President Donald Trump's nomination of Kevin Warsh to chair the Federal Reserve could bring about sweeping changes at a central bank that dominates the global economy and markets like no other. Warsh, if approved by the Senate, will be under close scrutiny from financial markets and Congress given his appointment by a president who has loudly demanded much lower rates than many economists think are justified by economic conditions. Whether he can maintain the Fed's long time independence from day-to-day politics while also placating Trump will be a tremendous challenge. Warsh would replace current chair Jerome Powell when his term expires in May. Trump chose Powell to lead the Fed in 2017 but this year has relentlessly assailed him for not cutting interest rates quickly enough.
Inflation declined a bit last month as prices for gas and used cars fell, a sign that cost pressures are slowly easing. The Labor Department said Tuesday that consumer prices rose 0.3% in December from the prior month, the same as in November. Excluding the volatile food and energy categories, core prices rose 0.2%, also matching November's figure. Even as inflation has eased, the large price increases for necessities such as groceries, rent, and health care have left many American households feeling squeezed, turning "affordability" issues into high-profile political concerns.
The start of a new year usually brings new motivation to achieve goals. Sometimes it involves eating healthier or finally cleaning your basement. But, for many, it can also include goals to pay off credit card debt, save for a new house, or simply get more educated about money. As many start writing their New Year's resolutions, financial goals are also making the list. When building your goals for 2026, experts recommend focusing less on the past and more on an optimistic yet realistic vision for the future.
The Trump administration has agreed to resume student loan forgiveness for an estimated 2.5 million borrowers who are enrolled in certain in certain federal repayment plans following a lawsuit from the American Federation of Teachers. Under the agreement reached Friday between the teachers union and the administration, the Education Department will provide loan forgiveness for those eligible in certain repayment plans that offer lower monthly payments based on a borrower's earnings. The government had stopped providing forgiveness under those plans based on its interpretation of a different court decision.
Most Federal Reserve officials said last month that the threat of higher inflation was a greater concern than the potential for job losses, leading the central bank to keep its key rate unchanged. According to the minutes of the July 29-30 meeting, released Wednesday, members of the Fed's interest-rate setting committee "assessed that the effects of higher tariffs had become more apparent in the prices of some goods but that their overall effects on economic activity and inflation remained to be seen." The minutes underscored the reluctance among the majority of the Fed's 19 policymakers to reduce the central bank's short-term interest rate.
A new poll finds the vast majority of U.S. adults are feeling some stress about the cost of groceries, as prices continue to rise and concerns about the impact of President Donald Trump's tariffs remain widespread. Only 14% say it's not a source of stress, underscoring the pervasive anxiety most Americans continue to feel about the cost of everyday essentials. The Associated Press-NORC Center for Public Affairs Research survey finds about 4 in 10 Americans under age 45 say they've used what are known as "buy now, pay later" services to make small purchases on entertainment or restaurant meals or to pay for essentials like groceries or medical care.
