Core Viewpoint - The New York Federal Reserve's research indicates that U.S. businesses and consumers bear the majority of the burden from tariffs imposed by the Trump administration, leading to significant criticism from White House economic advisor Kevin Hassett, who labeled the findings as an embarrassment [1][6]. Summary by Sections Tariff Burden - The New York Fed's research found that U.S. businesses and consumers are responsible for 86% of the tariff burden, while foreign exports account for 14% as of November 2025 [2]. - The share of the burden on U.S. businesses and consumers decreased from 94% in the January to August period to 92% in September and October [2]. Average Tariff Rates - The average tariff rate increased significantly from 2.6% at the beginning of 2025 to 13% by the end of the year, peaking at around 16% in April and May following the announcement of "Liberation Day" tariffs [5]. Economic Impact - The New York Fed's findings align with other studies indicating that American importers are absorbing nearly all tariff costs, with the bulk of the incidence falling on U.S. firms and consumers [6]. - The Congressional Budget Office (CBO) reported that U.S. businesses would pass on approximately 70% of their tariff costs to consumers, with the remaining 30% affecting profit margins [10]. - The CBO projected that the new tariffs would increase the personal consumption expenditures (PCE) index by about 0.8 percentage points by the end of 2026, with current PCE inflation at 2.8%, exceeding the Fed's 2% target [11]. Defense of Tariffs - Hassett defended the Trump administration's tariffs, claiming that they have benefitted American consumers by reducing prices and increasing real wages by an average of $1,400 last year [12].

The grandson of the man who invented the Reese’s Peanut Butter Cup is publicly criticizing The Hershey Company, accusing the candy giant of quietly changing the recipe of certain products sold by the iconic brand. Brad Reese, grandson of founder H.B. Reese, whose company merged with Hershey in the 1960s, published an open letter on LinkedIn Saturday alleging that Hershey has replaced traditional ingredients like milk chocolate and peanut butter with lower-cost substitutes in parts of the Reese’s product lin ...

Federal Reserve policymakers were mostly in agreement on the decision to leave interest rates unchanged despite two calling for cuts, though several signaled that rate hikes could be on deck if inflation remains elevated. The minutes for the January meeting of the Federal Open Market Committee (FOMC), the Fed's monetary policy-setting panel, were released on Wednesday and showed that some policymakers were in favor of including language signaling the possibility of future rate hikes to tame stubborn inflati ...

Meta CEO Mark Zuckerberg took the stand Wednesday in Los Angeles Superior Court in a landmark trial over claims that social media platforms harm children, marking his first time answering youth safety allegations before a jury. The bellwether lawsuit, K.G.M. v. Meta Platforms, Inc., et al., was filed by a 20-year-old California woman identified by her initials. She alleges that Meta and other social media companies engineered their platforms to hook young users, fueling her depression and suicidal thoughts, ...

Meta CEO Mark Zuckerberg will testify Wednesday in Los Angeles Superior Court in a landmark trial over claims that social media platforms harm children — his first time answering youth safety allegations before a jury. The bellwether lawsuit, K.G.M. v. Meta Platforms, Inc., et al., was filed by a 20-year-old California woman identified by her initials. She alleges that Meta and other social media companies engineered their platforms to hook young users, fueling her depression and suicidal thoughts, and is s ...

The Austin, Texas, region has seen its population grow rapidly over the last decade, with new data showing it added households at about four-times the pace of the nation as a whole. Data from the National Association of Realtors showed that the metropolitan area encompassing Austin, Round Rock and San Marcos saw the number of households grow roughly 51% from 2014 to 2024.The Austin region gained 357,000 households from 2014 to 2024, which brought the number of households in the region from 703,976 to 1,061, ...

America’s hottest housing markets aren’t in flashy coastal cities — they’re in communities across the Midwest and South. Even as the national market cools, areas in states like Missouri and Kentucky are seeing double-digit price growth while remaining within reach for middle-income buyers.Recent data from the National Association of Realtors (NAR) ranked the top five single-family metro areas with the highest home price appreciation last quarter. Missouri’s Cape Girardeau held the top spot with a nearly 20% ...

Cheerios maker General Mills cut its annual sales and profit forecasts, citing weak consumer sentiment and a shift toward healthier and lower-cost food options that are pressuring demand for packaged products. "Weak consumer sentiment, heightened uncertainty, and significant volatility have weighed on category growth and impacted consumer purchase patterns, resulting in a slower pace and higher cost of volume recovery than initially expected," the company said in a statement ahead of its presentation at the ...

Group 1 - The FDA announced a recall of Wellsley Farms Farm-Raised Atlantic Salmon due to potential listeria contamination [1][4] - The recalled salmon was sold in 2-lb bags at BJ's Wholesale Club stores across several states from January 31 to February 7 [1] - Slade Gorton & Co. is investigating the source of the contamination and is implementing measures to prevent future occurrences [4] Group 2 - Listeria monocytogenes was detected in a random sample collected by the FDA [4] - Healthy individuals may experience short-term symptoms from listeria infection, while pregnant women face more severe risks [7] - BJ's Wholesale Club is notifying members who may have purchased the affected product and providing information on refunds [9]

Core Insights - Dollar Tree is strategically opening new stores in affluent areas to attract higher-income customers who tend to spend more per visit [1][6] - The percentage of new Dollar Tree stores in high-income ZIP codes has increased to 19% over the last six years, while those in low-income areas have decreased to 14% [2] - Higher-income households are becoming a significant driver of consumer spending, prompting Dollar Tree to adapt its strategy to appeal to these shoppers [3][10] Store Location Strategy - 49% of new Dollar Tree stores opened in the last six years are in wealthier parts of metro areas, up from 41% in the previous six years [1] - The share of new stores in ZIP codes with significantly higher incomes rose from 16% to 19% in the same timeframe [2] - Conversely, the share of stores opened in lower-income ZIP codes fell from 20% to 14% [2] Customer Demographics - In the last quarter, 60% of new Dollar Tree customers had annual incomes of at least six figures, with 30% being middle-income households earning between $60,000 and $100,000 [6] - Higher-income customers spend an average of $1 more per visit compared to lower-income customers, and an additional visit per year from these customers could increase annual sales by $1 billion [6] Market Trends - Economic downturns typically boost business for dollar stores, but the current strategy focuses on attracting higher-income shoppers who are making more deliberate spending choices [3][7] - The shift in consumer shopping preferences, driven by inflation, has led more households to seek out discount retailers like Dollar Tree [11]