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The Federal Reserve will almost certainly cut its key interest rate on Wednesday and could signal it expects another cut in December as the central bank seeks to bolster hiring.A cut Wednesday would be the second this year and could benefit consumers by bringing down borrowing costs for mortgages and auto loans. Since Fed chair Jerome Powell strongly signaled in late August that rate cuts were likely this year, the average 30-year mortgage rate has fallen to about 6.2% from 6.6%, providing a boost to the otherwise-sluggish housing market.Still, the Fed is navigating an unusual period for the U.S. economy and its future moves are harder to anticipate than is typically the case. Hiring has ground nearly to a halt, yet inflation remains elevated, and the economy’s mostly solid growth is heavily dependent on massive investment by leading tech companies in artificial intelligence infrastructure.The central bank is assessing these trends without most of the government data it uses to gauge the economy’s health. The release of September’s jobs report has been postponed because of the government shutdown. The White House said last week October’s inflation figure may not even be compiled.The shutdown itself may also crimp the economy in the coming months, depending on how long it lasts. Roughly 750,000 federal workers are nearing a month without pay, which could soon start weakening consumer spending, a critical driver of the economy.Federal workers laid off by the Trump administration’s Department of Government Efficiency efforts earlier this year may formally show up in jobs data if it is reported next month, which could make the monthly hiring data look even worse.Powell has said that the risk of weaker hiring is rising, which makes it as much of a concern as still-elevated inflation. As a result, the central bank needs to move its key rate closer to a level that would neither slow nor stimulate the economy.Most Fed officials view the current level of its key rate 4.1% as high enough to slow growth and cool inflation, which has been their main goal since price increases spiked to a four-decade high three years ago. The Fed is widely expected to reduce it to about 3.9% Wednesday. WIth job gains at risk, the goal is to move rates to a less-restrictive level.Kris Dawsey, head of economic research at D.E. Shaw, an investment bank, said that the lack of data during the shutdown means the Fed will likely stay on the path it sketched out in September, when it forecast cuts this month and in December.“Imagine you’re driving in a winter storm and suddenly lose visibility in whiteout conditions,” Dawsey said. “While you slow the car down, you’re going to continue going in the direction you were going versus making an abrupt change once you lose that visibility.”In recent remarks, the Fed chair has made clear that the sluggish job market has become a signficant concern.“The labor market has actually softened pretty considerably,” Powell said. “The downside risks to employment appear to have risen.”Before the government shutdown cut off the flow of data Oct. 1, monthly hiring gains had weakened to an average of just 29,000 a month for the previous three months. The unemployment rate ticked up to a still-low 4.3% in August from 4.2% in July.Layoffs also remain low, however, leading Powell and other officials to refer to the “low-hire, low-fire” job market.At the same time, last week’s inflation report released more than a week late because of the shutdown showed that inflation remain elevated but isn’t accelerating and may not need higher rates to tame it.Yet a key question is how long the job market can remain in what Powell has described as a “curious kind of balance.”“There have been some worrisome data points in the last few months,” said Stephen Stanley, chief U.S. economist at Santander, an investment bank. “Is that a weakening trend or are we just hitting an air pocket?”The uncertainty has prompted some top Fed officials to suggest that they may not necessarily support a cut at its next meeting in December. At its September meeting, the Fed signaled it would cut three times this year, though its policymaking committee is divided. Nine of 19 officials supported two or fewer reductions.Christopher Waller, a member of the Fed’s governing board and one of five people being considered by the Trump administration to replace Powell as Fed chair next year, said in a recent speech that while hiring data is weak, other figures suggest the economy is growing at a healthy pace.“So, something’s gotta give,” Waller said. “Either economic growth softens to match a soft labor market, or the labor market rebounds to match stronger economic growth.”Since it’s unclear how the contradiction will play out, Waller added, “we need to move with care when adjusting the policy rate.”Waller said he supported a quarter-point cut this month, “but beyond that point” it will depend on what the economic data says, assuming the shutdown ends.Financial markets have put the odds of another cut in December at above 90%, according to CME Fedwatch and Fed officials have so far said little to defuse that expectation.Jonathan Pingle, chief U.S. economist at UBS, said that he will look to see if Powell, at a news conference Wednesday, repeats his assertion that the risks of a weaker job market remain high.“If I hear that, I think they’re on track to lowering rates again in December,” he said. Christopher Rugaber, AP Economics Writer
Category:
E-Commerce
As more and more drivers purchase electric vehicles, some people have voiced concerns about how the EV boom could further strain our aging, stressed electricity grid. More EVs means more electricity demand, which could require costly infrastructure upgrades or limit when drivers can charge if demand is too high. But one long-talked about promise of EVs is that they could actually make our electricity grid more resilient. Through bidirectional charging, EVs could essentially act as batteries parked outside your home, powering houses so that they dont need to rely on outside electricity. They could also even send energy back to the grid. [Image: Ford] A handful of EVs can already power your home during an outage, including the Ford F-150 Lightning. And Ford is expanding how its EV drivers can take advantage of bidirectional charging. [Image: Ford] Through its Home Power Management program, F-150 Lightning owners can use their trucks to power their homes when electricity prices from the grid are high, easing energy burdens and saving people money on their monthly bills. It also gives customers the ability to send energy from the trucks back to the grid, in some instances earning them money from their electricity company for doing so. We see an opportunity here where our vehicles can be part of the solution rather than compounding the problem, Dave McCreadie, director of Fords EV-Grid Integration Strategy and Business Development, said during a recent press briefing on the program. The rollout is currently limited, but Ford expects to expand a Home Power Management pilot in 2026. At a time when EV sales are lagging and EV tax credits have expiredand as homeowners across the country are seeing their energy bills increaseFord hopes potential customers see these features as another benefit to owning an EV. [Image: Ford] A personal power plant to lower energy bills Backup power has been a feature in the F-150 Lightning since its release in 2022. After major hurricanes like Helene in North Carolina and Beryl in Texas, F-150 Lightning owners used their trucks as generators, allowing them to keep the lights on and the refrigerator running when the power went out. A fully charged F-150 Lightning can power a home for three days; if that power is rationed, it can last up to 10 days. Backup power only works when the grid goes down. Home Power Management, however, allows EV owners to use their trucks to power their homes even when the grid is up and running. The idea is that customers can charge their EVs overnight during offpeak hours, when electricity rates are low. Then, when demand peaks and rates go up, they can use their EV to power their homes. That both offsets a homeowners electricity bills and frees up power from the grid to go elsewhere. The home in question is now essentially invisible to the grid, the automaker explains. [Image: Ford] In June 2024, Ford partnered with Baltimore Gas & Electric (BGE) and Sunrun, a home solar and battery company, to launch the countrys first vehicle-to-home pilot program, allowing EV owners to use their vehicles to power their homes anytime, not just during an outage. Brian Foreman, an F-150 Lightning owner in Highland, Maryland, was the first customer to do so, essentially turning his EV into his own personal power plant. Ford didnt share exactly how much Foreman saved on his electricity bills, but says that customers can save an average of $42 per month, or $500 per year, by using the vehicle-to-home capability. When most people would be concerned, Ive got an electric vehicle, my electricity bill is going to go up, well now you have this offset. Your vehicle is actually working for you in your driveway while its parked, said Ryan OGorman, senior manager of energy services business strategy and delivery at Ford. Brian Foreman [Image: Ford] Sending energy to the gridand making money In the summer of 2025, Foreman joined two other BGE customers for another pilot, this time one that allowed customers to use their F-150 Lightnings to send power to the grid. This turns the EVs into distributed power plants, per the utility company, which also paid customers for the energy they shared. Instead of just saving customers money on their electricity bills, this next step in Fords Home Power Management program lets EV owners make money through their EVs. The participants could earn up to $1,000 for the power they provided between July and September. Using your F-150 Lightning to power your home during peak energy demand or to send power to the grid does require extra equipment: an inverter called the Home Integration System, created by Ford and Sunrun. That equipment is also needed if you want to use your truck to provide backup power during an outage, so some customers already have it installed. The Home Integration System costs $3,895, and installation can be another $3,000, though those prices vary. That expense is on top of the price to buy and install a home EV charger. Some Ford customers received a free charger and installation through the automakers Ford Power Promise program, but for those that missed out on that opportunity, a level 2 Ford Charge Station Pro costs another $1,310 plus installation, which can vary from $200 to $1,000, depending on any wiring upgrades your home needs. That means there is an upfront cost to eventually being able to offset your energy bills or make money by providing power through your EV. But Ford says its F-150 Lightning is cost competitive to buying a 10-kilowatt stationary backup generator for your homeplus, it’s a generator you can drive around. [Image: Ford] Looking ahead for Ford Currently, a handful of customers in just nine states are using Fords Home Power Management capabilities, including Maryland, Georgia (where Ford did a six-month pilot program with energy provider Southern Company focused on commercial fleets), and Vermont (where energy expert Peter Schneider tested the program with Ford, using it to power his home, and reduce grid strain, during extreme heat there this past summer). Getting this system set up requires working with utility companies, which have to provide approval and permits for EVs to be interconnected with the grid in these ways. Automakers also work with utilities to communicate about peak demand, with software that automatically charges an EV at grid-friendly times. Ford trying to maintain communications with hundreds and even thousands of electric utilities across the country is an untenable business solution, McCreadie said. We found that other automakers were having the same problem. Ford worked with BMW and Honda to create ChargeScape, a joint venture that launched in 2024, which basically acts as connective tissue, McCreadie explained, to link utilities and automakers, and integrate EVs into the grid. Though vehicle-to-home and vehicle-to-grid charging is a goal for the EV industry at large, Ford says it’s ahead of the pack with its recent pilot programs. Ford and Michigan-based DTE Energy have also recently launched a new program piloting the vehicle-to-home capabilities, starting with a group of 15 Ford employees. Through that pilot, DTE Energy will pay participants for using their EVs to power their homes during times of high electricity demand. But EV owners dont have to do anything themselves; the system is entirely automated. DTE Energy will send notifications to ChargeScape to schedule when participants EVs provide power for their homes. Though its only available to Ford employees right now, the automaker says its working with DTE to hopefully expand the program to the general public later on in 2026.
Category:
E-Commerce
The worlds largest retailer has announced massive job cuts before the holidays. On Tuesday, Amazon said in a memo to staff that it will lay off 14,000 employees. Heres what you need to know about the Amazon layoffs, and why these arent the last jobs that Amazon will likely cut in the future. Whats happened? On Tuesday, Amazons senior vice president of people experience and technology, Beth Galetti, announced the company was eliminating approximately 14,000 positions. Galetti sent a memo about the layoffs to Amazon employees, which was then published to the Amazon website. The headcount reduction of 14,000 positions is less than the up to 30,000 job cuts that Reuters had reported in the hours before Galettis memo was made public. However, it still represents one of the largest single layoff rounds of 2025. It also comes just days after competitor Target announced it was laying off 1,800 corporate roles. Amazon did not say which 14,000 jobs would be eliminated, but the memo specified that they would be corporate workforce positions, suggesting Amazons warehouse workforce is safe from the cuts. But that is to be expected as Amazon would be unlikely to reduce its warehouse staff ahead of the busy holiday season. According to PitchBook, Amazon has a total workforce of more than 1.5 million employees. Why is Amazon laying off 14,000 employees? In the memo, Galetti stated that the layoffs are a continuation of Amazon CEO Andy Jassys September 2024 directive to strengthen Amazon’s culture and teams. In 2024, that strengthening resulted in a return-to-office (RTO) mandate. In 2025, strengthening your culture apparently means cutting your workforce. The reductions were sharing today, Galettis memo states, are a continuation of this work to get even stronger by further reducing bureaucracy, removing layers, and shifting resources to ensure were investing in our biggest bets and what matters most to our customers current and future needs. But Galetti continued, explaining that the main driver for the cuts isyou guessed itartificial intelligence. The world is changing quickly, Galetti said. This generation of AI is the most transformative technology weve seen since the Internet, and it’s enabling companies to innovate much faster than ever before (in existing market segments and altogether new ones). Because of this, Galetti said that Amazon is convinced it needs to become a leaner company with fewer layers. The “layers” here are people. Amazon could cut even more jobs next year While the 14,000 job cuts Amazon announced today are devastating to the workers and their families who are affected, Amazon may not be done cutting positions. In the memo, Galetti added that looking ahead to 2026, Amazon expects to hire in key areas, while also finding additional places we can remove layers. How has Amazons stock price reacted? While the layoffs are devastating to the workers losing their jobs, Wall Street often sees layoffs as a good thing. Thats because laying off a large number of workers is usually the fastest way for a company to cut costs and thus increase its bottom line. But if Amazon was hoping to see a stock price boost from its layoff announcements this morning, the company is going to be disappointed. As of this writing, Amazons stock price (Nasdaq: AMZN) is relatively flat in premarket trading. Its up just half a percent to around $228.22 per share. As a matter of fact, Amazons stock price for 2025 hasnt moved much. Year to date, the companys share price is up just 3.4%. Thats compared to the Nasdaqs 21% gain in the same period. Amazon is expected to share its third-quarter 2025 financial results on Thursday, October 30.
Category:
E-Commerce
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