(NEW YORK) — The U.S. economy grew at a robust pace over three months ending in September, slowing slightly from the previous quarter but continuing to dispel any concern about a possible slowdown. The fresh report marks one of the last major pieces of economic data before the presidential election.
U.S. GDP grew at a 2.8% annualized rate over three months ending in September. That figure fell slightly below economists’ expectations.
Economic growth was fueled by surge in consume spending, an uptick in exports and strong federal government spending, the U.S. Bureau of Economic Analysis said.
The new data arrived weeks after the Federal Reserve cut its benchmark interest rate a half of a percentage point. The landmark decision dialed back a years-long fight against inflation and offered relief for borrowers saddled with high costs.
Inflation has slowed dramatically from a peak of about 9% in 2022, though it remains slightly higher than the Fed’s target of 2%.
Meanwhile, the labor market has proven resilient. Employers hired 254,000 workers in September, far exceeding economist expectations of 150,000 jobs added, U.S. Bureau of Labor Statistics data showed. The unemployment rate ticked down to 4.1%, hovering near a 50-year low.
This is a developing story. Please check back for updates.
(NEW YORK) — Scammers don’t need a special occasion to try to steal your money or your identity. Whether it be holidays or big events, they are always on the prowl — the back-to-school shopping season is no different. Students and parents are particularly vulnerable right now as they shop for everything from textbooks to clothes and even jobs.
The rush to find the best deals has some consumers visiting unfamiliar websites and sometimes hastily clicking on links. All of the excitement can make for a less vigilant consumer — the perfect opportunity for bad actors to pounce. People aged 18 to 24 were more likely to report being targeted by text message or internet messaging than any other age group, according to the Better Business Bureau.
Shoppers need to be careful of fake websites appearing to sell popular supplies and textbooks at deeply discounted prices, as noted by Wells Fargo fraud and claims executive Dan Cusick. They may send fraudulent emails pretending to be a school asking you to update your personal information. The scammers also create fake social media ads that link to the fake websites. Consumers enter their payment information, giving scammers the chance to collect their credit card and bank details.
Fraudsters also set up fake rental sites offering discounted textbooks; they collect the rental fee but never send the books. You should always type the store’s website into your browser and shop from the store’s legitimate site, Cusick suggested. Log into a school’s online portal or app directly to update any student information, ignoring unsolicited or online offers and emails.
Fake scholarship and job offers
The FCC recently issued a warning to college students and their parents about a rise in fraudulent scholarships and fake job offers.Scammers post fake job postings that promise good pay and flexible hours on popular job sites and social media. They may even send emails that look like they’re coming from a business or college promising “guaranteed” scholarships that require you to pay a fee to be eligible.
After you apply, the FCC noted that one common tactic is for them to send you a check to deposit at your bank. They then ask you to send some of the money to another account. However, the check is fake and by the time it bounces, the scammer will have walked away with the money you sent them.
Bottom line is that your boss should be paying you, not the other way around. If they tell you to deposit a check and use some of the money for any reason, experts say it’s a scam.
Federal authorities recommend looking up the name of the company or the person who’s hiring you, plus the words “scam,” “review,” or “complaint” to see what others are saying about them.
If the email looks like it came from a professor or an office at your college, call them directly to confirm they’re really looking to fill a position. Beware of email addresses coming from non-company email addresses including Gmail, Yahoo and Hotmail. Ask the employer to send you details of the job duties, the pay and the hours. If they refuse, that could be another red flag.
Student Rental Scams
As the cost of college rises to record highs, experts say scammers are finding creative ways to dupe vulnerable and unsuspecting students. That’s especially true when it comes to fake apartment rentals.
The fraudsters rip off legitimate rental listings, including photos and descriptions, from reputable organizations. They then post the fake listing on their site at a deep discount. Once you show interest, they ask for your personal information like your bank account. They also create urgency, telling you to “act immediately” or “send money right away” and suggest you will lose the listing otherwise.
When it comes to rental scams, experts say beware of these major red flags: you can’t meet the person or see the rental property before you pay or they ask for payment upfront via wire transfer, gift card or directly into an account. Experts remind us to never send money or share personal information with unverified people or companies and to be guided by the old adage: if it seems too good to be true, it probably is.
The Michael Kors Store on Rodeo Drive on Feb. 23, 2017 in Beverly Hills, Calif. (Fg/bauer-griffin/GC Images via Getty Images, FILE)
(NEW YORK) — The Federal Trade Commission is asking a federal judge in New York to block the $8.5 billion merger of Tapestry, the company behind Coach, Kate Spade, and Capri, which controls Michael Kors.
In April, the FTC sued to block the sale, arguing that these brands dominate what’s known as the “accessible luxury” market and that if they combined, consumers would suffer by paying higher prices.
“This has to be the first time the focus of a federal court hearing turned to a $279 Kate Spade tote described as ‘colorful, joyful, feminine, green and white seen on Emily in Paris,” ABC News senior investigative reporter and correspondent Aaron Katersky said on Good Morning America Tuesday.
Tapestry argues the FTC is ignoring the reality of a marketplace, in which consumers have a lot of choices, suggesting it takes a mere stroll through Bloomingdale’s or Macy’s to see Gucci, Kors and Calvin Klein bags fighting for attention.
Michael Kors himself testified last month during a hearing, telling the judge there’s already plenty of competition for handbags, noting that he learned about one brand when he saw a photo of pop superstar Taylor Swift wearing an Aupen bag similar to those made by Kate Spade.
Kors also testified his handbags have “reached a point of brand fatigue” and a lawyer arguing in favor of the merger said it would revitalize the Michael Kors brand, so consumers have yet another choice. The goal, he said, is to sell more handbags to consumers.
The judge took these arguments under advisement and could rule at any time.
(NEW YORK) — Oil prices climbed more than 3% on Tuesday in the immediate aftermath of an Iranian missile attack on Israel.
The spike in prices is expected to push up the price of U.S. gasoline, experts told ABC News.
Drivers could face a price increase of between 10 and 15 cents per gallon, experts estimated. The national average price of a gallon of gas currently stands at $3.20, AAA data showed.
A further escalation of the conflict between Israel and Iran could send oil and gas prices significantly higher, said Ramanan Krishnamoorti, a professor of petroleum engineering at the University of Houston.
“Clearly this will have a huge impact on gas prices,” Krishnamoorti told ABC News. “There’s no doubt about that.”
Iran said the attack on Tuesday was retaliation for a wave of assassinations carried out by Israel over the last several weeks targeting Hezbollah leaders. Israel will have a “significant response” to Iran’s attack, an Israeli official told ABC News.
While sanctions have constrained Iranian oil output in recent years, the nation asserts control over the passage of tankers through the Strait of Hormuz, a trading route that facilitates the transport of about 15% of global oil supply.
Passage through the Suez Canal, another important shipping route for crude oil, could be impacted by further attacks, as happened with Yemen-based Houthi attacks on freight ships earlier in the war, Krishnamoorti said.
Despite a recent uptick, the price of oil stands well below a 2022 peak reached when the blazing-hot economic rebound from the pandemic collided with a supply shortage imposed by the Russia-Ukraine war. Gas prices, meanwhile, have plummeted in recent months.
The U.S. set a record for crude oil production in 2023, averaging 12.9 million barrels per day, according to the U.S. Energy Information Administration, a federal agency.
The surge in U.S. production would help limit the impact of a possible supply disruption, though oil prices are set on a global market, where a major supply shock could not be entirely accounted for with U.S. oil output, Timothy Fitzgerald, a professor of business economics at the University of Tennessee who studies the petroleum industry, told ABC News.
“This is less troubling than it would’ve been a generation ago,” Fitzgerald said. “Today, we export more crude oil than we import.”
If both sides deescalate, the price of crude oil could quickly drop back to where it stood before the Iranian attack on Tuesday, Fitzgerald added.
“There would be no lasting importance of that,” Fitzgerald said.
The rise in oil prices comes at a relatively quiet period in the U.S. gasoline market. Drivers have enjoyed a sharp decline in gasoline prices over recent months, in part due to sluggish demand for gas as the busy summer traveling season has given way to an autumn slowdown.
Still, a regional war in the Middle East could upend the market and spike prices, experts said.
Republican Sen. Lindsey Graham of South Carolina condemned Iran’s missile attack on Israel, calling it a “breaking point” on Tuesday and urging President Joe Biden’s administration to respond.
Graham called for oil refineries to be “hit and hit hard” and said his prayers are “with the people of Israel.”
President Joe Biden and Vice President Kamala Harris are monitoring the Iranian attack from the White House Situation Room. Biden directed the U.S. military to aid Israel’s defense against Iranian attacks and shoot down missiles.
ABC News’ Allison Pecorin and Jordana Miller contributed to this report.
