Trump wants his Fed chair to cut rates. The economy may have other ideas.

 With a Fed decision coming today, Trump has consistently insisted on another cut and has done so by criticizing Powell. This comes as a growing debate over political interference into the Federal Reserve and its decisions. 

Fed policymakers are divided over the best path forward - some warn that more and more rate cuts will come with a sharp rise in inflation rather than stabilize the economy. Some believe it is the right path forward and that the economy is stable and ready to handle another cut.

https://www.politico.com/news/2025/12/10/trump-wants-his-fed-chair-to-cut-rates-the-economy-may-have-other-ideas-00684205

Trump administration moves to remove millions of student loan borrowers from payment pause

     The Trump administration has reached a deal with Missouri that could cause a lot of borrowers to get back into repayment. Since the courts blocked Biden’s SAVE plan, the Education Department says anyone still in that forbearance will now have to pick a new repayment plan. 

    Republican-led states argued SAVE was a workaround for student loan forgiveness. With more than 7.6 million people in the program, the shift could create major stress and changes for borrowers who’ve relied on the lower payments SAVE offered.

Article: SAVE student loan payment pause: Trump officials seek to end relief

Tariffs, AI boom could test global growth's resilience, OECD says

 Global economic growth is holding up better than expected, according to the OECD. A major reason is the global boom in artificial intelligence investment, which is helping balance out the negative effects of recent U.S. tariff increases. The OECD now expects global growth to be 3.2% in 2025 before slowing slightly to 2.9% in 2026. The U.S., China, and the eurozone all received small upgrades in their growth forecasts, supported by strong labor markets, AI investment, and government spending. However, the OECD warns that new trade tensions or unrealistic expectations about AI could threaten this resilience.

Despite the positive outlook, the OECD highlights several risks. U.S. tariffs could become more damaging as companies run out of inventory, and America’s rising budget deficits are considered unsustainable. China’s growth is expected to slow in 2026 as U.S. tariffs tighten, and global trade growth is predicted to weaken due to uncertainty. Inflation is expected to ease gradually, allowing central banks like the Federal Reserve to begin cutting interest rates by late 2026. Overall, the world economy is proving surprisingly resilient, but still vulnerable to policy mistakes and trade conflicts.

Oil Prices Jump: Why It Matters for the Economy

 

A major recent economic event has been the sharp rise in global oil prices, which climbed after supply cuts from major producers and renewed geopolitical tensions. This jump has immediate effects on both consumers and businesses, making it one of the most closely watched developments in the economy right now. Higher oil prices quickly feed into gasoline and transportation costs, which raises expenses for households and increases operating costs for companies that rely on shipping, trucking, or air travel. This can push inflation slightly higher again at a time when policymakers are trying to cool it down.

Financial markets also reacted, with energy stocks rising and broader market indexes showing more volatility. Economists warn that if oil prices stay elevated, it could slow consumer spending and weaken economic growth in the coming months. Overall, the recent spike in oil prices serves as a reminder of how connected global energy markets are to everyday economic activity. Even a short-term increase can influence inflation, business decisions, and the pace of economic recovery.

https://www.reuters.com/business/energy/oil-falls-investors-weigh-chance-us-intervention-iran-israel-conflict-2025-06-19/?utm_source=chatgpt.com

Utah Governor Calls a Legislative Special Session to Repeal Public Employee Collective Bargaining Ban Signed Into Law Earlier This Year

 

Utah Governor Calls a Legislative Special Session to Repeal Public Employee Collective Bargaining Ban Signed Into Law Earlier This Year

In February 2025, the Utah Legislature passed H.B. 267, a new law that would ban collective bargaining for public employee unions in the State of Utah. After the passage of the law, there was public backlash with Public employee unions calling for the repeal of the Act through veto referendum, a process that allows for the collection of signatures to put the question to a vote on whether to repeal the Act. 

In May of 2025, the Lieutenant Governor of Utah, Deidre Henderson, announced that there were enough signatures to refer the question to voters, and as of December 7th, Governor Spencer Cox has called a special session for the Utah Legislature to consider repealing H.B. 267, which he signed into law earlier in the year. 

Source: https://www.sltrib.com/news/politics/2025/12/07/anti-union-law-gop-lawmakers/ 

Layoff announcements top 1.1 million this year, the most since 2020 pandemic

            Consulting firm Challenger, Gray & Christmas  reported Thursday that job cuts from U.S. employers moved further ahead of 1 million for the year in November. This is due to corporate restructuring, artificial intelligence and tariffs helping pare job rolls. More than 71,000 job cuts in November, pushing the layoffs for 2025 to 1.17 million which is the highest level since the pandemic. Verizon announced that more than 13,000 jobs have been slashed driven by innovations in AI and tariffs were cited as a driver of 2,000 cuts. This number is much better than the 153,000 cuts announced in October, which was the highest total for the month in 22 years.  

            This firm also stated that companies since the 2008 financial crisis have been trending away from layoffs at the end of the year which is to try and keep layoffs away from the holiday season. As well, private payroll from ADP shows employers cut 32,000 in November which is the decline in more than two and a half years. While AI is clearly accelerating at a pace that industries cannot keep up with it will be interesting to see how they redefine job stability and how these industries will adopt over time. 

https://www.cnbc.com/2025/12/04/layoff-announcements-this-year-top-1point1-million-the-most-since-2020-when-pandemic-hit-challenger-says.html