Bye bye birdie đ¤
Sign up for the weekly edition of The Currency newsletter delivered to your inbox. đ§
Sign up for the weekly edition of The Currency newsletter delivered to your inbox. đ§
âIf someone has a crystal ballâŚDM me on Twitter.â
No, Elon Musk wasnât talking about the future of the famous bird logo, now rebranded to âX.â
He was commenting on the economy.* The billionaire isnât the only one looking for clarity: 1 in 4 millennials say they turn to a fortune teller for advice â and yet only a third of Americans have spoken with a financial advisor.
We can help with that. And while we may not be able to predict whatâs around the corner, Empowerâs quarterly market outlook is here to shed some light on your money moves.
â The Editors
Is âXâ for the birds? Letâs chirp about it.
Do you like âXâ as the new name for Twitter?
- Yes, itâs very on brand.
- No, Iâll miss the bird.
- I donât know, itâs all moving so fast!
- I like birding (birdwatching) outside.
Take this weekâs poll and let us know what you think.
MONEY
Coming in hot: The Federal Reserve raised its key interest rate by a quarter of a point*. This marks the 11th increase in 17 months, lifting interest rates to their highest level in 22 years. The hike indicates a concern from the Fed* that the economy is still growing too fast for inflation to fall back to the target of 2%.
Recession-free as a bird: Last summer, economists were calling it a vibecession* â saying it only feels like a recession, without the economic downturn showing up in the numbers. Since then, weâve heard warnings of stagflation* and the perk-cession,* too. âItâs complicated,â may sound like the Facebook relationship status of yesteryear but has a ring of truth when it comes to todayâs economy. Some reports say a hiring boom* is hiding a recession signal but, for now, forecasters are cutting back recession expectations.
No âBad Bloodâ here: Since Taylor Swiftâs Eras Tour took off in March, her concerts have helped boost local economies.* Cities like Philadelphia, Chicago, Cincinnati, and Tampa Bay saw spikes in hotel stays and local tourism that exceeded pre-pandemic numbers, with one study projecting Eras could help add $5 billion to the worldwide economy. No surprise there, as Taylor's $tar power is something that Swifties know âAll Too Well.â
As long as the hot dogs stay $1.50: Costco is the latest company cracking down on membership sharing after noticing nonmember shoppers* were using another personâs card or QR code at self-checkout lanes. A regular membership at the retailer costs $60 a year, and Costco says that itâs able to keep prices low because membership fees help offset operational expenses. Costco's annual revenue has risen by 129% over the past 10 years,* but a food court staple has remained largely unchanged: During the pandemic and amid inflation, Costco continues to offer its cult favorite hot dog and drink combo for just a buck fifty.
LIFE
Lessons learned from student debt
A new reality is setting in for the 43.6 million borrowers* with federal student loans, whose debt has been put on forbearance since early 2020 as part of pandemic-relief measures.
According to new Empower research, 1 in 3 households expect upcoming student loan payments of $1,000 per month. During the pause, 31% of borrowers didnât make any payments, using the reprieve to pay down credit card debt, save up for discretionary spending, and build up their emergency savings.
To afford their student loans once repayments resume in October, 32% of Americans say they plan to take on more credit card debt. And regret may be setting in, as almost 1 in 4 adults with student loans (20%) wish they invested the money to grow it in the market instead of taking on debt.
Are you trying to plan out your next step for paying down student loan debt? Our repayment resources and tips on The Currency⢠may help.
WORK
Workers in the prime of life are boosting the job market
New data suggests that Americans working in their prime* â which economists define as ages 25 to 54 â are flooding the job market at rates not seen in two decades. Prime-age workers (when most Americans are done with their formal education but arenât ready to retire) now exceed pre-pandemic levels by almost 2.2 million.
The Wall Street Journal reports that the resurgence of midcareer workers â a trend helping to counter the exit of older baby boomers â is driven by women, whose labor-force participation rate was the highest on record, 77.8% in June (up from 73.5% in April 2020).
Employers have added about 280,000 workers per month* so far in 2023. That growth could help the Federal Reserveâs efforts to lower inflation by keeping wage growth in check.
PLAY
The âAutocadoâ is extra đĽđ¤
A robot may be coming to a Chipotle near you! The fast casual chain is testing out a prototype called Autocado* to help speed up how long it takes to make guacamole.
The âcollaborative robotâ cuts, cores, and peels avocados before they are hand-mashed by staff, cutting preparation time in half. Chipotleâs other automation efforts include Chippy, a robot that makes tortilla chips.
With high inflation and a tight labor market, the restaurant industry has been embracing automating tasks to streamline operations, from taking drive-thru orders to preparing food like french fries.
If youâre wondering how to balance the rise of artificial intelligence with your own financial goals, check out this article by Empower financial professional Courtney Burrell.
As of July 24, 2023, EAG holds shares of CMG and COST in advisory client accounts and does not hold TWTR.
RO3023343-0723 WF2755173-0723
The content contained in this blog post is intended for general informational purposes only and is not meant to constitute legal, tax, accounting or investment advice. You should consult a qualified legal or tax professional regarding your specific situation. No part of this blog, nor the links contained therein is a solicitation or offer to sell securities. Compensation for freelance contributions not to exceed $1,250. Third-party data is obtained from sources believed to be reliable; however, Empower cannot guarantee the accuracy, timeliness, completeness or fitness of this data for any particular purpose. Third-party links are provided solely as a convenience and do not imply an affiliation, endorsement or approval by Empower of the contents on such third-party websites.
Certain sections of this blog may contain forward-looking statements that are based on our reasonable expectations, estimates, projections and assumptions. Past performance is not a guarantee of future return, nor is it indicative of future performance. Investing involves risk. The value of your investment will fluctuate and you may lose money.
Certified Financial Planner Board of Standards Inc. (CFP Board) owns the certification marks CFPÂŽ, CERTIFIED FINANCIAL PLANNERâ˘, CFPÂŽ (with plaque design), and CFPÂŽ (with flame design) in the U.S., which it authorizes use of by individuals who successfully complete CFP Board's initial and ongoing certification requirements.