Fitness Rebel Without a Cause |
A dieter's delight with only 35% fat (most cheeses have 45% or more), Fitness Rebel — produced by Sulzberger Käserebellen Sennerei in Germany — is a creamy, compact, textured cheese. It's processed only from the purest hay-milk of cows that are fed on dried hay, herbs, and grains of corn, not on industry concentrates. So, it's a lot like this newsletter, which is fed on plenty of expert financial analyses and efforts to predict what 2025 might bring. Rebel Without a Cause is a movie starring James Dean before he died in a car crash and a lot more interesting than the calorie content of dairy products. It's also necessary to complete today's cheese pun, which was a stretch even by postmodern standards. What are you rebelling against, Johnny? Whaddaya got? —Matt Davis, Need2Know Chedditor |
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""I'm seeing that a lot of students are kind of exploring on their own, almost feeling like they've found a cheat code in a video game." — Alexis Reid, |
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1. What Does a Second Trump Term Mean for Your Finances? |
There seems to be a sense of economic optimism surrounding the second Trump term, even though inflation was a major concern for voters. Ted Rossman with Bankrate believes that "the economy's in better shape than a lot of people realize. Unemployment's been low; GDP growth has been solid; consumer spending has been good."
While inflation has been a concern, there are signs that it is starting to shift. Rossman notes that after the election, more Americans are optimistic about their personal finances. Of course, I'm optimistic about winning the Super Bowl, despite not actually playing for a football team.
Rossman believes that the regulatory environment will become more favorable for businesses, and this could lead to lower prices for consumers, assuming tariffs haven't already driven costs sky high. Rossman specifically mentioned the credit card market, where he expects to see more competition and potentially lower fees. He also notes that there is bipartisan support for capping credit card rates, although he doesn't think the most radical changes will happen. Basically, good luck. It might all be okay, or it might be a disaster. #NotFinancialAdvice Read More |
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2. Banks Are Putting the Federal Reserve to the 'Stress Test' By Suing It LOL! |
Several major banks (including JPMorgan, Citigroup, and Goldman Sachs) and influential business groups (including the Bank Policy Institute, the U.S. Chamber of Commerce, and the American Bankers Association) have filed a lawsuit against the Federal Reserve. The suit, filed in U.S. District Court in Columbus, Ohio, challenges the procedures and transparency of the Fed's annual "stress tests" imposed on Wall Street firms.
Stress tests are evaluations used by financial regulators to determine how banks would perform under hypothetical scenarios of economic turmoil. Banks that fail to meet the tests are required to hold more capital to buffer against potential losses.
The plaintiffs argue that the Federal Reserve's practice of setting capital requirements based on these stress tests violates administrative procedures and lacks transparency. They claim that the current secretive nature of the tests denies public insight into the methodologies and scenarios used, which undermines the tests' value in assessing bank resilience accurately.
The move comes in the wake of recent Supreme Court decisions that have scaled back the latitude traditionally granted to regulatory agencies, emboldening companies to challenge what they see as overreach. The banking entities have said they do not wish to abolish stress testing but are advocating for a more transparent process open to public commentary. This, they argue, would not only streamline but also enhance the credibility of stress tests. Despite the Fed hinting at a willingness to reform the tests by 2025, the industry has proceeded with its legal challenge because they can afford expensive lawyers, presumably.
The outcome of this lawsuit could redefine the power dynamics between Wall Street and its regulators. Given that it's been at least 15 years since America's banks caused a major financial crisis around the world, they're clearly feeling confident they won't destroy everything again if given a longer leash. Read More |
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| Could Toyota's basketball-playing robot be the future of the game? 🤖🏀 CUE just set a world record for the longest basketball shot by a humanoid robot. Did it go in? Guess you're gonna have to watch the 'gram. |
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3. How the Stock Market Defied Expectations Again This Year |
The S&P 500 not only soared in 2024 but broke records. We watched it rise a substantial 24.3% by December 20, marking the continuation of last year's 24.2% climb. The index set a record on January 19 and continued to impress, setting additional records in nearly every month except for April and August.
A significant driver behind the meteoric rise was the Federal Reserve's decision to cut its main interest rate three times from its two-decade peak. Post-election reactions provided a notable moment for the Dow Jones Industrial Average, which rose by 1,508 points the following day. The optimism, greatly influenced by Donald Trump's return to office, led to a soaring 2.5% increase in the S&P 500 — its best day in nearly two years.
Other investments like Bitcoin and gold also saw remarkable movements. After Trump's election victory, Bitcoin crossed the $100,000 threshold, setting a record high of $108,000. Gold increased by 2.67% this year, driven by global unrest and a favorable response to interest rate cuts by the Federal Reserve. Tesla's shares also crossed the $420 mark, reflecting optimism surrounding Elon Musk's relationship with Trump.
I'm looking forward to writing about the stock market doing the same thing this time next year, but past performance is not a guide to future returns. #NotFinancialAdvice Read More |
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4. AI is a Game Changer for Students With Disabilities |
AI holds the promise of helping countless students with visual, speech, language, and hearing impairments to execute tasks that come easily to those without them. Schools everywhere have been wrestling with how and where to incorporate AI, but many are fast-tracking applications for students with disabilities.
Getting the latest technology into the hands of disabled students is a priority for the U.S. Education Department, which has told schools they must consider whether students need tools like text-to-speech and alternative communication devices. New rules from the Department of Justice also will require schools and other government entities to make apps and online content accessible to disabled people.
There is concern about how to ensure students using it — including those with disabilities — are still learning. Students can use artificial intelligence to summarize jumbled thoughts into an outline, summarize complicated passages, or even translate Shakespeare into common English. Computer-generated voices that can read passages for visually impaired and dyslexic students are also becoming less robotic and more natural.
"I'm seeing that a lot of students are kind of exploring on their own, almost feeling like they've found a cheat code in a video game," Alexis Reid, an educational therapist in the Boston area who works with students with learning disabilities, said. But in her view, AI is far from cheating: "We're meeting students where they are."
Schools have been trying to balance the technology's benefits against the risk that it will do too much. If a special education plan sets reading growth as a goal, the student needs to improve that skill, but the technology can help level the playing field for disabled students. Read More |
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5. Did the Fed Make a Soft Landing in 2024, Or Is There Still Turbulence Ahead? |
The U.S, economy has shown resilience with decreasing inflation, a robust labor market, and steady GDP growth. Many experts, including Josh Hirt, Senior U.S. Economist at Vanguard, believe that the Federal Reserve has successfully achieved a "soft landing."
Hirt attributes this positive outcome to "very positive surprises that occurred on the supply side of the economy," primarily labor productivity and force. However, Hirt also raises an important question: "Did the Fed land the plane, or is that still to come?"
That's a lot of work for one plane metaphor, Josh, but he suggests that if the Fed's actions were perfectly calibrated, the economy would be in a balanced state. Now, given supply-side strength, the situation is more complex. Cross your fingers, basically. #NotFinancialAdvice Read More |
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