Trump’s inheriting

a solid economy

President Donald Trump has pledged cheaper prices and lower interest rates, but an economy transformed by the pandemic will make those promises difficult to keep. Economic growth is solid, driven by healthy consumer spending. And budget deficits are huge and could get even larger. If Trump follows through on his promises to impose widespread tariffs on imports and deport millions of immigrants, economists expect inflation could worsen — making it less likely the Federal Reserve will cut its key interest rate much this year. All of these trends will likely keep borrowing costs higher, including for homes and cars.

Jobless claims

up last week

Unemployment claims applications ticked up modestly last week, but the total number of Americans collecting unemployment benefits rose to their highest level in more than three years. Applications for jobless benefits rose by 6,000 to 223,000 for the week ending January 18, the Labor Department said Thursday. Analysts were expecting 219,000 new applications. The total number of Americans receiving unemployment benefits for the week of January 11 climbed by 46,000 to 1.9 million, the most since November of 2021. Weekly applications for jobless benefits are considered a proxy for layoffs.

Costco defends 

diversity policies

Costco is pushing back on a shareholder proposal that urges the wholesale club operator to conduct an evaluation of any business risks posed by its diversity, equity and inclusion practices. Investors were expected to vote on the proposed action during the company’s annual meeting on Thursday. A conservative think tank based in Washington that is submitting the motion argues that Costco’s DEI initiatives hold “litigation, reputational and financial risks to the company.” Costco’s board of directors is asking shareholders to reject the proposal. The board said it believes “our commitment to an enterprise rooted in respect and inclusion is appropriate and necessary.” Costco’s stance contrasts with the positions other big consumer brands have taken.

CNN laying off

200 employees

CNN is expected to lay off about 200 of its employees, or 6% of its workforce, in part of a shift toward a more digital-oriented future. The network’s CEO, Mark Thompson, outlined some of those plans in a memo to staff members on Thursday. One goal is a way for digital subscribers to access television-like streaming of news from any device. CNN’s television ratings have struggled with consumer cord-cutting, and have had a particularly tough stretch since President Trump’s election. Thompson said his objective is to switch CNN’s gravity toward the platforms that audiences are already moving toward.

– Bulletin wire reports