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Business News
U.S. Retail Sales Surge During Competitive Holiday Season
U.S. retail sales rose 3.8% between November 1 and December 24, surpassing the previous year’s 3.1% growth and Mastercard’s forecast of a 3.2% increase. The last five days of the season accounted for 10% of all holiday spending, driven by intense promotions from major retailers like Walmart, Target, and Amazon. Consumers were highly value-focused, with online sales growing 6.7%, outpacing last year’s 6.3% rise. Apparel, jewelry, and electronics saw strong demand, while dining out also experienced notable growth. Despite a shorter holiday season, retailers leveraged e-commerce, generative AI, and enhanced delivery services to attract shoppers. However, not all retailers thrived; while Walmart and Amazon reported record-breaking sales, Target and Best Buy faced challenges.
Major Banks Sue Federal Reserve Over Stress Test Policies
Some of the nation’s largest banks and industry groups, including the Bank Policy Institute and the American Bankers Association, have filed a lawsuit against the Federal Reserve, challenging the transparency of its annual stress tests. These tests, designed to ensure banks can withstand economic turmoil, determine how much cash institutions like JPMorgan and Goldman Sachs must hold in reserve. The lawsuit argues that the Fed’s “undisclosed and ever-changing criteria” lead to excessive capital requirements, reducing credit availability and harming economic growth.
The Fed is considering changes to its stress test formula, such as averaging results over two years and inviting public feedback on its models. Stress tests were introduced after the 2008 financial crisis to prevent banks from being undercapitalized during downturns, a lesson learned after $245 billion in government funds were used to stabilize financial institutions during the Great Recession.
What We’re Reading
The 5 Stages of Getting Things Done
Use this free GTD quick reference guide to stay focused and productive, using the 5 stages of the Getting Things Done (GTD) methodology
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