The average rate on a 30-year U.S. mortgage edged higher this week, though it remains relatively near its low point so far this year.
The uptick brings the average long-term mortgage rate to 6.22% from 6.19% last week, mortgage buyer Freddie Mac said Thursday. A year ago, the rate averaged 6.6%.
Borrowing costs on 15-year fixed-rate mortgages, popular with homeowners refinancing their home loans, also rose this week. The rate averaged 5.54%, up from 5.44% last week. A year ago, it averaged 5.84%, Freddie Mac said.
Mortgage rates are influenced by several factors, from the Federal Reserves interest rate policy decisions to bond market investors expectations for the economy and inflation. They generally follow the trajectory of the 10-year Treasury yield, which lenders use as a guide to pricing home loans.
The 10-year yield was at 4.12% at midday Thursday, slightly higher than it was a week ago.
The rise in mortgage rates comes a week after the Federal Reserve cut its main interest rate for the third time this year and indicated another cut may be ahead in 2026.
The Fed doesnt set mortgage rates, so even when it cuts its short-term rates that doesnt necessarily mean rates on home loans will necessarily decline.
That’s what happened last fall after the central bank cut its main rate for the first time in more than four years. Instead of falling, mortgage rates marched higher, eventually cresting above 7% in January this year. At that time, the 10-year Treasury yield was climbing toward 5%.
Mortgage rates began declining this summer ahead of the central banks September rate cut, its first in a year. The average rate on a 30-year mortgage got as low as 6.17%, the lowest level in more than a year, on Oct. 30.
That pullback in rates helped lift sales of previously occupied U.S. homes in October on an annual basis for the fourth straight month.
Still, affordability remains a challenge for many aspiring homeowners, especially first-time buyers who dont have equity from an existing home to put toward a new home purchase. Uncertainty over the economy and job market are also keeping many would-be buyers on the sidelines.
The overall decline in mortgage rates this fall has been a boon for homeowners eager to refinance their home loan to a lower rate.
Applications for mortgage refinancing loans jumped 14% last week from the previous week, and accounted for about 58% of all home loan applications, according to the Mortgage Bankers Association. Applications for loans to buy a home climbed nearly 5%.
Economists generally forecast that the average rate on a 30-year mortgage will remain slightly above 6% next year.
While this is unlikely to deliver the sharp relief some buyers are hoping for, rates are expected to be low enough to help counterbalance continued, but modest, home price growth, said Anthony Smith, senior economist at Realtor.com.
Alex Veiga, AP business writer
At a time when Americans are frustrated and angry over the high cost of living, the government released a report Thursday showing that inflation had cooled unexpectedly in November.
But economists quickly warned that last month’s numbers were suspect because theyd been delayed and likely distorted by the 43-day federal shutdown. And most Americans have not felt any let up in the high prices they are paying for food, insurance, utilities, and other basic necessities.
The Labor Department reported Thursday that its consumer price index rose 2.7% in November from a year earlier. Yet, year-over-year inflation remains well above the Federal Reserve’s 2% target. Americans, dismayed by high prices, handed big victories to Democrats in local and state elections last month.
The inflation report was delayed eight days by the shutdown, which also prevented the Labor Department from compiling overall numbers for consumer prices and core inflation in October and disrupted the usual data-collecting process. Thursdays report gave investors, businesses, and policymakers their first look at CPI since the September numbers were released on Oct. 24.
Consumer prices had risen 3% in September from a year earlier, and forecasters had expected the November CPI to match that year-over-year increase.
Its likely a bit distorted, said Diane Swonk, chief economist at the tax and consulting firm KPMG. The good news is that its cooling. Well take a win when we can get it.
Still, Swonk added: The data is truncated, and we just dont know how much of it to trust. By disrupting the economy especially government contracting the shutdown may have contributed to a cooling in prices, she said.
Kay Haigh, global co-head of fixed income and liquidity solutions at Goldman Sachs Asset Management, warned that the November numbers were noisy … The canceling of the October report makes month-on-month comparisons impossible, for example, while the truncated information-gathering process given the shutdown could have caused systematic biases in the data.”
Many economists don’t expect to get a reliable read on inflation until next month when the Labor Department releases CPI numbers for December.
Energy prices, driven up by sharply higher fuel oil prices, rose 4.2% in November. Excluding volatile food and energy prices, so-called core inflation rose 2.6%, compared with a 3% year-over-year gain in September and the lowest since March 2021.
U.S. inflation remains stubbornly high, partly because of President Donald Trumps decision to impose double-digit taxes on imports from almost every country on earth along with targeted tariffs on specific products like steel, aluminum and autos.
The presidents tariffs have so far proved less inflationary than economists feared. But they do put upward pressure on prices and complicate matters at the Fed, which is trying to decide whether to keep cutting its benchmark interest rate to support a sputtering job market or whether to hold off until inflationary pressures ease. The central bank last week decided to reduce the rate for the third time this year, but Fed officials signaled that they expect just one cut in 2026.
“The Fed will instead focus on the December CPI released in mid-January, just two weeks before its next meeting, as a more accurate bellwether for inflation,” said Haigh at Goldman Sachs.
Trump delivered a politically charged speech Wednesday that aired live during prime time on network television, seeking to pin the blame for economic challenges on Democrats.
The speech was a rehash of his recent messaging that has so far been unable to calm public anxiety about the rising cost of groceries, housing, utilities and other basic goods.
As the holiday season approaches, Americans are dipping into savings, scouring for bargains and feeling like the overall economy is sputtering, a new AP-NORC poll finds.
The vast majority of U.S. adults say theyve noticed higher than usual prices for groceries, electricity and holiday gifts in recent months, according to the survey from The Associated Press-NORC Center for Public Affairs Research.
Roughly half of Americans say its harder than usual to afford the things they want to give as holiday gifts, and similar numbers are delaying big purchases or cutting back on nonessential purchases more than they would normally.
Trump has promised an economic boom, yet inflation has stayed elevated and the job market has weakened in the wake of his import taxes.
Trumps tariffs are taking a toll on companies like Wolverine Worldwide, which makes footwear brands like Merrell and Saucony. Facing extra tariff costs of $10 million this year and $55 million in 2026, the Rockford, Michigan, company had to increase prices between 5% and 8% on some products in June, and will have to raise prices again next year. Its put a freeze on hiring and capital investments.
The company is getting squeezed even as it diversifies its sourcing network away from China, which now makes less than 10% of its products. During Trumps first term, Wolverine shifted production to Vietnam. Now its moving to Bangladesh, Cambodia and Indonesia.
The problem isnt just the cost of the tariffs. Its the uncertainty caused by the unpredictable way that Trump rolls them out. From a business leaders perspective, its one thing if theres bad news, said Wolverine CEO Christopher Hufnagel. Just tell me what the bad news is, and Ill go work to try to solve for it. Its the uncertainty of how it actually plays out that causes so much trouble because then were modeling all these different scenarios and it seems like things can change in the middle of the night.
Paul Wiseman and Anne D’Innocenzio, AP business writers
Christmas is coming, and our bank accounts are getting, well, obliterated. But luckily, it’s no longer just your quirky aunt who appreciates a good secondhand store: Shopping for gently used items, especially during the holidays, is now on trend. And if you get on board, you might be able to save a bundle by swapping your mall run for a day of thrifting.
In recent years, “Thriftmas”or shopping for Christmas gifts at stores like Good Will, The Salvation Army, Savers, and online platforms that sell used itemshas been creeping into the mainstream. And this year is no different. According to global data from online store ThredUp, in 2025, shoppers plan to dedicate nearly 40% of their holiday budgets to secondhand giftsa pretty significant jump, even from last year alone. And in 2025, the U.S. secondhand market is worth an estimated $56 billion, up 14.3% from in 2024.
Why the trend? For starters, Gen Z loves all things vintage, whether it’s Polaroid cameras, a pair of flares, or iPods. So it makes sense that thrifting is gaining traction, especially among younger generations. A new survey from Affirm found that 24% of Gen Zers chose to thrift or DIY their home decor, while 40% blend new with secondhand; and 23% shopped for secondhand clothes while 35% mixed thrifted with new clothing.
Of course, it’s not just vintage-loving young people, but escalating financial worries that are driving the trend, too: 85% of shoppers say they expect gifts and other holiday-related items to cost more this year due to Trump’s tariffs, per the National Retail Federation. Likewise, 84% of consumers expect to cut back on overall spending due to rising prices and economic pressure, per PwC Holiday Outlook.
However, Americans are hooked on gifts. While nearly two-thirds (63%) say they wish their family traditions were less focused on gifts, only one in five are considering giving less.
The art of Thriftmas
Enter: Thriftmas, which looks a bit different from hitting up Target, Hollister, and Home Goods. And it might take some warming up to, if you’ve never been big on shopping secondhand.
However, your wallet will thank you. And popular influencers, who are pretty skilled at breathing new life into old things, are driving the movement with content about how to do Thriftmas right. They make choosing items at the thrift store to givesometimes along with something homemade like butter or baked goods, or with something newlook like an absolute art.
Rebecca Miller, an expert secondhand shopper based in Northeast Ohio, runs the popular Instagram account My Thrifted Abode. Miller tells Fast Company that even though thrifting is majorly on trend in modern times, it’s not new to her.
“Thrifting has always been a part of my life,” says Miller. “I grew up in a family where money was tight at times. I remember going to auctions and thrift stores with my mom as a little girl. Its been a way of life for me for as long as I can remember.”
Miller has only been sharing her thrift store finds for two years, but her Instagram already has over 114,000 followers, and there’s a reason why: She’s a talented thrifter who is skilled at teaching her audience how to thrift and gift. And according to her, people are more interested in thrifting because they are fed up with the holiday gift-giving craze and are seeking more sustainable options.
“Theres been more of a light shed on the massive overconsumption issue we have,” she says, adding that the sheer amount of items that are bought new, then quickly disposed of is “truly concerning.”
She’s not wrong: 11.3 million tons of textile waste end up in landfills yearly in the U.S., accounting for 7.7% of all landfill waste. During the holidays, the waste multiplies exponentially. Retailers say that 25% of returns end up being tossed out, leading to an extra 5.8 billion pounds of landfill wastemerely from returned items, not to mention all of the other holiday trash.
A more personal (and very vintage) touch
Miller says thrifting can contribute to a holiday season that’s more environmentally friendly, sustainable, and cheaper. But it’s not just about affordability. It’s about a more personal touch that puts genuine thought back into the holidays.
“I love giving old things a new life and being a part of that items history,” she explains, noting that reimagining how to use old items scratches her “creative itch.”
Taking a look at some of the fun and eclectic ways that Miller has styled items, it’s clear that it requires a bit more effort than clicking the “Buy Now” button on Amazon and slapping a bow on it the next day. In a recent video, Miller showed off adorable baskets for kids, with secondhand puzzles, books, and more.
“I always thrift gifts for my kids for their birthday and Christmas, and let me tell you, it does not make a difference to them whether they are new items or not!” she wrote in the caption.
But it’s likely not just kids who wouldn’t mind a thrifted giftespecially because the items don’t look like the things everyone else has. They’re vintage, unique, and require searching.
“Its such a thrill to walk into a thrift store, full of junk, and never knowing what treasures youll find,” says Miller. “Theres nothing like the thrill of the hunt.”
While many Americans will still flock to shop the big brands this season, it’s tough to miss that Thriftmas is about to show up in more homes than ever. And with influencers and Gen Z driving the trend, it feels about as welcomed as Santa sliding down the chimney with his bag of tricks. This year, it’s all about Thriftmasand it’s just as merry.
One hot new phone of 2025 has no screen, cant send a text, and needs to be plugged into the wall. But to buyers of the Tin Can, thats a definite plus.
The Tin Can, from a Seattle startup of the same name, grew out of conversations cofounder and CEO Chet Kittleson had with fellow parents about the challenges of enabling kids to connect with friends and relatives without giving them full-fledged cellphones. While children of the 20th century could pick up the house landline to call a grandparent or schedule a sleepover, todays kids are often left dependent on parents for scheduling playdates and connecting with family until theyre old enough to carry their own smartphones.
Our first social network was a landline, and our kids don’t have that, Kittleson says. We’re trying hard to keep them away from cellphones for as long as we can, but were not giving them anything in return, and so they’re sort of left in the lurch.
Starting in 2024, Kittleson and his Tin Can cofounders started working on a prototype that would deliver some of the same features of the old-school house phone without actually requiring landline service from the local phone or cable company. The result, which quickly proved a viral hit among Kittlesons network of parents and kids, is a phone complete with handheld receiver and curly cord that lets kids call, and receive calls and voicemails from, parent-approved numbers.
Chet Kittleson (center) with cofounders Graeme Davies (left) and Max Blumen (right) [Photo: Tin Can]
It gives them the opportunity to be social and work out play dates without having to come to us and use our phone, says Chelsea Miller, a Seattle parent of two whose family was quick to adopt the device.
Her two childrena 10-year-old daughter and a son about to turn 8also use the phone to connect with their grandparents, she says.
The phones now come in two models. A white model called the Flashback is described by the company as the phone of 80s childhood, though it plugs via ethernet cable into a router instead of a wall-mounted phone jack. A second model, simply called the Tin Can, has an appropriately playful cylindrical design, and it only needs Wi-Fi to connect. But as a deliberate design choice backed by early user input, the phone lacks a battery and must be plugged into a power socket, meaning kids can only roam as far as the cord can reach.
A majority of people felt strongly that it should not have a battery, Kittleson says. That it needed to be a stationary, plug-in-the-wall phone where a kid was actually focused on their conversation and not running around the house while they were talking.
[Photo: Tin Can]
Kittleson declined to disclose how many phones the company has sold, though he says theyve shipped the devices to all 50 states and all across Canada. The Flashback model is available for $75, and the Tin Can unit is available for preorder at the same price after a $25 discount, though the next batch wont ship until around early February. Previous batches of the Tin Can phones quickly sold out.
The company this week announced a $12-million round of seed funding led by Greylock Partners and including participation from Lateralus Holdings, as well as existing backers. A previous pre-seed round raised another $3.5 million.
In an age defined by digital noise, theyve created a joyful alternative that redefines how we view modern connection, says Mike Duboe, general partner at Greylock, in a statement. Were excited to support the team during this phase of incredible growth.
Kittleson says the new funds will help the company scale up distribution of the phone and the VoIP network that enables the devices to connect. Currently, calls between Tin Can-powered phones are freeand other Tin Cans can be reached by dialing a special short code in lieu of a full phone numberwhile calls to other numbers in the U.S. and Canada are included in an optional $9.99 per month plan.
The phones have proven hits with kids as well as parents, with new users often making dozens of calls in their first weeks with the devices before tapering off to a more typical calling cadence.
Typically, over the course of a month or so, it starts to level out, Kittleson says. And then it becomes a utility where they use it a couple times a day or even a few times a week, and that’s kind of the behavior we want.
Of course, while the phones evoke the landline phones of the late 20th century, todays kids are still growing up in a world of digital technology, so its likely many Tin Can kids will still want access to internet-enabled devices, video games, and social media as they get older. But Tin Can enables parents to limit screen time and internet access without leaving their children entirely unable to speak to friends and family.
[Photo: Tin Can]
I don’t want them to have internet or social media, Miller says. But I do want them to be socially connected.”
Even some adults have started using the Tin Can, enamored with the devices simplicity and the fact that it doesnt receive spam calls, since callers from nonapproved numbers simply get a recorded message saying theyre not authorized to connect. And parents like Kittleson say they also appreciate being able to call a house phone to reach the family when theyre away from the house.
While other companies offer kid-friendly cellphones, Kittleson says his company is essentially unique so far in offering a modern take on the house phone. And general-purpose VoIP phones are often more expensive and dont have kid-friendly features built-in and easy to set up, he says.
Of course, most adults cant ditch their smartphones entirely. Even for getting the Tin Can connected to Wi-Fi and updating the list of permitted numbers and hours where the phone enters do-not-disturb mode, parents use a smartphone app to access their accounts, much like with other connected home electronics. It beats an early system, Kittleson says, where users of the first prototypes texted him personally to add authorized numbers to the companys database.
The devices and features may continue to evolve a bit in the future, but since Tin Can exists to encourage real-world communications and childhood hangouts unmediated by screens or digital games, Kittleson says customers shouldnt expect a burst of new functionality.
We don’t think this is going to be a feature factory where we’re launching new things all the time, he says. That’s sort of by design not what we’re trying to do.
Welcome to AI Decoded, Fast Companys weekly newsletter that breaks down the most important news in the world of AI. Im Mark Sullivan, a senior writer at Fast Company, covering emerging tech, AI, and tech policy.
This week, Im focusing on Big AIs biggest sales pitchthe quest for AGIand the idea that the industry should focus on more modest and achievable tasks for AI. I also look at Databrickss new $4 billion-plus funding raise, and at Googles new Gemini 3 Flash model.
Sign up to receive this newsletter every week via email here. And if you have comments on this issue and/or ideas for future ones, drop me a line at sullivan@fastcompany.com, and follow me on X (formerly Twitter) @thesullivan.
Yann LeCun calls BS on artificial general intelligence
Big AI companies like OpenAI and Anthropic like to talk about their bold quest for AGI, or artificial general intelligence. The definition of that grail has proved to be somewhat flexible, but in general it refers to AI systems that are as smart as human beings at a wide array of tasks. AI companies have used this quest narrative to win investment, fascinate the tech press, and charm policymakers.
Now one of AIs most important pioneers, Turing Award winner Yann LeCun, is calling the whole concept into question. LeCun, outgoing Metas chief AI scientist, argues that even human beings arent really generalists. Theyre good at some physical tasks, and very good at social interactions, but can easily be defeated at chess by a computer and cant perform math as fast and accurately as a calculator can. There are tasks where many other animals are better than we are, LeCun said on a recent Information Bottleneck webcast.
We think of ourselves as being general, but its simply an illusion because all of the problems that we can apprehend are the ones that we can think ofand vice versa, LeCun said. So were general in all of the problems that we can imagine, but theres a lot of problems that we cannot imagine. And there are lots of mathematical arguments for this. So this concept of general intelligence is complete BS.
Lots of people in AI and neuroscience disagree with LeCun. Just because humans arent the best at all tasks, or tasks we cant imagine, it doesnt mean were not generalistsespecially in comparison to machine savants like calculators, they argue. I dont know whos right, but LeCun is making a broader point. He believes that AI labs should focus on specific real-world things that AI can dothings that create value or reduce suffering, perhapsand bring those solutions to market.
LeCun says the transformer-based large language models of today are useful enough to be applied in some valuable ways, but also believes they arent likely to achieve the general or human-level intelligence needed to do high-value work tasks now reserved for human brains. In order to navigate real-world complexity like humans do, the AI would need a much-higher-bandwidth training regimen than just words, images, and computer code, LeCun argues, and a different architecture to structure all the data. Notably, The Financial Times reports that LeCun is raising $585 million at a $3-billion valuation for a new AI startup that will look to build world modelsAI systems capable of learning from images, video, and spatial data, rather than only from text and large language models.
Databricks pulls in another $4B+, evaluation rises to $134 billion
Data and AI company Databricks raised more than $4 billion in a new Series L funding round led by Insight Partners, Fidelity, and J.P. Morgan Asset Management, with Andreessen Horowitz, BlackRock, and Blackstone kicking in. The companys valuation rose to $134 billion with the new round.
The valuation reflects Databrickss positioning within the booming market for AI cloud services. For years the companys primary offering was secure cloud storage for sensitive enterprise data, including data owned by companies in regulated industries such as healthcare and finance. Over the past five years, Databricks has gone deep on developing the AI side of its business. Its value proposition is allowing customers to run their data through powerful AI models hosted within the same secure cloud. More recently, the company has set up a secure platform for developing and deploying autonomous agents that can, for example, assemble complex business intelligence reports based on diverse datasets stored in the Databricks cloud.
The company also enables customers to run their data through third-party models from OpenAI and Anthropic, among others, hosting those models natively within the secure cloud. Now Databricks says both its data-warehousing business and its AI business each have revenue run rates of more than $1 billion. The company reported a revenue run rate of $4.8 billion during the third quarter of 2025, representing growth of about 55% from the same period in 2024.
Almost exactly a year ago, Databricks raised a massive $10 billion funding round, one of the largest ever for an AI company, and achieved a $62 billion valuation. (The valuation moved up to $100 billion when the company raised a $1 billion round in August.)
The San Francisco-based company says itll use the new capital to develop new AI-driven applications, fund future acquisitions, support R&D, and pay employees (most likely including expensive AI research talent). With hundreds of customers each contributing more than $1 million in annual revenue, and a high customer retention rate, Databricks is considered a strong IPO candidate. The company may be waiting for the optimal market conditions in which to file.
Google releases a Gemini 3 model, Flash, for the rest of us
Now even people who cant afford a monthly subscription can enjoy the magic of Google DeepMinds new Gemini 3 model. Google released the first Gemini 3 model, Pro, in November, but it was available only to paid subscribers. Its new Gemini 3 Flash variant is now the default in the Gemini app, and is available globally in Google Searchs AI Mode.
Flash is said to be three times faster at responding than Gemini 2.5 Pro, and almost as good at reasoning as the Gemini 3 Pro model. Flash is designed to be cost-effective, making it a great option for developers and businesses, according to Google.
The new model shows some impressive marks on PhD-level reasoning and knowledge benchmarks such as GPQA Diamond (90.4%) and Humanitys Last Exam (33.7% without tools). Those scores come close to those of larger models including Gemini 3 Pro and OpenAIs GPT-5.2. Flash also achieved the highest score of any model81.2%on the MMMU Pro benchmark, which measures the ability to understand and reason over a mx of text and visual data.
When processing at the highest thinking level, Gemini 3 Flash can modulate how much it thinks, Google says. For more complex questions itll spend more time processing the data it collects in its memory to get to an answer. But it also uses 30% fewer tokens (on average) than Gemini 2.5 Pro to complete simpler, everyday tasks. Researchers at Big AI labs have been working hard to make AI models store the (often voluminous) contextual data they collect in memory more efficiently, and use it more effectively.
More AI coverage from Fast Company:
Every AI founder thinks they want a mega investing round. Trust me, you dont
5 predictions for AIs growing role in the media in 2026
DOGE leader at Treasury is looking to buy thousands of ChatGPT licenses
Who should pay for the power grids race to keep up with data centers?
Want exclusive reporting and trend analysis on technology, business innovation, future of work, and design? Sign up for Fast Company Premium.
The Trump administration has announced a massive package of arms sales to Taiwan valued at more than $10 billion that includes medium-range missiles, howitzers and drones, drawing an angry response from China.The State Department announced the sales late Wednesday during a nationally televised address by President Donald Trump, who made scant mention of foreign policy issues and did not speak about China or Taiwan at all. U.S.-Chinese tensions have ebbed and flowed during Trump’s second term, largely over trade and tariffs but also over China’s increasing aggressiveness toward Taiwan, which Beijing has said must reunify with the mainland.If approved by Congress, it would be the largest-ever U.S. weapons package to Taiwan, exceeding the total amount of $8.4 billion in U.S. arms sales to Taiwan during the Biden administration.The eight arms sales agreements announced Wednesday cover 82 high-mobility artillery rocket systems, or HIMARS, and 420 Army Tactical Missile Systems, or ATACMS similar to what the U.S. had been providing Ukraine during the Biden administration to defend itself from Russia worth more than $4 billion. They also include 60 self-propelled howitzer systems and related equipment worth more than $4 billion and drones valued at more than $1 billion.Other sales in the package include military software valued at more than $1 billion, Javelin and TOW missiles worth more than $700 million, helicopter spare parts worth $96 million and refurbishment kits for Harpoon missiles worth $91 million.The eight sales agreements amount to $11.15 billion, according to Taiwan’s Defense Ministry.The State Department said the sales serve “U.S. national, economic, and security interests by supporting the recipient’s continuing efforts to modernize its armed forces and to maintain a credible defensive capability.”“The proposed sale(s) will help improve the security of the recipient and assist in maintaining political stability, military balance, and economic progress in the region,” the statements said.China’s Foreign Ministry attacked the move, saying it would violate diplomatic agreements between China and the U.S.; gravely harm China’s sovereignty, security and territorial integrity; and undermine regional stability.“The ‘Taiwan independence’ forces on the island seek independence through force and resist reunification through force, squandering the hard-earned money of the people to purchase weapons at the cost of turning Taiwan into a powder keg,” said Foreign Ministry spokesperson Guo Jiakun.“This cannot save the doomed fate of ‘Taiwan independence’ but will only accelerate the push of the Taiwan Strait toward a dangerous situation of military confrontation and war. The U.S. support for ‘Taiwan Independence’ through arms will only end up backfiring. Using Taiwan to contain China will not succeed,” he added.Under federal law, the U.S. is obligated to assist Taiwan with its self-defense, a point that has become increasingly contentious with China, which has vowed to take Taiwan by force, if necessary.Taiwan’s Defense Ministry in a statement Thursday expressed gratitude to the U.S. over the arms sale, which it said would help Taiwan maintain “sufficient self-defense capabilities” and bring strong deterrent capabilities. Taiwan’s bolstering of its defense “is the foundation for maintaining regional peace and stability,” the ministry said.Taiwan’s Foreign Minister Lin Chia-lung similarly thanked the U.S. for its “long-term support for regional security and Taiwan’s self-defense capabilities,” which he said are key for deterring a conflict in the Taiwan Strait, the body of water separating Taiwan from China’s mainland.The arms sale comes as Taiwan’s government has pledged to raise defense spending to 3.3% of the island’s gross domestic product next year and to reach 5% by 2030. The boost came after Trump and the Pentagon requested that Taiwan spend as much as 10% of its GDP on its defense, a percentage well above what the U.S. or any of its major allies spend on defense. The demand has faced pushback from Taiwan’s opposition KMT party and some of its population.Taiwanese President Lai Ching-te last month announced a special $40 billion budget for arms purchases, including to build an air defense system with high-level detection and interception capabilities called Taiwan Dome. The budget will be allocated over eight years, from 2026 to 2033.The U.S. boost in military assistance to Taiwan was previewed in legislation adopted by Congress that Trump is expected to sign shortly.Last week, the Chinese embassy in Washington denounced the legislation, known as the National Defense Authorization Act, saying it unfairly targeted China as an aggressor. The U.S. Senate passed the bill Wednesday.
Mistreanu reported from Beijing. AP video journalists Olivia Zhang in Beijing and Johnson Lai in Taipei, Taiwan, contributed to this report.
Matthew Lee and Simina Mistreanu, Associated Press
A new hotspot just opened in New Yorkand its in terminal 5 of John F. Kennedy International Airport. BlueHouse, a 9,000-square-foot space exclusively available to select JetBlue Airways customers, welcomed its first guests at 5 a.m. this morning as the airlines first foray into the pitched battle for lucrative premium fliers.
Designed by Gensler, BlueHouse is a smorgasbord of New Yorks iconic and eclectic design heritage. From the Art Deco elevator indicator to black-and-white deli tile on the floor and the Grand Central Terminal-inspired ceiling mural, the space screams Big Apple while staying true to JetBlues quirky and, well, blue heritage.
[Photo: JetBlue]
Its unquestionably a hip New York experience, said Marty St. George, president of JetBlue, on a recent pre-opening tour of BlueHouse. His favorite feature is the 45 pieces of art that fill the space from artists around the city and three of the airlines crewmembers, as it calls its staff, including a bespoke piece from New Yorker illustrator Matt Reuter.
[Photo: JetBlue]
JetBlue goes premium
BlueHouse is part of the larger premiumization trend sweeping air travel. Everyone from JetBlue to egalitarian stalwart Southwest Airlines and even discounter Spirit Airlines are unveiling more upscale offerings for their planes and at airports. The aim is two-fold: strengthen loyalty among top tier customers and wring more money from everyone all in the hope of improving their bottom lines.
JetBlues effort, dubbed JetForward, includes BlueHouse locations at JFK and, in 2026, Boston Logan International Airport. Its also introducing domestic first class on its fleet of Airbus planes, a new partnership with United Airlines, and changes to its TrueBlue loyalty program aimed to make customers even more loyal to the airline.
[Photo: JetBlue]
The lounge is also an effort to counter JetBlues nemesis at JFK and Boston: Delta Air Lines. While St. George did not name the carrier, keeping JetBlues customers from leaving the fold and, maybe, wooing some widget fliers away from Delta is top of mind.
Our number one goal was to not repeat the mistakes our competitor made with lounges, he said. Delta is known for overcrowded lounges and, at times, long waits to access its Sky Clubs.
[Photo: JetBlue]
Access to BlueHouse is, for now, limited to only JetBlues most loyal frequent fliers, transatlantic Mint business class passengers, and holders of its premium credit card, which has an annual fee of $499.
Delta has also upped its lounge game with the exclusive Delta One Lounges, the first of which opened at JFK in mid-2024. It now has four locations, including in Boston, Los Angeles, and Seattle.
[Photo: JetBlue]
Inside BlueHouse
Travelers enter through a foyer that can best be described as a quintessential New York apartment lobby: a Just Ask desk in the place of a doormans desk in front of a set of mailboxes (inside are keepsakes for visitors, just ask for a key), a stairway to the second level lined with art, an elevator with a Deco indicator and a blue tunnel leading to the lounge area of the lounge.
Elsewhere across the lounges two floors, books curated by the Strand bookstore match JetBlues white-and-blue color palette line bookshelves and ledges. Bespoke wallpaper by Brooklyns Flavor Paper decorates the restrooms. And craft cocktails by Please Dont Tell in the East Village are served at the bar.
A Republican push to make drilling cheaper on federal land is creating new fiscal pressure for states that depend on oil and gas revenue, most notably in New Mexico as it expands early childhood education and saves for the future.The shift stems from the sweeping law President Donald Trump signed in July that rolls back the minimum federal royalty rate to 12.5%. That rate the share of production value companies must pay to the government held steady for a century under the 1920 Mineral Leasing Act. It was raised to 16.7% under the Biden administration in 2022.Trump and Republicans in Congress say the rate reset will boost energy production, jobs and affordability as the administration clears the way for expanded drilling and mining on public lands.States receive nearly half the money collected through federal royalties, depending on where production takes place. The environment and economics research group Resources for the Future estimates a roughly $6 billion drop in collections over the coming decade.The stakes are highest in New Mexico, the largest recipient of federal mineral lease payments. The state could could forgo $1.7 billion by 2035 and as much as $5.1 billion by 2050, according to calculations by economist Brian Prest at Resources for the Future.More than one-third of the general fund budget in the Democratically-led state is tied to the oil and gas industry.“New Mexico’s impact is way bigger than Wyoming or Colorado or North Dakota,” Prest said, “and that’s just because that’s where the action is on new development.”The effects will unfold gradually, since federal leases allow a 10-year window to begin drilling and production. Still, state officials say they’re already prepping for leaner years.“It all hurts when you’re losing revenues,” said Democratic state Sen. George Muoz of Gallup, who said lawmakers still hope to invest more in mental health care and support Medicaid, even if federal royalty payments decline. “We’ve learned that until the chicken’s got feathers, we’re not even looking at it.”The higher federal royalty rate was in place for roughly three years while leasing activity was muted, Prest said. New Mexico budget forecasters never tallied the additional income.
New Mexico’s nest-egg strategy
A nearly five-fold surge in local oil production since 2017 on federal and state land in New Mexico delivered a financial windfall for state government, helping fund higher teacher salaries, tuition-free college, universal free school meals and more.The state set aside billions of dollars in investment trusts for future spending in case the world’s thirst for oil falters, including a early childhood education fund to help expand preschool, child care subsidies and home wellness visits for pregnancies and infants.The state’s investment nest egg has grown to $64 billion, second only to Alaska’s Permanent Fund. Earnings from the trusts are New Mexico’s second-biggest source for general fund spending.That sturdy financial footing shaped a defiant response to this year’s federal government shutdown, when lawmakers voted to subsidize the state’s Affordable Care Act exchange, cover food assistance and backfill cuts to public broadcasting.But lawmakers reviewing state finances last week learned that predictable income fell 1.6% the first contraction since the start of the COVID-19 pandemic.Muoz said matters would be worse if the state had not raised its own royalty rates this year to 25%, from 20%, for new leases on prime oil and gas tracts, while ending a sales moratorium, under legislation he co-sponsored this year.
Universal free child care under scrutiny
The slowdown has cast uncertainty over a universal free child care initiative launched by Gov. Michelle Lujan Grisham last month.Some fellow Democrats in the Legislature have balked at a proposed $160 million spending increase. State Rep. Meredith Dixon of Albuquerque said hundreds of families earning more than $320,000 annually could qualify for free child care despite not needing it.“Universal child care is a fantastic idea,” said Dixon, a Democrat. “I 100% don’t agree with this approach.”Lawmakers are also under court order to carry out a remedial plan to improve K-12 education for Native American students and others from low-income households. New Mexico has long ranked near the bottom nationally on education outcomes, with lagging test scores and low graduation rates.
Encouraged in Alaska
After New Mexico, the states receiving the most federal oil and gas royalties are Wyoming, Louisiana, North Dakota and Texas.Texas, the nation’s top oil producer, shares the bountiful Permian Basin with New Mexico but has far less federal land and therefore less exposure to changes in royalty policy.In Alaska, state officials say they are encouraged by the royalty cut, seeing potential for increased development in places like the National Petroleum Reserve-Alaska, where the massive Willow project approved in 2023 and now under development is viewed by some as a catalyst for further activity. The reserve is expected to hold its first lease sales since 2019.“If reduced federal royalty rates stimulate new leasing, exploration and production, that also could increase other kinds of revenue,” said Lorraine Henry, a spokesperson for Alaska’s Department of Natural Resources.In North Dakota, federal royalties are split evenly between the state and county governments where drilling occurs. State Office of Management and Budget Director Joe Morrissette said the industry’s future remains difficult to forecast.“There are so many variables, including timing, price, availability of desirable tracts, and federal policies regarding exploration activities,” Morrissette said.
Associated Press writers Becky Bohrer in Juneau, Alaska; and Jack Dura in Bismark, North Dakota, contributed.
It might surprise people that my husband and I pay a financial planner, given that I spend a lot of time on financial, tax, and investment planning at work. However, hiring a planner has delivered a return that can’t be quantified: peace of mind.Here are some key reasons we pay for financial advice.1) We wanted a second opinion on a few important decisions.I wanted a different perspective on less-familiar subjects, such as handling employer stock, and whether we needed long-term care insurance. We could have confronted both issues on our own, but having professional guidance helped us move forward more confidently.2) We found a business model that makes sense for our situation.We were delighted to find a financial planning firm that could work with us on an hourly basis to address our specific questions, rather than ongoing portfolio management. Paying for financial advice on an ongoing basis, via an assets-under-management fee or other arrangement, can be right for some people. Shop around to find a business model that fits with the type and level of service you need. This requires clarity on what you want.Most holistic financial planners, including ours, are uncomfortable answering questions without fully understanding your financial situation. My question about long-term care insurance seemed straightforward, but our planner could only answer confidently if she understood our retirement assets, expected Social Security, and anticipated in-retirement spending. A good-quality planner needs time to review your total situation before giving answers. (I consider it a red flag if a planner is willing to give targeted advice without a comprehensive review.) That can mean more fees than you anticipated.3) It gave us an impetus to get, and stay, organized.A holistic financial planner also requires you to share a lot of informationstatements for all your financial accounts, tax returns, pay stubs, and so forth. If you’re paying hourly, it’s in your best interest to gather all that documentation yourself rather than turning over piles of disorganized paperwork. Gathering the documents was not a light lift, but I was able to cull a lot of financial paperwork through that process. That initial organization blitz has continued to pay dividends: We maintain just a small sheaf of financial documents and can readily access anything we need.4) We love having a succession plan.As an unexpected benefit to working with a planner, they now have current information on every financial relationship we have: our bank accounts, company retirement plans and IRAs, and insurance policies. Our accounts are linked to the firm’s financial planning portal so that our planner can see what’s happening with them in real-time, without needing fresh documents. Any of the planners in the firm could also access our information in a pinch. If something happened to us, our loved ones would have a one-stop resource to help them sort things out. You can keep scrupulous records and develop your own succession plan, but storing all of our documentation with a third party helps alleviate worries about records being damaged or lost.5) A third party can help give us “permission to spend.”My husband and I don’t deprive ourselves, but we’ve spent our lifetimes earning and saving. Turning the spending switch “on” in retirement could be mentally challenging. Our planner’s retirement projections (including stress tests for big market downdrafts and tax-law changes) have provided tremendous peace of mind. There are other avenues to help with the “permission to spend” problem, but for me a financial planner can provide a lot of value in this context. For our own peace of mind as we age, it’s a relationship we plan to maintain.
This article was provided to The Associated Press by Morningstar. For more personal finance content, go to https://www.morningstar.com/personal-finance.Christine Benz is director of personal finance and retirement planning for Morningstar.Related Links
When IRS Guidance Goes Wrong: How to Avoid Costly IRA Mistakeshttps://www.morningstar.com/retirement/when-irs-guidance-goes-wrong-how-avoid-costly-ira-mistakes
A Checklist for Retirees to Finish This Yearhttps://www.morningstar.com/retirement/checklist-retirees-finish-this-year
4 Smart Moves to Cut Your 2025 Tax Bill Under New Ruleshttps://www.morningstar.com/personal-finance/4-smart-moves-cut-your-2025-tax-bill-under-new-rules
Christine Benz of Morningstar
In a surprising move, Trump Media and Technology Group (DJT) said on Thursday that it is fusing itself to a fusion company.
The company will merge with TAE Technologiesa privately held fusion energy firm thats backed by Alphabet, Chevron Technology Ventures, and othersin a deal thats worth more than $6 billion.
Its an all-stock deal, which is expected to close sometime next year, and is a huge and eyebrow-raising move for Trump Media, which is best known as the owner of President Trumps social media platform, Truth Social.
When all is said and done, shareholders of both companies will own approximately 50% of the combined company on a fully diluted equity basis, per the company release.
Following the announcement, DJT shares jumped nearly 30% during premarket trading. The stock was up almost 35% in early trading on Thursday as of this writing.
However, shares are down nearly 70% year to date, and are down roughly 92% from their peak in March 2022.
Why is this merger happening?
As for the logic behind the surprising merger, the combined company aims to build massive fusion power plants that can supply energy to power the ongoing AI boom.
In 2026, the combined company plans to site and begin construction on the worlds first utility-scale fusion power plant (50 MWe), subject to required approvals,” the company’s statement reads. “Additional fusion power plants are planned and expected to be 350 500 MWe.”
It added: Fusion power plants are expected to provide economic, abundant, and dependable electricity that would help America win the A.I. revolution and maintain its global economic dominance.
Devin Nunes, chairman and CEO of Trump Media and a former California congressman, echoed the sentiment in a statement included in that releasein true Trumpian fashion.
Trump Media & Technology Group built uncancellable infrastructure to secure free expression online for Americans, and now were taking a big step forward toward a revolutionary technology that will cement Americas global energy dominance for generations, he said, adding that “fusion power will be the most dramatic energy breakthrough since the onset of commercial nuclear energy in the 1950s.”
Notably, there are not currently any operating fusion power plants. A report published in October by the Clean Air Task Force, a nonprofit environmental group, counts 29 fusion energy startups in the U.S. that have attracted significant funding in recent years.
Further, the latest annual survey from Fusion Industry Association found that 75% of respondents dont expect fusion power plants to start supplying energy to the grid until the 2030s.
