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(NEW YORK) — The U.S. economy is expected to have grown at a blistering pace over the three months ending in September, fueling optimism about the nation’s outlook but complicating the fight to dial back inflation.

Fresh GDP data to be released on Thursday is expected to reinforce other recent indicators of a strong economy resisting the Federal Reserve’s effort to cool prices increases with a slowdown.

A blockbuster jobs report earlier this month exceeded economist expectations by nearly twofold. Consumer spending, which accounts for nearly three-quarters of U.S. economic activity, surged in September, according to data released last week.

Economists expect GDP to have grown at 4.3% annualized rate over the three-month period ending in September — a rate nearly twice as fast as the previous quarter.

U.S. GDP grew at a 2.4% annualized rate over three months ending in June, which marked an advance from the rate recorded over the previous quarter.

Such robust indicators could nudge the Fed to hike rates at its meeting next week, as it tries to combat persistently high inflation.

Speaking at a luncheon in New York City last week, Fed Chair Jerome Powell noted the unexpectedly strong economic performance in recent months.

“We are attentive to recent data showing the resilience of economic growth and demand for labor,” Powell said, adding that such growth could “put further progress on inflation at risk.”

Inflation stands well below its peak last year of over 9%, but progress has stalled in recent months and price growth remains more than a percentage point higher than the central bank’s target rate.

Recent economic growth, however, belies an alarm sounded by one of the most important economic indicators: the 10-year treasury yield.

A rapid rise in U.S. government bond yields over recent weeks has elevated borrowing costs for consumers seeking mortgage loans and corporations pursuing funds to expand their business.

The jump in borrowing expenses threatens to slow economic activity in the coming months. Economists expect GDP growth to slow later this year.

The onset of some financial pain is exemplified by the housing market, where the average interest rate for a 30-year fixed mortgage reached 8% last week, Mortgage News Daily data shows.

High mortgage rates have dramatically slowed the housing market, since homebuyers have balked at the stiff borrowing costs, and home sellers have opted to stay put with mortgages that lock them into comparatively low rates.

Mortgage applications have fallen to their lowest level since 1996, the Mortgage Brokers Association said earlier this month.

Major housing industry groups voiced “profound concern” about rising mortgage rates in a letter last week that urged the Federal Reserve to stop hiking its benchmark interest rate.

Business leaders and policymakers will closely watch when the Fed announces its latest rate-hike decision on Nov. 1.

The central bank expects to raise rates one more time this year, according to projections included alongside a statement last month from the Federal Open Market Committee, or FOMC, the Fed’s decision-making body on interest rates.

The benchmark interest rate currently stands at a range 5.25% to 5.5%, as a result of a near-historic series of rate increases, also known as credit tightening,

“Given the fast pace of the tightening, there may still be meaningful tightening in the pipeline,” Powell said last week.

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(NEW YORK) — Ford Motor and United Auto Workers union (UAW) have reached a tentative agreement that would end the strike at Ford, both parties confirmed Wednesday night.

“Record profits mean record contracts. We have a tentative agreement at Ford,” the UAW wrote in a post on X (formerly Twitter).

Ford also issued a statement saying the company was “pleased to have reached a tentative agreement on a new labor contract with the UAW covering” operations in the U.S.

“Ford is proud to assemble the most vehicles in America and employ the most hourly autoworkers. We are focused on restarting Kentucky Truck Plant, Michigan Assembly Plant and Chicago Assembly Plant, calling 20,000 Ford employees back to work and shipping our full lineup to our customers again. The agreement is subject to ratification by Ford’s UAW-represented employees. Consistent with the ratification process, the UAW will share details with its membership,” Ford’s statement concluded.

This deal would still need to be ratified by a majority of Ford’s 57,000 UAW members.

On Sept. 15, UAW members launched their strike against Ford, General Motors and Stellantis after they failed to reach a new contract agreement for plants in Michigan, Ohio and Missouri.

The union, which represents nearly 150,000 workers, demanded a 40% pay increase combined over the four-year duration of a new contract, as well as a 32-hour workweek at 40-hour pay.

Over the last few weeks, workers from other plants also began strikes, with nearly 45,000 UAW members walking off the job.

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(NEW YORK) — Being a frequent flyer has gotten crowded and the rewards for being a repeat customer are seeing major changes.

Frontier Airlines is the latest to join the growing list of airlines making a massive overhaul to its frequent flyer programs that will make it much harder to get elite status.

“I can’t afford to earn elite status on any of the big three carriers,” traveler Jacob Brown told ABC News’ Good Morning America. “And now I can’t even afford to earn status on the budget carrier.”

The biggest change to Frontier’s mileage program — formerly known as EarlyReturns, now called FRONTIER Miles — has moved from a point system based on how many miles you fly to how much you spend.

As stated on the carrier’s website about the new mileage program, flyers “can still earn Elite Status with only 20,000 Status Miles or 25 flight segments.”

“Loyalty is when you are a returning customer. Not when you’re a customer once or twice and spend a lot of money,” Brown said.

These new changes are set to start in January 2024.

TPG’s senior aviation editor Ben Mutzabaugh explained to GMA that “if you fly a 2,000 mile flight you used to get 2,000 miles. Now you’ll get [miles] depending on how much your fare is.”

Frontier is the first budget-airline to roll out new rules for its loyalty program, falling in line with Delta and American both of which announced similar changes based on how much travelers spend.

These changes also come as airlines continue to grapple with long lines for airport lounges that have been filled to capacity creating longer waits, including for credit card holders with special rewards.

Delta faced major backlash after first announcing its changes, that CEO Ed Bastian later walked back.

“The uproar that Delta had with their latest changes — was intense. I have never seen anything like that in more than a decade of covering the airline industry,” Mutzabaugh said.

Delta has since reduced the dollar amount flyers need to spend to reach elite status and will allow slightly more lounge access than its original rolled out plan, according to the updated policy.

Southwest has bucked the trend, actually opting to make it easier for its frequent flyers to earn higher status.

“If you’re a free agent for airlines at this point. Just see which airline you like the best,” Mutzabaugh recommended.

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(NEW YORK) — AMC Theatres is adding a bit of mystery to the moviegoing experience.

On Tuesday, the theater chain announced its first Screen Unseen event, which it said allows customers to watch a never-before-seen film on the big screen “with a surprise twist — the movie will be unveiled at showtime.”

The inaugural Screen Unseen event is set for Nov. 6 and the film’s rating — the only information revealed beforehand — is PG-13.

This new experience, available at select locations, will cost just $5 plus tax.

The company is also encouraging customers who attend the event to share their thoughts about the film on X, formerly Twitter, using the hashtag #AMCScreenUnseen for a chance to win “a film fanatic prize pack.”

AMC Theatres’ new program bears a striking resemblance to Regal’s Monday Mystery Movie program, which also allows moviegoers to attend a screening of a surprise film for just $5.

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(NEW YORK) — For travelers who wish they could squeeze in a final hug or few more minutes at the gate with friends or family before departing on their holiday flights, one airport has a sweet new solution.

Starting Nov. 1, just in time for holiday travel, Philadelphia International Airport will allow ticketed passengers on domestic flights to bring non-traveler guests past security checkpoints with its new PHL Wingmate Pass.

The airport called the pass “an exclusive amenity” that grants non-travelers access to the secure side of the airport.

“Whether you’re supporting family in their journey to their gate or planning a heartwarming surprise for a friend arriving on a domestic flight, a Wingmate Pass will get you there,” the airport stated in an Oct. 11 announcement.

Non-ticketed guests can apply for the free one-day pass, which will give them access to the airport’s terminals from 6 a.m. to 10 p.m.

Megan O’Connell, Philadelphia International Airport’s director of marketing and branding, said that after an influx of inquiries about friends and family members wanting to escort a passenger to or from their gate, the airport developed the free amenity “to help those loved ones spend more time together before take-off.”

Non-ticketed guests interested in visiting a traveler at Philadelphia International Airport can complete an online application one to seven days prior to their desired visit.

Guests who apply in advance, according to the airport, will receive an email after 12 a.m. on the day of their visit with their application status.

Those who apply for same day entrance will receive an email within 15 minutes sharing their application status. If approved, guests will get another email with a digital Wingmate Pass that can be used for entry at the airport’s D/E or A-East security checkpoints.

In addition to post-security access, the pass also comes with exclusive deals to use at select Philadelphia International Airport food and shops concessions.

“We hope that, in addition to meeting loved ones, the public will use the Wingmate Guest Pass to access the airport’s restaurants and shops and enjoy PHL’s renowned Art Exhibitions Program,” O’Connell said.

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(NEW YORK) — Starbucks, McDonald’s and other major companies have touched off controversy tied to the Israel-Hamas war, exemplifying the corporate challenges posed by the high-stakes and politically charged conflict.

Starbucks sued its union, Starbucks Workers United, earlier this month after the labor organization posted a since-deleted message on X, formerly known as Twitter, expressing solidarity with Palestinians. The message from the union triggered calls to boycott Starbucks, when some appeared to mistake the union’s position for that of the company.

At McDonald’s, an Israel-based franchise announced free food for members of the Israeli military, prompting a consumer backlash and messages from other franchises distancing themselves from the move.

Hundreds of Google employees, meanwhile, circulated a petition taking issue with a public letter released by CEO Sundar Pichai that they deemed was in favor of Israel, The Washington Post reported.

In response to ABC News’ request, Starbucks pointed to a statement on the company’s website.

“We strongly disagree with the views expressed by Workers United, including its local affiliates, union organizers and those who identify as members of ‘Starbucks Workers United’ — none of these groups speak for Starbucks Coffee Company and do not represent our company’s views, positions, or beliefs,” Sara Kelly, executive vice president and chief partner officer at Starbucks, said in the statement.

A spokesperson for McDonald’s told ABC News that the company is primarily focused on ensuring the safety of employees. To support people in the region, McDonald’s made a $1 million donation split evenly between Red Cross and The World Food Program, the spokesperson added.

Google did not respond to ABC News’ request for comment.

Sharp disagreement nationwide over the Israel-Hamas war has manifested in the response to statements made by the large, often high-profile companies. Corporations have faced blowback from advocates on both sides for stances considered either insufficiently sympathetic toward Israelis or Palestinians. Meanwhile, some executives have resigned amid backlash and some prospective employees have had job offers rescinded over their remarks.

The militant group Hamas launched an unprecedented attack on Oct. 7 that has left at least 1,400 people dead and 4,600 injured in Israel, according to Israeli authorities.

In Gaza, more than 5,000 people have died and 15,200 have been wounded, according to the Palestinian Health Authority.

Over the days immediately after the Hamas attack, the response from some major companies was swift.

“The attacks against civilians in Israel are shocking and painful to watch,” Amazon CEO Andy Jassy said Oct. 9 in a post on X. “Hoping that peace arrives as soon as possible.”

Some advocates, however, reprimanded companies that remained silent in the days immediately after the attack.

“Speaking out doesn’t require companies to take a stand on the Israeli-Palestinian conflict or to sit for a seminar on Middle Eastern politics,” Jonathan Greenblatt, CEO of the Anti-Defamation League, said on X.

In all, more than 150 corporations have released statements condemning the initial attack by Hamas, according to a collection of public statements assembled by Yale University Professor of Management Jeffrey Sonnenfeld.

The list of companies includes top firms such as Microsoft, Goldman Sachs, J.P. Morgan Chase, Verizon and Tesla.

Further, some executives made pointed remarks that highlight a personal connection with Israel.

“I am heartbroken by the atrocities we have witnessed, and over the last few days, I have been on the phone constantly with friends and relatives in Israel,” Pfizer Chairman and CEO Albert Bourla wrote in a LinkedIn post. “I know I am not alone when I express my shock and grief about the ongoing situation.”

Sarah Soule, a professor of organizational behavior at Stanford University’s Graduate School of Business, told ABC News the companies “less scathed” by public backlash have condemned the Hamas attack and acknowledged the long history of conflict in the region.

But, she added, the corporate response to the Israel-Hamas war raises questions about the impact of such statements.

“What problem is being solved by issuing these statements?” Soule said.

Some of the corporate statements condemning Hamas have drawn criticism from advocates who say they fall short of offering sympathy for the suffering and oppression endured by Palestinian civilians.

“The lack of any statement of condemnation of Israeli military tactics or of support for Palestinian rights is particularly concerning, given that many of these corporate leaders and their companies have adopted stances promoting diversity, equity, and inclusion in the workplace,” Council on American-Islamic Relations, or CAIR, said earlier this month.

Starbucks Workers United, a union representing roughly 9,000 workers, took down an initial tweet expressing solidarity with Palestinians. Last week, the union posted an additional statement on X standing with Palestinians while condemning the deaths of innocent civilians.

“We are opposed to violence, and each death occurring as the result of violence is a tragedy,” the statement said. “We absolutely condemn antisemitism and Islamophobia.”

The union filed a countersuit against Starbucks, calling its lawsuit an attempt to damage the union and undermine its organizing efforts.

Sonnenfeld told ABC News the relative strength of public trust in CEOs grants them an opportunity to speak out on important and divisive issues. Companies, however, should weigh the relevance and potential impact of a statement on any given issue, he argued.

“CEOs have a distinctive role in society as trusted voices,” Sonnenfeld said. “Some companies, such as fast food franchises and maybe aerospace defense companies, maybe this isn’t the ideal issue for them. Companies need to decide that.”

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(TALLAHASSEE, FLORIDA) — The decision by children’s book publisher Scholastic to create a separate, optional section for its elementary school book fairs for titles written predominantly by and about people of color and LGBTQ people is meeting resistance from groups that oppose book bans.

The news comes as attempts to ban books spike across the country and as dozens of states continue to implement policies that restrict how the subjects of race, gender and sexual orientation are discussed in schools.

“Because Scholastic Book Fairs are invited into schools, where books can be purchased by kids on their own, these laws create an almost impossible dilemma: back away from these titles or risk making teachers, librarians, and volunteers vulnerable to being fired, sued, or prosecuted,” Scholastic said about its decision to create a book section that schools can opt out of.

Scholastic’s “Share Every Story, Celebrate Every Voice” is made up of 64 titles, according to a preview of the list provided to EdWeek. The list includes books such as “I Am Ruby Bridges” by Ruby Bridges, “I Color Myself Different” by Colin Kaepernick, “She Dared: Malala Yousafzai” by Jenni L. Walsh, and more.

Scholastic argues that not all stories by LGBTQ authors and authors of color will be placed into the optional category.

The decision was criticized as censorship, with advocacy groups claiming the move will encourage those behind book bans and restrictive laws.

In the first eight months of the year, the American Library Association (ALA) recorded 695 attempts to censor library materials, impacting 1,915 unique book titles.

The vast majority of challenges were to books written by or about a person of color or LGBTQ authors, according to the ALA.

“Censorship is anti-democratic and undermines one’s freedom to learn,” said the National Black Justice Coalition in a statement. “We condemn Scholastic for its decision to segregate books on race, gender, and sexuality at book fairs in a disappointing effort to appease a loud minority using politics to attack children and public schools to turn out voters using ignorance, fear, and hate.”

Color Of Change, a racial justice advocacy group, added: “The inclusion of Black and queer characters, authors, and stories in school book fairs is not optional. We call on Scholastic’s leadership to remove this exclusionary feature and commit to taking meaningful action to protect Black and LGBTQ books.”

Scholastic, alongside several other advocacy groups, recently signed an open letter against book bans. Several of the co-signers on that letter denounced Scholastic’s decision to create a separate section for such stories.

“Sequestering books on these topics risks depriving students and families of books that speak to them,” said PEN America, a nonprofit organization focused on free expression, arguing that book bans “deny the opportunity for all students to encounter diverse stories that increase empathy, understanding, and reflect the range of human experiences.”

But Scholastic said it had no other option.

Scholastic noted that more than 30 states across the country have either enacted or are considering restrictions on certain content in classrooms — including the topics of racism, race, gender, and LGBTQ identities. Therefore, it “cannot make a decision for our school partners around what risks they are willing to take, based on the state and local laws that apply to their district,” the organization said in a statement.

Their statement continued: “We don’t pretend this solution is perfect – but the other option would be to not offer these books at all – which is not something we’d consider. There is a wide range of diverse titles throughout every book fair, for every age level. And, we continue to offer diverse books throughout our middle school fairs, which remain unchanged.”

Several authors whose books are on the reported list condemned Scholastic’s move.

Amanda Gorman, the nation’s first Youth Poet Laureate, posted on X, formerly known as Twitter, that her book’s inclusion in the section “is not sharing our stories — it’s treating them as separate but equal.”

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(NEW YORK) — The U.S. Consumer Product Safety Commission has announced a recall of more than 60,000 biometric gun safes because of a programming feature that “can allow unauthorized access to the safes.”

At least one person has died, according to the CPSC.

The CPSC said there have been 39 incidents of consumers reporting that their safes have been accessed by unauthorized fingerprints.

“Consumers can believe they have properly programmed the biometric feature when in fact the safe remains in the default to open mode, which can allow unauthorized users, including children, to access the safe to remove hazardous contents, including firearms,” the CPSC said in an announcement.

CPSC said consumers should immediately stop using the biometric feature, remove batteries from the safe and only use the key for the recalled safes.

Fortress Safe, the company behind the biometric gun safes, announced a recall “due to serious injury hazard and risk of death” and noted one death had been reported.

Fortress Safe said the safes can be opened by “unauthorized users, posing a serious injury hazard and risk of death.”

“The recalled gun safes are portable lock boxes, personal safes, pistol vaults and gun cabinets with brand names Fortress, Cabela’s, Gettysburg and Legend Range & Field,” Fortress Safe said.

Model numbers of safes included in the recall are available on Fortress Safe’s website.

“The recalled safes were sold at Bass Pro Shops, Cabela’s, Scheel’s, Sportsman’s Guide, Optics Planet, Dick’s Sporting Goods, Gander, Rural King, Lowe’s and other stores nationwide and online at Amazon.com and Ebay.com from January 2019 through October 2023 for between $44 and $290,” the CPSC said in a statement.
 

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(NEW YORK) — Fisher-Price is recalling about 21,000 units of some of their popular Thomas & Friends toys.

Parents and customers are being advised to stop using Thomas & Friends Wooden Railway Troublesome Truck & Crates and Thomas & Friends Wooden Railway Troublesome Truck & Paint toys because a small magnet encased in a plastic piece that can connect the toys to additional train toy pieces “can detach or become loose, posing choking and magnet ingestion hazards,” according to a Consumer Product Safety Commission notice released Thursday.

Fisher-Price said in a statement shared on their parent company Mattel’s website that the company has received one report of the plastic part loosening and detaching from one of the Thomas & Friends toys but that no injuries have been reported so far.

“Fisher-Price’s greatest concern and primary focus has always been the safety of the children who use our products,” the company said in part. “For that reason, we’ve taken action to recall the Thomas & Friends Wooden Railway Troublesome Truck & Crates and Troublesome Truck & Paint.”

The recalled Troublesome Truck & Crates toys with model number HBJ89 have a black and gray coloring while the Troublesome Truck & Paint toys with model number HBJ90 are gray with a yellow paint splatter design on the sides of the toys. Both toy types are designed to look like Thomas & Friends characters and have light gray faces painted on them as well and measure about 3.6 inches long and 2.1 inches high, according to the CPSC.

The CPSC said the Troublesome Truck toys, which were made in Indonesia and retailed for about $17, were sold online and in stores nationwide including at Amazon.com and at Barnes & Noble stores from February 2022 through August 2023.

Anyone with the recalled toys can contact Fisher-Price through the Mattel website for a prepaid mailing label that they can use to request a refund. Fisher-Price said it will refund U.S. customers $17 for each recalled toy. If customers have additional questions, they can reach out to the company at 1-855-853-6224 between Monday to Friday and from 9 a.m. to 6 p.m. ET.

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(NEW YORK) — The 30-year fixed mortgage rate this week climbed to 8%, reaching that level for the first time since 2000, according to Mortgage News Daily.

The milestone arrives after months of rate increases. As recently as last April, the 30-year fixed mortgage rate stood below 5%, Mortgage News Daily data shows.

An aggressive series of interest rate hikes by the Federal Reserve since last year has pushed up the 10-year Treasury bond yield, which loosely tracks with long-term mortgage rates.

The Fed has increased interest rates to fight elevated inflation, attempting to slash price hikes by slowing the economy and choking off demand.

While inflation has fallen significantly from a peak of about 9% last summer, price increases remain more than a percentage point higher than the Fed’s inflation target.

The persistence of elevated inflation has prompted the Fed to espouse a policy of holding interest rates at high levels for a prolonged period, which in turn has increased the 10-year Treasury yield and put upward pressure on mortgage rates.

Mortgage rates have increased for five consecutive weeks, according to data released by Freddie Mac last Thursday.

Major housing industry groups voiced “profound concern” about rising mortgage rates in a letter last week that urged the Federal Reserve to stop hiking its benchmark interest rate.

“The speed and magnitude of these [mortgage] rate increases, and resulting dislocation in our industry, is painful and unprecedented,” wrote the real estate groups, among them the National Association of Realtors and the National Association of Home Builders.

High mortgage rates have dramatically slowed the housing market, since homebuyers have balked at the stiff borrowing costs, and home sellers have opted to stay put with mortgages that lock them into comparatively low rates.

Mortgage applications have fallen to their lowest level since 1996, the Mortgage Brokers Association said earlier this month.

Sales of previously owned homes, meanwhile, plummeted more than 15% in August compared to a year ago, according to the National Association of Realtors. The slowdown has coincided with a sharp rise in costs for potential homebuyers.

When the Fed initiated the rise in bond yields with its first rate hike of the current series, in March of 2022, the average 30-year fixed mortgage rate stood at just 4.42%, Mortgage News Daily data shows.

Each percentage point increase in a mortgage rate can add thousands or even tens of thousands in additional costs each year, depending on the price of the house, according to Rocket Mortgage.

Speaking at a press conference in Washington, D.C., last month, Fed Chair Jerome Powell acknowledged the continued effect on mortgages of rising interest rates, noting then that activity in the housing market “remains well below levels of a year ago, largely reflecting higher mortgage rates.”

The Fed expects to raise rates one more time this year, according to projections released last month. The central bank plans to make its next rate-hike decision in early November.

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