Slowdown in US hiring suggests economy still needs rate cuts, Fed's Powell says

WASHINGTON (AP) — Federal Reserve Chair Jerome Powell says that a sharp slowdown in hiring poses a growing risk to the U.S. economy. Powell's comments Tuesday suggest that the Fed will likely cut its key interest rate twice more this year. Powell said in written remarks that despite the federal government shutdown cutting off official economic data, “the outlook for employment and inflation does not appear to have changed much since our September meeting,” when the Fed reduced its key rate for the first time this year.

IMF more upbeat about US growth than just months ago, but outlook is dimmer than last year

WASHINGTON (AP) — The U.S. and global economies will grow a bit more this year than previously forecast as the Trump administration’s tariffs have so far proved less disruptive than expected, the International Monetary Fund said Tuesday, though the full impact of those policies is still emerging. While the U.S. and world economies have fared better than expected, it’s too soon to say they are fully in the clear, the IMF said, as Trump has continued to make tariff threats and it can take time for changes in international trade patterns to play out.

Social Security cost-of-living increase announcement delayed by government shutdown

WASHINGTON (AP) — The ongoing government shutdown has delayed the announcement of the annual Social Security cost-of-living increase. This announcement, originally scheduled for Wednesday, is now set for Oct. 24. The delay affects millions of beneficiaries who rely on these adjustments to plan their finances. The Senior Citizens League and AARP are projecting a 2.7% increase. Many retirees worry this won't cover rising costs. Some lawmakers propose using a different index to calculate these increases since they don't factor in health care expenses. The agency plans to notify recipients of their new benefits in December. The program faces financial challenges, with a trust fund shortfall expected by 2034.

GM to take a $1.6 billion hit as tax incentives for EVs are slashed and emission rules ease

General Motors will book a negative impact of $1.6 billion in its next quarter after tax incentives for electric vehicles were slashed by the U.S. and rules governing emissions are relaxed. Shares dipped 3% before the opening bell Tuesday. The EV tax credit ended last month. The clean vehicle tax credit was worth $7,500 for new EVs and up to $4,000 for used ones. General Motors, which had led the way among U.S. automakers with plans to convert production to an electric fleet of vehicles, warned that more hits may be ahead as it adjust production under a new administration, and non-cash charges may impact operations and cash flow in the future.

Asian shares swing higher after a wobbly day on Wall Street

BANGKOK (AP) — Shares have swung higher in Asia as hopes for a U.S. interest rate cut helped to offset worries over simmering trade tensions between Washington and Beijing. U.S. futures edged higher while oil prices retreated. Benchmarks rose more than 1% early Wednesday in Tokyo, Hong Kong, South Korea and Taiwan. On Tuesday, the S&P 500 gave up an afternoon gain and closed 0.2% lower. The Dow Jones Industrial Average climbed 0.4%, and the Nasdaq composite dropped 0.8%. Federal Reserve Chair Jerome Powell signaled that the Fed is slightly more worried about the job market, raising expectations that the central bank will come through with another rate hike.

Stellantis says it will invest $13B to expand its US operations, adding more than 5,000 jobs

Stellantis plans to invest $13 billion over the next four years to expand its manufacturing capacity in the United States. The automaker says this move will increase domestic vehicle production by 50% and add over 5,000 jobs. On Tuesday, Stellantis announced the investment will support the introduction of five new vehicles, including a Dodge Durango in Detroit and a midsize truck in Toledo, Ohio. The new jobs will be spread across plants in Illinois, Ohio, Michigan, and Indiana. The move comes as Stellantis looks to to counteract tariff costs on cars produced in Canada and Mexico by boosting North American profitability with new model launches.

Meta removes ICE-tracking Facebook page in Chicago at the request of the Justice Department

Meta has removed a Facebook page used to track the presence of immigration agents at the request of the Department of Justice, the company confirmed on Tuesday. Attorney General Pam Bondi said in a post on X that “following outreach” from the DOJ,  Facebook removed a “large group page” that was being used to target ICE officials. Meta said in a statement that the group “was removed for violating our policies against coordinated harm.”

31,000 Kaiser Permanente nurses and other health care workers strike for better wages and staffing

SAN FRANCISCO (AP) — An estimated 31,000 Kaiser Permanente health care workers have gone on strike to demand better wages and staffing. The five-day strike began Tuesday and spans 500 medical centers in California, Hawaii, and Oregon. It is the largest in the history of the United Nurses Associations of California/Union of Health Care Professionals. Workers, including pharmacists and midwives, say wages haven't kept pace with inflation. They are asking for a 25% wage increase over four years. Kaiser Permanente has countered with a 21.5% increase. The company says clinics will remain open during the strike with some adjustments.

As US wood tariffs kick in, kitchen cabinet companies look for a silver lining

NEW YORK (AP) — New tariffs on imported kitchen cabinets, bathroom vanities, and upholstered furniture in the U.S. are expected to impact the home improvement industry. The tariffs took effect early Tuesday. The White House says the aim is to boost domestic production and to protect American companies. However, some small business owners worry about short-term challenges. They fear clients may hesitate to pay more for budget-priced cabinets, and potential customers might delay renovations. Despite high mortgage rates affecting home sales and rising production costs, a Harvard University forecast expects remodeling activity to remain slow but steady through the middle of next year.

Wall Street sees major jump in profits, helped by soaring stock prices and deal making

NEW YORK (AP) — Wall Street has experienced one of its most profitable quarters, according to earnings reports from major banks on Tuesday. JPMorgan Chase, Citigroup, Wells Fargo, and Goldman Sachs have all seen significant profit increases, driven by strong deal making, rising stock prices, and a resilient global economy. Despite these gains, bank executives express caution about market conditions and potential overinflated asset prices. JPMorgan's consumer banking division performed well, boosted by credit card spending. Investment banking revenues also surged, with Goldman Sachs seeing a 42% increase. However, concerns about tariffs, inflation, and geopolitical tensions remain.