Author: Money Mechanics

Current-Account Deficit Widened by 44.3 Percent in the First Quarter Current-Account Balance (Table 1 and Chart 1) The U.S. current-account deficit, which reflects the combined balances on trade in goods and services and income flows between U.S. residents and residents of other countries, widened by $138.2 billion, or 44.3 percent, to $450.2 billion in the first quarter of 2025, according to statistics released today by the U.S. Bureau of Economic Analysis. The revised fourth-quarter deficit was $312.0 billion (table A). The first-quarter deficit was 6.0 percent of current-dollar gross domestic product, up from 4.2 percent in the fourth quarter. The…

Wholesale prices rose far more than expected in July, providing a potential sign that inflation is still a threat to the U.S. economy, a Bureau of Labor Statistics report Thursday showed.The producer price index, which measures final demand goods and services prices, jumped 0.9% on the month, compared with the Dow Jones estimate for a 0.2% gain. It was the biggest monthly increase since June 2022.Excluding food and energy prices, core PPI rose 0.9% against the forecast for 0.3%. Excluding food, energy and trade services, the index was up 0.6%, the biggest gain since March 2022.On an annual basis, headline…

Key Takeaways Division I schools can now pay athletes directly under the House v. NCAA settlement, with schools sharing roughly $20 million worth of revenue with current players. Former athletes could receive settlement payments, but appeals may delay payouts for years. Current athletes should plan for taxes on these payments, while former athletes should be wary of companies offering to buy their settlement claims. This summer, a federal judge approved the House v. NCAA settlement, marking a major shift in college sports: For the first time, Division I schools can now directly pay their athletes. Under the new rules, current…

WASHINGTON, DC – APRIL 02: U.S. President Donald Trump holds up a chart while speaking during a “Make America Wealthy Again” trade announcement event in the Rose Garden at the White House on April 2, 2025 in Washington, DC. Touting the event as “Liberation Day”, Trump is expected to announce additional tariffs targeting goods imported to the U.S. (Photo by Chip Somodevilla/Getty Images)Getty Images This morning, the Bureau of Labor Statistics (BLS) released the July inflation numbers, which were higher, as economists expected. Normally, a higher inflation rate would spark somewhat boring debates about Fed policy and consumer sentiment. This…

Key Takeaways All eyes are on Federal Reserve chair Jerome Powell, whose speech at the central bank’s annual Jackson Hole Symposium could test the stock market rally that’s lifted stocks to record highs.Deutsche Bank analysts warned in a note on Tuesday that Powell’s comments “could create uncertainty about September cut prospects.”A hawkish Powell could spell trouble for the market as a whole, but especially for rate-sensitive stocks like homebuilders and small caps, which have rallied in anticipation of cuts. Federal Reserve chair Jerome Powell is scheduled to speak at the central bank’s annual Jackson Hole Symposium on Friday, an event…

Key Takeaways Regular saving and on-time debt-paying can ease anxiety and support long-term emotional well-being.Even small, consistent savings improve mental health and foster resilience at all income levels.Practicing daily financial discipline boosts happiness, confidence, and overall life satisfaction. Feeling stressed out in life? Perhaps surprisingly, good money habits can provide a remedy. A recent study found that two simple financial habits—regular saving and paying debts on time—can significantly boost mental health, no matter your income level. These small, repeatable actions lead to positive emotional benefits, easing stress, and improving your overall well-being. We’ll explore how these habits strengthen mental resilience,…

Key Takeaways The Securing Growth and Robust Leadership in American Aviation Act makes airline ticket refunds automatic if your flight is canceled or significantly delayed.The legislation also sets specific hour requirements for how long a plane must remain grounded for it to be considered delayed.The Act provides for refunds of baggage fees, also subject to hour requirements.U.S. airlines were originally required to post their baggage fees, but the U.S., but an appeals court has revoked this responsibility. The next time your flight gets delayed, you might get paid for the time you spend waiting on the tarmac. New legislation from…

Key Takeaways Commerce Secretary Howard Lutnick said the Trump administration is exploring how the U.S. could receive equity stakes in semiconductor companies with CHIPS Act grants.Such deals could extend to Micron, Taiwan Semiconductor, and Samsung, along with Intel.Though the Trump administration appears to have made inroads with embattled chipmaker Intel, Wall Street analysts suggested swaying others might require better terms.Chip stocks fell Wednesday, amid a broader decline in the tech sector. Wall Street could be starting to sour on the terms of new deals in the works for chipmakers. While investors first appeared sanguine about the White House’s steps to…

KEY TAKEAWAYS The newly created Repayment Assistance Plan will be available in less than a year. For many student loan borrowers, monthly payments are expected to be more expensive than current plans.The average lower-income borrower will have to pay tens of thousands of dollars more over the life of their loan.For the average borrower with a typical salary, the payments under the RAP plan will be no higher than those under existing plans. The new income-driven student loan repayment plan will be far more costly for low-income borrowers than the government’s existing income-based plan. The “One Big, Beautiful Bill” introduced…

Mandy Xu ▬ August 4, 2025 Link to Report: Macro Volatility DigestWHAT STANDS OUT:Oil, equity, and credit volatilities all gained meaningfully last week on the back of the miss in payrolls, with the VIX® index up 5.5 pts wk/wk to 20.4%, jumping from the 10th to the 73rd percentile high over the past year. Interestingly, while Treasury yields swung sharply lower, driving realized volatility in bonds higher, implied volatility barely gained, with the MOVE index up slightly and the VIXTLT index actually ending the week marginally lower. The same dynamic (tame implied vol despite large pick up in realized vol)…