Biden, Joseph R Jr

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    in Economy

    A Fed Rate Cut Would Cap a Winning Streak for Biden and Harris on Prices

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    Improved data on borrowing costs and price growth has buoyed consumers, but it might be coming too late to significantly affect the presidential raceAfter more than a year of waiting, hoping and assuring Americans that the economy could pull off a so-called “soft landing,” President Biden and Vice President Kamala Harris appear to be on the brink of seeing that happen.Inflation has cooled. Economic growth remains strong, though job gains are slowing. Mortgage costs are falling and the Federal Reserve is poised to begin cutting interest rates on Wednesday.And yet, it is unclear whether those developments will significantly alter voters’ predominantly negative perceptions of the economy ahead of the presidential election.Recent weeks have brought a run of good data on consumer prices and interest rates for the administration. The price of gasoline has fallen below $3 a gallon in much of the South and Midwest and is nearing a three-year low nationally. Spiking grocery prices have slowed to a crawl. Mortgage rates are down more than a percentage point from their recent peak. The Census Bureau reported last week that the typical household income rose faster than prices last year for the first time since the pandemic. The overall inflation rate has returned to near historically normal levels, and the Fed is poised to begin cutting interest rates from a two-decade high.The Biden administration, which has taken heat from Republicans and many economists for fueling inflation with its economic policies, has begun to celebrate those developments in bold terms. Officials are claiming vindication for their multi-trillion-dollar efforts to boost households and businesses in their recovery from the pandemic recession.Mr. Biden’s Council of Economic Advisers published a blog post on Tuesday highlighting economic and job growth under Mr. Biden that has surpassed projections. Lael Brainard, who heads Mr. Biden’s National Economic Council, told the Council on Foreign Relations in New York on Monday that the American economy has now reached a “turning point.”We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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    Amazon Sought Tariff Loophole Used by Chinese Rivals. Now Biden Is Closing It.

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    Under pressure from Chinese competitors, Amazon, Walmart and other U.S. retailers have been exploring ways to avoid tariffs. Could a new Biden administration rule change that?Major American retailers including Amazon and Walmart have been quietly exploring shifting toward a business model that would ship more goods directly to consumers from Chinese factories and require fewer U.S. workers in retail stores and logistics centers.The plans have been driven by the rocketing popularity of Chinese e-commerce platforms like Shein and Temu, which have won over consumers with their low prices. These platforms ship inexpensive products directly to consumers’ doorsteps, allowing them to bypass American tariffs on Chinese goods, along with the hefty costs associated with brick-and-mortar stores, warehousing and distribution networks.Rising competition from Shein, Temu and other Chinese companies is pushing many major U.S. retailers to consider shifting to a similar model to qualify for an obscure, century-old U.S. trade law, according to several people familiar with the plans. The law, known as de minimis, allows importers to bypass U.S. taxes and tariffs on goods as long as shipments do not exceed $800 in value.But that trend toward changing business models may have been disrupted on Friday, when the Biden administration abruptly moved to close off de minimis eligibility for many Chinese imports, including most clothing items. In an announcement Friday morning, the Biden administration said it would clamp down on the number of packages that come into the country duty-free using de minimis shipping, particularly from China.The Biden administration’s changes will not go into effect immediately. The proposal will be subject to comment by industry before being finalized in the coming months, and some imports from China would still qualify for a de minimis exemption.But Friday’s action may head off a change that has been looming in global retail. Amazon has been preparing a new discount service that would ship products directly to consumers, allowing those goods to bypass tariffs, according to people familiar with the plans. Even companies that preferred to keep their business models as-is — like Walmart — have been forced to consider using more de minimis to compete.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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    Trump and Democrats Agree: U.S. Needs a National Wealth Fund for Investments

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    Donald Trump has suggested he wants one, and the White House indicated that it has been quietly working on a proposal to set one up.Former President Donald J. Trump said a sovereign wealth fund would generate so much profit that it would help pay down the national debt.Jamie Kelter Davis for The New York TimesA Biden-Harris administration fund would be focused on supply chain resilience, technological pre-eminence and energy security, a White House official said.Eric Lee/The New York TimesFormer President Donald J. Trump and the Biden-Harris administration have little common ground on the policy front, but one unexpected area of agreement is the idea that the United States might be ready for a sovereign wealth fund.Such government investment vehicles are popular in Asia and the Middle East. They allow countries like China and Saudi Arabia to direct their budget surpluses toward a wide range of investments and wield their financial influence around the world.While some individual states have their own versions of wealth funds, the United States, which runs large budget deficits, has never pursued one.Last week, Mr. Trump suggested during a speech at the Economic Club of New York that, if elected, he would like to create an American sovereign wealth fund that could be used “to invest in great national endeavors for the benefit of all of the American people.” After Mr. Trump’s remarks, the White House indicated that senior officials had been quietly working for months on a proposal for a sovereign wealth fund that Mr. Biden and his cabinet could review.Despite the newly bipartisan appeal of a national sovereign wealth fund, creating one might not be so simple. It would need the approval of Congress, where lawmakers are likely to be skeptical about authorizing the creation of a fund that could essentially circumvent its own powers to approve federal spending. And then there is the matter of how a nation with perpetual deficits would fund such an investment vehicle.“Establishing a U.S. S.W.F. would raise highly complex technical and conceptual questions and on its face would appear to be a dubious value proposition for America,” said Mark Sobel, a former Treasury official who is now the U.S. chairman of the Official Monetary and Financial Institutions Forum. “None of the tough questions has been answered so far.”We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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    Biden Expected to Block U.S. Steel Takeover by Nippon

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    The Committee on Foreign Investment in the United States is expected to raise national security concerns about selling the iconic steel producer to Japan’s Nippon Steel.President Biden is preparing to soon block an attempt by Japan’s Nippon Steel to buy U.S. Steel on national security grounds, according to three people familiar with the matter, likely sinking a merger that became entangled in election-year politics in the United States.A decision to block the takeover would come after months of wrangling among lawmakers, business leaders and labor officials over whether a corporate acquisition by a company based in Japan — a key U.S. ally — could pose a threat to national security. A move by Mr. Biden to block the deal on those grounds could roil relations between the two nations at a moment when the United States has been trying to deepen ties with Japan amid China’s growing influence in East Asia.For months, the Committee on Foreign Investment in the United States, or CFIUS, has been scrutinizing the deal over potential risks. There has been mounting speculation that the Biden administration could intervene before the November election.A White House official told The New York Times that CFIUS “hasn’t transmitted a recommendation to the president, and that’s the next step in this process.”CFIUS is made up of members of the State, Defense, Justice, Commerce, Energy and Homeland Security Departments, and is led by the Treasury secretary, Janet L. Yellen.The committee sent a letter to U.S. Steel in recent weeks saying that it had found national security concerns with the transaction, one of the people familiar with the situation said.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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    Gaza Debate Reopens Divisions Between Left-Wing Workers and Union Leaders

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    Last week’s Democratic National Convention surfaced differences over the war in Gaza that could widen fissures between labor activists and union officials.When members of the Chicago Teachers Union showed up to march at the Democratic National Convention last week, many expressed two distinct frustrations.The first was over the war in Gaza, which they blamed for chewing up billions of dollars in aid to Israel that they said could be better spent on students, in addition to a staggering loss of life. The second was disappointment with their parent union, the American Federation of Teachers, which they felt should go further in pressuring the Biden administration to rein in Israel’s military campaign.“I was disappointed in the resolution on Israel and Palestine because it didn’t call for an end to armed shipments,” said Kirstin Roberts, a preschool teacher who attended the protest, alluding to a statement that the parent union endorsed at its convention in July.Since last fall, many rank-and-file union members have been outspoken in their criticism of Israel’s response to the Oct. 7 attacks, in which Hamas-led militants killed more than 1,000 people and took about 250 hostages. The leaders of many national unions have appeared more cautious, at times emphasizing the precipitating role of Hamas.“We were very careful about what a moral stance was and also what the implications of every word we wrote was,” the president of the American Federation of Teachers, Randi Weingarten, said of the resolution her union recently adopted.In some ways, this divide reflects tensions over Israel and Gaza that exist within many institutions — like academia, the media and government.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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    Where Does Biden’s Student Loan Debt Plan Stand? Here’s What to Know.

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    The Supreme Court refused to allow a key part of President Biden’s student debt plan to move forward. Here’s what’s left of it, and who could still benefit.President Biden’s latest effort to wipe out student loan debt for millions of Americans is in jeopardy.The Supreme Court on Wednesday refused to allow a key component of the policy, known as the SAVE plan, to move forward after an emergency application by the Biden administration.Until Republican-led states sued to block the plan over the summer, SAVE had been the main way for borrowers to apply for loan forgiveness. The program allowed people to make payments based on income and family size; some borrowers ended up having their remaining debt canceled altogether.Other elements of Mr. Biden’s loan forgiveness plan remain in effect for now. And over the course of Mr. Biden’s presidency, his administration has canceled about $167 billion in loans for 4.75 million people, or roughly one in 10 federal loan holders.But Wednesday’s decision leaves millions of Americans in limbo.Here is a look at what the ruling means for borrowers and what happens next:Who was eligible for SAVE?Most people with federal undergraduate or graduate loans could apply for forgiveness under SAVE, which stands for Saving on a Valuable Education.But the amount of relief it provided varied depending on factors such as income and family size. More than eight million people enrolled in the program during the roughly 10 months that it was available, and about 400,000 of them got some amount of debt canceled.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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    Care Policies Take Center Stage in Harris’s Economic Message

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    The Democratic nominee says she wants to make raising a family more affordable. But she has provided few details on her proposals.The “care economy” — a broad set of policies aimed at helping parents and other caregivers — was the great unfinished work of President Biden’s domestic agenda. Vice President Kamala Harris has made it a central aspect of her campaign to succeed him.Ms. Harris, the Democratic nominee, has spoken frequently on the campaign trail about making it more affordable to raise children. She chose a running mate, Gov. Tim Walz of Minnesota, whose signature policy accomplishments include the creation of a paid family leave program.In the first major economic speech of her campaign, she proposed restoring an expanded child tax credit and called for a new $6,000 benefit for parents of newborns. She also laid out policies that aim to reduce housing costs, such as providing up to $25,000 in down-payment assistance to first-time home buyers.In her speech accepting the Democratic nomination on Thursday, Ms. Harris said she would not let conservatives end programs like Head Start that “provide preschool and child care for our children.”But Ms. Harris has not yet offered specific proposals on child care, paid family leave or early childhood education. That has surprised some progressive policy experts, and brought flashbacks of the Biden administration’s inability to enact more sweeping policies.Mr. Biden also initially made the care economy a central piece of his domestic policy agenda, putting it alongside proposed investments in roads and bridges, domestic manufacturing and green energy. His aides often argued that care was a form of infrastructure — that affordable child care, like highways, was essential to a well-functioning economy.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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    Harris and Trump Offer a Clear Contrast on the Economy

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    Both candidates embrace expansions of government power to steer economic outcomes — but in vastly different areas.Vice President Kamala Harris and former President Donald J. Trump flew to North Carolina this week to deliver what were billed as major speeches on the economy. Neither laid out a comprehensive policy plan — not Ms. Harris in her half-hour focus on housing, groceries and prescription drugs, nor Mr. Trump in 80 minutes of sprinkling various proposals among musings about dangerous immigrants.But in their own ways, both candidates sent voters clear and important messages about their economic visions. Each embraced a vision of a powerful federal government, using its muscle to intervene in markets in pursuit of a stronger and more prosperous economy.They just disagreed, almost entirely, on when and how that power should be used.In Raleigh on Friday, Ms. Harris began to put her own stamp on the brand of progressive economics that has come to dominate Democratic politics over the last decade. That economic thinking embraces the idea that the federal government must act aggressively to foster competition and correct distortions in private markets.The approach seeks large tax increases on corporations and high earners, to fund assistance for low-income and middle-class workers who are struggling to build wealth for themselves and their children. At the same time, it provides big tax breaks to companies engaged in what Ms. Harris and other progressives see as delivering great economic benefit — like manufacturing technologies needed to fight global warming, or building affordable housing.That philosophy animated the policy agenda that Ms. Harris unveiled on Friday. She pledged to send up to $25,000 in down-payment assistance to every first-time home buyer over four years, while directing $40 billion to construction companies that build starter homes. She said she would permanently reinstate an expanded child tax credit that President Biden temporarily established with his 2021 stimulus law, while offering even more assistance to parents of newborns.She called for a federal ban on corporate price gouging on groceries and for new federal enforcement tools to punish companies that unfairly push up food prices. “My plan will include new penalties for opportunistic companies that exploit crises and break the rules,” she said, adding: “We will help the food industry become more competitive, because I believe competition is the lifeblood of our economy.”We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More