The Daily Money: Fed may hike interest rates again; More stores to close on Thanksgiving
Happy Friday! It’s Bailey Schulz here with the day’s top headlines.
Since March 2022, the Federal Reserve has increased its benchmark federal funds rate 11 times to a range of 5.25% to 5.5%, making it more difficult for consumers to borrow as rates on credit cards, adjustable-rate mortgages and other loans rise.
While the Fed earlier this month decided to hold rates steady, there may still be more hikes to come.
Fed chair Jerome Powell on Thursday said the board sees no urgent need to raise rates further because inflation is easing, but he would not rule out another increase.
“We are not confident” that the benchmark rate is sufficiently high to reduce inflation to 2%, the Fed’s target, Powell said.
“We know that ongoing progress toward our 2% goal is not assured. Inflation has given us a few head fakes along the way.”
More stores to close on Thanksgiving this year
More retailers are announcing closures on Thanksgiving Day, a nod to a change in consumer habits.
Best Buy, J.C. Penney, Kohl's, and Walmart have pledged to remain closed this year on Thanksgiving Day. All four of those retailers were open on Thanksgiving Day in 2019, but the COVID-19 pandemic in 2020 caused retailers to close on Thanksgiving.
Simon Properties, one of the nation’s largest mall operators, and several grocery stores also plan to close their malls on Thanksgiving Day.
When the vast majority of sales were made in-person at physical stores, retailers “kept trying to one-up each other” by running their sales on Thanksgiving day, according to Mathew Isaac, chair of the marketing department at the Seattle University Albers School of Business and Economics.
But that’s no longer the case, now that we’re seeing retailers focus on both online and in-store sales and start their holiday sales as early as October.
“It is no longer crucial for them to focus so much on any one particular day since the start of the holiday shopping season is much more fluid than it used to be previously. Even the line between Black Friday and Cyber Monday has blurred,” Isaac said.
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Krispy Kreme is giving out free donuts on Monday to celebrate World Kindness Day.
The first 500 people to visit participating Krispy Kreme locations on Nov. 13 will receive a dozen free original glazed donuts to inspire and enable kindness to others. The giveaway comes as the donut company says it’s in advanced talks to expand its partnership with McDonald’s.
Krispy Kreme is learning how to stock fast-food restaurants with fresh doughnuts the same way it does shelves and kiosks in grocery stores, convenience stores and gas stations.
“While nothing has been finalized, we are excited about our continued partnership with McDonald's, and we are in advanced discussions about expanding the relationship,” said Charlesworth, who will take over as Krispy Kreme CEO on Jan. 1.
About The Daily Money
Each weekday, The Daily Money delivers the best consumer news from Paste BN. We break down financial news and provide the TLDR version: how decisions by the Federal Reserve, government and companies impact you.