Budget deficit smashes $1 trillion mark, the highest in seven years

The market’s trip to new highs is very different this time, and… Strength in chips and a whole host of other sleeper stocks is a telling sign that the market will make it to new highs. Market Insiderread more


The market’s trip to new highs is very different this time, and… Strength in chips and a whole host of other sleeper stocks is a telling sign that the market will make it to new highs. Market Insiderread more
Budget deficit smashes $1 trillion mark, the highest in seven years Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-09-12  Authors: jeff cox
Keywords: news, cnbc, companies, telling, deficit, sign, smashes, host, markets, market, highsmarket, budget, seven, mark, trip, highest, insiderread, stocks, trillion, sleeper


Budget deficit smashes $1 trillion mark, the highest in seven years

The market’s trip to new highs is very different this time, and…

Strength in chips and a whole host of other sleeper stocks is a telling sign that the market will make it to new highs.

Market Insider

read more


Company: cnbc, Activity: cnbc, Date: 2019-09-12  Authors: jeff cox
Keywords: news, cnbc, companies, telling, deficit, sign, smashes, host, markets, market, highsmarket, budget, seven, mark, trip, highest, insiderread, stocks, trillion, sleeper


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

More than half of parents blew their summer budgets. Here’s where their money went

A new survey from TD Ameritrade finds that 52% of parents with children under 18 spent more than they intended to this summer. If you feel like spending on your kids took a toll on your summer budget, you’re not alone. What’s more, more than half of those parents said the summer is more expensive than the holiday season. One way parents can mitigate summer expenses: working a side gig. The survey found that 18% of parents with children under 18 have another income stream, compared with just 6% o


A new survey from TD Ameritrade finds that 52% of parents with children under 18 spent more than they intended to this summer. If you feel like spending on your kids took a toll on your summer budget, you’re not alone. What’s more, more than half of those parents said the summer is more expensive than the holiday season. One way parents can mitigate summer expenses: working a side gig. The survey found that 18% of parents with children under 18 have another income stream, compared with just 6% o
More than half of parents blew their summer budgets. Here’s where their money went Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-09-05  Authors: lorie konish
Keywords: news, cnbc, companies, kids, luber, family, costs, budget, money, blew, way, half, heres, children, went, summer, budgets, parents


More than half of parents blew their summer budgets. Here's where their money went

A new survey from TD Ameritrade finds that 52% of parents with children under 18 spent more than they intended to this summer.

If you feel like spending on your kids took a toll on your summer budget, you’re not alone.

The average summer debt for those parents is $1,960 this year. That compares with just $563 for parents with adult children. Overall, Americans have an average summer debt of $1,605 this year.

The top reason that parents of children under 18 spent more this year was wanting to treat their family and kids, with 55% of those surveyed. One other cause: Twenty-three percent felt pressured to shell out the money.

What’s more, more than half of those parents said the summer is more expensive than the holiday season.

“Parents realize they have 18 summers with their kids before they head off to college,” said Dara Luber, senior manager of retirement at TD Ameritrade. “It’s all about experiences now and not just buying them things.”

The No. 1 budget killer, according to parents, was the family vacation, which cost an average $2,027.

Coming in second was tutoring or education costs, which totaled $1,207. Third were parent getaways without the kids, which came in at $1,059.

To help mitigate such costs, parents should try to use money-saving strategies, Luber said. For example:

Plan in advance. Think about where you want to go, and include your children in the discussion. Consider whether you want to drive or fly. Identify travel perks or discounts that you may want to use and book ahead of time. “Planning in advance makes it a little more palatable,” Luber said.

Set a budget. Decide what you can afford to do. Also try to pay for those costs in advance. That way, it will be easier to stick to your budget, according to Luber. One strategy she uses is to have her children put change in a jar over the course of the year. Then when they go on vacation, they use that for their spending money.

More from Personal Finance:

There’s also a gender gap when it comes to financial security

Here’s how to avoid some big money mistakes

Own a home in Dorian’s path? How to prepare for claims

Look for deals and economize. If your children like a particular place, such as an amusement park, consider getting a season pass. That way, if your family visits frequently, that offsets the cost per visit, Luber said.

Consider cheaper alternatives. A so-called staycation or trip to a local park could include that quality family time you’re looking for at a fraction of the cost, Luber said.

One way parents can mitigate summer expenses: working a side gig. The survey found that 18% of parents with children under 18 have another income stream, compared with just 6% of parents of adult children.

TD Ameritrade’s online poll was conducted by the Harris Poll in August. It included 1,015 U.S. adults ages 23 and up with at least $10,000 in investable assets.


Company: cnbc, Activity: cnbc, Date: 2019-09-05  Authors: lorie konish
Keywords: news, cnbc, companies, kids, luber, family, costs, budget, money, blew, way, half, heres, children, went, summer, budgets, parents


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Lebanon prime minister promises to cut deficit and push ahead with reforms

BEIRUT — Lebanon’s prime minister pledged to stabilize the country’s economic problems and aim for a budget deficit of around 7% next year. And then, you know, continue on stabilizing this deficit,” he added in the interview aired Wednesday. Hariri also said he was committed to keeping the Lebanese pound’s currency peg to the U.S. dollar. On Monday, Lebanon was on the brink of declaring a state of economic emergency, initiating plans to accelerate reforms in an effort to save the country’s ailin


BEIRUT — Lebanon’s prime minister pledged to stabilize the country’s economic problems and aim for a budget deficit of around 7% next year. And then, you know, continue on stabilizing this deficit,” he added in the interview aired Wednesday. Hariri also said he was committed to keeping the Lebanese pound’s currency peg to the U.S. dollar. On Monday, Lebanon was on the brink of declaring a state of economic emergency, initiating plans to accelerate reforms in an effort to save the country’s ailin
Lebanon prime minister promises to cut deficit and push ahead with reforms Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-09-04  Authors: emma graham
Keywords: news, cnbc, companies, economic, budget, hariri, push, deficit, ahead, minister, promises, problem, prime, keeping, believe, countrys, way, cut, lebanese, reforms, lebanon


Lebanon prime minister promises to cut deficit and push ahead with reforms

BEIRUT — Lebanon’s prime minister pledged to stabilize the country’s economic problems and aim for a budget deficit of around 7% next year.

Speaking to CNBC’s Hadley Gamble in Beirut, Saad Hariri said: “I understand that we have a problem but I am extremely confident that we can get out of this problem if we follow through all the steps we put in front of us.”

“What we are doing is, fixing our debt to GDP (gross domestic product), our deficit and the budget to 7.6% this year, we want to go down to 7% next year, or maybe a little bit less. And then, you know, continue on stabilizing this deficit,” he added in the interview aired Wednesday.

Hariri also said he was committed to keeping the Lebanese pound’s currency peg to the U.S. dollar. “We believe in the government and in the Ministry of Finance (and) also the central bank, we believe that keeping the Lebanese pound at 1,500 is the only way, only stable way to move forward with these reforms.”

On Monday, Lebanon was on the brink of declaring a state of economic emergency, initiating plans to accelerate reforms in an effort to save the country’s ailing economy. Hariri reiterated the importance of reducing the country’s deficit to reporters the same day, following a meeting between his cabinet and other political leaders.


Company: cnbc, Activity: cnbc, Date: 2019-09-04  Authors: emma graham
Keywords: news, cnbc, companies, economic, budget, hariri, push, deficit, ahead, minister, promises, problem, prime, keeping, believe, countrys, way, cut, lebanese, reforms, lebanon


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Here’s how to avoid some big money mistakes

I’ve encountered so many money mistakes along the way — my own and others’ — and realized that, with a little planning and tenacity, they can be overcome. From medical debt and credit problems to overspending and under-investing, these are things many Americans have experienced first-hand. Piles of medical debtThe problem: Medical debt is a common source of bankruptcy-contributing debt, fueled by rising health-care costs, gaps in coverage (or poor insurance coverage) and a lack of understanding


I’ve encountered so many money mistakes along the way — my own and others’ — and realized that, with a little planning and tenacity, they can be overcome. From medical debt and credit problems to overspending and under-investing, these are things many Americans have experienced first-hand. Piles of medical debtThe problem: Medical debt is a common source of bankruptcy-contributing debt, fueled by rising health-care costs, gaps in coverage (or poor insurance coverage) and a lack of understanding
Here’s how to avoid some big money mistakes Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-09-04  Authors: janet alvarez
Keywords: news, cnbc, companies, dont, spending, avoid, big, mistakes, coverage, medical, money, heres, budget, debt, solution, financial


Here's how to avoid some big money mistakes

Geber86 | E+ | Getty Images

Nearly all of us have made our share of poor financial decisions in our lifetimes, but these mistakes are also an opportunity to improve our financial well-being, by teaching us how to make better money choices. I’ve encountered so many money mistakes along the way — my own and others’ — and realized that, with a little planning and tenacity, they can be overcome. From medical debt and credit problems to overspending and under-investing, these are things many Americans have experienced first-hand.

Piles of medical debt

The problem: Medical debt is a common source of bankruptcy-contributing debt, fueled by rising health-care costs, gaps in coverage (or poor insurance coverage) and a lack of understanding of medical debt payment options. Like many Americans, I carried tens of thousands in medical debt at one time, thanks to a lapse in health-care coverage after finishing school and a limited understanding of my medical debt management options. The solution: Making sure you’ve got solid health-care coverage is essential, so seeking a job that provides quality insurance or independently budgeting for coverage is critical. Still, that’s not always possible, and even those of us with good coverage can fall behind on bills due to serious illness. More from Invest in You:

CNBC, Acorns launch #CNBCMoneyMistakes campaign

Take the CNBC + Acorns Money IQ quiz

5 mistakes novice investors should stop making Know that medical debt can nearly always be paid on reasonable installment plans at zero interest, so don’t use credit cards to pay — that just takes the debt interest-bearing. If you have no insurance, ask for a no-insurance price discount — many providers will oblige. Similarly, many hospitals or large medical associations offer financial assistance based on your income and related factors — in many cases (such as mine), financial assistance can erase all or most of your medical debt.

Failing to budget

The problem: Whether you simply don’t have a budget, or you blow yours off with unnecessary extravagances, failing to stick to a budget is one of the most common (and fixable) money mistakes. It’s also one of the most problematic, since budgeting is at the heart of all solid personal financial plans. The solution: If you don’t yet have a budget, there is never a better time than now to set aside time to create a realistic and workable one. The key is to be realistic, which means not only being honest with yourself about your income and expenses, but also being frank regarding your spending priorities and how you’ve historically chosen to spend money. CHECK OUT: CNBC and Acorns launch #CNBCMoneyMistakes social media campaign That’s where tracking your spending comes into play. First, you need to assess what you’ve been spending, and only then can you determine when and how to cut. Budgeting is less successful when you create specific spending categories and limits without understanding how much you typically spend in those areas, and whether the budget to which you aspire can be reasonably met. Asking someone who eats out every night to suddenly cut their dining budget down to $200 per month, for example, might be a recipe for disaster. That leads us to a second point: Extravagances and spending beyond your budget can also be a function of cutting too much all at once. If your budget leaves you feeling deprived, or if you’re frequently making impulse buys, it’s time to assess what’s really behind those expensive choices that exceed your budget. Are they stress-driven? Or, do you really not know how much discretionary income you have at any time? The solution differs based on the root cause.

Not planning ahead

The problem: Failing to plan ahead can take many forms — ranging from not having a will or life insurance if you’re a parent, to not planning for retirement or for any upcoming lifestyle changes, such as having a new baby or switching careers. The solution: It’s all too easy to fall into a complacent lull if your life is running fairly smoothly and, when that happens, even the savviest among us can fail to plan for the inevitable changes that affect us all. Common money mistakes emerge from not appreciating the changes that may come, and acting accordingly. Take stock of where you are now: Do you have kids, or other dependents? Who will provide for them — or you — if you can no longer work? Are you planning to downsize, switch careers, have kids or retire early? All of these questions can help you plan forward for your needs, and avoid common mistakes, such as being under-insured, not having a will or other legacy instruments, or creating alternative budgets for new circumstances.

Under-saving/under-investing

The problem: A whopping 78% of Americans live paycheck-to-paycheck, and many don’t even have access to a $400 emergency fund, let alone any investments. But even those Americans who don’t fall into these categories often fail to meet recommended savings and investment targets, and are at risk of under-funding their lifestyle and retirement goals. The solution: There are three basic categories of reasons why we don’t save or invest enough: First, we might not earn enough. Second, we might earn enough, but choose to overspend on other things. Or third, we might not know enough about investing or feel confident in our abilities to do so well. If your issue is in the first, consider ways to increase your income, since every dollar you earn beyond your living expenses can be used toward savings. Check for employer-sponsored plans, such as matching 401(k) plans or holiday bonuses.

Even the most successful investors had to learn the basics at one time, just like you. Janet Alvarez consumer advocate and executive editor of Wise Bread

Consider using your annual tax refund as your emergency fund savings. For those facing the second category, budgeting is key, but so are all the suggestions mentioned for the first category. All too often, however, the real impediment for many middle-class Americans is the third issue: They don’t feel confident investing. Recognize that you’re not alone, and that even the most successful investors had to learn the basics at one time, just like you. And statistics show that being somewhat risk-averse can actually improve your return over time. Start slow, with lower-fee and relatively diversified investments such as target-date retirement funds in your 401(k) or low-cost index exchange traded funds. Seek out financial education online or in your community. And automate your savings and investments through auto-withdrawal programs from your bank, employer or apps such as Acorns.

Credit card headaches

fizkes | iStock | Getty Images


Company: cnbc, Activity: cnbc, Date: 2019-09-04  Authors: janet alvarez
Keywords: news, cnbc, companies, dont, spending, avoid, big, mistakes, coverage, medical, money, heres, budget, debt, solution, financial


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Self-made millionaire: 6 biggest money lies young people need to stop telling themselves

The first step is to acknowledge some of the biggest money lies young people tell themselves:1. Most people, especially the young ones who are just entering the workforce, don’t need to focus on passive income. (More on how to create a Conscious Spending Plan here.) You friends are either highly skilled practitioners of Conscious Spending — or have absolutely no clue how to manage their money. Solution: Refocus your financial aspirations and strive to become like people who make conscious money


The first step is to acknowledge some of the biggest money lies young people tell themselves:1. Most people, especially the young ones who are just entering the workforce, don’t need to focus on passive income. (More on how to create a Conscious Spending Plan here.) You friends are either highly skilled practitioners of Conscious Spending — or have absolutely no clue how to manage their money. Solution: Refocus your financial aspirations and strive to become like people who make conscious money
Self-made millionaire: 6 biggest money lies young people need to stop telling themselves Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-23  Authors: ramit sethi
Keywords: news, cnbc, companies, millionaire, young, lies, budget, money, youre, conscious, spending, solution, biggest, stop, dont, telling, need, income, selfmade, start


Self-made millionaire: 6 biggest money lies young people need to stop telling themselves

People have lots of reasons for not managing their money properly. A few of those reasons are valid, but most are just poorly veiled excuses for being lazy and not wanting to spend 10 minutes on research. I’ve heard some blame the education system for not teaching them about money. It’s easy for people in their 20s to wish that their colleges had offered some personal finance training. But guess what? Most colleges do. You just didn’t take them! The harsh truth is that you’re not victims. You’re in control of your own finances — and the sooner you internalize that, the sooner you can start to go on the offense. The first step is to acknowledge some of the biggest money lies young people tell themselves:

1. “I need to focus on making passive income.”

To many millennials, passive income sounds like a dream. They hear about some guy who took a three-week vacation — while still continuing to earn money — and then say, “I can’t do that!” What they don’t see, however, is the amount of time and work it took to get there. Most people, especially the young ones who are just entering the workforce, don’t need to focus on passive income. Instead, they should be putting more effort into improving their active incomes — by focusing on their careers. They can do this by sharpening their work skills, solving more problems for their bosses and basically out-hustling their co-workers. A lot of people hate hearing this because it means that instead of fantasizing about earning a passive income of $500 a day, they actually have do some real work at their jobs. I’ve also seen people who are hard workers, but are too afraid to ask for a salary increase because their “company doesn’t have the funds” or because “economy is bad.” Why? Because it’s easier: If we accept a force that we believe is out of our control (like a “bad economy”) in dictating whether or not we get a get a raise, we feel less pressure to put in the effort. Solution: Put in the hours and get better at your job so you can earn more money. If getting a raise isn’t an option, find another job and negotiate a higher salary.

2. “If I just try harder, I can save more money.”

We all know we need to save money, the same way we know we need to exercise more, eat healthier and call our families regularly. But there are serious barriers to doing all these things. Simply “trying harder” won’t help you succeed (there are even studies that will tell you the same thing). Trying to save money by buying the cheaper item isn’t enough. Trying to cut back on buying lattes won’t help, either. In order to see results, you need to actually sit down and have a conversation with yourself about what needs to be done, step-by-step. Take a look at your finances and ask yourself: What are you trying to do that takes a lot of effort, but for little gain? What’s not working no matter how hard you try? How can you make things easier for yourself? Solution: Automate your finances so you’re not dependent on your willpower.

3. “I’m going to start keeping a budget.”

Most of us, at some point in our lives, will get motivated and decide: “Yes! I’m going to start keeping a budget!” Creating a budget to cut down on your expenses is the sort of worthless advice that personal finance experts feel good prescribing to millennials. But the few people who actually attempt to budget completely fail after a few days because they eventually realize that it’s really difficult (and overwhelming) to track every penny they spend. Also, more often than not, it doesn’t work because a budget tracks what you’ve already spent, and so when you look back at the end of the month, you feel horrible and guilty after realizing that you overspent. Budgets offer no forward-looking information.

Creating a budget to cut down on your expenses is the sort of worthless advice that personal finance experts feel good prescribing.

Instead of keeping a budget, I recommend creating what I call a “Conscious Spending Plan,” a strategy that forces you to look to the future while also allowing you to spend extravagantly on the things you love — as long as you cut costs mercilessly on the things you don’t love. Solution: Create a Conscious Spending Plan by splitting up your income into four categories: Fixed costs: Rent, groceries, student loans, utilities, etc. (50% to 60% of your income) Long-term investments: 401(k), Roth IRA, etc. (10% of your income) Savings goals: Holiday gifts, vacations, down payment on a home, etc. (5% to 10% of your income) Guilt-free spending: Dining out, movies, shopping, etc. (20% to 35% of your income) By allocating your money this way, you can make sure you have enough to pay off all your responsibilities first. Then, any money left over can go towards your savings goals and everyday spending. The guilt-free spending category allows you to buy what you want while knowing that your most important expenses are taken care of. (More on how to create a Conscious Spending Plan here.)

4. “My friends earns less than me, yet they’re still able to go on four vacations every year!”

You friends are either highly skilled practitioners of Conscious Spending — or have absolutely no clue how to manage their money. Think back to when you were a kid: How many times did you hear one of your parents ask the other: “Why can’t we go on vacations the way our neighbor does?” — without actually understanding how their neighbor’s spending breaks down. Chances are they’re not conscious spenders, but rather over-spenders. Put another way, would you ask your friend who failed his English 101 class for grammar lessons? Hopefully not. So why would you look at your ordinary friends — who make ordinary money decisions and end up with ordinary results (a.k.a. not having enough money) — as role models? Solution: Refocus your financial aspirations and strive to become like people who make conscious money decisions. Don’t follow the examples of those who show off by spending more than they have. If you suspect they can’t afford it, they probably can’t.

5. “I’m going to start investing.”

Ask any of your friends how much they’ve invested in stocks, and most of them will probably say they “don’t earn enough money” or “don’t have enough expertise” to do it. According to a recent Gallup poll, only 37% of young Americans ages 35 and under said they owned stocks between 2017 and 2018, compared to the 61% of people over the age of 35 did own stocks. Opening an investment account gives you access to the biggest money-making vehicle in the history of the world — and you don’t have to be rich to do it. Many account providers will waive minimums (the amount required to open an account) if you set up an automatic monthly transfer. So many people say they’re “going to start investing,” and then end up not doing it. Why? Because they don’t think they’re capable of understanding the basics and don’t want to risk losing their hard-earned money. But for every day that you don’t invest, you’re losing money due to inflation — and you’ll never realize this until you’re in your 70s, at which point it’ll be too late. Solution: Any new topic is overwhelming (i.e., diets, workout regimens, parenting). The answer isn’t to avoid it — it’s to pick a source of information to learn from and then actually start investing.

6. “Wanting to ‘get rich’ is bad.”


Company: cnbc, Activity: cnbc, Date: 2019-08-23  Authors: ramit sethi
Keywords: news, cnbc, companies, millionaire, young, lies, budget, money, youre, conscious, spending, solution, biggest, stop, dont, telling, need, income, selfmade, start


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

CBO expects deficit to grow more than projected, warns that tariff hikes could harm growth

Federal deficits are expected to swell to higher levels over the next decade than previously expected, the nonpartisan Congressional Budget Office said in a new report Wednesday. The CBO also said that President Donald Trump’s tariffs are projected to shrink gross domestic product by 2020, and warned that further tariff hikes could stifle economic growth. The new deficit projection for 2019 rose $63 billion from the last report, which came out in May. “The nation’s fiscal outlook is challenging,


Federal deficits are expected to swell to higher levels over the next decade than previously expected, the nonpartisan Congressional Budget Office said in a new report Wednesday. The CBO also said that President Donald Trump’s tariffs are projected to shrink gross domestic product by 2020, and warned that further tariff hikes could stifle economic growth. The new deficit projection for 2019 rose $63 billion from the last report, which came out in May. “The nation’s fiscal outlook is challenging,
CBO expects deficit to grow more than projected, warns that tariff hikes could harm growth Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-21  Authors: kevin breuninger ylan mui, kevin breuninger, ylan mui
Keywords: news, cnbc, companies, hikes, higher, growth, cbo, warns, federal, grow, report, deficit, expects, budget, outlook, expected, tariff, projected, economic, harm


CBO expects deficit to grow more than projected, warns that tariff hikes could harm growth

Federal deficits are expected to swell to higher levels over the next decade than previously expected, the nonpartisan Congressional Budget Office said in a new report Wednesday.

The CBO also said that President Donald Trump’s tariffs are projected to shrink gross domestic product by 2020, and warned that further tariff hikes could stifle economic growth.

The U.S. budget deficit is expected to hit $960 billion in 2019, and average a whopping $1.2 trillion per year between 2020 and 2029, according to the CBO’s look-ahead at the U.S.’ budget and economic outlook over the next decade.

The new deficit projection for 2019 rose $63 billion from the last report, which came out in May. The CBO says this is mainly because of the massive new budget deal, which passed both houses of Congress and was signed into law by Trump on Aug. 2.

“The nation’s fiscal outlook is challenging,” CBO director Phillip Swagel said in the report. “Federal debt, which is already high by historical standards, is on an unsustainable course.”

Swagel said that the debt is projected to rise even higher after 2029, due to the aging of the U.S. population, growth in health care spending and rising interest costs.

The White House did not immediately respond to CNBC’s request for comment on the new CBO report.


Company: cnbc, Activity: cnbc, Date: 2019-08-21  Authors: kevin breuninger ylan mui, kevin breuninger, ylan mui
Keywords: news, cnbc, companies, hikes, higher, growth, cbo, warns, federal, grow, report, deficit, expects, budget, outlook, expected, tariff, projected, economic, harm


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Trump’s tariffs on Chinese products might impact your Christmas shopping budget after all

The Trump administration announced on Aug. 1, that it planned to levy tariffs of 10% on over $300 billion of Chinese imports. The product on the shelf may not come directly from China, but Chinese companies supply ingredients used to create many food items. Consumers with lower incomes tend to shop at budget retailers such as dollar stores and big box chains — which source a lot of products from China. As you get closer to Christmas, these latest tariffs on Chinese goods are likely going to “bit


The Trump administration announced on Aug. 1, that it planned to levy tariffs of 10% on over $300 billion of Chinese imports. The product on the shelf may not come directly from China, but Chinese companies supply ingredients used to create many food items. Consumers with lower incomes tend to shop at budget retailers such as dollar stores and big box chains — which source a lot of products from China. As you get closer to Christmas, these latest tariffs on Chinese goods are likely going to “bit
Trump’s tariffs on Chinese products might impact your Christmas shopping budget after all Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-21  Authors: megan leonhardt
Keywords: news, cnbc, companies, goods, tariffs, chinese, items, impact, holiday, trump, china, shopping, trumps, christmas, administration, budget, product, products


Trump's tariffs on Chinese products might impact your Christmas shopping budget after all

With Trump’s trade war with China set to start impacting consumer goods in early September, experts say it may pay to start your holiday shopping earlier than usual this year. The Trump administration announced on Aug. 1, that it planned to levy tariffs of 10% on over $300 billion of Chinese imports. However, a little more than a week later, the administration changed course, delaying tariffs on electronics such as smartphones, video game consoles, as well as some clothing and toys, until December. “We’re doing this for the Christmas season,” President Donald Trump told reporters on Aug. 13. “Just in case some of the tariffs would have an impact on U.S. customers.” Tariffs are taxes are paid by the importer, not the country exporting the product. The Trump administration has introduced the tariffs in an effort to bring China to the negotiation table after claiming the country has unfair trade practices that hurt U.S. manufacturing. But many times, it’s the consumer who’s stuck paying a higher price for a product — an issue that President Trump tacitly acknowledged when his administration decided to delay the tariffs on popular holiday gift items. Once a tariff is imposed, businesses have a few options. They can pass on the tax to consumers by charging higher prices, they can eat the difference to stay competitive or they can push back on the supplier to lower the base cost of the product to account for the new taxes. In some cases, companies may even switch to a non-Chinese supplier.

What items could see price hikes

While some electronics and toys may be spared for now, the list of goods that will be impacted by the Sep. 1 tariffs still spans 122 pages and ranges from everyday grocery items like milk and tomatoes to household staples like diapers and soap, and even products like alarm clocks and sports equipment (and yes, that includes skis). With such a wide range of products in play and uncertainty around how retailers will respond, it’s hard to predict exactly how much these tariffs will affect the everyday shopper. Yet the two areas where you will most likely see price increases are on clothing and footwear, says William Reinsch, senior advisor at the Center for Strategic and International Studies and contributor to The Trade Guys podcast. Last year, over 40% of all clothing and almost 70% of the footwear sold in the U.S. was imported from China, according to the American Apparel & Footwear Association. And while Trump says the delay of some tariffs is meant to protect holiday shoppers, the Association says many common Christmas items and decor still fall under the September round of tariffs, including holiday stockings. Another area that may take a hit is your grocery budget. A “considerable amount” of the food we buy at supermarkets, for example, is connected to Chinese suppliers, says Phil Lempert, a food industry analyst and editor of SupermarketGuru. The product on the shelf may not come directly from China, but Chinese companies supply ingredients used to create many food items.

The effect on consumers

JP Morgan analysts estimate the direct and indirect effect of tariffs could end up costing American families an average of $1,000 this year. That’s up from the $600 additional costs financial analysts previously predicted would hit Americans after the White House upped the tariff rate on non-consumer goods to 25% in May. While the administration could provide farmers and the agricultural industry subsidies to offset the tariffs levied earlier this year, “there is no simple way to compensate consumers,” Dubravko Lakos-Bujas, JP Morgan’s head of U.S. equity strategy, wrote in a note to clients. “The people who will be hit the hardest [by the tariffs] are poor people,” Reinsch tells CNBC Make It. Consumers with lower incomes tend to shop at budget retailers such as dollar stores and big box chains — which source a lot of products from China. And simply avoiding products with labels saying ‘Made in China’ may not help, since many items on the shelves have ingredients or parts that originated in China, even if the final product was manufactured elsewhere. It will, however, take a while for the full effect of the tariffs to kick in, Reinsch says. That’s because many of the products that will be on shelves in September and October are already in the U.S. “On Sept. 2, if you go shopping, you may not notice a big difference unless the retailer decides to take advantage of the situation and raise prices prematurely and blame it on Trump,” he says. As you get closer to Christmas, these latest tariffs on Chinese goods are likely going to “bite more,” he adds, saying budget-conscious shoppers may want to start some of their holiday shopping early to avoid paying a premium. Don’t miss: Trump increased tariffs on more Chinese products to 25%—here’s what could get more expensive Like this story? Subscribe to CNBC Make It on YouTube!


Company: cnbc, Activity: cnbc, Date: 2019-08-21  Authors: megan leonhardt
Keywords: news, cnbc, companies, goods, tariffs, chinese, items, impact, holiday, trump, china, shopping, trumps, christmas, administration, budget, product, products


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

A $1 trillion US budget deficit is one big reason the Fed may have to cut rates

With all that in mind, the Fed could have no choice but to lower rates, unless it wants to go back to buying Treasurys itself. The supply of debt coming to market will lead to “acute funding stresses,” Credit Suisse managing director Zoltan Pozsar said in a note. “The curve remains deeply inverted relative to actual funding costs that matter; dealer inventories are at a record; and banks that fund dealer inventories are at their intraday liquidity limits,” he added. Markets already expect the Fe


With all that in mind, the Fed could have no choice but to lower rates, unless it wants to go back to buying Treasurys itself. The supply of debt coming to market will lead to “acute funding stresses,” Credit Suisse managing director Zoltan Pozsar said in a note. “The curve remains deeply inverted relative to actual funding costs that matter; dealer inventories are at a record; and banks that fund dealer inventories are at their intraday liquidity limits,” he added. Markets already expect the Fe
A $1 trillion US budget deficit is one big reason the Fed may have to cut rates Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-13  Authors: jeff cox
Keywords: news, cnbc, companies, dealer, trillion, funding, rate, big, cut, fed, debt, curve, rates, deficit, inventories, stresses, yield, budget, reason


A $1 trillion US budget deficit is one big reason the Fed may have to cut rates

If low inflation, a wobbly economy and tariff jitters weren’t enough to push the Federal Reserve to lower interest rates, there’s also the simple reason of the swelling national debt. The recent debt deal struck between the White House and Congress virtually guarantees trillion-dollar deficits well into the future as well as continued acceleration of the government’s collective IOU, which is now at $22.3 trillion. Trying to finance all that red ink is going to be tricky. Investors will need to be willing to sop up all that paper and may want a little extra yield for doing so.

With all that in mind, the Fed could have no choice but to lower rates, unless it wants to go back to buying Treasurys itself. The supply of debt coming to market will lead to “acute funding stresses,” Credit Suisse managing director Zoltan Pozsar said in a note. He called the situation a “‘fiscal dominance’ of money markets” and warned of the consequences of an inverted yield curve, where the fed funds rate sits well above the benchmark 10-year Treasury note yield. “Absent a technical bazooka, stresses will leave one option left: more rate cuts,” he said. Reductions in the benchmark overnight funds rate will need to be “aggressive enough to re-steepen the Treasury curve such that dealer inventories can clear and inventories don’t drive funding market stresses.” “The curve remains deeply inverted relative to actual funding costs that matter; dealer inventories are at a record; and banks that fund dealer inventories are at their intraday liquidity limits,” he added. “Supply won’t be well received given the inversion.” Markets already expect the Fed to cut rates after July’s 25 basis point reduction, the first time that had been done in nearly 11 years. Popular reasons for the cut are concerns that the global economic slowdown will infect the U.S., the persistently low inflation that policymakers fear has held back living standards, and the ongoing tariff war with China. What seldom gets mentioned is just how much pressure the government debt situation exerts, particularly with the Fed deciding to exit the bond market.

The taxpayers’ tab


Company: cnbc, Activity: cnbc, Date: 2019-08-13  Authors: jeff cox
Keywords: news, cnbc, companies, dealer, trillion, funding, rate, big, cut, fed, debt, curve, rates, deficit, inventories, stresses, yield, budget, reason


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post