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Powell faces partisan potholes as Fed nears soft landing on January 9, 2024 at 11:00 am Business News | The Hill
Federal Reserve Chair Jerome Powell is attempting to bring the U.S. economy in for a rare soft landing on a runway littered with partisan potholes.
The central bank appears likely to avert a recession and pull off a remarkable feat of economic policymaking. The Fed last month signaled the end of a historic spate of rate hikes that have contributed to curbing inflation to 3.1 percent annually in November 2023 from its 9.1 percent peak in June 2022.
But the job isn’t done yet, and Powell faces several political obstacles — including former President Trump.
The 2024 presidential election will be in full swing as the Fed decides whether and how deeply it will cut interest rates. That will put Powell and the Fed in the middle of the partisan battle over President Biden’s handling of the economy.
“Jerome Powell’s position as the Federal Reserve chair places him at a strategic juncture between economic policy and its political implications,” Republican strategist Charlie Kolean, the chief strategist of RED PAC, told The Hill.
“His decisions on interest rates are not just economic tools but also carry significant political weight, especially in an election year. Given his history of being a target of political criticism, his decisions will be closely watched for their economic and political repercussions.”
Trump, the GOP presidential front-runner, is unlikely to tolerate a series of Fed rate cuts that stimulate the U.S. economy as he attempts to win back the White House. The former president berated Powell throughout his presidency for refusing to cut rates in line with his political objectives and has already vowed not to reappoint the Fed chair.
The Fed could also take heat from Democrats if it holds off on rate cuts, and some progressive lawmakers are already laying blame for another Trump presidency at Powell’s feet.
Rep. Ro Khanna (D-Calif.) said last month that the Fed “should cut interest rates” or be “most responsible” for Trump’s reelection.
Powell, however, has already shot down any attempt to sway the Fed.
“We don’t think about political events; we don’t think about politics. We think about what’s the right thing to do for the economy,” Powell said in December.
Powell, a Republican, has faced unprecedented public political pressure since becoming Fed chair in 2018.
A former investment banker and Treasury Department official, Powell joined the Fed board in 2012 after former President Obama nominated him to break a partisan stalemate.
Trump tapped Powell five years later to replace former Fed chair and current Treasury Secretary Janet Yellen, touting his combination of experience on Wall Street and Washington.
Trump, however, turned on Powell soon after appointing him. As the Fed ignored the president’s demands to boost the stock market and his leverage in trade talks, Trump threatened to fire Powell and questioned whether Chinese President Xi Jinping was kinder to the U.S.
Powell brushed off Trump’s remarks until the onset COVID-19 pandemic forced the Fed into crisis mode and the former president lost his reelection bid in 2020. His leadership of the Fed amid crisis and his bipartisan credibility prompted Biden to renominate Powell over the objections of progressives.
The independence of the central bank is crucial to U.S. economic health, Martha Gimbel, a research scholar at Yale Law School and a former senior adviser to Biden’s Council of Economic Advisors, told The Hill.
“People obviously are talking about monetary policy in a political context, and I think one thing that’s really really important about the United States is we have an independent central bank,” Gimbel said.
“I think it is incredibly important that administrations respect that. I think you’ve seen that really clearly from the Biden administration, and I think it’s really important that that continue.”
Optimistic markets expect approximately six rate cuts starting as early as the March meeting of the Fed panel tasked with setting monetary policy. But the Fed will be wary of moving too fast on rate cuts if inflation remains elevated.
“The Fed also in its heart of hearts wants to remain credible as an independent institution. Well, that also makes you a little more risk averse on cutting too soon,” Claudia Sahm, founder of Sahm Consulting and a former Fed researcher who developed the recession indicator the “Sahm Rule,” told The Hill.
Holding off on a March rate cut would give the Fed three more meetings to cut or not cut before election day. Either choice could trigger political blowback.
“Talk about a tightrope to walk in a contentious election year,” Sahm said. “[Powell] is totally in the most impossible situations, and that’s been true from the moment the pandemic showed up.”
U.S. government officials including the Fed were criticized for initially describing inflation as “transitory” in 2021, as the pandemic eased but high prices did not.
From March 2022 to July 2023, the central bank hiked interest rates from near zero to a range of 5.25 percent to 5.5 percent, their highest level in decades, to try to cool stimulus-padded demand contributing to higher prices.
Wall Street was predicting a recession at this time last year because of the rate hike crusade, and at a Senate Banking Committee hearing last March, Sen. Elizabeth Warren (D-Mass.) laid into Powell for interest rate hikes she said were “designed to slow the economy and throw people out of work.”
But as inflation has slowed, the economy has proven remarkably resilient, with strong gross domestic product growth and the longest run of an unemployment rate under 4 percent since the 1960s.
Following a surprisingly robust jobs report Friday, Yellen said the U.S. economy was seeing a soft landing.
“As crazy as last year was, it was all about the Fed. We had all these geopolitical developments, you know, Ukraine and Hamas, and they didn’t even move the needle to any significant extent, at least this past year,” Nick Sargen, a former Fed and Treasury official now affiliated with the University of Virginia’s Darden School of Business, told The Hill.
While Sargen said “nobody is really sure” how much credit the central bank’s rate hikes should get in easing high prices, he gives the Fed credit because it “took the heat to make sure that people didn’t think the run up in inflation was going to be a mini replay of the ’70s.”
With what will surely be a heated election ahead, the central bank will also want to avoid another cautionary tale from the 1970s: the legacy of then-Fed Chair Arthur Burns.
“I would expect [the Fed] to be more cautious than usual and I don’t think it has to do about Trump versus Biden or the current environment. Where the extra caution could come from is the history,” Sahm said.
Despite high inflation, Burns cut interest rates in 1971 after President Nixon privately pressed him to help him win reelection. Nixon won a second term, but inflation soared to double digits by 1974.
Gimbel likened compromising the central bank’s independence to eating “a ton of sugar.”
“It feels great, and then the next day, you feel like hell,” she said. “The political independence of the Federal Reserve allows them to stay away from sugar binges.”
Sylvan Lane contributed.
Business, Donald Trump, Elizabeth Warren, federal reserve, Interest rates, Jerome Powell, Joe Biden, Ro Khanna Federal Reserve Chair Jerome Powell is attempting to bring the U.S. economy in for a rare soft landing on a runway littered with partisan potholes. The central bank appears likely to avert a recession and pull off a remarkable feat of economic policymaking. The Fed last month signaled the end of a historic spate of…
Business
Why 9 Million Americans Have Left

The Growing American Exodus
Nearly 9 million Americans now live outside the United States—a number that rivals the population of several states and signals a profound shift in how people view the American dream. This mass migration isn’t confined to retirees or the wealthy. Thanks to remote work, digital nomad visas, and mounting pressures at home, young professionals, families, and business owners are increasingly joining the ranks of expats.

Rising Costs and Shrinking Wallets
Living in the US has become increasingly expensive. Weekly grocery bills topping $300 are not uncommon, and everyday items like coffee and beef have surged in price over the last year. Rent, utilities, and other essentials also continue to climb, leaving many Americans to cut meals or put off purchases just to make ends meet. In contrast, life in countries like Mexico or Costa Rica often costs just 50–60% of what it does in the US—without sacrificing comfort or quality.
Health Care Concerns Drive Migration
America’s health care system is a major trigger for relocation. Despite the fact that the US spends more per person on health care than any other country, millions struggle to access affordable treatment. Over half of Americans admit to delaying medical care due to cost, with households earning below $40,000 seeing this rate jump to 63%. Many expats point to countries such as Spain or Thailand, where health care is both affordable and accessible, as a major draw.

Seeking Safety Abroad
Public safety issues—especially violent crime and gun-related incidents—have made many Americans feel unsafe, even in their own communities. The 2024 Global Peace Index documents a decline in North America’s safety ratings, while families in major cities often prioritize teaching their children to avoid gun violence over simple street safety. In many overseas destinations, newly arrived American families report a significant improvement in their sense of security and peace of mind.
Tax Burdens and Bureaucracy
US tax laws extend abroad, requiring expats to file annual returns and comply with complicated rules through acts such as FATCA. For some, the burden of global tax compliance is so great that thousands relinquish their US citizenship each year simply to escape the paperwork and scrutiny.
The Digital Nomad Revolution
Remote work has unlocked new pathways for Americans. Over a quarter of all paid workdays in the US are now fully remote, and more than 40 countries offer digital nomad visas for foreign professionals. Many Americans are leveraging this opportunity to maintain their US incomes while cutting costs and upgrading their quality of life abroad.

Conclusion: Redefining the Dream
The mass departure of nearly 9 million Americans reveals deep cracks in what was once considered the land of opportunity. Escalating costs, inaccessible healthcare, safety concerns, and relentless bureaucracy have spurred a global search for better options. For millions, the modern American dream is no longer tied to a white-picket fence, but found in newfound freedom beyond America’s borders.
Business
Will Theaters Crush Streaming in Hollywood’s Next Act?

Hollywood is bracing for a pivotal comeback, and for movie lovers, it’s the kind of shake-up that could redefine the very culture of cinema. With the freshly merged Paramount-Skydance shaking up its strategy, CEO David Ellison’s announcement doesn’t just signal a change—it reignites the passion for moviegoing that built the magic of Hollywood in the first place.

Theatrical Experience Roars Back
Fans and insiders alike have felt the itch for more event movies. For years, streaming promised endless options, but fragmented attention left many longing for communal spectacle. Now, with Paramount-Skydance tripling its film output for the big screen, it’s clear: studio leaders believe there’s no substitute for the lights, the hush before the opening credits, and the collective thrill of reacting to Hollywood’s latest blockbusters. Ellison’s pivot away from streaming exclusives taps deep into what unites cinephiles—the lived experience of cinema as art and event, not just content.
Industry Pulse: From Crisis to Renaissance
On the financial front, the numbers are as electrifying as any plot twist. After years of doubt, the box office is roaring. AMC, the world’s largest theater chain, reports a staggering 26% spike in moviegoer attendance and 36% revenue growth in Q2 2025. That kind of momentum hasn’t been seen since the heyday of summer tentpoles—and it’s not just about more tickets sold. AMC’s strategy—premium screens, with IMAX and Dolby Cinema, curated concessions, and branded collectibles—has turned every new release into an event, driving per-customer profits up nearly 50% compared to pre-pandemic norms.
Blockbusters Lead the Culture
Forget the gloom of endless streaming drops; when films like Top Gun: Maverick, Mission: Impossible, Minecraft, and surprise hits like Weapons and Freakier Friday draw crowds, the industry—and movie fans—sit up and take notice. Movie-themed collectibles and concession innovations, from Barbie’s iconic pink car popcorn holders to anniversary tie-ins, have made each screening a moment worth remembering, blending nostalgia and discovery. The focus: high-impact, shared audience experiences that streaming can’t replicate.
Streaming’s Limits and Studio Strategy
Yes, streaming is still surging, but the tide may be turning. The biggest franchises, and the biggest cultural events, happen when audiences come together for a theatrical release. Paramount-Skydance’s shift signals to rivals that premium storytelling and box office spectacle are again at the center of Hollywood value creation. The result is not just higher profits for exhibitors like AMC, but a rebirth of movie-going as the ultimate destination for fans hungry for connection and cinematic adventure.

Future Forecast: Culture, Community, and Blockbuster Dreams
As PwC and others warn that box office totals may take years to fully catch up, movie lovers and industry leaders alike are betting that exclusive theatrical runs, enhanced viewing experiences, and fan-driven engagement are the ingredients for long-term recovery—and a new golden age. The Paramount-Skydance play is more than a business move; it’s a rallying cry for the art of the theatrical event. Expect more big bets, more surprises, and—finally—a long-overdue renaissance for the silver screen.
For those who believe in the power of cinema, it’s a thrilling second act—and the best seat in the house might be front and center once again.
Business
Why Are Influencers Getting $7K to Post About Israel?

Influencers are being paid as much as $7,000 per post by the Israeli government as part of an expansive and sophisticated digital propaganda campaign. This effort is designed to influence global public opinion—especially among younger social media users—about Israel’s actions in Gaza and to counter critical narratives about the ongoing humanitarian situation.

How Much Is Being Spent?
Recent reports confirm that Israel has dedicated more than $40 million this year to social media and digital influence campaigns, targeting popular platforms such as TikTok, YouTube, and Instagram. In addition to direct influencer payments, Israel is investing tens of millions more in paid ads, search engine placements, and contracts with major tech companies like Google and Meta to push pro-Israel content and challenge critical coverage of issues like the famine in Gaza.
What’s the Strategy?
- Influencer Contracts: Influencers are recruited—often with all-expenses-paid trips to Israel, highly managed experiences, and direct payments—to post content that improves Israel’s image.
- Ad Campaigns: State-backed ad buys show lively Gaza markets and restaurants to counter global reports of famine and humanitarian crisis.
- Narrative Management: These posts and ads often avoid overt propaganda. Instead, they use personal stories, emotional appeals, and “behind the scenes” glimpses intended to humanize Israel’s side of the conflict and create doubt about reports by the UN and humanitarian agencies.
- Amplification: Paid content is strategically promoted so it dominates news feeds and is picked up by news aggregators, Wikipedia editors, and even AI systems that rely on “trusted” digital sources.
Why Is This Happening Now?
The humanitarian situation in Gaza has generated increasing international criticism, especially after the UN classified parts of Gaza as experiencing famine. In this environment, digital public relations has become a primary front in Israel’s efforts to defend its policies and limit diplomatic fallout. By investing in social media influencers, Israel is adapting old-school propaganda strategies (“Hasbara”) to the era of algorithms and youth-driven content.
Why Does It Matter?
This campaign represents a major blurring of the lines between paid promotion, journalism, and activism. When governments pay high-profile influencers to shape social media narratives, it becomes harder for audiences—especially young people—to distinguish between authentic perspectives and sponsored messaging.

In short: Influencers are getting $7,000 per post because Israel is prioritizing social media as a battleground for public opinion, investing millions in shaping what global audiences see, hear, and believe about Gaza and the conflict.
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