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A leading candidate to be President Donald Trump’s choice for Federal Reserve chair said that he would present the president’s views to Fed officials for their consideration but they could reject them if they chose when making decisions on interest rates.Kevin Hassett, in an interview Sunday on CBS News’ “Face the Nation,” said he would continue to speak with Trump if he becomes the Fed chair. But when asked if Trump’s opinions on interest rates would have “equal weighting” with members of the Fed’s interest-rate setting committee, Hassett replied, “No, he would have no weight.”“His opinion matters if it’s good, if it’s based on data,” Hassett continued. “And then if you go to the committee and you say, well, the president made this argument and that’s a really sound argument, I think, what do you think? If they reject it, then they’ll vote in a different way.”Hassett’s comments come as Trump is reportedly in final interviews with potential replacements for the Fed’s current chair, Jerome Powell. Trump has emphasized that he expects whomever he nominates to lead the Fed will sharply lower the central bank’s key rate, which currently stands at about 3.6%. Trump has said it should be cut to 1% or lower, a view almost no economist shares. Trump’s outspokenness has raised concerns about the Fed’s independence from day-to-day politics under any chair he appoints.Until Trump’s first election in 2016, presidents of both parties for several decades had avoided commenting publicly on Fed decisions, and usually refrained from doing so privately as well. Economists generally believe that a politically independent Fed is better at combating inflation, because it can take unpopular steps to keep prices down, such as raise interest rates.On Friday, however, Trump said that he “certainly should have a role in talking to whoever the head of the Fed is” about rates.“I’ve done great. I’ve made a lot of money, I’m very successful,” he said. “I think my voice should be heard.”The Wall Street Journal reported Friday that Kevin Warsh, a fellow at the right-leaning Hoover Institution and former Fed governor, is Trump’s current favorite to replace Powell, whose term ends next May. But Trump has previously hinted that he would pick Hassett.“I think the two Kevins are great,” Trump told the Journal.Hassett, for his part, on Sunday said that “in the end, the job of the Fed is to be independent.”“In the end, it’s a committee that votes,” he said. “And I’d be happy to talk to the president every day until both of us are dead because it’s so much fun.” Christopher Rugaber, AP Economics Writer
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E-Commerce
If you grew up pre-Y2K, chances are youre familiar with the concept of a lava lamp. Its much less likely that youve ever encountered a lamp made out of literal lava. Thats the basic description of a series of three lamps made by the luxury Italian lighting company Foscarini. The companys new Alicudi, Filicudi, and Panarea lamps, designed by Italian father-and-son design team Alberto and Francesco Meda, are formed from actual lava rock sourced from Mount Vesuvius. To own a piece of Italys iconic volcano, youll have to fork over $866 for any one of the lamp models. [Photo: courtesy Foscarini] The real lava lamp may be pricier than its 70s predecessor, but thats thanks to the labor-intensive process that goes into recycling the actual lava into a workable materialand converting it into an object youd actually want to hang in your dining room. [Photo: courtesy Foscarini] How an Italian design company made lamps from literal lava When Alberto and Francesco began brainstorming for the collaboration with Foscarini, they wanted to experiment with a material that would be entirely new in the lighting world. Francesco is already the co-art director of the company Ranieri, which works exclusively with lava stone to create bespoke tiles, tables, and stoolsmaking lava stone a natural fit for this new project. Alberto and Francesco Meda [Photo: Giuliano Koren/courtesy Foscarini] Unlike marble, lava is not quarried: it is gathered directly from the mountain, Francesco said in a press release. After an eruption the magma settles, becoming part of the terrain and forming blocks of lavic stone that can be crafted. The cutting process generates a large quantity of surplus chips, which we wanted to salvage. The Alicudi, Filicudi, and Panarea lamps use recycled lava chips, provided by Ranieri and left over from its other projects, as the main material composing their shades. To convert them into lamps, the scrap chips are crushed into a powder with varying grain sizes; mixed with a binder to produce a paste; poured into molds; and finished by hand to create a unique surface on every piece. [Photo: courtesy Foscarini] According to the team, this poured-lava composite is lighter than solid lava, allowing it to form thinner shapes while still maintaining its durability. As an added bonus, natural lava has a rugged surface full of pores and craterssimilar to a moon or planetscape. It might not be gooey, glowing lava, but it has its own atmospheric charm. [Photo: courtesy Foscarini]
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E-Commerce
The Ah Louis Store in San Luis Obispo, California, turns into a winter wonderland every holiday season.Green garlands, giant nutcrackers, baubles and bows go up in early November on the historic downtown building that houses the gift shop. Inside, customers can choose from over 500 different types of ornaments and a variety of holiday gift baskets.“We really just make it a magical spot,” co-owner Emily Butler said. “Whether you come in or not, we want to make sure that we’re spreading that holiday joy.”But Butler says she and her twin sister-business partner had to work harder this year to turn browsers into buyers and to make a profit. Many of the decorations and stocking stuffers they sell are made overseas and either did not arrive or got more expensive when President Donald Trump imposed unusually high taxes on imported goods, she said.In response, the sisters focused their selection on more profitable items like nutcrackers and gift baskets. They’ve also noticed customers cutting back, selecting a $100 gift basket over the $150 version, or buying one ornament instead of several, Butler said.“We’re definitely seeing more cautious spending this year,” she said.Along with the unpredictable tariffs, stubborn inflation and weak hiring have shaken consumer confidence in the U.S. economy. The vast majority of U.S. adults say they’ve noticed higher than usual prices for groceries, electricity and holiday gifts in recent months, according to a December poll from The Associated Press-NORC Center for Public Affairs Research.A Gallup index that summarizes Americans’ assessments of current economic conditions fell to a 17-month low in November. Consumers also indicated less enthusiasm for spending money on holiday gifts; their estimated gift budgets decreased $229 between October and November, the largest drop Gallup has recorded at that point of the holiday shopping season. The survey was conducted in November, partially during the government shutdown, which might have tempered spending plans.However, the worst-case impact on consumer prices that many economists foresaw from the Trump administration’s tariff policies hasn’t materialized. Some products have been affected more than others. Here’s a look at what has happened with supplies and prices in popular gifting categories. Games and toys Game and toys were particularly susceptible to tariff-related price increases since the majority of the ones sold in the U.S. are made in China, according to industry trade group The Toy Association. The tariff rate the Trump administration imposed on Chinese goods became a rollercoaster that started at an additional 10%, peaked at 145% and ended up at 47%.The uncertainty made it hard for toy shops to decide what to order for the holidays. Dean Smith, who co-owns independent toy stores JaZams in Princeton, New Jersey, and Lahaska, Pennsylvania, said the manufacturers in China that he buys toys from did not pass on their tariff costs all at once but he has seen their prices inch higher with every reorder.Smith estimated that wholesale prices for 80% of his inventory went up anywhere from 5% to 20%. Some shoppers who don’t buy toys regularly might be surprised by price increases he adopted in turn, Smith said. A doll that sold for $20 to $25 last year now costs $30 to $35 at JaZams, he said.“For folks with marginal incomes, this is going to be a very difficult holiday,” Smith said. Electronics Consumer electronics are mostly made in China and other Asian countries. In 2023, China accounted for 78% of U.S. smartphone imports, and 79% of laptop and tablet imports, according to the Consumer Technology Association trade group.Best Buy said in May that it was raising prices due to tariffs. But CEO Corie Barry said late last month that the consumer electronics chain made sure to stock computers, phones and other products at different price levels, a decision she credited with helping Best Buy attract more lower-income shoppers.“The consumer is not a monolith,” Barry told reporters.Game consoles are always a popular holiday item, and console makers made news earlier this year when they announced price increases. Sony raised the price of the PlayStation 5 by $50 to $550 in August, following Microsoft and Nintendo raising prices for their game consoles. Jewelry Jewelry shoppers will likely see higher prices, but that has more to do with the soaring price of gold than tariffs so far, according to David Bonaparte, president & CEO of trade group Jewelers of America.The varying tax rates Trump set for countries that import American goods with a total value less than their exports to the U.S. affected jewelry in various ways. Watches from Switzerland, for example, were subject to a 39% tariff from July 31 until the country struck a deal with the Trump administration last month to lower the import tax rate on its products to 15%.India, which refines many of the diamonds sold in the U.S., rushed in shipments of the gemstones before a 50% tariff on the country’s products took effect on Aug. 27. Higher prices for jewelry made with diamonds shipped from India will likely start to be felt in 2026, Bonaparte said.“It’s really a matter of what happens after Jan. 1,” he said. “If these tariffs are still in place, then prices will probably increase.” Holiday decor Holiday decorations are yet another category that mostly comes from overseas, particularly China.Jeremy Rice co-owns House, a home-décor shop in Lexington, Kentucky, that specializes in artificial flowers, wreaths and table decorations. He said the tariffs slowed down production of much of his fall stock and seasonal merchandise like ribbon. Some larger and more expensive items he didn’t order at all because they would have been too expensive to retail.Rice raised prices on the products he did get. The popular red berry stems that House long has carried increased from $8.95 last year to $10.95 due to higher import costs, he said.“We sell thousands of these berry stems, and every time we sold one, I flinched from knowing what it should have been, knowing that our supplier paid more for them, which made us pay more for them, which made our customer pay more for them,” Rice said. Shopping strategically For those looking to avoid tariff-related price increases, John Harmon, managing director of technology research at technology consulting company Coresight Resarch, recommends checking out secondhand stores and discount retailers like T.J. Maxx, Marshall’s and HomeGoods. The off-price chains buy much of their inventory from leftover stock that would have entered the U.S. before new tariffs kicked in.Joe Adamski, senior director at procurement services company ProcureAbility, said books, food and beverages are some of the domestically produced goods that make good gifts. Mae Anderson, AP Business Writer
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E-Commerce
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