Business

(NEW YORK) — After once deriding cryptocurrency as a “scam,” former President Donald Trump on Monday formally threw his support behind World Liberty Financial, a crypto venture whose business model remains largely unclear but has already drawn scrutiny as a potential ethics headache for his administration if he returns to the White House in January.

Joined Monday by his two adult sons and others involved in the fledgling business, including billionaire donor Steve Witkoff, Trump declared in a livestream on X that “crypto is one of those things we have to do,” and suggested that he would work to limit regulation of the industry if elected.

“Right now, you have a very hostile [Security and Exchange Commission] … they’ve been very hostile toward crypto,” Trump said. “My attitude is different.”

Details about the venture, including Trump’s role and potential compensation, remain unclear. The company’s website, which bears an image of a backlit Trump speaking at a podium, suggests the platform will have its own crypto token, called $WL, and aspires to “empower our users to operate their finances … with no direct oversight of any government agencies or officials.”

Industry experts said the website provides few details about the company — including what it will offer, who will have access to its profits, and how the Trump family stands to make money from it. James Butterfill, the head of research at CoinShares, a digital asset management firm, told ABC News that the website contains little more than “buzzwords.”

Government ethics watchdogs consulted by ABC News were quick to point out potential conflicts of interest posed by a candidate for president launching or becoming otherwise involved with a new business within weeks of Election Day — particularly in an industry as polarizing and unregulated as crypto, in which users directly exchange digital currencies without the oversight of banks or the government.

Jordan Libowitz, a spokesperson for Citizens for Responsibility and Ethics in Washington, or CREW, said a future Trump administration would have wide latitude to impact crypto policy — and Trump’s own personal stake in the industry could potentially rub up against the best interests of the country.

“We’re still in the Wild West with crypto. It’s clear there is going to be some kind of regulation, but to what extent and how friendly they are to the industry, we don’t yet know,” Libowitz said. “The president obviously appoints the people in charge of that.”

Steven Cheung, a spokesperson for the Trump campaign, rejected any suggestion that Trump’s role in World Liberty Financial could pose an ethical dilemma if he’s reelected, calling Trump “the most ethical president in American history.”

“When President Trump first ran for office, he stepped away from his very successful and lucrative businesses because the job of saving America was the most important job he’d ever have,” Cheung said in a statement to ABC News. “Before he entered the White House, he ensured everything was done within the ethics guidelines set forth.”

In addition to Trump’s adult sons Donald Trump Jr. and Eric Trump, who have for months been promoting World Liberty Financial on social media, a so-called “white paper” first reported by CoinBase indicated that Trump’s youngest son, Barron, 18, would also play a role in the firm.

Witkoff, who appeared Monday on the X livestream, said he introduced the Trumps to two other partners in the venture, Zak Folkman and Chase Herro, both of whom have a colorful business history.

Herro, who previously called himself a “dirtbag of the internet” at a crypto conference in 2018, has said he has made millions from an ecommerce business after spending three years in jail for selling drugs when he was in high school. Folkman, who first joined forces with Herro in the ecommerce business more than a decade ago, has reportedly previously taught classes on “how to date hotter girls.”

On ABC’s Good Morning America on Tuesday, Witkoff — a longtime friend to Trump and one of his campaign’s biggest financial supporters — downplayed any potential conflict posed by Trump’s foray into crypto.

“If the president is elected, which I expect him to be, then everything that he — all of his of his ownership, his businesses, will be put in some sort of a trust.” Witkoff said. “His children, I would assume, will be involved in running it. And I doubt that, therefore, that there is any conflict.”

But Danielle Brian, the executive director of the Project On Government Oversight, said that would be nothing more than “window dressing.”

“A trust managed by family members will not eliminate the conflict of interest created by a sitting president owning any business,” Brian said.

Trump’s announcement on Monday marked his transition from a vocal skeptic of digital currencies to one of the industry’s most enthusiastic proponents. As president, he complained on Twitter that crypto markets were “highly volatile and based on thin air.” In 2021, shortly after leaving the White House, Trump called cryptocurrencies a “scam.”

But during his 2024 bid for the White House, Trump has cozied up to crypto interests.

In May, his campaign said it would begin accepting contributions in cryptocurrency. Trump has regularly hosted industry enthusiasts at his properties and, in July, at the annual Bitcoin Conference, he pledged to make the U.S. the “crypto super-power” of the world.

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(NEW YORK) — For the first time in its history, Instagram on Tuesday announced the launch of accounts designed specifically for teenage users with built-in privacy protections.

The new accounts, called “Teen Accounts,” will be automatic for all Instagram users under the age of 18, both for teens already using the app and for those signing up.

By default, Instagram users younger than 16 will need a parent’s permission to change their account settings.

The changes — expected to impact tens of millions of users — were announced by Instagram head Adam Mosseri in a live interview on ABC News’ Good Morning America.

“They’re an automatic set of protections for teens that try to proactively address the top concerns that we’ve heard from parents about teens online,” Mosseri said on GMA. “Things like who can contact them, what content they see and how much time they spend on their device … all without requiring any involvement from the parent.”

Mosseri said the rollout of Teen Accounts starts Tuesday with new users signing up for the app, while existing teen users will see their accounts switch to the new Teen Accounts model within 60 days.

Among the changes put in place by Instagram include a new privacy setting that, by default, places all teen users in private accounts. In order to switch to a public account, teens under age 16 will need a parent’s permission.

Under the private account setting, teens will need to accept new followers and only people whom they accept as followers can see their content and interact with them.

In addition, teen users will now automatically only be able to message with people they follow, or are already connected to, and parents will have a new tool in their settings that allows them to see with whom their teen has recently been messaging.

With the new accounts, teens will have the power to choose the age-appropriate topics they want to see more of on Instagram, like sports or art, and parents will also be able to see the topics their teens choose.

In order to limit the amount of time spent on Instagram, all Teen Accounts will be placed in “sleep mode” between 10 p.m. and 7 a.m., while parents can also adjust their child’s time settings — including limiting access completely overnight — in the parental supervision tool.

Another change for Teen Accounts is that they will automatically be placed in more restrictive content settings, which will limit the content they see in search functions like Reels or Explore from accounts they don’t follow, according to Instagram.

Antigone Davis, vice president and global head of safety for Meta, the parent company of Instagram, told GMA the company is also implementing new ways to verify users’ ages.

“We are building technology to try to identify if you’ve lied about your age and then move you into those stricter settings,” Davis said. “This is a challenging area for industry, which is why, on top of building that technology that will try to identify age liars and put them into those protective settings, we also will have moments where, if we get a strong signal, we will ask you to age verify.”

Davis said that parents will be able to monitor their teens’ account and adjust their settings from their own Instagram accounts.

“The idea is to really make it simpler, so they [parents] have their own center that they can go and look and see what the privacy setting is for their teen,” she said.

Changes spurred by parents and teens

The changes for teen Instagram users come amid mounting evidence showing the dangers of social media for young users.

Social media use is linked with symptoms of depression and anxiety, body image issues, and lower life satisfaction for some teens and adolescents, research shows. Heavy social media use around the time adolescents go through puberty is linked with lower life satisfaction one year later, one large study found.

U.S. Surgeon General Dr. Vivek Murthy, who previously issued an advisory highlighting a crisis in youth mental health, has said he believes being on social media “does a disservice” to kids early in their teen years. Noting the crisis among kids, the American Psychological Association last year issued the first guidance of its kind to help teens use social media safely.

In January, while testifying at a Senate hearing, Mark Zuckerberg, the CEO of Meta, publicly apologized to parents, caregivers and loved ones of young people who they say were harmed due to social media use, telling them, “It’s terrible. No one should have to go through the things that your families have suffered.”

In his apology, Zuckerberg also emphasized Meta’s efforts on safety, adding, “This is why we invest so much and are going to continue doing industry-leading efforts to make sure that no one has to go through the things your families have had to suffer.”

Davis said the newly-announced changes to Instagram for teen users came after conversations with parents and teenagers around the world.

She said the company focused on making it simpler for parents to know how, when, and with whom their teens are engaging on Instagram.

“We’ve had these incremental changes along the way as we’ve been working back and forth with parents and experts,” Davis said of previous safety changes for teen users. “What we’re really trying to do here is standardize a lot of this approach.”

She added of the new features, “There are these broad protections that we have in place, and if your teen wants to change them, and they’re under the age of 16, they have to come to you for permission, they’ve got to invite you in. It’s just a different way of thinking about things.”

Parents and caregivers as well as teens can learn more about Teen Accounts by visiting Instagram.com/teenaccounts.

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(NEW YORK) — As fast food chains continue to drop prices on popular menu items in hopes of enticing hungry customers, Popeyes is entering the arena with a new $5 deal.

The popular fried chicken chain announced new value offers on Monday, which includes an order of three pieces of its signature bone-in chicken for just $5.

The fast food franchise, which first started in New Orleans in 1972, timed the news in tandem with National Chicken Month.

“We first saw the ‘Value Wars’ taking off early in the summer, as consumers were looking for ways to indulge in their favorite foods, without the high price tag,” the company wrote in a blog post Monday. “This made our team think, how can we continue to serve our food, without compromising on the quality we are known for, but at a price our customers will be happy with?”

“This new promotion celebrates what Popeyes does best — Fried Chicken,” the company continued. “Each piece is expertly marinated in Popeyes signature blend of savory Louisiana herbs and seasonings, then battered in a crunchy southern coating and fried to golden brown perfection.”

According to Popeyes, the $5 deal is available at participating locations nationwide in restaurant, through the Popeyes app, or online.

“As consumers look for more ways to enjoy their favorite meals without breaking the bank, Popeyes is excited to join this conversation centered around guest satisfaction,” the company wrote.

The news comes on the heels of McDonald’s extending its $5 value meal and similar offers from competitors like Wendy’s, Burger King and even Chili’s.

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(NEW YORKI) — Lamborghini has sold adrenaline-inducing speed and spaceship-like designs for decades, to much success.

The brand’s executives are blunt, however, when it comes to their cramped cabins: “We’re not very famous for the interior.”

That’s about to change. The Italian marque’s latest sports car, the Temerario, was designed, it seems, with one type of customer in mind: lanky drivers.

“We increased the roominess in the car … tall people can sit comfortably,” Lamborghini CEO Stephan Winkelmann told ABC News.

The Temerario, a plug-in hybrid that debuted in August, lives up to previous models: 10,000-rpm redline; top speed of 210 mph; 907 horsepower produced from the all-new twin-turbo 4.0-liter V8 powertrain; and an 8-speed dual-clutch gearbox. Yet it’s the added comfort that executives were eager to discuss.

Winkelmann said his team put a lot of emphasis and attention on storage space and headroom in the Temerario, partly to appease owners in the United States, the brand’s No. 1 market. The Temerario is being billed as more of a “weekend car,” with enough real estate to squeeze luggage behind the two front seats — unheard for the brand.

The storied carmaker is in the process of electrifying its lineup. In addition to the Temerario, Lamborghini showed off the Urus SE in April. The company’s first hybrid, the beastly 1,001 hp Reveulto (three electric motors assist the naturally aspirated 6.5-liter V12 engine), has a nearly three-year wait list. The flagship supercar went on sale last year.

“This is the best lineup we have,” Winkelmann said.

The Lamborghini exec spoke to ABC News about the company’s electrification strategy, industry challenges and what could put the brakes on the company’s upward sales trajectory.

The interview below has been edited and condensed for clarity.

Q: What’s been the early reaction by customers and enthusiasts to the Temerario, Lamborghini’s new hybrid sports car and successor to the Huracan?

A: It’s been very positive. We will see in the next weeks, months what the order collection is like. And I will be surprised if it’s negative.

Q: You made a point to underscore how comfortable this car is inside versus previous models as well as the added room for luggage. Is the company responding to customer feedback?

A: Everybody now wants everything. They want design, they want speed, they want a luggage compartment, they want space in the interior. We worked over the years on finding a way to create space without jeopardizing the design and the height of the car.

People are getting taller, especially in North America. We have a lot of tall, male customers. We worked on the performance of the car, the design and roominess, the handling. In a supercar, performance is more important than comfort. And design is more important than the luggage compartment. But now you have to try to get at least best in class in this type of segment so you work on everything.

Q: Could the Temerario have been built with a V10 engine?

A: We wanted to create something that sets apart the V12. The choice of the V8 … was something unique in our world — it’s also a matter of C02 emissions. We all agreed this was the choice. There was no way to continue with the V10.

Q: What will you miss most about the Huracan?

A: I was part of the team when we started to develop the car. These are memories I will never forget. The “baby Lamborghini” was a very important car for us and we really exploited what was possible to do.

The variant I love the most is the Sterrato. I wanted to do the Sterrato almost 10 years ago. Then I was away for some years [from the company] and I came back at the end of 2020. And they still hadn’t done the car. So I said, “We will do it.” And I think we did the right choice because it’s unique, and I really like it. It’s a lifestyle car but it’s also really fun to drive.

Q: Is there really a two-year wait for the Revuelto?

A: Even more. Two-and-a-half years at least in the U.S.

Q: You recently debuted the Urus SE, a hybrid SUV. What has reaction been like to this model?

A: We presented it in Beijing [in April]. The car is not on the road yet. The order bank is incredible and we’re happy.

Q: The first six months of 2024 show record results in terms of deliveries, revenues and operating income. What are you expecting for the second half of the year?

A: Things are going the right way. We don’t know who is going to be the next president of the U.S. … but we think it can be another very good year for Lamborghini if it goes like the first six months.

Q: Do U.S. presidents impact Lamborghini sales?

A: So far no. Kamala Harris, though, is an unknown variable.

Q: Have the recent stock market gyrations and recession chatter impacted the company?

A: Nobody knows the future. We look at the order bank and residual values. We look at the showroom traffic, the hesitation of people who may cancel orders. We go down to each and every dealer to see how they’re doing.

Q: The Revuelto is not your traditional plug-in hybrid — the electric motor is really there to add horsepower and boost performance. Will we see a true hybrid from Lamborghini — one that posts better fuel economy and record stats?

A: The mileage of the Temerario and Revuelto is, for sure, not the highest, but you have mileage in purely electric mode. The Urus has a much higher mileage of electric — 60 kilometers, so around 40 miles.

Q: Everyone loved the Lanzador concept last year. Is that still coming in 2028? Or will it be sooner?

A: Not sooner.

Q: When will we see a fully electric Lamborghini, if ever?

A: We are planning for the end of this decade. We stick to our plans.

Q: Are you surprised that enthusiasts are clinging to their V12s and V10s?

A: No, because we forecasted this. We said it’s far too early for supercars to go fully electric. But for the daily useable cars, in my opinion, this is a good opportunity.

Q: What is the biggest obstacle facing all automakers now?

A: I would say electrification is the biggest challenge globally. The other is the software development … cars are more and more connected. These are the two major challenges for the industry. For other brands, challenges are the cost of developing [electric] cars and the pricing of these cars. Then it has to be a fair competition around the globe, which is sometimes not the case.

Q: I appreciate that there are still buttons in Lamborghinis. Will that change over time?

A: A touchscreen is nice, but we also want to have the haptic [feel] and click of the buttons. Voice control will increase in cars, but to me, buttons are more luxurious than a touchscreen. We believe in buttons.

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(NEW YORK) — Borrowers have waited years for a sign of relief from high interest rates for everything from credit card loans to mortgages. The wait may come to an end this week.

Investors widely expect the Federal Reserve to cut interest rates at a meeting on Wednesday. The move would dial back the central bank’s benchmark rate from a 23-year high, reversing some of the rate hikes initiated three years ago in an effort to fight inflation.

Questions, however, remain about the size of the rate cut, what it means for borrowers and how it may impact the 2024 presidential race.

Experts spoke to ABC News about what to know ahead of the potential interest rate cut.

Why is the Fed expected to cut interest rates?

In 2021, the Fed began aggressively raising interest rates in an effort to bring inflation under control. The policy has largely succeeded. Inflation has slowed dramatically from a peak of about 9% in 2022, though it remains slightly higher than the Fed’s target of 2%.

Meanwhile, the job market has slowed. A weaker-than-expected jobs report in each of the last two months has stoked concern among some economists. The unemployment rate has ticked up this year from 3.7% to 4.2%.

Those trends have shifted the Fed’s focus away from controlling inflation and toward ensuring a healthy job market.

In theory, lower interest rates help stimulate economic activity and boost employment; higher interest rates slow economic performance and ease inflation.

“The Fed has been very much guided by data,” Anastassia Fedyk, a professor of finance at Haas Business School at the University of California Berkeley, told ABC News. “ Inflation numbers in the last few months have started looking good, and things are not looking so hot in terms of the jobs reports.”

What will the size of the rate cut be?

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 nearly down the middle over whether the Fed will impose its typical cut of a quarter of a percentage point, or opt for a larger half-point cut. The tool estimates the probability of a quarter-point cut at 51% and the odds of a half-point cut at 49%.

“There is that much uncertainty because it seems not all Fed officials are of the same opinion,” Gregory Daco, chief economist at accounting firm EY, told ABC News.

Some Fed policymakers appear to prefer a gradual approach to rate cuts in light of easing inflation and a resilient, albeit weakened, labor market, Daco said. By contrast, others seem to favor a large initial cut that would help avert a more severe job market slowdown.

What would a rate cut mean for credit card fees, mortgage rates?

An interest rate cut would mark a major milestone as the Fed shifts toward a lowering of rates and an easing of costs for borrowers, experts said. Still, they added, the initial rate cut would not substantially lessen loan payments.

“In the grand scheme of things, it’s peanuts,” Daco said.

Nevertheless, some loan relief has already emerged in anticipation of a gradual lowering of interest rates over the coming months.

Mortgage rates fell last week to their lowest level since April 2023, Freddie Mac data showed. The 10-year treasury yield, which helps set the level of many consumer loans, has plummeted nearly a percentage point since July.

“This is a sign of a trend that’s going to start, but it’s going to take a lot longer and be milder than an immediate transition,” Fedyk said.

What would a rate cut mean for the November election?

Typically, lower interest rates make borrowing less expensive for businesses and consumers, propelling companies to invest in new projects and everyday people to stretch for bigger purchases. That all should help propel economic growth and buoy consumer optimism.

In turn, an economic surge could benefit the incumbent party, dispelling concern about a recession and improving the livelihoods of everyday people, some analysts previously told ABC News.

However, the benefits of a forthcoming rate cut could prove more limited, since rate moves take hold after a period of delay that can last months, analysts said.

The most recent Democratic presidential candidate who failed to win reelection, Jimmy Carter, lost his bid amid a historic series of rate hikes at the Fed.

A rate cut would deviate from the policy approach taken by the Fed prior to many recent presidential elections, a Reuters analysis found. Policy rates were left unchanged for six to 12 months before the 2020, 2016, 2012 and 2000 U.S. presidential elections, according to Reuters.

To be sure, the Fed says it bases its decisions on economic conditions and operates as an independent government body.

When asked about the 2024 election at a press conference in Washington, D.C., in December, Fed Chair Jerome Powell said, “We don’t think about politics.”

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(NEW YORK) — Sam Bankman-Fried, the founder of bankrupt crypto exchange FTX, was convicted because of a “false narrative” told by federal prosecutors at a trial “tainted” by errors, his attorneys argued in a new court filing Friday to a federal appeals court.

“Fair trial principles were swept away in a ‘Sentence first-verdict afterwards’ tsunami, as everyone rushed to judgment following FTX’s collapse,” defense attorneys wrote in the appeal. “Sam Bankman-Fried was never presumed innocent. He was presumed guilty—before he was even charged.”

Bankman-Fried was found guilty of fraud, conspiracy and money laundering last November after federal prosecutors in New York accused him of orchestrating a scheme that collapsed the crypto-exchange he founded, FTX, and stole $8 billion in customer funds.

He is serving a 25-year prison sentence, which his attorneys called “draconian.”

In Friday’s appeal, defense attorney Alexandra Shapiro attacked the trial judge, Lewis Kaplan, and the U.S. Attorney’s Office for the Southern District of New York, accusing them of lacking objectivity or even-handedness.

“He was presumed guilty by the media. He was presumed guilty by the FTX debtor estate and its lawyers. He was presumed guilty by federal prosecutors eager for quick headlines. And he was presumed guilty by the judge who presided over his trial,” the appeal said.

The U.S. Attorney’s Office declined to comment, but will submit a written reply brief.

The defense asked for a reversal of Bankman-Fried’s conviction and a new trial before a different judge.

Former Alameda Research CEO Caroline Ellison, Bankman-Fried’s ex-girlfriend and a blockbuster witness for the prosecution, is set to be sentenced for her role in the fraud later this month.

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(NEW YORK) — Tens of thousands of Boeing workers have voted to strike after rejecting the proposed contract from the embattled aerospace company — a move with far-reaching implications for the U.S. economy.

Boeing had reached a tentative agreement earlier this week with the International Association of Machinists and Aerospace Workers, or IAM, the union representing 33,000 workers at Boeing plants in Washington State, Oregon and California.

However, union members rejected the contract agreement on Thursday night with a vote of 94.6%. IAM’s members will strike at midnight on Friday after 96% voted for the action.

“The message was clear that the tentative agreement we reached with IAM leadership was not acceptable to the members,” Boeing said in a statement following the strike vote. “We remain committed to resetting our relationship with our employees and the union, and we are ready to get back to the table to reach a new agreement.”

A work stoppage would weaken Boeing as it struggles to recover from a years-long stretch of scandals and setbacks, hamstringing the nation’s largest exporter, experts told ABC News. But, they added, workers are frustrated with what they perceive as inadequate compensation and a sense they must sacrifice to make up for the company’s mismanagement.

Here’s what to know about what’s behind the strike and its implications for the U.S. economy:

Why are Boeing workers preparing to strike?

Neither Boeing nor the IAM wants a strike. The workers might carry one out anyway.

The tentative agreement struck this week delivers a 25% raise over the four-year duration of the contract, as well as worker gains on healthcare costs and retirement benefits. The union had sought a 40% pay increase over the life of the deal.

The agreement also features a commitment from Boeing to build its next commercial plane with union labor in Washington state.

Boeing touted the strength of its offer earlier this week. “Simply put, this is the best contract we’ve ever presented,” Stephanie Pope, Boeing Commercial Airplanes president and CEO, wrote in a letter to union members obtained by ABC News.

The union echoed support for the agreement, urging workers to ratify the deal.

“We have achieved everything we could in bargaining, short of a strike. We recommended acceptance because we can’t guarantee we can achieve more in a strike,” IAM District 571 President Jon Holden, who leads the union local involved in negotiations, told members in a public letter.

In response to ABC News’ request for comment, a Boeing spokesperson pointed to a letter sent to union members by CEO Kelly Ortberg.

“I hope you will choose the bright future ahead, but I also know there are employees considering another path — and it’s one where no one wins,” Ortberg said.

“For Boeing, it is no secret that our business is in a difficult period, in part due to our own mistakes in the past. Working together, I know that we can get back on track, but a strike would put our shared recovery in jeopardy, further eroding trust with our customers and hurting our ability to determine our future together,” Ortberg added.

IAM declined to respond to ABC News’ request for comment.

Still, the vote indicates that workers are ready to defy the company and the union. For years, West Coast Boeing workers have taken issue with their level of compensation, especially in light of strong company performance and a surge in the cost of living, experts said.

“There are years and years of pent-up frustration among Boeing workers,” Jake Rosenfeld, a professor of sociology at Washington University in St. Louis who studies labor, told ABC News. “This is an expression of being completely fed up.”

Union members also view themselves as being asked to make sacrifices made necessary by the company’s mismanagement, said Henry Harteveldt, a travel industry analyst at Atmosphere Research Group.

In January, a door plug blew out of the company’s 737 Max 9 aircraft during an Alaska Airlines flight, prompting a federal investigation. The renewed scrutiny arrived roughly five years after Boeing 737 Max aircraft were grounded worldwide following a pair of crashes in Indonesia and Ethiopia that killed a combined 346 people.

In 2021, after a two-year ban, Boeing 737 Max aircraft were permitted to fly.

Boeing is carrying nearly $60 billion in debt, Pope noted in her letter to union members. The company’s share price has plummeted almost 40% since the outset of 2024. Ortberg took over as CEO last month.

“The workers cannot and should not be expected to bear all of the burden of the changes needed at Boeing,” Harteveldt said.

“But I don’t think Boeing is asking them or expecting them to do that,” Harteveldt added. “Boeing has extended what appears to be a very generous offer with substantial wage increases.”

What’s at stake in a potential Boeing strike?

Boeing, which employs 145,000 U.S.-based workers, is a major U.S. firm with a sprawling network of suppliers, experts said.

The company estimates that it contributes nearly $80 billion to the U.S. economy each year, and indirectly accounts for 1.6 million jobs.

A prolonged strike would weaken production with the potential to slow output, diminish income and trigger layoffs, Harteveldt said.

“There’s a risk of a downward spiral,” Harteveldt said.

Such a strike would not impact flight activity or down planes, however, since the workers at issue take part in manufacturing new products. That stands in contrast with an averted railroad strike in 2022, which would have halted a sizable share of the nation’s cargo trains.

“This wouldn’t be as devastating,” Rosenfeld said.

Still, he added, a potential strike would hold implications for a signature U.S. firm.

“It would further damage an iconic company that has already had years of setbacks,” Rosenfeld said.

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(SEATTLE) — Tens of thousands of Boeing workers are set to cast ballots in a vote Thursday that could potentially trigger a major strike against the embattled aerospace company with far-reaching implications for the U.S. economy.

Boeing reached a tentative agreement earlier this week with the International Association of Machinists and Aerospace Workers, or IAM, the union representing 33,000 workers at Boeing plants in Washington State, Oregon and California.

However, union members could potentially reject the contract agreement, walk off the job and send the two sides back to the bargaining table.

A work stoppage would weaken Boeing as it struggles to recover from a years-long stretch of scandals and setbacks, hamstringing the nation’s largest exporter, experts told ABC News. But, they added, workers are frustrated with what they perceive as inadequate compensation and a sense they must sacrifice to make up for the company’s mismanagement.

The ratification vote concludes at 9 p.m. ET, and the union will release the results in a press conference soon afterward. If union members reject the contract, they will take a second vote on a strike that could begin as soon as Friday morning.

“This is a very, very high-stakes game of chicken,” Henry Harteveldt, a travel industry analyst at Atmosphere Research Group, told ABC News.

Here’s what to know about what’s behind the strike and its implications for the U.S. economy:

Why are Boeing workers threatening to strike?

Neither Boeing nor the IAM want a strike. The workers might carry one out anyway.

The tentative agreement struck this week delivers a 25% raise over the four-year duration of the contract, as well as worker gains on healthcare costs and retirement benefits. The union had sought a 40% pay increase over the life of the deal.

The agreement also features a commitment from Boeing to build its next commercial plane with union labor in Washington state.

Boeing touted the strength of its offer earlier this week. “Simply put, this is the best contract we’ve ever presented,” Stephanie Pope, Boeing Commercial Airplanes president and CEO, wrote in a letter to union members obtained by ABC News.

The union echoed support for the agreement, urging workers to ratify the deal.

“We have achieved everything we could in bargaining, short of a strike. We recommended acceptance because we can’t guarantee we can achieve more in a strike,” IAM District 571 President Jon Holden, who leads the union local involved in negotiations, told members in a public letter.

In response to ABC News’ request for comment, a Boeing spokesperson pointed to a letter sent to union members by CEO Kelly Ortberg.

“I hope you will choose the bright future ahead, but I also know there are employees considering another path — and it’s one where no one wins,” Ortberg said.

“For Boeing, it is no secret that our business is in a difficult period, in part due to our own mistakes in the past. Working together, I know that we can get back on track, but a strike would put our shared recovery in jeopardy, further eroding trust with our customers and hurting our ability to determine our future together,” Ortberg added.

IAM declined to respond to ABC News’ request for comment.

Still, workers may defy the company and the union. For years, West Coast Boeing workers have taken issue with their level of compensation, especially in light of strong company performance and a surge in the cost of living, experts said.

“There are years and years of pent up frustration among Boeing workers,” Jake Rosenfeld, a professor of sociology at the University of Washington who studies labor, told ABC News. “This is an expression of being completely fed up.”

Union members also view themselves as being asked to make sacrifices made necessary by the company’s mismanagement, said Harteveldt, of Atmosphere Research Group.

In January, a door plug blew out of the company’s 737 Max 9 aircraft during an Alaska Airlines flight, prompting a federal investigation. The renewed scrutiny arrived roughly five years after Boeing 737 Max aircraft were grounded worldwide following a pair of crashes in Indonesia and Ethiopia that killed a combined 346 people.

In 2021, after a two-year ban, Boeing 737 Max aircraft were permitted to fly.

Boeing is carrying nearly $60 billion in debt, Pope noted in her letter to union members. The company’s share price has plummeted almost 40% since the outset of 2024. Ortberg took over as CEO last month.

“The workers cannot and should not be expected to bear all of the burden of the changes needed at Boeing,” Harteveldt said.

“But I don’t think Boeing is asking them or expecting them to do that,” Harteveldt added. “Boeing has extended what appears to be a very generous offer with substantial wage increases.”

What’s at stake in a potential Boeing strike?

Boeing, which employs 145,000 U.S.-based workers, is a major U.S. firm with a sprawling network of suppliers, experts said.

The company estimates that it contributes nearly $80 billion to the U.S. economy each year, and indirectly accounts for 1.6 million jobs.

A prolonged strike would weaken production with the potential to slow output, diminish income and trigger layoffs, Harteveldt said.

“There’s a risk of a downward spiral,” Harteveldt said.

Such a strike would not impact flight activity or down planes, however, since the workers at issue take part in manufacturing new products. That stands in contrast with an averted railroad strike in 2022, which would have halted a sizable share of the nation’s cargo trains.

“This wouldn’t be as devastating,” Rosenfeld said.

Still, he added, a potential strike would hold implications for a signature U.S. firm.

“It would further damage an iconic company that has already had years of setbacks,” Rosenfeld said.

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(NEW YORK) — Fearless Fund, a venture capitalist firm that invests in female entrepreneurs of color, has settled a discrimination lawsuit over a grant program specifically for Black women.

The lawsuit from the American Alliance for Equal Rights (AAER) claimed that the fund’s Fearless Strivers Grant Contest, which was open “only to Black females,” was discriminatory.

The grant program was at its end when the court case began in 2023, according to an online post by Fearless Fund founder Arian Simone, and the fund said it was motivated to avoid a court ruling so as not to lead to a Supreme Court decision that could end minority-based funding nationwide.

The Fearless Fund said it will continue to focus on “helping under-resourced entrepreneurs who have been ill served by traditional capital markets for far too long.” In a statement on the settlement, it announced a new $200 million debt fund with the goal of lending to more than 3,000 under-resourced founders.

Representatives of Fearless Fund partners Simone and Ayana Parson told reporters in August 2023 that the fund was established to address the wide gap in venture capital funding for businesses led by women of color “who confront barrier after barrier to obtain support and investments for their businesses.”

The Fearless Strivers Grant Contest was created specifically for Black women because Black women-owned businesses receive less than 1% of venture capital funding, according to the organization.

AAER called the grant program “divisive and illegal” and claimed that it “encouraged the Fearless Fund to open its grant contest to Hispanic, Asian, Native American and white women but Fearless has decided instead to end it entirely.”

White women-founded companies take home 64% of “Diversity Investments” by deal count, meanwhile women of color-owned businesses only take home 10%, according to an analysis of Crunchbase data by venture capital firm BBG Ventures.

Fearless Fund partners have long defended their work, citing the poor representation of women of color among venture capital recipients and evidence of racial bias in the investment decisions of asset allocators.

“From the moment the lawsuit was filed, I pledged to stand firm in helping and empowering women of color entrepreneurs in need. I stand by that pledge today and in fact my commitment remains stronger than ever,” read a statement from the organization’s co-founder Arian Simone. “Our overarching mission remains focused on helping and empowering entrepreneurs who have been historically overlooked in the venture capital marketplace.”

AAER’s founder Edward Blum also leads the Students for Fair Admissions, the group that initiated the anti-affirmative action case that reached the Supreme Court and won the case, setting new limits on the use of race-based policies in college admissions.

The conservative group claimed that affirmative action, which was implemented to address racial inequities in access to higher education, violated the equal protection clause of the 14th Amendment.

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(NEW YORK) — Inflation is down significantly from its 9.1% pandemic-era peak in 2022, but the cost of food — especially groceries — may continue to puzzle some consumers at checkout lines as new data showed two major categories with slight price increases.

Despite signs of overall inflation cooling compared to a year ago, the current rate of 2.9% remains higher than the Federal Reserve’s target.

The latest Consumer Price Index report for August, released by the Bureau of Labor Statistics on Wednesday, showed that while inflation has softened, staples such as groceries are up 1.1% compared to 2023 with higher prices on some common household products like eggs and meat, poultry and fish.

Breaking down the latest inflation data on food and grocery prices

The food index, which is comprised of food away from home and food at home, has increased 2.1% over the last year — and after rising 0.2% in each of the previous two months, was up another 0.1% in August.

There was a slight 0.3% drop last month for takeout and dining, according to the CPI, but food at home remained unchanged.

“Food away from home slowed a little bit at 3.9% year over year, versus that .9% for the food at home category,” Dr. Michael Swanson, Wells Fargo’s Chief Agriculture Economist, told ABC News. “So they’re both slowly kind of trending back down, but still, that’s a big gap and it’s been a pretty persistent gap, which really speaks to the wages at the restaurant level.”

He reminded that “if you can bring yourself to spend a little time prepping food or cooking food at home, you’re going to save yourself a lot of money.”

Grocery prices slowly rise in two major categories, what it means

Food at home rose at a slower pace than overall inflation at .09% over the last year, but two of the six major grocery store food groups — meats, poultry, fish, and eggs — rose last month and by 3.2% over the last 12 months.

The popular animal proteins went up 0.8% in August and eggs increased 4.8%, as dairy and related products increased 0.5% in August.

“When we see a category like eggs where it came in at $3.20 for a dozen at the national number — vs. a year ago in August where it was $2.04 and the answer is, why?” Dr. Swanson posited. “We know that we dealt with avian influenza early in the year, barns are being repopulated, but we’re not right back to where we were previously. So there’s a good, clear story about what happened there.”

“The big dollar category is meat, poultry and eggs — of the food at home category — which had the two worst performers across the entire supermarket,” Swanson said. “It wasn’t really that the ranchers got more money or the wholesalers got more money this month, we saw the retailer spreads move up.”

Food price predictions as we inch towards fall, holidays

Swanson likened food price fluctuations to seasonal weather patterns that yield long term benefits: “For example, how much snow did you get in California and will there be enough melt and water to fill the reservoirs to then be able to grow more strawberries.”

“We’re gonna have the biggest corn and soybean crop ever in the history of United States, according to the USDA,” Swanson said, which he explained has dropped the prices “way down from a year ago.” He continued, “that’s really important to the consumer ultimately, because that’s what impacts [the price of] chickens, beef and everything else — so there’s good news, but it’s not here just yet.”

How grocers are meeting shopper demand for lower prices

“No retailer simply gives you money, if they’re going to give you lower prices or better value, it’s because they went out and fought with their suppliers to get it for you,” he explained.

“What we’re seeing in that universe of wholesalers and food manufacturers, they’re starting to get a lot more pressure from the retailers to say, ‘Help me out here, because I need to do more for our shoppers,'” Swanson said. “It’s a slow process, but it’s been a complete tide shift in mentality and so all the retailers, to some degree have gone back to say, ‘You just have to do better than that.'”

Swanson found in looking at the Federal Reserve Board which tracks capacity utilization in food manufacturing, that “during the peak of the crisis — they didn’t have any spare capacity, so they weren’t interested in negotiating with food retailers like Walmart.”

Since that’s no longer the case, Swanson said we’re starting to see “a little bit more and more slack” which makes wholesalers “more susceptible to arm twisting from the food retailers.”

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