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    Trump, DOGE mass job cuts: Federal workers’ money questions answered

    The Trump administration is terminating federal workers across agencies at an unprecedented speed and scale.
    Here’s what to know about your rights and finances if you were impacted by the cuts.

    Protesters demonstrate in support of federal workers outside of the U.S. Department of Health and Human Services on Feb. 14, 2025 in Washington, DC.
    Anna Moneymaker | Getty Images

    On Feb. 11, Elizabeth Aniskevich, an attorney at the Consumer Financial Protection Bureau, received a notice that she was being terminated immediately.
    “I was completely shocked,” said Aniskevich, 39. She had been with the CFPB for nine months and imagined spending her entire career in the federal government.

    “I didn’t expect it to unfold this way,” she said.
    More than a week later, she’s still scrambling for basic answers. “There’s no information about what’s going on with my benefits, or what I need to do with unemployment,” Aniskevich said.
    She’s worried about how she’ll pay the mortgage on her Washington, D.C., apartment after her emergency savings runs out in a few months.
    “I’ve worked really hard to be financially stable,” Aniskevich said.

    Elizabeth Aniskevich.
    Courtesy: Elizabeth Aniskevich

    Aniskevich is one of thousands of federal workers laid off by the new Trump administration in recent weeks and thrown into financial and career uncertainty. President Donald Trump and Elon Musk’s secretive government-slashing effort, the Department of Government Efficiency or DOGE, are working to shrink the federal workforce.

    Losing one’s job is always difficult. But the suddenness and speed of the firings, which have affected offices from the Environmental Protection Agency to the U.S. Department of Education, have left workers especially in the dark about their rights and next steps, experts said.
    “Most people would have selected the public sector because it has a reputation of being a more stable work environment than the private sector,” said Don Moynihan, a public policy professor at the University of Michigan. “But in this case, that stability proved to be an illusion.”
    CNBC spoke with financial advisors and policy experts to get answers to some of the many important questions terminated federal workers likely have right now.

    Workers may be able to appeal, take legal action

    The Trump administration and Musk’s DOGE have largely targeted workers on a probationary status for cuts.
    That’s because probationary workers, who have typically been in their position for a year or less, have fewer protections after they’re removed than do career civil servants, said David Eric Lewis, a political science professor at Vanderbilt University.
    For example, probationary workers might not meet the requirements to appeal their termination to the U.S. Merit Systems Protection Board. The board reviews cases in which federal workers were laid off or suspended.
    Still, there are limited cases when they can appeal, experts said. You should speak to an employment lawyer or your union representative for more details, experts recommend.

    The name and logo for the Consumer Financial Protection Bureau (CFPB) is seen scraped off the door of its building in Washington, D.C., U.S., Feb. 20, 2025.
    Brian Snyder | Reuters

    “They can also seek legal relief,” Lewis said. Your union may help you file your lawsuit in federal court, he added.
    It can be more effective to bring your legal challenge as a group, with other terminated federal workers, Lewis said.
    “That’s what is happening,” he said. “There’s a hope that there is at least a stop to these orders.”
    A federal judge Thursday denied a bid by labor unions to block the mass layoffs across the federal workforce. The National Treasury Employees Union alongside four other groups filed a lawsuit against the firings on Feb. 12.

    What to know about unemployment benefits

    Federal workers can collect unemployment benefits through the Unemployment Compensation for Federal Employees (UCFE) program. Some government employees — including ex-military personnel discharged under honorable conditions and former members of the National Oceanographic and Atmospheric Administration — receive benefits through a separate program, known as the Unemployment Compensation for Ex-servicemembers (UCX).
    The jobless benefits, which are supposed to arrive within two or three weeks after you apply for them, are nearly identical to those of private-sector workers, said Michele Evermore, senior fellow at the National Academy of Social Insurance. 
    States — as well as U.S. territories and the District of Columbia — administer the payments. Workers must submit an application with the appropriate workforce agency. You should apply in the state or district where your last official duty station was located, Evermore said.
    Those working remotely on a full-time basis likely need to file a claim in their state of residence, Evermore said.

    Workers should apply for unemployment as soon as possible, experts said. Delays are likely amid the purge of government workers.
    Those claiming UCFE benefits will likely need to include certain documents with their claim, including a SF-8, or a Notice to Federal Employee About Unemployment Insurance, as well as a SF-50, or a Notification of Personnel Action, according to the U.S. Labor Department.
    Those applying for UCX benefits should have a copy of their service and discharge documents — DD-214 or a similar form, the Labor Department said. 
    Federal employers are supposed to provide these forms to workers upon separation, but Aniskevich said the Consumer Financial Protection Bureau still hadn’t given her those documents as of Friday.
    For now, she filed her unemployment application in Washington, D.C., without them.
    “It’s stressful to have uncertainty about whether my claim can be processed given the lack of forms,” Aniskevich said.
    Federal agencies appear to be citing lackluster performance as rationale for many job cuts in termination letters, experts said. Even so, workers should still apply for benefits, Evermore said. The cause must generally rise to the level of “gross misconduct” to prevent people from receiving aid.
    This could delay benefits if the government contests a claim, however, experts said.

    Health coverage for terminated workers

    Meanwhile Chris, who worked as a transportation program specialist at the Federal Transit Administration, was laid off on February 14. Like Aniskevich, he was a probationary worker, and had been employed by the FTA for around nine months. (He requested to use his first name only, out of fear of retaliation from the Trump administration.)
    Despite the financial stability usually associated with a federal job, he found himself with no protections.
    “There was no severance pay,” said Chris, 33, who is based in the Los Angeles area.
    Chris did learn that his health benefits will continue for 31 calendar days after Valentine’s Day.
    Similarly, federal employees should try to determine the specific date their health coverage will end, experts said. While the timelines may vary, most probationary workers will need to find new health insurance soon.
    Those who wish to continue with their current health care should look into the federal government’s Temporary Continuation of Coverage, experts say. Under this option, you’re able to extend your federal workplace plan for up to 18 months after termination. (It’s similar to COBRA, or the Consolidated Omnibus Budget Reconciliation Act, for private-sector workers.)
    Keep in mind that, with TCC, you’ll be responsible for the full cost of your premiums, plus any administrative fees.
    “It’s going to be [a] pretty big hike,” said Brennan Rhule, a Reston, Virginia-based certified financial planner who specializes in federal workers.

    If the new premium cost is too high to shoulder under TCC, you may qualify for a special enrollment period of the Affordable Care Act marketplace, according to Kate Ende, leader of the policy team at the Consumers for Affordable Health Care, a nonprofit. The special enrollment period typically gives you 60 days to sign up for a marketplace plan after you lost your coverage.
    Medicaid might also be an option, Ende said, and if you qualify you can enroll at any time for it.

    Relief options for recurring bills

    Federal workers concerned about staying current with their bills should reach out to their lenders and explain their situation, consumer advocates said.
    For instance, contact your mortgage lender and ask about forbearance or deferment options, said John Breyault, vice president of public policy at the National Consumers League. If you’re a renter, landlords and property managers may offer temporary payment plans or deferments. 
    More from Personal Finance:How IRS layoffs could impact your tax filing, refundAs tariffs ramp up, here’s an investment optionDOGE’s FDIC firings put banking system at risk
    Some auto lenders allow deferments, too, especially if you have a good payment track record. Meanwhile, your auto insurer may be able to adjust your coverage and lower your costs if you will no longer be driving long distances to work, Breyault said. 
    For utilities like electricity, water, gas, internet and phone service, see if your providers offer a grace period or deferred payments, Breyault said. 
    Those with student loan bills can request an unemployment deferment with their servicer.
    Keep in mind that such concessions and breaks can be helpful in the near-term, but read the terms thoroughly. There could be long-term costs associated, such as interest continuing to accrue or other fees. 

    Watch out for ‘undoable’ retirement account missteps

    Federal workers who find themselves unexpectedly out of work may be tempted to take money from their retirement plans. However, experts emphasize it is important to know the ins and outs of each plan’s rules to avoid unexpected costs.
    “Before you do anything, make sure you talk to somebody who understands and can guide you,” said CFP Mark Keen, who is a federal benefits expert with the National Active and Retired Federal Employees Association.
    “Make sure that you don’t make any mistakes that are undoable,” said Keen, who is also a partner at Keen & Pocock.
    Federal workers generally have access to a pension through the Federal Employee Retirement System, or FERS, and to a defined contribution savings plan, known as the Thrift Savings Plan, or TSP.
    FERS provides a guaranteed income stream once a worker reaches a certain age, a perk that’s mostly unavailable in the private sector, Keen said.

    Federal workers may withdraw their FERS contributions if they leave federal employment, but that may not be the best choice. It will take a while to build your pension back up if you return to federal service, said Katelyn Murray, a chartered federal employee benefits consultant and director of relationship management at Serving Those Who Serve.
    If you leave the balance intact, you retain the years of service you’ve accumulated, Murray said. Having a FERS pension also allows retirees to continue health coverage through the Federal Employees Health Benefits, or FEHB, in retirement.
    Even if you’re not sure you may return to federal work, you may want to think twice before cashing out, Murray said.
    “It’s more about flexibility and keeping your options open,” Murray said.
    Federal workers may have some flexibility with a Thrift Savings Plan that is like a 401(k) plan and allows employees to make contributions that are matched by government agencies.
    Generally, participants who are at least age 59½ can make withdrawals without penalties.
    In some cases, workers may qualify for the Rule of 55, which may allow them to take withdrawals from the TSP without having to pay a 10% early withdrawal penalty, provided they are at least age 55 when they leave their job (or age 50 for some public safety employees).
    If you haven’t found another job yet, you can’t take a TSP loan, but you may be able to look at doing a hardship withdrawal, Murray said. Importantly, by doing so you may incur taxes and/or penalties, as well as delay your anticipated retirement date. More

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    With tariffs ramping up, this investment option can provide protection against inflation

    The threat of tariffs on imports is causing some investors to consider increasing their exposure to Treasury inflation-protected securities to help buffer their portfolios against inflation.
    TIPS are inflation-protected bonds that are issued by the U.S. Treasury.

    Although inflation has eased considerably, in many ways, it is still alive and well.
    The consumer price index, which measures the cost of a wide-ranging basket of goods and services, has fallen gradually from a 9.1% pandemic-era peak in June 2022 to 3% in January. But it is still above the Federal Reserve’s 2% goal.

    “The progress toward 2% inflation has stalled out, and the Fed knows it,” said Greg McBride, chief financial analyst at Bankrate.com. Federal Reserve officials have also expressed concern about the impact tariffs may now have on inflation.

    How TIPS work

    TIPS are issued and backed by the U.S. government like typical Treasury bonds, however, these securities are meant to hedge against rising consumer prices.
    To compare, regular Treasury bonds could lose value over time if the interest they earn is below the rate of inflation. Currently, the bellwether 10-year Treasury bond is yielding just below 4.5%. (The same goes for the low yields on certificates of deposits when it comes to protecting long-term buying power.)

    Alternatively, the principal portion of a TIPS increases with inflation and decreases with deflation, as measured by the Consumer Price Index. In this case, as inflation rises, the value of the principal will rise as well to maintain its value.
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    For example, an investor buys $1,000 in TIPS at a fixed rate of 1%. If inflation rises by 2%, the principal will rise to $1,020. The rate will stay the same 1%, but future interest payments are multiplied by the new principal amount of $1,020, so payments are $10.20 for the year (or $5.10 every six months, since TIPS pay interest twice a year).
    TIPS are issued in 5-, 10- and 30-year maturities and when a TIPS matures, you are paid the adjusted principal or original principal, whichever is greater.

    TIPS are a ‘valuable tool’

    The threat of tariffs on imports is causing more investors to consider increasing their exposure to TIPS to mitigate inflation concerns, according to a recent report by Wells Fargo Investment Institute.
    “TIPS continue to be a valuable tool for protecting purchasing power in an inflationary environment,” said certified financial planner Douglas Boneparth, president of Bone Fide Wealth in New York.
    “With yields currently near decade highs, they’re certainly more attractive than in recent years,” said Boneparth, a member of the CNBC Financial Advisor Council.

    US President Donald Trump speaks while signing an executive order in the Oval Office of the White House to impose 25% tariffs on all US imports of steel and aluminum, broadening his trade restrictions to some of the country’s top trading partners.
    Bloomberg | Bloomberg | Getty Images

    However, TIPS aren’t immune from losses even in an inflationary environment, according to Colin Gerrety, a certified financial planner and client advisor at Glassman Wealth Services in Tysons Corner, Virginia.
    “Just look at 2022 as an example,” he said.
    “Let’s say inflation spikes and interest rates rise at the same time,” he said, as they did that year. “TIPS might actually lose money if the negative impact from the rise in rates exceeds the adjustment that occurs due to inflation.”
    In 2022, rising interest rates hurt TIPS and other bonds; TIPS had a -11.85% return that year, although that was still better than U.S. Treasurys.

    How to use TIPS as an investment option

    Consider the potential impact of tariffs on inflation going forward, said Winnie Sun, co-founder and managing director of Sun Group Wealth Partners, based in Irvine, California.
    She recommends a strategy that combines fixed-income TIPS with dividend-paying stocks and laddered CDs for short-term cash flow needs. Sun is also a member of CNBC’s Advisor Council. 

    “I usually advise clients to view TIPS as one part of a diversified portfolio rather than a standalone solution,” Boneparth also said.
    “While they offer the benefit of inflation-adjusted returns, it’s important to consider factors like tax treatment and the potential for lower returns if inflation moderates,” he added.
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    Here’s how IRS layoffs could impact your tax filing and refund this season

    Thousands of IRS employees are expected to lose their jobs as Elon Musk’s Department of Government Efficiency, or DOGE, continues widespread cuts to federal spending. 
    The staffing reduction could impact millions of taxpayers expected to file returns before April 15.
    While taxpayer service could be impacted, filers can avoid issues by filing a complete, accurate electronic return, experts say.

    Vithun Khamsong | Moment | Getty Images

    Thousands of IRS employees are expected to lose their jobs as Elon Musk’s Department of Government Efficiency, or DOGE, continues widespread cuts to federal spending. 
    The move comes roughly three weeks since the opening of tax season and could impact millions of taxpayers who will file before the April 15 deadline, experts say.

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    IRS funding has been targeted by Republican lawmakers since former President Joe Biden approved $80 billion for the agency via the Inflation Reduction Act, or IRA, in 2022.
    The IRS layoffs have targeted probationary workers with less than one year of service — or longer in some cases. There were an estimated 15,000 probationary employees at the agency, many who were hired via IRA funds, according to a lawsuit filed by the National Treasury Employees Union and others on Feb. 12.
    An estimated 6,000 to 7,000 IRS workers may be impacted, according to reporting from CBS News and the Associated Press.
    The U.S. Department of the Treasury didn’t respond to CNBC’s request to confirm these numbers.

    These mid-season staffing cuts could significantly impact filers, experts warn. So, with major IRS changes underway, here are some key things to know.

    ‘You may not notice a change’

    Senate Finance Committee Democrats on Tuesday warned that IRS staffing cuts would cause a “tax refund train wreck.” Tax experts, however, say filing an accurate, electronic return should avoid any such issues. 
    “If you have a good submission, you may not notice any change,” said Tom O’Saben, an enrolled agent and director of tax content and government relations at the National Association of Tax Professionals.
    Typically, it takes 21 days for the IRS to process an e-filed tax return. But that timeline could be longer for “corrections or extra review,” according to the agency.
    Reduced staffing could make processing longer if there’s an issue with your return, experts say.

    The IRS system could flag your return for incorrect personal details or missing information, which could require contact with the agency for assistance, O’Saben said.
    “We haven’t seen any service delays yet,” he said. “But we’re going to. It’s just going to be a reality with less people.”   

    File soon if you’re expecting a refund

    If you expect a tax refund and have all the correct forms, “get that return in as quickly as possible,” said San Diego-based tax attorney Adam Brewer.
    “Even if the staffing cuts don’t impact process, there’s the potential for a government shutdown next month” as lawmakers debate spending negotiations, he said. “That will compound problems.”
    Error-free, electronically filed returns may not be impacted by a government shutdown. But there could be further delays if there’s an issue with your filing, experts say.
    Typically, the best way to speed up your refund is by filing electronically and choosing direct deposit for your payment, according to the IRS.
    You can check the status of your refund via the agency’s “Where’s My Refund?” tool or the IRS2Go app. More

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    Sen. Elizabeth Warren: DOGE’s FDIC firings put banking system at risk

    In a statement Thursday, Sen. Elizabeth Warren, D-Mass., said she was “pleased” the Federal Deposit Insurance Corp. would review the decision to lay off more workers.
    The recent FDIC firings were part of DOGE’s effort to shrink the federal bureaucracy.
    The FDIC is already severely understaffed, Warren has said.

    U.S. Sen. Elizabeth Warren (D-MA) speaks to a crowd gathered in front of the U.S. Treasury Department in protest of Elon Musk and the Department of Government Efficiency on Feb. 4, 2025 in Washington, DC.
    Anna Rose Layden | Getty Images

    In response to a request from Sen. Elizabeth Warren, the Federal Deposit Insurance Corp. will review President Donald Trump’s recent move to lay off more workers at the watchdog agency.
    Backed by the Trump administration, Elon Musk and his advisory group, the Department of Government Efficiency, reduced the FDIC staff by around 1,000 employees so far this year through buyout offers and the layoffs of probationary employees, according to reports. The additional firings were part of a larger effort to shrink the federal bureaucracy.

    The FDIC is already severely understaffed, which “threatens the stability of the banking system,” Warren, D-Mass., said in a letter sent on Feb. 10 to Inspector General Jennifer Fain and shared exclusively with CNBC. Sens. Raphael Warnock, D-Ga., Chris Van Hollen, D-Md., and Lisa Blunt Rochester, D-Del., also signed the letter.
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    Fain responded to the lawmakers in a letter dated Feb. 19, which was also shared exclusively with CNBC, saying “the full effect and impact on the structure and mission of the FDIC due to the hiring freeze, deferred resignations, and any reshaping and restructuring remain to be seen.”
    Further, Fain said, “we will be adapting our oversight work to better understand and determine the effect of recent changes and their impact on the FDIC to maintain stability and confidence in nation’s banking system.”
    In a statement Thursday, Warren said she was “pleased that the FDIC Inspector General will review the threats to the stability of the banking system caused by the Trump Administration’s recent buyouts, terminations, and job rescissions to bank examiners and other FDIC staff.”

    “These cuts threaten the reliability and integrity of federal deposit insurance and inhibit the FDIC’s capacity to ensure the stability and confidence that underpin our nation’s banking system,” she said.

    Risks of ‘a shortage of cops on the beat’

    In the initial letter to Fain, the senators said staffing shortages directly contributed to Signature Bank’s failure in March 2023.
    The lack of examiners “led to a series of supervisory delays, canceled or postponed exams, and quality control issues in the supervision of Signature,” the letter said.

    “The lesson learned in this case was that a shortage of cops on the beat can threaten the safety and soundness of the banking system and pose risks to the Deposit Insurance Fund,” the letter stated.
    The incident marked the largest U.S. banking failure since the 2008 financial crisis, and one of the biggest bank failures in U.S. history. The unexpected shutdown also caused widespread concern among consumers about their deposits, their bank and the banking system.

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    Cruise stocks tumble after Commerce Secretary Lutnick signals tax crackdown

    The Royal Caribbean cruise ship ‘Explorer of the Sea’.
    Getty Images

    Shares of cruise lines tumbled Thursday after Commerce Secretary Howard Lutnick suggested the Trump administration would crack down on taxes paid by the companies.
    “You ever see a cruise ship with an American flag on the back?” Lutnick said in an appearance late Wednesday on Fox News.

    “None of them pay taxes … every supertanker. None pay taxes … all foreign alcohol. No taxes. This is going to end under Donald Trump,” said Lutnick.
    Shares of Carnival dropped 5.9%, Royal Caribbean lost 7.6%, Norwegian Cruise Line fell 4.9% and Viking Holdings weakened by 3%.
    Analysts at Stifel Financial called the selling in cruise stocks a “massive overreaction,” and recommended investors use the slump to buy the names “on weakness.”
    “[T]his is probably the tenth time in the last 15 years we have seen a politician (or other D.C. bureaucrat) talk about changing the tax structure of the cruise industry,” wrote analysts led by Steven Wieczynski. “Each time it was presented, it didn’t get very far.”
    “[F]om a tax standpoint the cruise industry is embedded under the cargo industry in the eyes of the Internal Revenue Service,” Stifel wrote. “That would mean the entire cargo industry would have to be turned upside down even before they got to the cruise industry, which is a sliver of the size of the cargo industry.”

    The cruise industry might respond by moving their corporate headquarters outside the U.S., reducing the number of jobs kept in the U.S., the report said. “With 90%+ of their business being conducted in international waters, it would then be impossible for the U.S. (or any other entity) to target the cruise operators.”
    Stifel has buy recommendations on six cruise industry stocks: Carnival, Royal Caribbean, Norwegian, Viking as well as Lindblad Expeditions Holdings and OneSpaWorld Holdings.
    “Cruise lines pay substantial taxes and fees in the U.S.— to the tune of nearly $2.5 billion, which represents 65% of the total taxes cruise lines pay worldwide, even though only a very small percentage of operations occur in U.S. waters,” said the Cruise Lines International Association, in a statement. “Foreign flagged ships that visit the U.S. are treated the same for taxation purposes as U.S. flagged ships visiting foreign ports, which provides consistent reciprocal treatment across international shipping.”

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    Palantir drops for a second day as cult stock loses momentum

    Investors continued to dump Palantir shares on Thursday, escalating concerns that the latest hot pick among retail traders could be fizzling out.
    Shares of the technology stock retreated more than 5% on Thursday, building on Wednesday’s slide of around 10%.

    Omar Marques | Lightrocket | Getty Images

    Investors continued to dump Palantir shares on Thursday, escalating concerns that the latest hot pick among retail traders could be fizzling out.
    Shares of the mysterious technology and defense stock retreated more than 5% on Thursday, regaining some ground in afternoon trading. Still, that builds on Wednesday’s slide of around 10%, which came after shares touched an all-time high earlier in the day and marked the stock’s worst session since May.

    Wednesday’s initial decline came as investors keyed in on the CEO’s new stock sale plan and comments from Defense Secretary Pete Hegseth reported by The Washington Post on plans to slash defense budgets.
    Now, the continued downturn raises alarm of a popular stock among retail investors showing signs of petering out. Shares had run up amid investor excitement around artificial intelligence, making Palantir the best performer within the S&P 500 last year.
    Palantir has been one of the most-bought securities among everyday investors, data shows. The company seeks out these traders, with executives such as CEO Alex Karp speaking directly to them on earnings calls and in video addresses.
    “The activity in Palantir is dominated by retail investors,” said Gil Luria, head of technology research at D.A. Davidson. “The company embraces that and caters to those investors as much or more than any other company.”

    Stock chart icon

    Palantir, year-to-date

    Vanda Research found the stock has trailed just Nvidia, Tesla and the SPDR S&P 500 ETF Trust (SPY) in net inflows from retail investors, according to 2025 data that runs through early February. Palantir was also one of the most-bought stocks by individual traders over the past week, per data from JPMorgan released Wednesday.

    Palantir has become a sort of cult favorite among the retail crowd in recent months. The stock shot up more than 60% in November alone as investors evaluated which companies would benefit from President Donald Trump’s return to the White House.
    Layered on top of that is the fact that Peter Thiel, co-founder of PayPal with Elon Musk, has chaired Palantir’s board for more than two decades. Musk is leading the so-called Department of Government Efficiency’s efforts to cut government spending, and there is speculation he could even use Palantir’s technology to help him do it.
    The company’s valuation has given some market participants reason for pause, as its 198 forward price-to-earnings multiple far exceeds the S&P 500’s at 22. But sustained devotion from retail investors can actually help justify its lofty valuation, according to D.A. Davidson’s Luria.
    “Palantir is trading at an unprecedented premium to other software companies,” Luria said. “The reason is that they have this very loyal retail investor support.”
    In other words, Palantir’s valuation makes it a “live-by-the-gun, die-by-the-gun” stock, Ritholtz Wealth Management CEO Josh Brown said Thursday on CNBC’s “Halftime Report.”

    ‘Crazy expensive’

    Two news items appeared to catalyze the initial pullback on Wednesday.
    Hegseth reportedly told Pentagon officials to prepare to slash defense budgets by 8% annually over the next five years, a move that can worry investors about the state of deals between the government and contractors such as Palantir. However, Palantir executives previously said they are optimistic about members of DOGE seeing value in the company’s contributions.
    Palantir also disclosed in a regulatory filing Tuesday night that Karp can sell 10 million shares of the company’s stock over the next six months. His eccentric persona has drawn comparisons to Tesla’s Musk and is considered to be helping to drive attention and interest among retail investors.

    With these declines, the stock is down more than 10% this week. Still, shares are up more than 40% in 2025 after skyrocketing around 340% in the prior year.
    While mom-and-pop investors have rushed into the stock, Wall Street isn’t as on board. The average analyst polled by LSEG has a hold rating, with a price target implying shares should drop from here.
    Part of this disconnect between Main Street and Wall Street stems from the fact that everyday investors don’t fully understand that “a good product doesn’t necessarily mean it’s a good company, and a good company doesn’t necessarily mean it’s a good investment,” said Christopher Schwarz, a finance professor at the University of California Irvine who studies retail trader behavior.
    Schwarz pointed out that the stock is trading at around 80 times its sales, adding that no company of any size would be considered a smart investment at that rate.
    “It’s just crazy expensive — and people just don’t understand that there’s no way they can make money on the stock over the long term,” Schwarz said. “The more it goes up now, the more it’s going to crash in the future.”

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    Home price growth has slowed. But high costs, economic worries have some buyers retreating

    There are signs that the housing market is swinging to favor buyers. But renewed worries about the economy are holding some buyers back.
    “A lot of it is coming from the White House,” said Chen Zhao, an economist at Redfin.
    Here’s what to know if you’re house hunting.

    monkeybusinessimages | Getty

    There are signs that the housing market is swinging to favor buyers. However, renewed worries about the economy are holding some buyers back.
    On the upside for homebuyers, home price growth has slowed and mortgage rates have retreated from recent peaks.

    The median sale price for homes was $375,475 in the four weeks ending February 16, up 3.7% from a year prior, according to Redfin, a real estate brokerage firm. That is the smallest increase in nearly five months.
    Meanwhile, the average 30-year fixed rate mortgage inched down to 6.87% the week ending Feb. 13, per Freddie Mac data. That’s the lowest so far in the year, and down from the latest peak of 7.04% in January.
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    However, “buyers are still faced with this massive affordability challenge,” said Orphe Divounguy, a senior economist at Zillow.
    Mortgage applications for the week ending February 14 fell 6.6% from a week earlier, according to data from the Mortgage Banker’s Association. Experts forecast January home sales data — set to come out Friday — to show a decline.

    On top of relatively high costs, some buyers could be having second thoughts as uncertainty about the broader economy creeps in, according to Chen Zhao, an economist at Redfin.
    “A lot of it is coming from the White House,” she said of the reasons that have buyers worried.

    Promising signs in the housing market

    Some factors in the housing market are giving buyers more room to negotiate prices, according to experts. 
    For one, inventory is growing as more owners put their homes up for sale. With more options available, buyers have “a little bit more bargaining power in the market,” Divounguy said. 
    According to Redfin data, there were 564,642 new home listings in January, up 1.9% from a month prior and 4.7% higher from a year earlier. New home listings hit the highest level since July 2022.

    Some home sellers are cutting their asking prices, too. The typical home is selling for 2% less than its asking price, the biggest discount in two years, per Redfin data.

    Buyers worry about the economy, job loss

    Some buyers are rethinking their plans given broader economic uncertainty, experts say.
    As of mid-February, thousands of workers across multiple federal agencies and departments have been laid off as part of President Trump’s aim to reduce the government workforce.
    This can make people who either work directly with the government or are connected through contract work or federal funding “nervous that there could be big changes on the horizon,” Zhao said.
    “They are worried about job security,” said Zhao, which takes a home purchase off the table.
    “The first thing you might do is hold off on a really big purchase because you’re worried about financial security,” she added.

    A lot of it is coming from the White House.

    head of economics research at Redfin

    The anxiety doesn’t stop there — the possibility of trade wars and drastic changes in government spending may leave Americans wondering “what’s next?” Zhao explained.
    Trump signed a presidential memorandum laying out his plan to impose “reciprocal tariffs” on foreign nations. The plan allows the U.S. to treat other countries’ non-tariff policies as unfair trade practices that warrant tariffs in response.
    For consumers, the prospect of higher prices on everyday items and the potential for inflation to accelerate may make them hesitate to invest in a new home.

    How to navigate the buyers’ market

    If you’ve been in the market for a while and you see a house that you really like, try to negotiate hard on the price and see where it goes, Zhao said.
    If the home seller isn’t open to lowering the asking price, see if they can cover additional expenses like closing costs or to pay for the buyer’s real estate agent fees.

    Those can be valuable concessions.
    Closing costs can run between about 2% and 6% of the loan amount, according to NerdWallet. If you take out a $300,000 mortgage, you could pay from $6,000 to $18,000 in closing costs on top of the down payment.
    The average buyer’s agent commission was 2.37% for homes sold in the fourth quarter of 2024, down from 2.45% a year prior, per a data analysis by Redfin. 
    If not, check out the new builds market — some builders are offering incentives like “in-house lending” and often provide favorable loan terms like lower rates, experts say. More

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    Americans’ average credit card balance hits $6,580, but there are signs consumers are managing their debt relatively well

    Americans are racking up more credit card debt, but at a slower pace than they were before.
    The average consumer’s credit card balance is now $6,580, a new report by TransUnion found.
    For borrowers with a revolving balance, here are the best payoff strategies.

    Americans are racking up more and more credit card debt.
    Collectively, consumers owe a record $1.21 trillion on their credit cards, the Federal Reserve Bank of New York recently reported.

    The average balance per consumer now stands at $6,580, up 3.5% year over year, according to a separate quarterly credit industry insights report from TransUnion.
    Despite the uptick, the rate of change has slowed considerably, said Charlie Wise, TransUnion’s senior vice president of global research and consulting. “Consumers are still continuing to use their credit cards, but the amount they are leaning on them seems to be declining.”

    In the wake of the pandemic, higher prices and high interest rates put many households under pressure and prices are still rising, albeit at a slower pace than they had been.
    The consumer price index — a key inflation barometer — has fallen gradually from a 9.1% pandemic-era peak in June 2022 to 3% in January. but is still above the Federal Reserve’s 2% goal.
    The central bank cut its benchmark rate by a full percentage point in the second half of 2024, but policymakers have been advocating a more cautious pace ahead as they evaluate the overall strength of the labor market and President Donald Trump’s policy ramifications.

    More from Personal Finance:Credit card debt hit a record $1.21 trillionHere’s the inflation breakdown for January 2025Wholesale egg prices have ‘blown way past’ record highs
    According to meeting minutes released Wednesday, Federal Reserve officials agreed they would need to see inflation come down more before lowering interest rates further, and expressed concern about the impact tariffs may have.
    In the meantime, households have largely adjusted to a new normal of high prices and high rates, Wise said: “We’re seeing a bit less of a reliance on credit cards to make ends meet.” After balances soared in 2022 and 2023, the growth in credit card debt has slowed considerably, he said.
    Credit card delinquency rates, or those 90 days or more past due, fell year over year for the first time since 2020, TransUnion also found. “This is a good sign,” Wise said.

    How to get out of credit card debt

    “While most people are generally doing okay, the truth is that many, many Americans are a job loss, medical emergency or some other big, unexpected event [away] from being in a world of hurt,” said Matt Schulz, chief credit analyst at LendingTree and the author of “Ask Questions, Save Money, Make More.”
    “It wouldn’t take much for them to go from pretty good to pretty dicey,” he said.
    Credit cards are still one of the most expensive ways to borrow money after the Federal Reserve’s string of interest rate hikes lifted the average credit card rate to more than 20% — near an all-time high.
    Even as the Fed lowered its benchmark at the end of last year, the average credit card rate barely budged.

    “The good news is that there are plenty of options to help you pay down card debt,” Schulz said.
    Rather than wait for a modest adjustment in the months ahead from further Fed rate cuts, borrowers could call their card issuer now and ask for a lower rate, switch to a zero-interest balance transfer credit card or consolidate and pay off high-interest credit cards with a personal loan, Schulz advised.
    “If you’re really struggling, an accredited nonprofit credit counselor can make a huge difference,” he said. “Doing nothing, however, is not an option. It’ll only make things worse.” 
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