Investors largely expected the FOMC to cut rates by a quarter point.The Fedread more
The lack of clarity surrounding the U.S.-China trade war is what's really hitting global growth, says ex- Deputy Treasury Secretary Sarah Bloom Raskin.World Economyread more
China's economy has long relied on factors such high levels of investments and an expanding labor force for growth. Those growth drivers are running out of steam.China Economyread more
India could benefit from the fallout in the U.S.-China trade war, experts told CNBC — but much-needed reforms on land and labor could prove to be a challenge for companies...Asia Economyread more
New crash tests show the Tesla Model 3 and the Audi e-tron, are among the safest models out on the road. The results bolster the theory electric vehicles may be better...Autosread more
U.S. consumers and growth in sectors such as technology have offset declines in other American industries, says Tom Finke, chairman and CEO of investment management firm...US Economyread more
The FAA administrator's comments come on the eve of his visit to Boeing facilities outside Seattle. While there, he's scheduled to meet with Boeing executives and be briefed...Airlinesread more
Last weekend's attacks on oil facilities — and the spike in crude prices that followed — should show that the world needs to stop relying on oil, says Helen Clark.Energyread more
The photo depicts Canadian leader Justin Trudeau wearing a turban and robe, with dark makeup on his hands, face and neck. Liberal Party spokesman confirms the photo is of...Electionsread more
As the Fed was meeting to consider cutting interest rates, it lost control of the very benchmark rate that it manages.Market Insiderread more
CBS, CNN and other major media companies are starting to pull e-cigarette advertising off their airways, as the death toll from a mysterious vaping-related illness continues...Health and Scienceread more
Jim Nussle, a former director of the Office of Management and Budget, told CNBC's "Closing Bell" on Wednesday that a strong U.S. consumer is the only thing keeping the country from a recession.
"I see [the trade war] as a leading indicator of the concern from the consumers, and if they decide that they're going to pull out of the market, they decide they're going to stop spending, that will force us, as quickly as anything, into a recession," said Nussle, CEO of the Credit Union National Association.
Consumers make up roughly 70% of the U.S. economy, which means they're becoming increasingly important amid fears of a new recession. Diane Swonk, chief economist at Grant Thornton, told CNBC last week that "the consumer has played Atlas, carrying the economy, and it can do that, but the muscles come from job gains and wages."
While retail sales are up and retail earnings have done well in the past quarter, consumer spending can weaken from volatile market conditions.
According to a report released last week, the U.S. consumer sentiment index fell to 92.1 in August, hitting the lowest indicator readout in 2019. Economists surveyed by Refinitiv estimated that the preliminary read on August consumer sentiment would reach 97, still down from 98.4 in July.
Nussle agreed with other economists and retail watchers that "70% ... of the economic force in our country" is tied to U.S. consumers and consumer spending.
"[Consumers] are worried about their future, whether it's their job, living paycheck to paycheck," Nussle said. "They see the costs going up because of the trade war. There is some uncertainty as we talk about recession's coming. The costs going up ... makes them start worrying about whether or not they're going to be able to make ends meet."
The curve between the 2-year note and the 10-year note flattened on Wednesday after the Fed released minutes of its last meeting in July. Then the briefly fell below the , sending a second recession warning since last week.