Money

NY Times -   Recent economic research suggests that high borrowing costs may be one reason for Americans’ dim view of the state of the economy. In surveys, lower-income households remain particularly dour about their financial well-being. ... Affluent households, and even many in the middle class, have largely been insulated from the effects of the Fed’s policies. Many took out long-term mortgages when rates were at rock bottom in 2020 or earlier — if they don’t own their homes outright — and most have little if any variable-rate debt. And they are benefiting from higher returns on their savings. For poorer families, it is different. They are likelier to carry a balance on credit cards, meaning they’re more likely to feel high rates. According to Fed data, about 56 percent of people earning less than $25,000 carried a credit card balance in 2022, compared with 38 percent of those earning more than $100,000. Black Americans, like Ms. Dorsey, and Latinos are also more likely to carry balances.

RBReich - The Biden Admin's rule limiting credit card late fees was set to begin [yesterday]. But a Trump-appointed judge blocked it at the request of the Chamber of Commerce — costing U.S. families an estimated $27 million a day.

Senator Elizabeth Warren - Thanks to hundreds of mergers over the last 50 years, just four grocery chains control -72% of sales in U.S. cities & in grocery categories—like bread, pasta, beef, cereal—4 companies control more than 60% of the market. We need more competition & to crack down on price gouging.

 

David Doney  - Democrats should explain that wages have outgrown inflation, so people are in better shape than pre-pandemic. Net worth too. The constant noise of things that won't address inflation is wasted and helps Trump. Inflation is the Fed's job to handle, and they are on the case.

 

Guardian, UK - The US president, Joe Biden, has announced a 100% tariff on Chinese-made electric vehicles as part of a package of measures designed to protect US manufacturers from cheap imports.In a move that is likely to inflame trade tensions between the world’s two biggest economies, the White House said it was imposing more stringent curbs on Chinese goods worth $18bn. Sources said the move followed a four-year review and was a preventive measure designed to stop cheap subsidized Chinese goods flooding the US market and stifling the growth of the American green technology sector.As well as a tariff increase from 25% to 100% on EVs, levies will rise from 7.5% to 25% on lithium batteries, from zero to 25% on critical minerals, from 25% to 50% on solar cells, and from 25% to 50% on semiconductors. Tariffs on steel, aluminium and personal protective equipment – which range from zero to 7.5% – will rise to 25%