Thank you, Mr. . Chairman. So, for a solid year while he ran for president, Donald Trump promised pretty much every day that he was going to lower costs on day one.On day one, if he was elected, those were his words, not mine. So, Secretary Bessant, you are one of the president's top economic adviserss. Let's just start with a little truthtelling about the Trump economy.One year in, affordability is the top concern for Americans across the country. Donald Trump has called affordability, I want to get this r ...

This story was originally published on WardsAuto. To receive daily news and insights, subscribe to our free daily WardsAuto newsletter. LAS VEGAS — Affordability is just as big a buzzword for auto lenders as it is for auto dealers, judging by discussions at the American Financial Services Association’s 2026 Vehicle Finance Conference & Expo. “Affordability is a constraint for the market that’s keeping consumers on the sidelines,” Satyan Merchant, senior vice president, automotive and mortgage for TransU ...

With nine months until the US midterm elections, Wall Street is starting to game out trading scenarios leading up to the November vote. Top of mind is the American consumer, who is not all right, at least going by the latest sentiment surveys. Investors are eying trades that would benefit from efforts by the the Trump administration to lower the cost of living. That includes newfangled financial firms that may see higher demand as some tax changes and other cost-of-living policies are implemented, and hom ...

The Good Brigade | Digitalvision | Getty ImagesPresident Donald Trump last week took exception to a proposal backed by one of his economic advisors to let Americans tap their 401(k) savings for home downpayments — an idea that many financial advisors also oppose."I'm not a huge fan. Other people like it," Trump told reporters on Thursday aboard Air Force One en route to Washington from Davos, Switzerland, where he had attended the World Economic Forum's annual meeting. Kevin Hassett, director of the Nationa ...

Core Viewpoint - J.P. Morgan strategists suggest that the Trump administration's focus on affordability may create investment opportunities in value-oriented stocks ahead of the November midterm elections [1] Group 1: Investment Opportunities - A bullish outlook on low-end consumer sensitive stocks is reiterated, with factors such as fiscal spending, tax cuts, and lower gasoline prices contributing to this sentiment [2] - Stocks identified as benefiting from this trend include SouthWest Airlines, Dutch Bros., Walmart, Dollar Tree, Dollar General, Citigroup, and Chime Financial [2] - Most of these stocks have outperformed the S&P 500 in 2026, indicating potential earnings upside due to affordability-related catalysts [3] Group 2: Policy Changes - An executive order has been signed by Trump to ban large institutional investors from purchasing single-family homes, with further details on implementation still unclear [4] - Trump proposed a cap on credit card interest rates at 10% for one year starting January 20, although the feasibility and legal enforceability of this cap remain uncertain [5] Group 3: Economic Factors - A significant decline in oil prices over the past year has led to lower gasoline prices, with projections indicating that the annual average price may fall below $3 per gallon in 2026 [5] - The reduction in gas prices is expected to provide substantial savings for consumers, estimated at $20-25 billion for the year if gasoline prices average around $2.90 [6]

Core Viewpoint - The U.S. financial technology sector is poised for growth as President Trump's focus shifts to affordability, potentially benefiting fintech companies over traditional lenders [1][2]. Fintech Sector Opportunities - Companies like Affirm Holdings Inc, SoFi Technologies Inc, and Block Inc are well-positioned to capitalize on the affordability trend, according to Citigroup [3]. - Other potential beneficiaries include Toast Inc and Shopify Inc, which are also highlighted for their consumer-friendly services [3]. Traditional Lenders' Response - Traditional lenders initially experienced a rally following Trump's return to the White House, anticipating a more lenient regulatory environment. However, the renewed focus on affordability may shift investor attention towards fintech challengers [4]. Fintech Growth Metrics - Block reported over $200 billion in global lending through its credit products, indicating significant growth in the fintech sector [5]. - SoFi announced a $1.5 billion fundraising plan aimed at enhancing its capital position and supporting future growth [5]. Mixed Outlook on Specific Companies - Kerrisdale has expressed concerns about Affirm, labeling it a "Buy Now, Cry Later" story, suggesting that its rapid growth may reflect underlying risks similar to past subprime lending failures [6]. - Affirm's growth of over 30% in gross merchandise volume since 2022 is noted, but concerns about weakening credit quality due to high-interest rate lending are raised [6]. Reactions to Affordability Initiatives - Trump's affordability initiatives, including blocking institutional investors from acquiring single-family homes, have received mixed reactions, with some praising the efforts while others warn of potential market instability [7]. - The proposed nationwide 10% cap on credit card interest rates could limit access to credit, potentially hindering consumers' ability to build credit and pushing them towards less regulated options [8]. Price Performance - Over the past year, SoFi and Affirm Holdings saw stock price increases of 48.32% and 29.05%, respectively, while Block's stock declined by 25.64% [9].

Core Insights - Inflation is expected to remain high throughout 2026, driven by healthy economic activity and tariff pass-through to consumers [2][3] - Lower-income households will be disproportionately affected by elevated prices of everyday goods and utility costs [3] - Government intervention aimed at affordability is anticipated, especially ahead of midterm elections [4][5] Inflation Outlook - The December 2025 Consumer Price Index indicated a month-over-month price increase of 0.3% and a year-over-year increase of 2.7% [1] - Mukherjee predicts that inflation will not significantly ease in 2026, maintaining pressure on consumers [2] Impact on Consumers - Lower-income consumers are expected to become more cautious with discretionary spending due to a challenging hiring environment [3] - Early-year tax refunds may provide temporary financial relief for these households [3] Government and Policy Interventions - Anticipated tariff rate stabilization and potential reductions could lead to lower prices for imported goods [5] - The Federal Reserve is expected to cut rates by 25 to 50 basis points, which may lower mortgage rates and improve housing affordability [5][6] Housing Market - A more affordable housing market is projected as mortgage rates decrease, potentially boosting refinancing and sales [6]

Tax Burden Overview - Washington, D.C. has the highest per capita tax grab at $14,979, although it does not have the highest tax percentage of income due to non-residents being taxed in their home states [1] - Hawaii has the highest state tax burden at 13.9% of income, followed closely by New York at 13.6% [7][9][10] - California has over $70 billion in unaccounted federal tax dollars under Governor Gavin Newsom, contributing to high state tax burdens [7][24] State-Specific Tax Details - Hawaii's cumulative tax burden includes 4.2% in state income taxes, 2.6% in property taxes, and 7.2% in sales and excise taxes, with unique taxation on gross receipts of businesses [11] - New York City has a complex tax structure with a state income tax rate of 10.9% and additional local income taxes, making it one of the most expensive cities [15][17] - Vermont has the highest property tax rates in the nation at an average of 1.78%, with a progressive income tax rate that reaches 8.75% [20] Taxation Trends and Impacts - High state and local taxes in blue states are a major factor affecting affordability for residents, particularly in large cities [5] - The average federal tax paid per capita by U.S. citizens is approximately $13,800, while the average state and local tax is around $7,100, indicating significant discrepancies [3] - California's high taxes include a top state income tax rate of 13.3% and the highest gas tax in the nation at 90 cents per gallon [29]

Core Insights - Peabody's CEO Jim Grech has been appointed Chair of the National Coal Council, emphasizing the importance of coal in U.S. energy security and affordability [1][2] - U.S. coal-fueled generation increased by an estimated 13% in 2025, driven by extended coal plant lifespans and rising electricity demand from AI and data centers [2] - The National Coal Council advises the Secretary of Energy on coal-related policies, highlighting coal's affordability, reliability, and its role in steelmaking and critical minerals [3][4] Company Overview - Peabody is the largest coal producer in the U.S., operating eight thermal coal mines and one metallurgical coal mine domestically, along with five metallurgical coal mines and two seaborne thermal coal mines in Australia [6] - The North Antelope Rochelle Mine in Wyoming is the largest surface coal mine in the Western Hemisphere, producing 12% of U.S. coal [6] - Jim Grech, with over 35 years of experience in the coal and natural resources industry, has been with Peabody since 2021 and holds various board memberships [5]

Core Viewpoint - President Trump is seeking to align with progressives to address affordability issues and position Republicans favorably for the midterm elections, despite his previous economic policies that have been criticized by the left [1][8]. Economic Policies - Trump has renewed his campaign promise to cap credit card interest rates at 10%, a proposal that has been stagnant in Congress since its introduction [2][14]. - He aims to ban large investors from purchasing single-family homes, a move intended to make housing more affordable for first-time buyers, echoing progressive initiatives [13]. - Trump has directed Fannie Mae and Freddie Mac to invest $200 billion in mortgage bonds to lower mortgage rates and monthly payments, although analysts predict minimal impact on the housing market [2][15]. Political Dynamics - Trump's economic agenda has raised concerns among traditional conservatives, as it deviates from limited-government, free-market principles [5][6]. - The shift towards cost-control policies is seen as a response to recent electoral successes for Democrats, indicating a strategic move to regain voter support [8][10]. - There is skepticism from progressive leaders like Sen. Bernie Sanders regarding Trump's commitment to these policies, given his past actions that favored deregulation [7][20]. Bipartisan Support and Opposition - Some of Trump's initiatives may garner bipartisan support, but significant opposition is expected from business-friendly Republicans and Democrats [10][21]. - The political landscape is complicated, as Trump's policies may force Republicans to support ideas they traditionally oppose, while some Democrats may struggle to vote against him [21][23]. Public Perception and Polling - Recent polling indicates that only 31% of voters approve of Trump's handling of the economy, a decline from 40% shortly after he returned to office [17]. - The gap between Trump's economic perspective and voter sentiment has prompted him to campaign in key states to promote his economic agenda [18][19].