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Spotify CEO cites "expensive" capital as factor in layoffs. What does that mean?

Dec 4, 2023
The music streaming service just announced its third round of layoffs this year after previous years of intensive borrowing.
For most of Spotify's existence, interest rates barely got above 2%. But once borrowing and debt got expensive, investors became interested in profitability over expansion at any cost.
Kirill Kudryavtsev/AFP via Getty Images

Manufacturing sector contracts for 13th straight month, but construction spending is up

Dec 1, 2023
The Institute for Supply Management’s Purchasing Managers Index showed worse-than-expected performance for manufacturing, but construction growth shone.
“The housing market is poised for gains for 2024," said Danushka Nanayakkara at the National Association of Home Builders.
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Durable goods orders have been rising. That's great news for the economy.

Nov 22, 2023
Businesses don't buy 'em unless they think they need 'em.
If businesses are splurging on durable goods, "the economy is still expanding," said Nationwide's Kathy Bostjancic.
Frederic J. Brown/AFP via Getty Images

Home builders try to make houses more affordable by making them smaller

Nov 1, 2023
High mortgage rates and building costs have reversed the pandemic trend of bigger houses.
The construction of smaller homes now could help ensure affordable inventory in the long run.
Mario Tama/Getty Images

Why the Treasury Department's borrowing plan may overshadow Jay Powell's news conference

Nov 1, 2023
As the Fed wraps up its two-day meeting, economists are looking to the Treasury Department for details on how the federal government plans to borrow money through the end of the year.
Mandel Ngan/AFP via Getty Images

Japan loosens its grip on long-term interest rates

Oct 31, 2023
The Bank of Japan’s "yield curve control policy" could be on its way out as central banks around the world raise rates to beat inflation.
Until recently, the Bank of Japan was trying to keep interest rates on bonds low to stimulate the economy. Above, the Bank of Japan building.
Richard A. Brooks/AFP via Getty Images

Why are Americans' views on the economy so mixed?

Oct 30, 2023
In one poll, 44% of respondents say they’re stressed about the economy. Meanwhile, 34% say they’re optimistic.
Change is hard. And it’s not fun, even if your raise does cover how much extra you’re spending at the grocery store. 
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Interest rates for retail credit cards reach all-time high

Oct 26, 2023
Rates now average nearly 29%, according to Bankrate. By comparison, the typical rate for a standard Visa or Mastercard is around 21%.
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Why are bond yields so high right now?

Oct 23, 2023
The yield on the 10-year Treasury briefly hit 5%, the highest level since 2007. A resilient economy and expanding debt are pushing rates up.
For a while, bond markets expected a weaker economy and possible rate cuts by the Federal Reserve in 2024.
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Fed chair Powell's latest speech hints at caution regarding interest rates

Oct 20, 2023
Jerome Powell spoke Oct. 19 and said the Federal Open Market Committee would be "proceeding carefully."
“Given the uncertainties and risks, and given how far we’ve come, the committee is proceeding carefully," Powell said.
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