Fed unsure of the Trump effect
Written notes from the central bank’s January/February meeting indicate that many Fed members are still undecided about the effect of President Trump’s economic agenda. Of particular interest is fiscal stimulus, and whether it will happen at all, reported Business Insider. While some members noted that the president’s proposed $550 billion infrastructure plan and other stimulus moves could be a boon to economic growth, other members were concerned about the ultimate impact. While the Fed debated the outcome of the possible policies, they noted that the promise of a fiscal stimulus had been a contributor to the all-time highs in the stock market.
More jewelry trouble for Ivanka
USA Today reported that Ivanka Trump’s jewelry company owes $5,213.91 in unpaid sales taxes, according to New York State’s tax department. The New York Department of Taxation and Finance filed a tax warrant on Jan. 27 against Madison Avenue Diamonds LLC, a company created in 2005 that does business as Ivanka Trump Fine Jewelry. This latest setback comes at a time when the first daughter is dealing with issues such as a copyright infringement lawsuit and Nordstrom dropping her fashion line due to slumping sales.
Home sales hit 10-year high
Reuters reported that U.S. home resales surged to a 10-year high in January as buyers seemed to shrug off higher prices and mortgage rates, signaling rising confidence in the economy. The National Association of Realtors’ report on Wednesday came as the labor market is nearing full employment and investors wait for the Trump administration to act on its campaign promises to cut taxes, increase fiscal spending and reduce regulations. Existing home sales jumped 3.3 percent to a seasonally adjusted annual rate of 5.69 million units in January, the highest level since 2007. Last month’s leap outpaced economists’ expectations for a 1.1 percent rise.
McDonald’s slashes soda prices
McDonald’s Corp., which is reeling from an industrywide restaurant slump and slowing profits from its all-day breakfast push, is looking to beverages to help pick up its business, reports Bloomberg. The world’s largest food-service company plans to offer $1 sodas and $2 McCafé specialty drinks across the U.S. The strategy hopes to create “noticeable changes” for customers and their wallets, said Adam Salgado, vice president of U.S. marketing.