emails and texts, aid in composing messages, enhanced camera functions and improved Siri, the company said.
The generative AI technology designed for iPhone 16 will help users draft or revise text written in third-party apps, such as Slack messages or Goodreads reviews, Apple said.
In addition, users can create novel emojis by writing a description of the desired animation.
Apple Intelligence will also improve the function of the iPhone 16 camera, allowing users to instantly learn information about the subject captured in a photo, such as a restaurant’s hours of operation or a dog’s breed, the company said.
Meanwhile, Siri will draw on Apple Intelligence to better understand prompts, even when a user stumbles on their words, the company. The new version of Siri will also respond to written prompts.
Apple Intelligence will be available in a U.S. dialect of English this year, and is expected to be released in other dialects of English next year. Months later, the company expects to release versions of Apple Intelligence in Mandarin Chinese, Spanish and other languages, the company said.
Beyond AI, the iPhone 16 will feature a wider screen display and new chip. The iPhone 16 will boast a 6.1-inch screen, while the iPhone 16 Pro will feature a 6.7-inch screen.
The new A18 chip will process up to 30% faster than the chip built into the company’s previous smartphone model.
The iPhone 16 begins at $799, while the high-powered iPhone 16 Plus begins at $899.
The price of the iPhone 16 matches the cost of last year’s iPhone 15. The unchanged price aligns with a trend initiated by Apple in recent years, said Bajarin of Creative Strategies.
“This is a priority for them to keep pricing in line,” Bajarin said.
(NEW YORK) — Concerns about inflation have increasingly turned to concerns about the job market. Last month’s weaker than expected jobs report led to turmoil in stocks.
The U.S. added 142,000 jobs in August, according to the Bureau of Labor Statistics report on Friday. The figure was lower than expectations.
The reports showed a slowing but steady job market. The unemployment rate fell to 4.2%.
Jobs were added in construction and health care, according to the Bureau of Labor Statistics. July and June numbers were revised to show 86,000 fewer jobs than previously reported.
While these numbers are lower than expected, and do show a weakening job market, for now, this is still an economy that is adding a decent number of jobs. Given this latest data, the Fed is still on track to cut interest rates at its next meeting on Sept. 18.
Fed Chair Jerome Powell last month said “the time has come” to lower interest rates.
Powell indicated the Fed would soon bring interest rates down from a 23-year high. The shift could lower borrowing costs for everything from credit cards to auto loans to mortgages.
While the unemployment rate remains historically low, it ticked up to 3.8% last month. A sharp downward revision of job growth estimates in June and July lowered those totals by a combined 110,000 jobs.
(NEW YORK) — Concerns about inflation have increasingly turned to concerns about the job market. Last month’s weaker than expected jobs report led to turmoil in stocks.
Expectations are that Friday’s report will show 161,000 jobs added when it’s released at 8:30 a.m.
If jobs come in around expectations it would mean a slowing but steady job market. Some economists are expecting less, around 150,000, pointing out that August data can often come in worse than expected and can be revised later.
Still, a significantly worse-than-expected report could once again lead to concerns that the Fed’s rapid raising of interest rates has hurt the economy and job market more than previously known.
The Fed is on track to cut interest rates at its next meeting announcement on Sept. 18.
Fed Chair Jerome Powell last month said “the time has come” to lower interest rates.
Powell indicated the Fed would soon bring interest rates down from a 23-year high. The shift could lower borrowing costs for everything from credit cards to auto loans to mortgages.
While the unemployment rate remains historically low, it ticked up to 3.8% last month. A sharp downward revision of job growth estimates in June and July lowered those totals by a combined 110,000 jobs.
Shein and Temu icons are seen displayed on a phone screen in this illustration photo taken in Krakow, Poland on August 27, 2024. (Jakub Porzycki/NurPhoto via Getty Images)
(NEW YORK) — Federal safety regulators are calling for an investigation into popular Chinese e-commerce websites Shein and Temu over concerns shoppers can easily purchase baby and toddler products that do not meet U.S. safety regulations.
In a joint letter Monday, Consumer Product Safety Commission Commissioners Peter A. Feldman and Douglas Dziak cited “recent media reports that deadly baby and toddler products are easy to find on these platforms.”
The letter did not single out specific products, but one report from business technology publication The Information, cited in the CPSC letter, found that padded crib bumpers, which were banned by Congress in 2022, are still available on the retailer websites.
Temu said in a statement to ABC News that it requires all sellers “to comply with applicable laws and regulations, including those related to product safety.”
“Our interests are aligned with the U.S. Consumer Product Safety Commission (CPSC) in ensuring consumer protection and product safety, and we will cooperate fully with any investigation,” a Temu spokesperson said.
A Shein spokesperson also told ABC News that the company prioritizes customer safety.
“At SHEIN, customer safety is our top priority and we are investing millions of dollars to strengthen our compliance programs,” Shein said in a statement. “In the last year SHEIN has spent over $10 million building a strong global compliance function and developing partnerships with internationally renowned testing agencies such as Intertek, SGS, BV, and TUV, to further enhance our safety practices. Earlier this year it was also announced that an additional $50 million dollars will be dedicated to fortifying our Global Compliance Center and initiatives to ensure strict adherence to our rigorous product safety standards and full compliance with applicable laws and regulations.”
The spokesperson added, “Our global team, including more than 1,000 U.S. employees, remains steadfast in its commitment to quality and safety for our customers, and we resolutely support the Commission’s mandate.”
Both Temu and Shein have exploded in popularity in the U.S., in part because their sites offer cheap prices on a variety of products from clothes to home goods.
The CPSC commissioners said e-commerce platforms can offer great deals to consumers, but it’s critical they comply with U.S. safety standards to avoid any risk of injury.
A Jaguar I-Pace autonomous vehicle from Waymo is seen pulling over to collect a passenger, Aug. 1, 2024, in Los Angeles. — Alex Stone/ABC News
(LOS ANGELES) — Waymo, the self-driving car division of Alphabet, first began offering its autonomous rideshare service on the streets of San Francisco earlier this year. Now the company is expanding, recently launching in Los Angeles.
Waymo’s electric Jaguar I-Pace SUVs operate as taxis, except there’s nobody in the driver’s seat. Using cameras, sensors and even microphones, it ferries riders to their destinations – if all goes according to plan – just as a human driver would.
“There is nobody behind the driver’s seat at all — in fact, often there’s nobody in the car at all, and it’s driving to pick somebody up,” says Andrew Chatham, senior director of commercialization, scale, and infrastructure at Waymo. He spoke with ABC Audio in LA for a new exhibit at the famed Petersen Automotive Museum highlighting the story of Waymo.
“So we use a variety of sensors on the car. There’s cameras, there’s radars and lidar — which is a laser range finding system. We take all that information, we look 360 degrees around us, multiple times a second, and we drive,” says Chatham.
And Waymo claims driving in one of their cars with the computers doing the work – accelerating, braking, stopping, and changing lanes – is actually safer than driving with a human behind the wheel.
“It’s very clear that it is ready for the streets — we’ve seen from statistics that it is safer than human drivers, so if you’re comfortable with those, you should be pretty comfortable with Waymo,” says Chatham. “Even more comfortable.”
But not everyone is comfortable.
“We’ve heard of these cars shutting down when they lose cell service, traffic being backed up, they don’t know how to maneuver through more, you know, winding roads. Blocking emergency vehicles. And also there’s an aspect of jobs being lost,” says Los Angeles City Councilman Hugo Soto-Martinez.
“So as far as I can tell, there’s some things where we just have to put our foot down and this is one of them,” he says.
This summer, police in Phoenix, where the company also operates, pulled over a Waymo vehicle for driving into oncoming traffic while trying to navigate around a construction area. That maneuver is why Councilmember Soto-Martinez says he doesn’t want them on his streets.
“We are elected to provide safety, to deal with transportation issues, and so many other things for our residents, that’s what we are voted for,” says Soto-Martinez.
Waymo said the incident in Phoenix happened due to “inconsistent construction signage.”
But like it or not, self-driving cars are the future, according to Rahul Jain, a professor at the University of Southern California who specializes in electrical and computer engineering and works with Google.
“This is really inevitable, it’s going to happen,” says Jain, though he adds that wide-scale adoption of self-driving technology is likely a long way off.
“Twenty years might be the right timespan, when we see this technology reduce in cost enough, and also advanced sufficiently that it will be in passenger vehicles that people can buy,” he says.
Even still, Jain says the technology is currently safe for passengers, so much so that the next step for autonomous vehicle companies could be removing the vehicle’s steering wheel.
“There’s definitely going to be some transition as this technology evolves, you know, then it will be awhile before people become comfortable, and then we can feel comfortable with the steering wheel also missing. But I don’t think we’re there yet,” says Jain.
Chatham says, in general, his company’s technology is always learning. Already, the cars know to pull over when they detect the sound of a siren or flashing emergency lights. Next, he says, Waymo is tackling how autonomous vehicles behave in inclement weather conditions.
“Sure, on the map the lane is over here, but according to how everybody else is driving and where the divots are in the snow, it looks like the lane is really over here,” says Chatham. “And that’s something that the car starts to reason about and it’s getting more intelligent with AI about exactly where we want to drive to be like a human.”
But Councilmember Soto-Martinez has another issue: driverless taxis could mean a human is out of a job.
“It’s definitely taking jobs right now. I mean, there are autonomous vehicles driving folks around with the many issues,” he says. “In my community, those jobs are often done by people who just arrived in this country. … If that’s going to be outsourced to an autonomous vehicle that is gonna cause all these safety concerns, I have big issues with that.”
Jain says history would show technology always takes jobs, and that jobs change over time.
“Eventually there is some adjustment in the labor market. People find other kinds of jobs, and start to do more interesting jobs than I guess, driving cars around,” says Jain.
Chatham says while nobody is driving the cars, plenty of people are working at Waymo.
“Waymo’s provided a lot of jobs. We’ve do use several human beings to run the service, we have people operating the depots, we have people working in desk-based jobs. I’m employed by Waymo,” says Chatham.
“And I think it’s also easy to forget that people spend a lot of their time just sitting in traffic, beholden to the steering wheel that they’re sitting behind. And they can free up that time, and make people productive. That is time back in people’s lives,” he adds.
Waymo is already looking at what their next vehicle will look like, a custom built van-like vehicle designed by a Chinese firm called Zeekr.
“The base vehicle is really built as a versatile platform. This is really a vehicle that’s built to be a high thru-put taxi service. It’s very comfortable,” says Chatham.
Listen to this story and more on ABC Audio’s new special, On The Move:
Fisher-Price is recalling over 366,000 dumbbell toys that were sold as part of the brand’s Baby Biceps Gift Set. — United States Consumer Product Safety Commission
(NEW YORK) — Toy giant Fisher-Price is recalling hundreds of thousands of dumbbell toys due to a potential choking hazard.
The dumbbell toys were included in the Fisher-Price Baby Biceps Gift Set, according to the Consumer Product Safety Commission, which announced the recall on Thursday. About 366,200 recalled units were sold in the United States, with another 37,850 sold in Canada.
Fisher-Price states on its recall website that the gray caps on the dumbbell toys can separate, leading to a potential choking hazard for infants. The company recommends taking away recalled toys from kids immediately.
The CPSC states that the dumbbell toys were sold between April 2020 through August 2024 and were part of Fisher-Price’s Baby Biceps Gift Set, which includes three additional toys and is marketed as suitable for children ages 3 months and up.
According to Fisher-Price and the CPSC, the dumbbell component features a plastic gray bar and red and orange plastic “weights” with gray caps on each side of the bar. The recalled dumbbell toys bear the model number GJD49 on the back of the kettlebell toy in the gift set.
The toys were manufactured in China and Vietnam and sold in the U.S. at stores nationwide, according to the CPSC. The toys were sold at Buy Buy Baby, Fred Meyer, Hobby Lobby, Kohls, Marshalls, Target, TJMaxx and Walmart stores and online at Amazon.com, Target.com, Walmart.com, Zulily.com and other websites, retailing for about $18.
Fisher-Price says it has received seven reports of incidents where the gray caps separated from the toy, but has not received any reports of injuries as a result of the incidents.
Customers with the recalled dumbbell toys can reach out to Fisher-Price for a $10 refund on the company’s recall website, which also provides instructions on how to dispose of the recalled toys. Fisher-Price says a receipt or proof of purchase is not required to receive a refund for the dumbbell toy.
ABC News has reached out to Fisher-Price for comment.
(NEW YORK) — A new bill that would allow some undocumented immigrants to receive loans to buy homes is sparking debate as it passes through the California Legislature.
Assembly Bill 1840 would make it clear that a person who applies for a loan under the California Dream for All Program cannot be disqualified solely because of their immigration status. It passed the state Senate with a 25-14 vote.
The program is run by California Housing Finance Agency, which generates revenue “through mortgage loans, not taxpayer dollars,” according to the agency’s website.
Their program provides a shared appreciation loan — which typically means that first-time homebuyers do not pay interest. Instead, they only have to pay back the original loan amount, plus 20% of any home value appreciation. The loan covers 20% of the purchase price or up to $150,000 to cover a down payment or closing costs.
The loan must be paired with a 30-year fixed interest rate first mortgage from the California Housing Finance Agency and the recipient does not have to make payments on the share appreciation loan until the first mortgage is paid off.
In a general statement on the program’s mission, Gov. Gavin Newsom stated: “As part of the state’s comprehensive efforts to improve affordability, build generational wealth and unlock access to housing, Dream For All is paving the way home for thousands of Californians. This program is more than just financial assistance – it’s about providing a pathway for individuals to achieve their California dream.”
It is not clear if Newsom intends to sign the bill. A two-thirds vote in each chamber of the legislature would be needed to override a veto — which could be achieved with the votes in favor of the bill thus far.
If the new bill is passed or signed into law, undocumented borrowers would be able to apply for the housing loan. However, they would be required to have a valid Social Security number or Individual Taxpayer Identification Number in addition to meeting existing legal residency and documentation requirements.
This language would allow, for example, people who pay taxes but are not legal citizens, such as recipients of the Deferred Action for Childhood Arrivals policy, known as DACA, to apply for the loan.
Supporters say the bill is intended to allow all those who pay taxes in the state to be able to qualify for the assistance.
“Homeownership is one of the largest contributors to building wealth for low and middle-income families,” said Cynthia Gomez, a deputy director at The Coalition for Humane Immigrant Rights in an April hearing on the bill. “However, it’s also well understood that there are many barriers to access for homeownership, in particular for communities of color. California is solution-orientated, and we have implemented various policies that have made homeownership a reality for Californians.”
Critics argue that the money should not be geared toward people who are undocumented and that noncitizens should not be eligible for state programs.
“I just can’t get behind using our limited dollars for people who continue, who are in this country undocumented when we have very limited funds,” said state Rep. Joe Patterson during a hearing on the bill in April.
The Trump campaign told Politico that it believed the bill to be “fundamentally unfair but typical Democrat policy.”
The Senate Appropriations Committee said in a mid-August meeting that the cost pressures on the program, if it were to undergo an expansion, are “unknown,” but the California Housing Finance Agency (CalHFA) indicated “that any costs to update program regulations to prohibit application disqualification based on immigration status would be minor and absorbable,” according to filings in the legislature on the bill.
The debate comes as immigration has continuously ranked as a top issue for 2024 voters, according to Gallup.
California has the largest undocumented population in the country, with an estimated population of 1.85 million undocumented immigrants in 2021, according to the Pew Research Center.
At the same time, California is dealing with a housing crisis, with a growing homeless population and increasingly high costs for housing.
California mid-tier homes are twice as expensive as the typical U.S. home — selling at more than $700,000, according to California’s Legislative Analyst’s Office, and 28% of all homeless people in the U.S. live in California, the point-in-time report from the U.S. Department of Housing and Urban Development recorded.
