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(WASHINGTON) — The Department of Transportation is easing fuel economy standards that were put in place during the Biden administration.

Transportation Secretary Sean P. Duffy said Monday that changing CAFE (corporate average fuel economy) standards for vehicles will make them more affordable by establishing “commonsense” guidelines for automakers.

“This administration is delivering relief to families and reviving the beating heart of American manufacturing,” Duffy said. “With our commonsense standards in place, we are making the American dream affordable again, putting safer cars on the road, and investing in the American autoworker.”

The new Trump administration rule reduces the previous average fuel economy requirement from 50.4 miles per gallon by 2031 to 34.9 miles per gallon by 2031. It also eliminates the need for automakers to invest in electric vehicle production to help meet those requirements. The rule reverses the requirements set by the Biden administration in 2024.

“This rule restores integrity to the national fuel economy program, balancing vehicle affordability and energy conservation goals while improving safety on our roadways,” National Highway Traffic Safety Administration Administrator Jonathan Morrison said in a statement. “Newer cars are safer cars. By reducing vehicle prices, more American families will be able to afford newer vehicles, and sensible standards allow automakers more freedom to design and produce vehicles consumers actually want. I’m proud of our fantastic team of expert engineers, economists, and lawyers for the tremendous job they’ve done finalizing this rule.”

The agency is also changing the classification of light truck and passenger vehicles beginning in 2030.

“This reclassification will eliminate the incentive to add equipment and alter designs for classification purposes, which will result in greater availability of lower-cost vehicle options for consumers,” the Department of Transportation said in a statement. “Instead, automakers will develop vehicles that meet consumer wants and needs. With the current vehicle classification, manufactures are disincentivized from making hatchbacks, wagons, and smaller footprint vehicles in general.”

NHTSA says current regulations have encouraged manufacturers to add features or make design changes primarily for regulatory purposes, reducing the availability of smaller, lower-cost vehicles. It also claims the change will cut the average cost of new vehicles by as much as $1,300 on average and could save Americans $138 billion over the next five years. The average price of a new vehicle was $49,855 in July, according to Kelley Blue Book.

These new standards are also expected to reduce U.S. yearly oil consumption by 1.3 billion barrels in 2050, according to the DOT.

President Donald Trump posted on social media over the weekend that these fuel economy standards for vehicles will “take the waste out of building cars in America” and subsequently lead to “LOWER PRICES.”

CAFE standards were established in 1975 to promote fuel conservation and reduce U.S. dependence on foreign oil. The standards require automakers to meet fuel economy targets across their fleets, which can also help reduce pollution and fuel costs for drivers. Since the standards are calculated using a manufacturer’s overall fleet average, electric and hybrid vehicles can improve that average, allowing automakers to sell less fuel-efficient vehicles, such as trucks and SUVs, while still meeting the requirements.

The Trump administration has argued that the previous CAFE standards effectively functioned as an EV mandate. However, NHTSA’s 2024 rule did not require vehicle manufacturers to make EV vehicles. The standards in the previous rule were “performance-based” and manufacturers were encouraged to “apply their expertise to find the appropriate technology path that best meets all desired outcomes.”

Environmental groups and climate experts quickly condemned the NHTSA’s decision, warning of potential adverse effects on air quality and human health.

Gina McCarthy, a former EPA administrator during the Obama administration and the current chair of the advocacy group America Is All, said in a statement: “For fifty years, fuel economy standards have saved Americans money and cut pollution at the same time, creating cleaner air, lowering prices at the pump, and reducing our reliance on fossil fuels. Rather than keeping the U.S. at the forefront of innovation and improving affordability, this administration has chosen to do the opposite.”

“Cleaner, more efficient vehicles are good for consumers, good for jobs, and good for public health. Governors, mayors, and businesses are pressing forward to find solutions for America’s growing affordability crisis while reducing carbon emissions. And they will keep pressing forward – with or without Washington,” she added.

The Sierra Club said argued that less fuel-efficient vehicles will increase gas use, costs for drivers and air pollution.

“Less fuel-efficient cars mean more gas burned, spending more at the pump, and dirtier air in our communities,” said Katherine García, Sierra Club Clean Transportation for All Director. “The Sierra Club will fight this senseless rollback every step of the way. We’re going to continue to fight back against this administration’s dangerous and costly attacks on cleaner cars and public health.”

Supporters of the decision said changing the CAFE standards gives automakers greater flexibility in meeting fuel economy requirements.

In response to the new rule, Alliance for Automotive Innovation, a trade group representing major automakers, said it is “still reviewing the final rule, but NHTSA made the right call to better align fuel economy standards with the law and current market conditions.”

“The standards finalized under the previous administration effectively required a switchover to electric vehicles that was out of step with market realities and customer demand. Today’s final rule is an appropriate course correction,” John Bozzella, president and CEO of the Alliance for Automotive Innovation, said in a statement to ABC News.

“What the industry needs is long-term regulatory stability that includes balanced, durable and achievable fuel economy standards that continue to reduce emissions and improve fuel economy. As we’ve said before: This is the formula for preserving consumer vehicle choice and keeping the U.S. auto industry globally competitive,” he added.

The EPA calculates that the transportation sector is the largest contributor of direct greenhouse gas emissions in the country, with cars and trucks accounting for more than 75% of those emissions.Greenhouse gases are the leading contributor to climate change.

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(NEW YORK) — Alan Greenspan, the longtime chairman of the Federal Reserve, has died, his wife confirmed. He was 100 years old.

“Alan passed away at our home this morning at the age of 100 from complications of Parkinson’s Disease,” Andrea Mitchell, his wife and a chief correspondent at NBC News, said in a statement published by the network on Monday.

The economist is remembered for leading the American central bank amid periods of historic U.S. economic expansion, while critics have also said his policies contributed to and exacerbated the mortgage crisis and financial crash of 2008.

Greenspan, a libertarian Republican, became the 13th chairman of the Board of Governors of the Federal Reserve System two months before the stock market crash on Oct. 19,1987, known as Black Monday. He was credited with moving quickly to alleviate investors’ fears after the crash and was instrumental in ensuring the Federal Reserve made plenty of money available to alleviate the impact on financial markets. Stocks quickly rebounded.

He was appointed Fed chair by four different presidents during his career, first by Ronald Reagan in 1987. Greenspan continued to serve as Fed chairman under presidents George H. W. Bush, Bill Clinton and George W. Bush. He steered the U.S. economy through the economic boom in the 1990s, the dotcom bubble, and the Sept. 11, 2001, terrorist attacks. His final term as chair ended on Jan. 31, 2006.

Under his leadership, the Fed fostered a distaste for regulation and promoted very low interest rates in the early 2000s — two phenomena critics say encouraged a bubble in housing prices that eventually burst with disastrous effects on the global economy.

During his tenure, and before the financial crisis began, the nation experienced one of the longest periods of economic growth in its history.

A decorated economist, first inspired by music

Greenspan was born on March 6, 1926, in New York City, the only child of Herbert Greenspan, a stockbroker, and Rose Goldsmith Greenspan, a retail worker. His parents divorced when he was 4 years old, and he was raised mainly by his mother and his grandparents.

An aspiring musician, Greenspan attended Juilliard for a year and played saxophone and clarinet before dropping out and enrolling at New York University. He went on to gain his bachelor’s, master’s and doctoral degrees in economics from New York University. He also engaged in some advanced graduate work at Columbia University in New York, where he studied under the influential economist Arthur Burns.

Though short-lived, his music career was an influential portion of Greenspan’s life, and he considered the move into economics a logical progression. He saw the organization of economic data into sound fiscal modeling as analogous to the organization of musical notes into tunes, according to Greenspan biographer Justin Martin in his book, “Greenspan: The Man Behind Money.”

“I get the same kind of joy from solving a hard mathematical problem as I do from hearing a Haydn quartet,” Greenspan once told The New York Times Magazine.

Greenspan taught economics at NYU between 1953 and 1955 and then founded the economic consulting firm Townsend & Greenspan, where he served as chairman and president from 1954 to 1974. He returned to the firm in 1977 and stayed until 1987.

President Richard Nixon nominated Greenspan to chair the President’s Council of Economic Advisers in 1974, the first of many government economic positions he would hold. Nixon resigned as president hours after Greenspan was nominated, but he continued to serve under President Gerald Ford. Greenspan also served as a member of President Ronald Reagan’s Economic Policy Advisory Board and was a consultant to the Congressional Budget Office.

In the private sector, Greenspan served as corporate director for many companies, including Alcoa, General Foods and J.P. Morgan & Co. He also served as a member of Time magazine’s Board of Economists and a senior adviser to the Brookings Panel on Economic Activity.

In 2002, Greenspan received an honorary knighthood from Queen Elizabeth II in recognition of his contribution to global economic stability. In 2005, President George W. Bush presented Greenspan with the Presidential Medal of Freedom.

He held the position of Fed chairman from the time Reagan appointed him in 1987 until 2006, serving an unprecedented five terms under four presidents before being succeeded by Ben Bernanke.

Greenspan is credited by many with facilitating the longest economic expansion in U.S. history. One day after the Black Monday stock crash, Greenspan affirmed the Fed’s “readiness to serve as a source of liquidity to support the economic and financial system” and the central bank moved to encourage banks to lend on their normal terms. Unlike prior financial crises, the events of Black Monday notably were not followed by an economic recession or a banking crisis and less than two years later, the U.S. stock market surpassed its pre-crash highs.

During his tenure, Greenspan developed a reputation for being a consensus-builder and for his strong anti-inflation stance, focusing more on controlling prices than on promoting full employment. He led the Federal Reserve through several events with major economic consequences, including two U.S. recessions, the 1997 Asian financial crisis and the Sept. 11, 2001, terrorist attacks.

‘How could we have possibly got it so wrong?’

Starting in June 2003, the Federal Reserve set the federal funds rate, the rate at which banks typically borrow from each other, to one percent for a year. Though its intention was to lower the cost of borrowing and stimulate the economy, critics said the rate was too low and encouraged investments in risky subprime mortgage-backed securities, which they say contributed to the financial crisis in 2008.

The National Bureau of Economic Research, a research organization seen as an authority on measuring economic performance, later said that the recession officially began in December 2007.

In September 2007, Greenspan published a book that was both a memoir and economic commentary, “The Age of Turbulence: Adventures in a New World,” in which he criticized the George W. Bush administration for overspending and admitted that he supported the administration’s tax cuts without stressing the need for spending cuts.

In an interview with Bloomberg Businessweek in August 2012, Greenspan said, “one day before Lehman Brothers crashes, conventional wisdom was not even certain that we would fall into a recession.”

“In fact, we learned many months later that the downward trend had actually started,” Greenspan said. “How could we have possibly got it so wrong? I mean, I actually was saying, ‘Yes, recession is coming, not that we’re here yet.’ We didn’t know that it had already hit.”

In October 2008, Greenspan acknowledged to a congressional committee discussing financial regulation that, “I made a mistake in presuming that the self-interests of organizations, specifically banks and others, were such as that they were best capable of protecting their own shareholders and their equity in the firms.”

After Greenspan finished his term as chairman of the Federal Reserve in 2006, he established Greenspan Associates, an economic consulting firm in Washington, D.C.

With Greenspan as president, the firm had four employees as of October 2012. His client list has included giant finance clients like German firm Deutsche Bank and hedge fund Paulson & Co.

Personal life

Greenspan married artist Joan Mitchell in 1952. The couple divorced in 1953 after less than a year of marriage, and the marriage was later annulled. The two remained friends.

His first wife is remembered for introducing him to novelist and philosopher Ayn Rand, with whom Greenspan shared a friendship, a belief in free-market economic ideals and a philosophy of objectivism. In his 30s and early 40s, Greenspan spent many hours sitting with Rand’s band of followers, known as the “Collective,” discussing topics including politics philosophy, current events and economics.

In addition to Burns at Columbia, Rand and her group were instrumental in helping hone Greenspan’s capitalist, free-market economic philosophy, according to Martin, Greenspan’s biographer.

The group’s open style of debate and discussion served Greenspan well in his various governmental roles. During his career in public service, he became known for a well-developed ability to communicate with Congress without offending those with opposing viewpoints or politicizing his messages.

Though he was said to back revamping the Social Security system and raising the retirement age, Greenspan was wary of how his public statements as Fed chairman might move markets. He rarely granted interviews. He was known for making openly ambiguous public statements about the state of the U.S. economy, once telling Congress, “If I’ve made myself too clear, you must have misunderstood me.”

Greenspan married NBC News correspondent Mitchell in 1997. Their marriage was officiated by the late Supreme Court Justice Ruth Bader Ginsburg.

“We’ve had the most wonderful marriage,” he told Bloomberg Businessweek in August 2012. “It gets better every year. We’re still very much together in love.”

Mitchell is Greenspan’s only surviving family.

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(NEW YORK) — Apple held its annual product event on Wednesday as customers worldwide watched for fresh products as well as the debut of Apple CEO John Ternus.

Observers widely expect the company to unveil its first-ever foldable iPhone, marking Apple’s splashy entry into a long-existing product category. Foldable phones came onto the market in 2018, but they account for a small fraction of smartphone sales.

The product event, dubbed “Surprise and Shine,” kicked off in Cupertino, Calif., at 1 p.m. Eastern Time. It can be viewed on the company’s website.

The glossy showcase comes days after Ternus took the helm of the tech giant on Sept. 1, after having worked at the company for 25 years. Ternus replaced former CEO Tim Cook, who succeeded co-founder Steve Jobs in 2011.

The world’s second-largest company, as measured by market capitalization, depends largely on its smartphone business while offering an array of other products such as its iPad, Apple Watch and MacBook.

Shares of Apple have surged 22% in value over the past six months, far outpacing the S&P 500’s growth of 13% over that period.

The expected announcement of a foldable iPhone marks Apple’s latest effort to weigh in with a standout option in an existing product category, often at a higher price point.

In 2024, the company unveiled Apple Vision Pro, a mixed reality headset meant to compete with Meta Quest and other early-to-market offerings. At the time, the most affordable version of Apple Vision Pro sold for $3,499.

Apple also unveiled AI-driven features across several key products in 2024, heralding its long-awaited entry into the high-stakes AI race. The AI capability, dubbed Apple Intelligence, amounts to the “next big step for Apple,” Cook said at the time.

Apple released Apple Watch in 2014, referring to it then as the company’s latest “category-defining product.”

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