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Biden forgives $6.1 billion in student debt for 317,000 borrowers. Here’s who qualifies for relief.

The Biden administration is forgiving $6.1 billion in student debt for 317,000 people who attended The Art Institutes, a for-profit chain of schools that shut down last fall amid allegations of fraud.   The latest effort represents President Joe Biden's plan to tackle the nation's $1.7 trillion in student debt after the Supreme Court last [...] READ MORE

Long-predicted consumer pullback finally hits restaurants like Starbucks, KFC and McDonald’s

A Starbucks sign outside a store in Washington, D.C. KEY POINTS Starbucks, Pizza Hut and KFC are among the chains that reported same-store sales declines this quarter. McDonald’s said it’s adopting a “street-fighting mentality” to creating value to win over customers. Outliers like Wingstop and Chipotle Mexican Grill show that customers will still order their [...] READ MORE

The Deadline To Turn in Your Gold – May 1st, 1933

While memories of last year's regional banking crisis might be fading, the industry remains under threat. U.S. regulators just announced the first bank failure of 2024, marking a concerning start to the year.   To make matters worse, a new report from consulting firm, Klaros Group, shows that hundreds of small to mid-sized U.S. banks [...] READ MORE

Treasury yields fall as Fed says it will ease back on balance sheet tightening

Treasury yields fell on Wednesday, as investors digested the Federal Reserve’s move to ease the pace of balance sheet reduction, and the central bank’s chairman Jerome Powell ruled out the possibility of a rate hike next month.   The yield on the 10-year Treasury dropped 5 basis points at 4.632%. The 2-year Treasury yield was [...] READ MORE

Gold Gains as Fed’s Rate Comments Are Less Hawkish Than Feared

Fed holds rates steady, citing lack of inflation progress Forward guidance gives implicit nod to cutting rates   Gold advanced as investors found comfort in the Federal Reserve’s signals that it will still pivot to lowering borrowing costs after gaining enough confidence that price gains are cooling.   Officials unanimously decided to leave the target [...] READ MORE

Private payrolls increased by 192,000 in April, more than expected for resilient labor market

KEY POINTS Private employers added 192,000 workers in April, better than the Dow Jones consensus outlook for 183,000 though a slight step down from the upwardly revised 208,000 in March, ADP reported. The firm’s wage measure showed annual pay gains up 5% from a year ago, the smallest gain since August 2021. Private payrolls increased [...] READ MORE

McDonald’s and other big brands warn that low-income consumers are starting to crack

McDonald’s employee giving change to a customer. KEY POINTS Executives at some of America’s largest companies have said that consumers feel the pinch of higher prices. Their remarks come as sticky inflation poses a challenge for Main Street, Wall Street and the Federal Reserve. Some of America’s best-known corporations are saying their consumers are being [...] READ MORE

Gold pulls back, traders hunker down for more cues on interest rates

Gold retreated on Thursday as focus returned to chances of U.S. interest rates staying higher for longer, with traders also positioning for economic data that could influence the Federal Reserve’s policy path.   Spot gold fell 0.5% to $2,306.69 per ounce by 1:48 p.m. ET (1748 GMT). U.S. gold futures for June delivery settled 0.1% [...] READ MORE

Why hundreds of U.S. banks may be at risk of failure

Hundreds of small and regional banks across the U.S. are feeling stressed.   “You could see some banks either fail or at least, you know, dip below their minimum capital requirements,” Christopher Wolfe, managing director and head of North American banks at Fitch Ratings, told CNBC.   Consulting firm Klaros Group analyzed about 4,000 U.S. [...] READ MORE