Home Depot has announced a $1 billion investment in its hourly workers, raising their average starting salary to $15 an hour. This move comes in response to the current red-hot job market, where unemployment has reached its lowest level since 1969. Home Depot's decision to raise its starting pay follows similar moves by other large retailers such as Amazon, who announced in September that starting pay for warehouse and delivery workers would be more than $19 an hour. This increase will benefit all hourly workers in the U.S. and Canada.
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The Congressional Budget Office (CBO) has released its updated 10-year Budget and Economic Outlook, predicting an unemployment rate of 5.1% this year and high interest rates and inflation. In response, Senate Majority Leader Chuck Schumer (D-N.Y.) has made clear that Democrats won't accept cuts to Medicaid, the government health insurance program for low-income Americans. The report serves as a reminder of the need to protect Medicaid and other safety net programs to ensure an equitable and sustainable economic recovery.
The White House has announced the appointment of Lael Brainard of the Federal Reserve as the new director of the National Economic Council. Brainard will be tasked with helping President Biden implement his economic agenda, including pandemic relief, infrastructure, and tax bills. However, the U.S. is currently at risk of defaulting on its debt in July if Congress does not act to raise or suspend the debt limit. Brainard's expertise and experience will be essential in helping the White House navigate this difficult situation.
The Congressional Budget Office (CBO) released a report on Wednesday warning Congress to address the debt limit before the government runs out of funds, potentially between July and September. The report notes that the government’s spending has increased due to the coronavirus pandemic, resulting in a $3.3 trillion deficit for the 2021 fiscal year. Treasury Secretary Janet Yellen has said that a default would be economically calamitous.
The Walt Disney Co. announced Wednesday that it will be laying off 7,000 employees and cutting costs by $5.5 billion in the coming months as part of an effort to increase the profitability of its streaming business and focus more on core brands and franchises. Activist shareholder Nelson Peltz's demands for changes at Disney appear to have been satisfied by the announcement, and the reorganization is expected to be completed by the end of the fiscal year. No details have been released yet on which departments will be affected by the layoffs.
The Walt Disney Co. has announced that it will be cutting 7,000 jobs from its global workforce, amounting to about 3% of its total employees. The job cuts are part of a cost-cutting effort and are part of a “significant transformation” for the media and entertainment giant, as CEO Bob Iger is under pressure to revive the company's financial fortunes and its stock price. The job cuts come as a shock to many and it remains to be seen how the company will adjust to the changes and how its employees will be affected.
A new study has revealed that banks with the highest reliance on hidden fees are primarily located in low-income areas of the US, costing consumers at least $29 billion each year. In response, President Biden and the Consumer Financial Protection Bureau have taken steps to limit credit card late fees, and the President has vowed to ban “junk fees” in his State of the Union address. The study highlights the need for greater regulation of these fees to ensure they are not disproportionately impacting low-income communities.
Dell Technologies has announced plans to lay off 5% of its workforce due to the uncertain economic climate, following similar cost-cutting measures taken by other large tech companies. The announcement comes as the tech industry has been hit hard by the economic downturn, with interest rate hikes contributing to the financial woes of many companies. Despite the job cuts, Dell has reported several strong quarters due to the steps taken to stay ahead of the downturn impacts.