Business Headlines
Americans’ credit card debt reaches new record high: New York Federal Reserve
Adam Gault/Getty Images(NEW YORK) -- Americans' household debt -- including credit cards, mortgages, auto loans and student loans -- is at a new all-time high $18.04 trillion, according to a report released Thursday by the Federal Reserve Bank of New York.Overall debt grew by $93 billion in the last three months of 2024 -- and about half of that increase was new credit card debt.Americans' total credit card balances now stand at a record-high $1.21 trillion.On a call with reporters Thursday, New York Federal Reserve researchers said credit card debt typically goes up at the end of the year when consumers do their holiday shopping. Researchers said they expect balances will decline at the start of this year as shoppers start to ... Read More
Tesla shares have plunged while Musk takes on Washington. Is that the reason?
Christian Marquardt/Getty Images(NEW YORK) -- While Elon Musk has vaulted into a powerful role overhauling government agencies and upending Washington, the world's richest person has suffered a $106 billion drop in wealth due to steep decline in shares of his Tesla electric car company.Tesla's stock price has plummeted 30% from its all-time high in December, including a 21% selloff since Inauguration Day. The losses have sent Musk's net worth tumbling from a peak of $486 billion on Dec. 17 to its current level of about $380 billion, according to Bloomberg.The stock woes have divided current and former Tesla shareholders. Critics of Musk fault his new role and polarizing reputation, blaming recent reports showing lackluster sales in some regions on his ... Read More
Tesla shares have plunged while Musk takes on Washington. Is that the reason?
(Anton Petrus/Getty Images)(NEW YORK) -- While Elon Musk has vaulted into a powerful role overhauling government agencies and upending Washington, the world's richest person has suffered a $106 billion drop in wealth due to steep decline in shares of his Tesla electric car company.Tesla's stock price has plummeted 30% from its all-time high in December, including a 21% selloff since Inauguration Day. The losses have sent Musk's net worth tumbling from a peak of $486 billion on Dec. 17 to its current level of about $380 billion, according to Bloomberg.The stock woes have divided current and former Tesla shareholders. Critics of Musk fault his new role and polarizing reputation, blaming recent reports showing lackluster sales in some regions on his ... Read More
Inflation increased in January, posing obstacle for Trump tariff plans
Frederic J. Brown/AFP via Getty Images(NEW YORK) -- Consumer prices rose 3% in January compared to a year ago, ticking up from the previous month and posing an obstacle for Trump administration tariff policies that many economists expect to raise some prices, government data on Wednesday showed. The inflation reading came in higher than economists had predicted.The fresh data extends a bout of resurgent inflation that stretches back to last year. Two weeks ago, the Federal Reserve opted to hold interest rates steady in part out of concern regarding the stubborn price increases.Egg prices, a closely watched symbol of rising costs, soared 53% in January compared to a year ago. An avian flu has decimated the egg supply, lifting prices ... Read More
Quiksilver, Billabong and Volcom stores are closing in the US in 2025
(Bundit Minramun/Getty Images)(NEW YORK) -- Quiksilver, Billabong, and Volcom, known for their surf and skate products, are closing stores in the United States.The parent company of the brick-and-mortar stores, Liberated Brands, filed voluntary Chapter 11 bankruptcy on Sunday, which will result in over 100 retail locations across the country being shuttered, according to a filing.The company attributes its financial difficulties to several factors, including inflation demands as well as a significant change in consumer spending habits.ABC News has reached out to Liberated Brands for comment but has not yet received a response."The Liberated team has worked tirelessly over the last year to propel these iconic brands forward, but a volatile global economy, consumer spending changes amid a rising cost of ... Read More
Trump’s tariffs could increase home prices and mortgage rates, some experts say
Andrew Harnik/Getty Images(WASHINGTON) -- Housing prices are soaring twice as fast as overall inflation. The average rate on a 30-year mortgage topped 7% in January for the first time since last spring. Observers as disparate as J.P. Morgan and the left-leaning nonprofit Center for American Progress have declared a "housing affordability crisis."The cost crunch could last longer or even worsen, however, as a result of potential tariffs on Mexico and Canada, experts told ABC News.The Trump administration threatened to impose 25% tariffs on Mexico and Canada, but the U.S. reached an agreement with each of those countries on Monday to pause the tariffs for one month.Such duties would likely raise expenses for imported home-building materials, hiking construction costs and increasing home prices, some experts said. Meanwhile, they ... Read More
Trump’s tariffs threaten job losses, experts say. These may be the hardest hit
Logan Cyrus/Bloomberg via Getty Images(WASHINGTON) -- Autoworkers, farmers and alcohol distillers are among a set of U.S. workers who risk losing their jobs as a result of potential tariffs on Canada, China and Mexico, experts told ABC News.The U.S. president was expected to sign executive orders on Tuesday putting in place the 25% tariffs on goods from Mexico and Canada and 10% tariffs on those from China, according to the White House.Trump announced on Monday that the proposed tariffs on most goods from Canada and all products from Mexico would be paused for one month, putting the policies on schedule to take effect in early March. The postponements came following conversations Trump had with Mexican President Claudia Sheinbaum and Canadian ... Read More
Trump’s tariffs send stock market falling
lvcandy/Getty Images(NEW YORK) -- The stock market fell on Monday amid uncertainty about the fate of tariffs imposed by President Donald Trump on Canada, Mexico and China over the weekend.Soon after a market rout began early Monday morning, Trump paused the tariffs on Mexico for one month following a conversation with Mexican President Claudia Sheinbaum, prompting the stock market to recover some of its losses.The Dow Jones Industrial Average slid about 150 points, or 0.35%, in early trading on Monday. The S&P 500 dropped 0.7%, and the tech-heavy Nasdaq ticked down 1%.Traders demonstrated their jitters with a selloff of U.S. auto companies, which hold deep ties to suppliers in Canada and Mexico. Shares of General Motors plummeted 6%, while Ford ... Read More
These prices could climb within days if Trump slaps tariffs on Canada and Mexico
(Westend61/Getty Images)(WASHINGTON) -- Tariffs on goods from Mexico and Canada that are set to take effect could hike the price of a gallon of gasoline for some drivers by as much as 70 cents and send grocery bills climbing, experts told ABC News.The Trump administration this week reiterated plans to slap 25% tariffs on all products from Canada and Mexico on Feb. 1. Those countries make up two of the three largest U.S. trading partners, government data shows.Tariffs of this magnitude would likely increase prices paid by U.S. shoppers, since importers typically pass along a share of the cost of those higher taxes to consumers, experts said. The policy could raise prices for an array of products ranging from tomatoes ... Read More
Fed holds interest rates steady, defying pressure from Trump
Al Drago/Bloomberg via Getty Images(WASHINGTON) -- The Federal Reserve held interest rates steady on Wednesday, just days after President Donald Trump called on the central bank to lower them.The announcement put the central bank on a potential collision course with Trump, though a longstanding norm of independence typically insulates the Fed from direct political interference.The decision to maintain the current level of interest rates pauses a series of three consecutive interest rate cuts imposed by the Fed over the final months of 2024.The Federal Open Market Committee (FOMC), a policymaking body at the Fed, said on Wednesday that the central bank remains attentive to concerns centered on the potential for both a rise in unemployment and a surge of inflation. ... Read More
Fed expected to hold interest rates steady, defying pressure from Trump
Chip Somodevilla/Getty Images(WASHINGTON) -- The Federal Reserve on Wednesday will announce its latest decision setting the level of interest rates, just days after President Donald Trump called on the central bank to lower them.Investors widely expect the Fed to hold interest rates steady, putting the central bank on a potential collision course with Trump. A longstanding norm of independence typically insulates the central bank from direct political interference.A decision to maintain the current level of interest rates would pause a series of three consecutive interest rate cuts imposed by the Fed over the final months of 2024.The Fed indicated last month that it would cut interest rates at a slower pace than it had previously forecast, however, pointing to a ... Read More
Nvidia, Microsoft shares tumble as China-based AI app DeepSeek hammers tech giants
Nvidia CEO Jensen Huang/ Photo Credit: PATRICK T. FALLON/AFP via Getty Images(NEW YORK) -- The emergence of China-based AI app DeepSeek sent shares plummeting on Monday for many U.S. tech giants, including chipmaker Nvidia and AI-backer Microsoft.Nvidia, which helped catapult market wide gains in recent years, saw its share price plummet by more than 12% in early trading on Monday. Shares of Microsoft, a major stakeholder in ChatGPT-maker OpenAI, fell about 4.5%.The tech-heavy Nasdaq fell more than 3% in early trading on Monday. The Dow Jones Industrial Average and S&P 500 also inched downward.The DeepSeek chatbot -- which responds to user queries, just like its U.S.-based counterparts -- stands atop the Apple app-store charts. Early testing suggests that the quality ... Read More
These companies are sticking with DEI amid backlash
(Steve Heap/Getty Images)(NEW YORK) -- While some companies are steering away from diversity, equity, and inclusion (DEI) policies, others are sticking with their previous commitments.Leaders at Goldman Sachs, Costco and JPMorgan Chase & Co have recently spoken out in support of their diversity programs, as anti-DEI activist shareholders continue to push proposals that would roll back company policies.Costco's Board of Directors unanimously voted Thursday against a proposal from the National Center for Public Policy Research that had called for Costco to evaluate and publish a report on any risks that may be associated with the company's diversity and inclusion efforts, according to a Jan. 23 shareholders meeting statement."Our efforts around diversity, equity and inclusion follow our code of ethics," the ... Read More
Trump says he will ‘demand’ lower interest rates
Chip Somodevilla/Getty Images/Bloomberg via Getty Images(WASHINGTON) -- President Donald Trump on Thursday said he will call for a lowering of U.S. interest rates, exerting pressure on the Federal Reserve despite a longstanding norm of political independence at the central bank.During a virtual address to the World Economic Forum in Davos, Switzerland, Trump demanded a drop in interest rates after calling for a reduction of oil prices set by a group of nations known as OPEC, which includes Saudi Arabia.The prospect of low oil prices will enable the Fed to dial back its fight against inflation and bring down interest rates, Trump said."I’m going to ask Saudi Arabia and OPEC to bring down the cost of oil," Trump said, later adding: "With oil prices going down, ... Read More
Fed cuts interest rate by half a point
WASHINGTON (AP) — The Federal Reserve on Wednesday cut its benchmark interest rate by an unusually large half-point, a dramatic shift after more than two years of high rates that helped tame inflation but also made borrowing painfully expensive for American consumers. The rate cut, the Fed’s first in more than four years, reflects its new focus on bolstering the job market, which has shown clear signs of slowing. Coming just weeks before the presidential election, the Fed’s move also has the potential to scramble the economic landscape just as Americans prepare to vote. The central bank’s action lowered its key rate to roughly 4.8%, down from a two-decade high of 5.3%, where it had stood for 14 months as ... Read MoreWynn Resorts paying $130M for letting illegal money reach gamblers at its Las Vegas Strip casino
LAS VEGAS -- Casino company Wynn Resorts Ltd. has agreed to pay $130 million to federal authorities and admit that it let unlicensed money transfer businesses around the world funnel funds to gamblers at its flagship Las Vegas Strip property. The publicly traded company said a non-prosecution settlement reached Friday represented a monetary figure identified by the U.S. Justice Department as “funds involved in the transactions at issue†at the Wynn Las Vegas resort. In statements to the media and to the federal Securities and Exchange Commission, the company said the forfeiture wasn’t a fine and findings in the decade-long case didn’t amount to money laundering. U.S. Attorney Tara McGrath in San Diego said the settlement showed that casinos are ... Read More
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