White House says it will meet two-year deadline to ban business with Huawei contractors

The White House Office of Management and Budget has told the U.S. Congress it will now meet a two-year deadline to ban federal contracts with companies that do business with Chinese telecom giant Huawei, part of a defense law passed last year, according to a letter seen by Reuters. Last week the OMB had said it would need more time to implement the ban, which requires third-party suppliers and contractors to restrict their purchases and use of Huawei equipment. But the White House reversed cours


The White House Office of Management and Budget has told the U.S. Congress it will now meet a two-year deadline to ban federal contracts with companies that do business with Chinese telecom giant Huawei, part of a defense law passed last year, according to a letter seen by Reuters. Last week the OMB had said it would need more time to implement the ban, which requires third-party suppliers and contractors to restrict their purchases and use of Huawei equipment. But the White House reversed cours
White House says it will meet two-year deadline to ban business with Huawei contractors Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-06-13
Keywords: news, cnbc, companies, federal, vought, twoyear, congress, services, law, deadline, ban, meet, letter, defense, house, huawei, business, contractors, white


White House says it will meet two-year deadline to ban business with Huawei contractors

The White House Office of Management and Budget has told the U.S. Congress it will now meet a two-year deadline to ban federal contracts with companies that do business with Chinese telecom giant Huawei, part of a defense law passed last year, according to a letter seen by Reuters.

“Congress has made it clear in recent days the importance of implementing the law within the two years provided, and we will,” Russ Vought, the acting director of OMB, said in a letter to Senator James Inhofe, chairman of the Senate Armed Services Committee.

Last week the OMB had said it would need more time to implement the ban, which requires third-party suppliers and contractors to restrict their purchases and use of Huawei equipment.

But the White House reversed course after “recent conversations with Congress,” Vought said in the letter dated Wednesday.

“As we move forward to meet the statutory deadline without further delay, we will work with Congress to address any unforeseen issues that arise,” Vought said.

The ban is one part of a multifaceted U.S. push against Huawei Technologies, the world’s largest telecoms network gear maker, which Washington accuses of espionage and stealing intellectual property.

Huawei has repeatedly denied it is controlled by the Chinese government, military or intelligence services. It has filed a lawsuit against the U.S. government over the restrictions in the defense policy bill.

The defense law, called the National Defense Authorization Act (NDAA), placed a broad ban on the use of federal money to purchase products from Huawei, citing national security concerns.

It included a ban on direct federal purchases of Huawei equipment, which will take effect this year.


Company: cnbc, Activity: cnbc, Date: 2019-06-13
Keywords: news, cnbc, companies, federal, vought, twoyear, congress, services, law, deadline, ban, meet, letter, defense, house, huawei, business, contractors, white


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Trump aide Kellyanne Conway should be removed from the government for repeated violations of the Hatch Act, federal agency recommends

Kellyanne Conway, senior advisor to U.S. President Donald Trump, prepares for a television interview outside the White House in Washington, D.C.President Donald Trump’s senior counselor Kellyanne Conway should be removed from the federal government for repeatedly violating a law that bars executive branch employees from using their official position for political purposes, the government agency charged with enforcing that law said Thursday. In a letter and accompanying report sent to the preside


Kellyanne Conway, senior advisor to U.S. President Donald Trump, prepares for a television interview outside the White House in Washington, D.C.President Donald Trump’s senior counselor Kellyanne Conway should be removed from the federal government for repeatedly violating a law that bars executive branch employees from using their official position for political purposes, the government agency charged with enforcing that law said Thursday. In a letter and accompanying report sent to the preside
Trump aide Kellyanne Conway should be removed from the government for repeated violations of the Hatch Act, federal agency recommends Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-06-13  Authors: tucker higgins
Keywords: news, cnbc, companies, senior, conway, violations, wrote, president, law, agency, kellyanne, removed, aide, recommends, hatch, repeatedly, federal, trump, repeated, special


Trump aide Kellyanne Conway should be removed from the government for repeated violations of the Hatch Act, federal agency recommends

Kellyanne Conway, senior advisor to U.S. President Donald Trump, prepares for a television interview outside the White House in Washington, D.C.

President Donald Trump’s senior counselor Kellyanne Conway should be removed from the federal government for repeatedly violating a law that bars executive branch employees from using their official position for political purposes, the government agency charged with enforcing that law said Thursday.

In a letter and accompanying report sent to the president, the Office of Special Counsel wrote that Conway was a “repeat offender” whose “multiple violations of the law would almost certainly result in removal from her federal position” if she were any other federal employee.

The agency, which is distinct from the Justice Department special counsel’s office, wrote that Conway violated the early 20th century law, known as the Hatch Act, and “ridiculed its enforcement.” Conway repeatedly disparaged Democratic presidential candidates while speaking in her official capacity, the agency said.

WATCH: Federal investigators say Kellyanne Conway violates Hatch Act in TV interviews (2018)


Company: cnbc, Activity: cnbc, Date: 2019-06-13  Authors: tucker higgins
Keywords: news, cnbc, companies, senior, conway, violations, wrote, president, law, agency, kellyanne, removed, aide, recommends, hatch, repeatedly, federal, trump, repeated, special


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States ramp up pressure on federal regulators to rein in Big Tech

States are turning up the pressure on federal regulators to police the biggest tech companies and give consumers more control over their personal data. Attorneys general in several states have already opened or are preparing investigations into Facebook, Apple and Google over concerns about privacy and anti-competitive practices. The letter was signed by 39 states, along with the District of Columbia, Guam and Puerto Rico. The House Judiciary Committee kicked off a broad investigation into the d


States are turning up the pressure on federal regulators to police the biggest tech companies and give consumers more control over their personal data. Attorneys general in several states have already opened or are preparing investigations into Facebook, Apple and Google over concerns about privacy and anti-competitive practices. The letter was signed by 39 states, along with the District of Columbia, Guam and Puerto Rico. The House Judiciary Committee kicked off a broad investigation into the d
States ramp up pressure on federal regulators to rein in Big Tech Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-06-12  Authors: ylan mui karen james sloan mary catherine wellons, ylan mui, karen james sloan, mary catherine wellons
Keywords: news, cnbc, companies, pressure, states, regulators, big, google, rein, tech, antitrust, companies, general, letter, justice, federal, ramp


States ramp up pressure on federal regulators to rein in Big Tech

States are turning up the pressure on federal regulators to police the biggest tech companies and give consumers more control over their personal data.

Attorneys general in several states have already opened or are preparing investigations into Facebook, Apple and Google over concerns about privacy and anti-competitive practices. They lobbied the Justice Department to take action last fall, and on Wednesday, they are meeting with the Federal Trade Commission in Nebraska to discuss antitrust enforcement.

In a letter to the agency sent Tuesday night, the AGs called for tougher reporting requirements for tech acquisitions and a new clearinghouse for data brokers. The letter was signed by 39 states, along with the District of Columbia, Guam and Puerto Rico.

“Each one of those companies, individually, needs to be looked at and overlaid against our consumer protection and antitrust laws to determine whether or not the activity each one is engaged in would render a breakup or not,” Louisiana Attorney General Jeff Landry, who heads the National Association of Attorneys General, told CNBC. “Whenever nascent industries come about, and they gain economic power and they gain monopolistic control over that market, we’ve seen our government come in and break those particular companies up.”

Washington is starting to take notice. The House Judiciary Committee kicked off a broad investigation into the dominance of the tech giants this week. Federal regulators have open inquiries into Facebook, Google, Apple and Amazon, according to a person familiar with the probes. And the Justice Department’s top antitrust official is pushing back against criticism that the agency has been slow to respond to a rapidly changing industry.

“The antitrust division will not shrink from the critical work of investigating and challenging anticompetitive conduct and transactions where justified,” Assistant Attorney General Makan Delrahim said in a speech Tuesday in Israel.


Company: cnbc, Activity: cnbc, Date: 2019-06-12  Authors: ylan mui karen james sloan mary catherine wellons, ylan mui, karen james sloan, mary catherine wellons
Keywords: news, cnbc, companies, pressure, states, regulators, big, google, rein, tech, antitrust, companies, general, letter, justice, federal, ramp


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Feds block tax breaks for donating to these charitable state funds

designer491 | iStock | Getty ImagesIn turn, those taxpayers could then write off the payment as a charitable deduction on their federal income tax return. For instance, if you received an 85% state tax credit for making your donation, you would only be able to claim 15% of your contribution on your federal tax return. More from Personal Finance:What you should know about new IRS tax withholding form’Jeopardy!’ Slowing donationsFor example, the Alabama Opportunity Scholarship Fund offers a total


designer491 | iStock | Getty ImagesIn turn, those taxpayers could then write off the payment as a charitable deduction on their federal income tax return. For instance, if you received an 85% state tax credit for making your donation, you would only be able to claim 15% of your contribution on your federal tax return. More from Personal Finance:What you should know about new IRS tax withholding form’Jeopardy!’ Slowing donationsFor example, the Alabama Opportunity Scholarship Fund offers a total
Feds block tax breaks for donating to these charitable state funds Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-06-12  Authors: darla mercado
Keywords: news, cnbc, companies, final, funds, donating, return, feds, block, irs, treasury, tax, state, date, contribution, federal, charitable, breaks


Feds block tax breaks for donating to these charitable state funds

The Internal Revenue Service and the Treasury Department have issued final rules blocking certain states’ attempts to work around the new $10,000 cap for state and local tax deductions. After the Tax Cuts and Jobs Act in 2017 imposed a $10,000 limit on state and local tax deductions that itemizers could claim on their federal return, New York, New Jersey and Connecticut responded with a workaround. Those states passed legislation that would allow municipalities to create charitable funds to pay for local services and offer property tax credits to incentivize homeowners to give.

designer491 | iStock | Getty Images

In turn, those taxpayers could then write off the payment as a charitable deduction on their federal income tax return. The IRS and Treasury barred this move in their final rule, saying that receipt of a state or local tax credit in return for making such a contribution would constitute a “quid pro quo.” The net effect is to reduce the federal deduction a taxpayer can claim for the charitable contribution. For instance, if you received an 85% state tax credit for making your donation, you would only be able to claim 15% of your contribution on your federal tax return. The new rule also has a chilling effect on pre-existing plans in other states, where residents have received tax credits for donating to school voucher programs. More from Personal Finance:

What you should know about new IRS tax withholding form

‘Jeopardy!’ winner likely owes $1.2 million in taxes

This tax strategy for massive IRAs is on its way out There are more than 100 existing state charitable tax-credit plans in 33 states, a research paper authored by a group of tax law professors found. These programs range from conservation easements to private school tuition scholarships. “The private school organizations were asking for full-scale carveouts for themselves; they wanted to be exempt if the program was designed to benefit private entities instead of public ones,” said Carl Davis, research director at the Institute on Taxation and Economic Policy. “The IRS stuck to its guns with a broad regulation that treats donations to all these entities the same way,” he said.

Slowing donations

For example, the Alabama Opportunity Scholarship Fund offers a total of $30 million in state tax credits each year. Individuals may donate the equivalent of up to 50% of their state income tax liability, up to $50,000. Alabamans get back a dollar-for-dollar tax credit on their state return. Ambiguity around the federal tax treatment of these donations has led to a slowdown in giving since the 2019 funding cycle started on Jan. 1, according to Lesley Searcy, executive director of the Alabama Opportunity Scholarship Fund.

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Taxpayers who give to the Exceptional SC program in South Carolina, a scholarship fund for children with exceptional needs, have also been hesitant this year, said Chad Connelly, executive director of that program. South Carolinians who give to the program can claim a dollar-for-dollar credit on their state income tax , up to 60 percent of their tax liability for that year. Whether the final rule will ultimately deter people from donating to these funds remains to be seen. “If you’re really passionate about private school vouchers in Georgia, you donate and you still get 100% of your donation back,” said Davis. “You just won’t get a federal tax deduction on top of it.”

A fight with the IRS

The IRS and Treasury proposed this rule last year, giving it an effective date of Aug. 27, 2018. If you made a contribution to a state fund after that date and then claimed it on your 2018 federal tax return as a charitable donation, you’re risking a showdown with the IRS, said Daniel Rosen, partner in the North America Tax Practice Group at Baker & McKenzie. “If the final regulations are issued with the retroactive date of Aug. 27, 2018, you’ll have to report on your return that you’re taking a position that’s inconsistent with the regulation,” he said. “You’ve bought yourself a fight,” Rosen said.

Certainly losing a federal benefit is significant to anyone looking to make a contribution to a state charitable fund. Daniel Rosen partner at Baker & McKenzie

Though some commenters asked Treasury and the IRS to push back the effective date to 2019 or 2020, the agencies stuck with the original Aug. 27, 2018 date. “If the proposed applicability date had not been contemporaneous with the proposed regulations, the Treasury Department and the IRS believe that taxpayers would have engaged in significant tax planning in advance of the regulations being finalized, resulting in a significant loss of revenue,” the agencies said in the final regulation.


Company: cnbc, Activity: cnbc, Date: 2019-06-12  Authors: darla mercado
Keywords: news, cnbc, companies, final, funds, donating, return, feds, block, irs, treasury, tax, state, date, contribution, federal, charitable, breaks


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Trump says ‘devalued’ currencies put US at a disadvantage and the Fed doesn’t have a ‘clue’

President Donald Trump, left, and Jerome Powell, the new chairman of the Federal Reserve on Thursday, Nov. 2, 2017. President Donald Trump said Tuesday that the U.S. dollar is at a disadvantage compared with other major currencies like the euro as central banks keep interest rates low while the Federal Reserve’s rates are higher by comparison. “The Euro and other currencies are devalued against the dollar, putting the U.S. at a big disadvantage,” Trump tweeted, adding the Fed doesn’t have “a clu


President Donald Trump, left, and Jerome Powell, the new chairman of the Federal Reserve on Thursday, Nov. 2, 2017. President Donald Trump said Tuesday that the U.S. dollar is at a disadvantage compared with other major currencies like the euro as central banks keep interest rates low while the Federal Reserve’s rates are higher by comparison. “The Euro and other currencies are devalued against the dollar, putting the U.S. at a big disadvantage,” Trump tweeted, adding the Fed doesn’t have “a clu
Trump says ‘devalued’ currencies put US at a disadvantage and the Fed doesn’t have a ‘clue’ Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-06-11  Authors: fred imbert
Keywords: news, cnbc, companies, trump, federal, rates, donald, clue, low, disadvantage, euro, dollar, doesnt, currencies, devalued, fed


Trump says 'devalued' currencies put US at a disadvantage and the Fed doesn't have a 'clue'

President Donald Trump, left, and Jerome Powell, the new chairman of the Federal Reserve on Thursday, Nov. 2, 2017.

President Donald Trump said Tuesday that the U.S. dollar is at a disadvantage compared with other major currencies like the euro as central banks keep interest rates low while the Federal Reserve’s rates are higher by comparison.

“The Euro and other currencies are devalued against the dollar, putting the U.S. at a big disadvantage,” Trump tweeted, adding the Fed doesn’t have “a clue.”

Trump also said in a separate tweet that the U.S. has low inflation, calling it “a beautiful thing.”

The dollar fell slightly against the euro following Trump’s tweets.

Trump has repeatedly gone after the Fed for what he considers tight monetary policy. The Fed hiked rates four times in 2018.


Company: cnbc, Activity: cnbc, Date: 2019-06-11  Authors: fred imbert
Keywords: news, cnbc, companies, trump, federal, rates, donald, clue, low, disadvantage, euro, dollar, doesnt, currencies, devalued, fed


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Supreme Court to hear Intel retirement fund dispute

The Supreme Court on Monday agreed to hear Intel’s bid to avoid a lawsuit accusing it of violating federal law in making employee retirement plan investments that cost beneficiaries hundreds of millions of dollars. The lawsuit was brought by former Intel engineer Christopher Sulyma in San Jose, California federal court. The dispute centers on the time period that retirement plan participants have to file suit for alleged violations of the Employee Retirement Income Security Act (ERISA), a federa


The Supreme Court on Monday agreed to hear Intel’s bid to avoid a lawsuit accusing it of violating federal law in making employee retirement plan investments that cost beneficiaries hundreds of millions of dollars. The lawsuit was brought by former Intel engineer Christopher Sulyma in San Jose, California federal court. The dispute centers on the time period that retirement plan participants have to file suit for alleged violations of the Employee Retirement Income Security Act (ERISA), a federa
Supreme Court to hear Intel retirement fund dispute Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-06-10
Keywords: news, cnbc, companies, lawsuit, fund, company, participants, federal, court, supreme, hear, dispute, plan, investments, intel, retirement


Supreme Court to hear Intel retirement fund dispute

The Supreme Court on Monday agreed to hear Intel’s bid to avoid a lawsuit accusing it of violating federal law in making employee retirement plan investments that cost beneficiaries hundreds of millions of dollars.

The justices will take up Intel’s appeal of a lower court ruling that revived the proposed class action lawsuit, initiated by a former employee in 2015, after a judge earlier agreed with the technology company that the litigation was filed too late.

The lawsuit accused the company committees managing the retirement contribution and 401(k) savings plans of breaching their fiduciary duty to the participants by placing an overly heavy emphasis on alternative investments such as hedge funds and private equity, in contrast to peer retirement funds.

The lawsuit was brought by former Intel engineer Christopher Sulyma in San Jose, California federal court.

The dispute centers on the time period that retirement plan participants have to file suit for alleged violations of the Employee Retirement Income Security Act (ERISA), a federal law that requires plan managers to invest prudently.

Beneficiaries generally have six years to sue over ill-advised investment decisions. But that deadline is cut to three years if a problem is known sooner.

California-based Intel said the lawsuit should be thrown out because the fund participants had “actual knowledge” of the issue more than three years before the lawsuit was filed based on emails the company had sent with links to documents about the investments. The company said in court papers the investments were chosen to better diversify the plans’ portfolios.

Sulyma said that while he was employed at Intel between 2010 and 2012 he was unaware of the alternative investments in the documents posted online, or that they carried high fees and performed poorly. He said he did not even know what hedge funds were.

A federal judge threw out the case as untimely, but the San Francisco-based 9th U.S. Circuit Court of Appeals last year let it proceed, ruling that the three-year deadline would apply only if Sulyma knew not only that the investments had occurred but also that they had been imprudent.

Intel appealed to the Supreme Court. The company said the 9th Circuit’s decision would make it too easy for a plaintiff to sustain a lawsuit simply by asserting “that he did not read the relevant plan documents, or simply that he cannot recall whether he saw them.”

The justices last week took up a separate retirement fund dispute involving IBM Corp, agreeing to decide whether managers of a fund that invested in the company’s stock can be sued for failing to disclose that its microelectronics business was over-valued.


Company: cnbc, Activity: cnbc, Date: 2019-06-10
Keywords: news, cnbc, companies, lawsuit, fund, company, participants, federal, court, supreme, hear, dispute, plan, investments, intel, retirement


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2020 Democrats embrace a $15 US minimum wage as they target Trump’s economy

Buoyed by activists who helped to push seven states to enact $15 wage floors, Democratic candidates have tossed aside caution about a sweeping nationwide minimum wage hike. State wages spike as U.S. minimum is stagnantThe last federal minimum wage hike took effect roughly a decade ago in July 2009. President Barack Obama first proposed a $9 per hour federal minimum wage in his 2013 State of the Union. By the time he launched his 2020 presidential campaign in late April, Biden argued “it’s way pa


Buoyed by activists who helped to push seven states to enact $15 wage floors, Democratic candidates have tossed aside caution about a sweeping nationwide minimum wage hike. State wages spike as U.S. minimum is stagnantThe last federal minimum wage hike took effect roughly a decade ago in July 2009. President Barack Obama first proposed a $9 per hour federal minimum wage in his 2013 State of the Union. By the time he launched his 2020 presidential campaign in late April, Biden argued “it’s way pa
2020 Democrats embrace a $15 US minimum wage as they target Trump’s economy Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-06-09  Authors: jacob pramuk
Keywords: news, cnbc, companies, embrace, sanders, floor, democrats, pay, states, hour, 15, target, minimum, economy, trumps, federal, wages, 2020, wage


2020 Democrats embrace a $15 US minimum wage as they target Trump's economy

U.S. Sen. Bernie Sanders (I-VT) speaks during a rally in front of the Capitol April 26, 2017 in Washington, DC. Alex Wong | Getty Images

A 2016 debate question about Hillary Clinton’s support for a $15 per hour minimum wage sparked a spat between the former secretary of State and Sen. Bernie Sanders. “If you’re both screaming at each other, the viewers won’t be able to hear either of you,” CNN moderator Wolf Blitzer said after Sanders repeatedly jumped in to dispute how Clinton described her stance. Clinton had backed only a $12 per hour federal minimum wage, though the former senator from New York noted that she “supported the fight for $15” at the state and local level in high-cost areas. Sanders had a different goal: “$15 in minimum wage in 50 states in this country as soon as possible.” Only three years later, disagreements over hiking the $7.25 per hour U.S. wage floor have all but vanished in the 2020 Democratic primary. All of the leading contenders for the Democratic presidential nomination — from self-proclaimed democratic socialist Sanders to the more centrist former Vice President Joe Biden — have backed a $15 per hour federal minimum wage. Buoyed by activists who helped to push seven states to enact $15 wage floors, Democratic candidates have tossed aside caution about a sweeping nationwide minimum wage hike. As they vie with President Donald Trump for support from working-class voters, the party hopes a more direct action to boost pay will be more appealing than Trump’s approach: leaving minimum wage decisions to states and hoping economic growth will cause pay increases. In a race that will test whether a strong economy can save a president with a poor approval rating, Democrats see raising the pay floor as one way they can cast themselves as a better alternative to fatten workers’ wallets. Raising the minimum wage “speaks so clearly and directly to trying to resolve that problem, it is going to resonate even to folks who are going to be conservative on other issues,” said David Cooper, a senior economic analyst at the Economic Policy Institute, a left-leaning think tank that studies how policy affects low and middle-income people. A White House spokesman did not immediately respond to questions about the president’s stance on the U.S. minimum wage. But Trump has previously argued the federal government should let states decide the wage floor. Democrats will have to counter the narrative the Trump campaign has already tried to enforce: That the tax cuts and regulatory relief he championed have boosted economic growth and wages — without an increase in the federal pay floor. “Wages are rising at the fastest pace in decades and growing for blue collar workers, who I promised to fight for, they’re growing faster than anyone else thought possible,” Trump said during his State of the Union address in February. (Though wage growth adjusted for inflation picked up earlier this year, Trump’s claim that it was the highest in decades is unfounded, according to the Associated Press).

State wages spike as U.S. minimum is stagnant

The last federal minimum wage hike took effect roughly a decade ago in July 2009. Proponents of raising the pay floor to $15 an hour argue in part that paychecks have “barely budged” and that workers everywhere — “not just on the coasts” — need it to survive, said Paul Sonn, director of the National Employment Law Project Action Fund. But opponents worry $15 is too drastic an increase in parts of the country and would force employers to slash positions and hours. Cities and states, spurred in part by labor activists led by the Fight for $15 group, have changed the narrative on minimum wage hikes in recent years. Twenty-nine states and Washington D.C. have pay floors higher than $7.25 per hour. This year alone, New Jersey, Illinois, Maryland and Connecticut passed bills to gradually raise their minimum wages to $15 per hour, joining New York, California, Massachusetts and D.C. Experts on the minimum wage say the flurry of hikes at the state and local level helped to make a $15 per hour minimum wage more palatable for candidates beyond the liberals in Sanders’ mold. The views of Biden and the Obama administration largely reflect the mainstream Democratic thinking on the minimum wage in recent years. President Barack Obama first proposed a $9 per hour federal minimum wage in his 2013 State of the Union. His administration then backed congressional Democrats’ bill to raise the pay floor to $10.10 later that year. By 2015, the White House supported a Democratic proposal for a $12 minimum wage. In September 2015, Biden joined New York Gov. Andrew Cuomo as he made the case for a statewide $15 per hour minimum wage. By the time he launched his 2020 presidential campaign in late April, Biden argued “it’s way past time we make a $15 minimum wage the law of the land.” In the absence of federal action, activists have also pushed massive employers to hike their pay. Amazon and Target, for example, have taken steps to increase their minimum wages to $15 per hour. Amid pressure from Sanders — who appeared at Walmart’s annual meeting Wednesday and accused the retailer of paying “starvation wages” — Walmart CEO Doug McMillon called on Congress to hike the federal minimum wage, which he called “too low.”

Congress now sits closer to a minimum wage hike than it has in years. The Democratic-held House could vote as soon as this month on a bill that would gradually increase the U.S. pay floor to $15 per hour. Party leaders have to overcome skepticism within their own caucus first. Thirteen Democrats led by Rep. Terri Sewell of Alabama introduced a bill in April to set varied minimum wages based on regional cost of living, which would increase to $15 per hour at different paces. “The PHASE-in $15 Wage Act establishes a regional minimum wage structure that provides all minimum wage workers with a much-needed raise while protecting jobs, giving every community the flexibility to grow their economy and taking into account that the cost of living in Selma, Alabama, is very different than New York City,” Sewell said in a statement introducing the legislation. Even if Democrats can get a minimum wage hike through the House, any legislation will face a tough path to approval in the GOP-held Senate.

Wage hikes and the economy

The concerns Sewell and some Democrats have about a blanket $15 per hour minimum wage are common ones. Critics worry businesses in some areas that currently have relatively low pay or cost of living will struggle to take on the costs from the pay increases. A $15 wage “would be incredibly disruptive” in parts of the country, said Michael Strain, director of economic policy studies at the right-leaning American Enterprise Institute. So just how have the recent minimum wage increases affected workers and the economy?


Company: cnbc, Activity: cnbc, Date: 2019-06-09  Authors: jacob pramuk
Keywords: news, cnbc, companies, embrace, sanders, floor, democrats, pay, states, hour, 15, target, minimum, economy, trumps, federal, wages, 2020, wage


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The Fed is ‘indicating that a rate cut is coming,’ says former central banker

Leah Millis | ReutersThe U.S. Federal Reserve has sent a “very strong signal” that it’s ready to consider cutting interest rates, according to a former Fed governor. “I think Chairman Powell has given a message to markets that’s indicating that a rate cut is coming. Investors have been predicting that the Fed would cut interest rates, even though the central bank had earlier indicated it expected to hold monetary policy steady throughout the year. The threat from the trade war is coming on top o


Leah Millis | ReutersThe U.S. Federal Reserve has sent a “very strong signal” that it’s ready to consider cutting interest rates, according to a former Fed governor. “I think Chairman Powell has given a message to markets that’s indicating that a rate cut is coming. Investors have been predicting that the Fed would cut interest rates, even though the central bank had earlier indicated it expected to hold monetary policy steady throughout the year. The threat from the trade war is coming on top o
The Fed is ‘indicating that a rate cut is coming,’ says former central banker Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-06-05  Authors: yen nee lee saheli roy choudhury, yen nee lee, saheli roy choudhury
Keywords: news, cnbc, companies, coming, rates, policy, economy, raskin, indicating, war, interest, federal, fed, banker, cut, rate, trade, central


The Fed is 'indicating that a rate cut is coming,' says former central banker

A pedestrian walks past the Federal Reserve building on Constitution Avenue in Washington, March 19, 2019. Leah Millis | Reuters

The U.S. Federal Reserve has sent a “very strong signal” that it’s ready to consider cutting interest rates, according to a former Fed governor. Sarah Bloom Raskin, who sat on the Fed board from 2010 to 2014, offered that analysis in light of Chairman Jerome Powell’s recent speech in which he said the central bank “will act as appropriate to sustain the expansion.” “I think Chairman Powell has given a message to markets that’s indicating that a rate cut is coming. This is, in essence, a very strong signal that the FOMC is actually ready to talk about cutting rates,” Raskin, who’s now a senior fellow at Duke University, told CNBC’s “Squawk Box” on Wednesday.

The Federal Open Market Committee (FOMC), which is responsible for setting American monetary policy, is scheduled to next meet on June 18-19 to decide on interest rates. Investors have been predicting that the Fed would cut interest rates, even though the central bank had earlier indicated it expected to hold monetary policy steady throughout the year. Investors calling for rate cuts argued that the ongoing trade war between Washington and Beijing is threatening to slow down the global economy, which would in turn hurt the U.S.

‘Elephant in the room’

Morgan Stanley Chief Economist Chetan Ahya believes that whatever policy response the Fed undertakes will likely be “reactive” to U.S. President Donald Trump’s subsequent moves in his administration’s trade dispute with China. Policy responses cannot be “pre-emptive” because the ramifications of the trade dispute pose an external risk, Ahya told CNBC’s “Street Signs” on Wednesday. “It’s something that central banks in the developed world as well as policymakers in China cannot pre-empt.” Duke University’s Raskin said the U.S.-China tariff fight is a risk to the American economy because it could end up hurting manufacturers and consumers. She added: “Of course, we have the elephant in the room, which are these tariffs and the unpredictable nature of them.” The threat from the trade war is coming on top of an already slowing economy, she added. The former central banker cited several indicators, such as business investments and demand for U.S.-made goods, that have shown signs of moderating.

Trade war could trigger recession


Company: cnbc, Activity: cnbc, Date: 2019-06-05  Authors: yen nee lee saheli roy choudhury, yen nee lee, saheli roy choudhury
Keywords: news, cnbc, companies, coming, rates, policy, economy, raskin, indicating, war, interest, federal, fed, banker, cut, rate, trade, central


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Walmart CEO says the federal minimum wage is ‘lagging behind,’ Congress should act

Walmart CEO Doug McMillon said the federal minimum wage in the U.S. of $7.25 per hour is “too low” and “lagging behind.” “It’s time for Congress to put a thoughtful plan in place to increase the minimum wage,” McMillon told the audience. Walmart’s minimum wage of $11 an hour, set in January 2018, is still below Amazon’s, which was hiked to $15 in November. On Wednesday and at Walmart’s headquarters, Sanders argued that a $15-per-hour minimum wage “is not a radical idea.” Many Walmart workers are


Walmart CEO Doug McMillon said the federal minimum wage in the U.S. of $7.25 per hour is “too low” and “lagging behind.” “It’s time for Congress to put a thoughtful plan in place to increase the minimum wage,” McMillon told the audience. Walmart’s minimum wage of $11 an hour, set in January 2018, is still below Amazon’s, which was hiked to $15 in November. On Wednesday and at Walmart’s headquarters, Sanders argued that a $15-per-hour minimum wage “is not a radical idea.” Many Walmart workers are
Walmart CEO says the federal minimum wage is ‘lagging behind,’ Congress should act Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-06-05  Authors: lauren thomas
Keywords: news, cnbc, companies, lagging, act, hour, wage, federal, 15, walmarts, mcmillon, workers, congress, ceo, walmart, billion, minimum


Walmart CEO says the federal minimum wage is 'lagging behind,' Congress should act

Doug McMillon, President and CEO of Wal-Mart Stores, Inc., in an interview on October 14, 2015.

Walmart CEO Doug McMillon said the federal minimum wage in the U.S. of $7.25 per hour is “too low” and “lagging behind.”

He made the comments at the kickoff of the retailer’s annual shareholders meeting in Bentonville, Arkansas, where presidential hopeful Sen. Bernie Sanders was present, arguing for wage hikes for Walmart workers, calling what the retailer currently pays “starvation wages.”

“It’s time for Congress to put a thoughtful plan in place to increase the minimum wage,” McMillon told the audience. “Any plan should take into account phasing and cost-of-living differences to avoid unintended consequences.”

The biggest retailer in the world, employing 1.5 million people in the U.S., has faced increasing pressure of late to raise its pay. Amazon CEO Jeff Bezos, in his annual letter to shareholders in April, issued a challenge to other retailers, not naming which ones specifically, to match its wages and benefits.

Walmart’s minimum wage of $11 an hour, set in January 2018, is still below Amazon’s, which was hiked to $15 in November. “Do it! Better yet, go to $16,” Bezos said in the letter.

Walmart, however, has said its average, hourly compensation including benefits comes out to be more than $17.50.

Walmart has also been sweetening its perks to include benefits such as the opportunity for employees to earn college degrees in fields related to business and technology, by only paying a dollar a day for their education.

On Wednesday and at Walmart’s headquarters, Sanders argued that a $15-per-hour minimum wage “is not a radical idea.” He noted Walmart’s competitors — Amazon and Target — have started to phase in a $15-per-hour pay floor.

Target will finish phasing in a minimum hourly wage of $13 this month, which puts it on track to reach $15 an hour by the end of 2020.

Sanders added, “The American people are sick and tired of subsidizing the greed of some of the largest and most profitable corporations in this country.” Many Walmart workers are relying on public housing and food stamps just to get by, he said.

Walmart has a market value of about $298 billion, and its shares were up roughly 1.5% by Wednesday afternoon, having climbed nearly 12% so far this year. On a constant currency basis, Walmart’s total revenues amounted to $500.9 billion in fiscal 2018, and its operating income was $20.50 billion.


Company: cnbc, Activity: cnbc, Date: 2019-06-05  Authors: lauren thomas
Keywords: news, cnbc, companies, lagging, act, hour, wage, federal, 15, walmarts, mcmillon, workers, congress, ceo, walmart, billion, minimum


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Fed’s Mary Daly says trade escalation is not the only risk facing the US economy

Trade uncertainties are high on the minds of investors and businesses — but they’re not the only risk facing the U.S. economy right now, said Mary Daly, president and chief executive of the Federal Reserve Bank of San Francisco. The global economy is slowing and the circumstances surrounding how the U.K. eventually leaves the European Union have also affected economic activity, Daly told CNBC’s “Street Signs” on Tuesday. “I don’t want us to get too focused on only trade when there are these othe


Trade uncertainties are high on the minds of investors and businesses — but they’re not the only risk facing the U.S. economy right now, said Mary Daly, president and chief executive of the Federal Reserve Bank of San Francisco. The global economy is slowing and the circumstances surrounding how the U.K. eventually leaves the European Union have also affected economic activity, Daly told CNBC’s “Street Signs” on Tuesday. “I don’t want us to get too focused on only trade when there are these othe
Fed’s Mary Daly says trade escalation is not the only risk facing the US economy Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-06-04  Authors: yen nee lee
Keywords: news, cnbc, companies, mary, federal, daly, trade, wait, voting, facing, escalation, uncertainties, economy, feds, risk, right, union, way


Fed's Mary Daly says trade escalation is not the only risk facing the US economy

Trade uncertainties are high on the minds of investors and businesses — but they’re not the only risk facing the U.S. economy right now, said Mary Daly, president and chief executive of the Federal Reserve Bank of San Francisco.

The global economy is slowing and the circumstances surrounding how the U.K. eventually leaves the European Union have also affected economic activity, Daly told CNBC’s “Street Signs” on Tuesday.

“I don’t want us to get too focused on only trade when there are these other looming uncertainties that also need resolution,” she said.

Still, Daly — who is not a voting member on the policy-setting Federal Open Market Committee — reiterated that the U.S. economy is “in a good place” given that it is close to full employment, inflation is slowly inching up toward the Fed’s 2% target, and the federal funds rate is near “neutral.”

That means the Fed can afford to wait before making its next monetary policy move, she said. “I think patience is the way we should be right now,” she added.


Company: cnbc, Activity: cnbc, Date: 2019-06-04  Authors: yen nee lee
Keywords: news, cnbc, companies, mary, federal, daly, trade, wait, voting, facing, escalation, uncertainties, economy, feds, risk, right, union, way


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