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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

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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. 

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“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. 

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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. 

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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. 

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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.

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“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.  

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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

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“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. 

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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.

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​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…  

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Google Accused Of Favoring White, Asian Staff As It Reaches $28 Million Deal That Excludes Black Workers

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Google has tentatively agreed to a $28 million settlement in a California class‑action lawsuit alleging that white and Asian employees were routinely paid more and placed on faster career tracks than colleagues from other racial and ethnic backgrounds.

How The Discrimination Claims Emerged

The lawsuit was brought by former Google employee Ana Cantu, who identifies as Mexican and racially Indigenous and worked in people operations and cloud departments for about seven years. Cantu alleges that despite strong performance, she remained stuck at the same level while white and Asian colleagues doing similar work received higher pay, higher “levels,” and more frequent promotions.

Cantu’s complaint claims that Latino, Indigenous, Native American, Native Hawaiian, Pacific Islander, and Alaska Native employees were systematically underpaid compared with white and Asian coworkers performing substantially similar roles. The suit also says employees who raised concerns about pay and leveling saw raises and promotions withheld, reinforcing what plaintiffs describe as a two‑tiered system inside the company.

Why Black Employees Were Left Out

Cantu’s legal team ultimately agreed to narrow the class to employees whose race and ethnicity were “most closely aligned” with hers, a condition that cleared the path to the current settlement.

The judge noted that Black employees were explicitly excluded from the settlement class after negotiations, meaning they will not share in the $28 million payout even though they were named in earlier versions of the case. Separate litigation on behalf of Black Google employees alleging racial bias in pay and promotions remains pending, leaving their claims to be resolved in a different forum.

What The Settlement Provides

Of the $28 million total, about $20.4 million is expected to be distributed to eligible class members after legal fees and penalties are deducted. Eligible workers include those in California who self‑identified as Hispanic, Latinx, Indigenous, Native American, American Indian, Native Hawaiian, Pacific Islander, and/or Alaska Native during the covered period.

Beyond cash payments, Google has also agreed to take steps aimed at addressing the alleged disparities, including reviewing pay and leveling practices for racial and ethnic gaps. The settlement still needs final court approval at a hearing scheduled for later this year, and affected employees will have a chance to opt out or object before any money is distributed.

H2: Google’s Response And The Broader Stakes

A Google spokesperson has said the company disputes the allegations but chose to settle in order to move forward, while reiterating its public commitment to fair pay, hiring, and advancement for all employees. The company has emphasized ongoing internal audits and equity initiatives, though plaintiffs argue those efforts did not prevent or correct the disparities outlined in the lawsuit.

For many observers, the exclusion of Black workers from the settlement highlights the legal and strategic complexities of class‑action discrimination cases, especially in large, diverse workplaces. The outcome of the remaining lawsuit brought on behalf of Black employees, alongside this $28 million deal, will help define how one of the world’s most powerful tech companies is held accountable for alleged racial inequities in pay and promotion.

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Luana Lopes Lara: How a 29‑Year‑Old Became the Youngest Self‑Made Woman Billionaire

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At just 29, Luana Lopes Lara has taken a title that usually belongs to pop stars and consumer‑app founders.

Multiple business outlets now recognize her as the world’s youngest self‑made woman billionaire, after her company Kalshi hit an 11 billion dollar valuation in a new funding round.

That round, a 1 billion dollar Series E led by Paradigm with Sequoia Capital, Andreessen Horowitz, CapitalG and others participating, instantly pushed both co‑founders into the three‑comma club. Estimates place Luana’s personal stake at roughly 12 percent of Kalshi, valuing her net worth at about 1.3 billion dollars—wealth tied directly to equity she helped create rather than inheritance.

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Kalshi itself is a big part of why her ascent matters.

Founded in 2019, the New York–based company runs a federally regulated prediction‑market exchange where users trade yes‑or‑no contracts on real‑world events, from inflation reports to elections and sports outcomes.

As of late 2025, the platform has reached around 50 billion dollars in annualized trading volume, a thousand‑fold jump from roughly 300 million the year before, according to figures cited in TechCrunch and other financial press. That hyper‑growth convinced investors that event contracts are more than a niche curiosity, and it is this conviction—expressed in billions of dollars of new capital—that turned Luana’s share of Kalshi into a billion‑dollar fortune almost overnight.

Her path to that point is unusually demanding even by founder standards. Luana grew up in Brazil and trained at the Bolshoi Theater School’s Brazilian campus, where reports say she spent up to 13 hours a day in class and rehearsal, competing for places in a program that accepts fewer than 3 percent of applicants. After a stint dancing professionally in Austria, she pivoted into academics, enrolling at the Massachusetts Institute of Technology to study computer science and mathematics and later completing a master’s in engineering.

During summers she interned at major firms including Bridgewater Associates and Citadel, gaining a front‑row view of how global macro traders constantly bet on future events—but without a simple, regulated way for ordinary people to do the same.

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That realization shaped Kalshi’s founding thesis and ultimately her billionaire status. Together with co‑founder Tarek Mansour, whom she met at MIT, Luana spent years persuading lawyers and U.S. regulators that a fully legal event‑trading exchange could exist under commodities law. Reports say more than 60 law firms turned them down before one agreed to help, and the company then spent roughly three years in licensing discussions with the Commodity Futures Trading Commission before gaining approval. The payoff is visible in 2025’s numbers: an 11‑billion‑dollar valuation, a 1‑billion‑dollar fresh capital injection, and a founder’s stake that makes Luana Lopes Lara not just a compelling story but a data point in how fast wealth can now be created at the intersection of finance, regulation, and software.

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Harvard Grads Jobless? How AI & Ghost Jobs Broke Hiring

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America’s job market is facing an unprecedented crisis—and nowhere is this more painfully obvious than at Harvard, the world’s gold standard for elite education. A stunning 25% of Harvard’s MBA class of 2025 remains unemployed months after graduation, the highest rate recorded in university history. The Ivy League dream has become a harsh wakeup call, and it’s sending shockwaves across the professional landscape.

Jobless at the Top: Why Graduates Can’t Find Work

For decades, a Harvard diploma was considered a golden ticket. Now, graduates send out hundreds of résumés, often from their parents’ homes, only to get ghosted or auto-rejected by machines. Only 30% of all 2025 graduates nationally have found full-time work in their field, and nearly half feel unprepared for the workforce. Go to college, get a good job“—that promise is slipping away, even for the smartest and most driven.​

Tech’s Iron Grip: ATS and AI Gatekeepers

Applicant tracking systems (ATS) and AI algorithms have become ruthless gatekeepers. If a résumé doesn’t perfectly match the keywords or formatting demanded by the bots, it never reaches human eyes. The age of human connection is gone—now, you’re just a data point to be sorted and discarded.

AI screening has gone beyond basic qualifications. New tools “read” for inferred personality and tone, rejecting candidates for reasons they never see. Worse, up to half of online job listings may be fake—created simply to collect résumés, pad company metrics, or fulfill compliance without ever intending to fill the role.

The Experience Trap: Entry-Level Jobs Require Years

It’s not just Harvard grads who are hurting. Entry-level roles demand years of experience, unpaid internships, and portfolios that resemble a seasoned professional, not a fresh graduate. A bachelor’s degree, once the key to entry, is now just the price of admission. Overqualified candidates compete for underpaid jobs, often just to survive.

One Harvard MBA described applying to 1,000 jobs with no results. Companies, inundated by applications, are now so selective that only those who precisely “game the system” have a shot. This has fundamentally flipped the hiring pyramid: enormous demand for experience, shrinking chances for new entrants, and a brutal gauntlet for anyone not perfectly groomed by internships and coaching.

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Burnout Before Day One

The cost is more than financial—mental health and optimism are collapsing among the newest generation of workers. Many come out of elite programs and immediately end up in jobs that don’t require degrees, or take positions far below their qualifications just to pay the bills. There’s a sense of burnout before careers even begin, trapping talent in a cycle of exhaustion, frustration, and disillusionment.

Cultural Collapse: From Relationships to Algorithms

What’s really broken? The culture of hiring itself. Companies have traded trust, mentorship, and relationships for metrics, optimizations, and cost-cutting. Managers no longer hire on potential—they rely on machines, rankings, and personality tests that filter out individuality and reward those who play the algorithmic game best.

AI has automated the very entry-level work that used to build careers—research, drafting, and analysis—and erased the first rung of the professional ladder for thousands of new graduates. The result is a workforce filled with people who know how to pass tests, not necessarily solve problems or drive innovation.

The Ghost Job Phenomenon

Up to half of all listings for entry-level jobs may be “ghost jobs”—positions posted online for optics, compliance, or future needs, but never intended for real hiring. This means millions of job seekers spend hours on applications destined for digital purgatory, further fueling exhaustion and cynicism.

Not Lazy—Just Locked Out

Despite the headlines, the new class of unemployed graduates is not lazy or entitled—they are overqualified, underleveraged, and battered by a broken process. Harvard’s brand means less to AI and ATS systems than the right keyword or résumé format. Human judgment has been sidelined; individuality is filtered out.

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What’s Next? Back to Human Connection

Unless companies rediscover the value of human potential, mentorship, and relationships, the job search will remain a brutal numbers game—one that even the “best and brightest” struggle to win. The current system doesn’t just hurt workers—it holds companies back from hiring bold, creative talent who don’t fit perfect digital boxes.

Key Facts:

  • 25% of Harvard MBAs unemployed, highest on record
  • Only 30% of 2025 grads nationwide have jobs in their field
  • Nearly half of grads feel unprepared for real work
  • Up to 50% of entry-level listings are “ghost jobs”
  • AI and ATS have replaced human judgment at most companies

If you’ve felt this struggle—or see it happening around you—share your story in the comments. And make sure to subscribe for more deep dives on the reality of today’s economy and job market.

This is not just a Harvard problem. It’s a sign that America’s job engine is running on empty, and it’s time to reboot—before another generation is locked out.

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