Author: Money Mechanics

Key Takeaways President Trump wants to mandate that credit card companies charge a maximum 10% annual percentage rate as of Jan. 20. The average rate Americans pay is 21%.While industry reports suggest many Americans would lose their credit cards under a 10% cap, others argued that these claims are overblown. President Donald Trump’s call to cap credit card interest rates sounds like relief for millions of Americans paying twice that or more. But industry analyses suggest such a policy would mean up to 80% of credit card accounts could disappear altogether, cutting off the borrowers it’s meant to help. Consumer…

Mandy Xu ▬ January 12, 2026 Link to Report: Macro Volatility DigestWHAT STANDS OUT:Implied volatilities were mostly rangebound last week despite rising geopolitical risk. Equity, rates, credit, and FX volatilities all ended the week near 1-year lows. Oil was an exception, with 1M implied vol jumping up over 8 vol pts to 37% (70th percentile high) on the back of bullish call demand. Despite the threat of more supplies coming online from Venezuela, oil traders appear to be more focused on the near-term risks of a potential supply disruption stemming from the Iran unrest.While the VIX® index ended last week…

Key Takeaways If forecasters are correct, consumer prices likely rose 2.7% over the year in December, the same 12-month rate of increase as November.Core inflation, excluding food and gas, is expected to have rebounded to a 2.7% annual rate from 2.6% in November, after distortions from the government shutdown to the November data reversed themselves.Forecasters generally expect inflation to fall over the course of the year, because rent increases have slowed and are outweighing continued upward pressure from tariffs. If your holiday bills were significantly higher than last year, you’re not alone.A report on inflation Tuesday from the Bureau of…

Key Takeaways Meta Platforms named Dina Powell McCormick, an appointee under two Republican administrations, its president and vice chairman.The role is intended to “ensure our multi-billion-dollar investments execute against our goals,” the company said. Social media giant Meta Platforms on Monday named a former Trump appointee to a high-ranking executive position. Meta (META), owner of Facebook, Instagram, and WhatsApp, named Dina Powell McCormick its president and vice chairman. The company said she would help guide its strategy and execution, highlighting work to “ensure our multi-billion-dollar investments execute against our goals,” build partnerships, and expand its investment capacity. Why This Matters…

There’s a new threat that could force Americans to scrap their early-retirement plans: skyrocketing health care costs. The enhanced Affordable Care Act (ACA) subsidies that expired at the end of 2025. That means 24 million Americans will see a sharp spike in their health care costs unless Congress extends the money-saving premium tax credits.The most at-risk segment of the population relying on ACA health insurance is middle-income Americans aged 50 to 64. This group is still years away from being eligible for Medicare coverage and faces a doubling or tripling of medical care costs, according to data from KFF, an…

(Image credit: Getty Images)The Department of Justice served the Federal Reserve with grand jury subpoenas on Friday and threatened a criminal indictment related to Fed Chair Jerome Powell’s testimony before the Senate Banking Committee last June about a multi-year project to renovate historic buildings.That’s according to a Sunday evening statement from Powell, whose term as Fed chair expires in May.”This unprecedented action should be seen in the broader context of the administration’s threats and ongoing pressure,” Powell said. “The threat of criminal charges is a consequence of the Federal Reserve setting interest rates based on our best assessment of what…

Key Takeaways Walmart is slated to join the Nasdaq 100, an index known for tracking tech stock, on Jan. 20, Nasdaq said.The planned move comes as Walmart executives have focused on the retailer’s e-commerce platform and novel AI tools. Walmart is getting the recognition it’s been seeking for its e-commerce prowess. The retail giant will move to the Nasdaq 100—an index tracking the 100 largest non-financial companies on the Nasdaq —before the market opens on Jan. 20, the exchange operator said Friday. Walmart (WMT) has spent months highlighting its marketplace and delivery services, fueling speculation that it was eyeing the…

Key Takeaways The Federal Reserve received subpoenas in a criminal investigation of Fed Chair Jerome Powell on Friday related to his testimony in June about a renovation at the Fed’s headquarters.The investigation appears to be an escalation of Trump’s efforts to force Powell out of his job at the independent central bank.Powell called the investigation a pretext and a threat to the independence of the Fed, which is not under direct control of the White House. In an unprecedented move, Federal Reserve Chair Jerome Powell accused President Donald Trump’s administration of waging an intimidation war against the nation’s independent central…

What a way to kick-off the week with a cocktail of geopolitical drama, policy intrigue, and supply pressures that’s keeping oil prices on a tightrope. The prospect of more Venezuelan oil is giving refiners a specialty cocktail mix, but the prospects are being dismissed by some as impractical. This comes as Fox News reports that President Trump says Iran is, “starting to cross US red lines Citing reports of civilian deaths and warning that any attack on American interests would be met with overwhelming force as his administration weighs what he called “very strong options”. The prospect of increased Venezuelan…

Swiss Re has made an early redemption of the loss exposed Class A notes from its Matterhorn Re Ltd. (Series 2020-2) catastrophe bond issuance after benefiting from roughly $33.1 million in recoveries under their retrocessional protection, leaving the remaining $46.9 million of principal set to be returned to investors, Artemis understands.Recall that the global reinsurance company had been benefiting from reinsurance recoveries under the mortality retrocession arrangements associated with two of its catastrophe bonds over the last two years, as these insurance-linked securities responded when Swiss Re’s mortality loss experience would have been rising. The mortality cat bonds that Swiss…