Happy New Year 2025

Category: Business

Starbucks cutting 30% of its menu

‘Barron’s Roundtable’ panelists offer their economic outlook and analyze Starbucks and Chipotle stock.

Starbucks CEO Brian Niccol reaffirmed his commitment to simplifying the coffee chain’s menu on Tuesday, revealing plans to cut 30% of its food and beverage offerings.

“In the coming months, you’ll see us begin to optimize our menu offerings, resulting in a roughly 30% reduction in both beverages and food SKUs by the end of fiscal year 2025,” Niccol told analysts on an earnings call.

Niccol – just five months on the job – said the company will still respond to customer trends and their changing preferences in order to innovate its selection of beverages and food.

STARBUCKS CEO OUSTED: WHAT BRIAN NICCOL FACES AS NEW TOP BOSS

Niccol took over the struggling coffee chain from former CEO Laxman Narasimhan in September and, in short order, announced several changes to its stores, including bringing back the condiment bar. Niccol also said the company would revert cafes back to their former “coffee house” aesthetic with “personal touches” like mugs and sharpies, all in an effort to reverse a slump in sales and declining foot traffic.

Part of his immediate strategy also included simplifying the coffee chain’s “overly complex menu” to better align with its identity as a coffee house company, separating mobile order pickup from the cafe experience, and fixing its pricing architecture. Niccol also told FOX Business in an exclusive interview in December that he aims to make pricing on its app more transparent.

A barista pours steamed milk into a beverage cup at a Starbucks cafe. (Waldo Swiegers/Bloomberg via Getty Images / Getty Images)

“We’ve been focused on simplifying our menu to position partners for success, improve consistency, drive customer satisfaction, and enhance our economics,” Niccol told analysts. “As part of this work, we made some late simplifications to our holiday product lineup and believe we have more opportunities ahead as we follow a disciplined stage-gate process to innovate and bring to market fewer better beverage and food offerings that reflect our premium positioning.”

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SBUX STARBUCKS CORP. 107.10 +6.69 +6.66%

STARBUCKS CEO SAYS BETTER PRICING TRANSPARENCY NECESSARY FOR MOBILE APP

On Monday, the condiment bars – which were removed during the COVID-19 pandemic – returned to Starbucks locations throughout the U.S. and Canada, offering customers the ability to add their own creamer, milk and sweeteners.

The Starbucks logo is displayed on a cup and bag at a Starbucks store on October 29, 2021, in San Francisco. (Justin Sullivan/Getty Images / Getty Images)

Baristas also began to put “any” drinks ordered “for here” in coffee mugs, glasses or a customers’ personal cup. The company also brought back free refills of hot brewed or iced coffee, or hot or iced tea for dine-in customers during the same visit.

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In November, the coffee giant also stopped charging customers for soy milk, oat milk, almond milk and coconut milk at company-owned and operated locations in the U.S. and Canada. The move resulted in a 10% price drop for customers that customize their drinks with non-dairy milk, according to the company,

As part of its strategy to improve workforce morale, the company plans to double its paid parental leave benefits this spring. For some workers, it’s as much as three times the original amount.

January 29, 2025
Kohl’s cuts 10% of corporate workforce

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Kohl’s is cutting its corporate workforce by 10%, the struggling Wisconsin-based company said.

The retailer told FOX Business on Wednesday that closures of open positions will account for “more than half of the total reduction.” Some current employees who work at Kohl’s corporate offices are also losing their jobs, Kohl’s said.

The reduction, earlier reported by The Wall Street Journal and Reuters, is meant to “support Kohl’s ongoing actions to increase efficiencies and improve profitability for the long-term health and benefit of the business,” the company said.

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KSS KOHL’S CORP. 13.32 -0.26 -1.88%

Kohl’s has already informed employees affected by the workforce reduction. They received “competitive severance packages to help support their transition,” the retailer told FOX Business.

The company has also been making changes to its real estate footprint in recent weeks.

Twenty-seven “underperforming” Kohl’s stores across 15 states are slated to permanently close their doors by April, Kohl’s previously announced Jan. 9. Its San Bernardino e-commerce fulfillment center in California is also expected to shutter the following month.

Those closures, like the corporate workforce reduction, seek to “increase efficiencies and improve profitability” for Kohl’s over the long-term, the company said.

January 29, 2025
Frontier took another stab at buying Spirit. It didn’t work.

Frontier Airlines CEO Barry Biffle discusses summer travel demand as Memorial Day approaches on ‘The Claman Countdown.’

Frontier Airlines’ attempt to buy rival Spirit Airlines failed yet again.

Spirit Airlines, which filed for Chapter 11 bankruptcy protection late last year, rejected another bid from the airline’s parent, Frontier Group Holdings, saying it would not provide sufficient value to the airline. Spirit also raised concerns over the deal’s potential to secure regulatory and court approvals, according to a Wednesday regulatory filing.

Under Frontier’s proposed deal submitted on Jan. 7, stakeholders would have acquired $400 million in debt and attain a 19% stake in Frontier after the merger. The deal would also have required certain stakeholders to go through a $350 million stock offering to help pay the company’s debt. The funds left over would go to the combined company’s balance sheet.

SPIRIT TERMINATES MERGER WITH FRONTIER AIRLINES

The parties involved “determined that the Proposal would deliver less in value to the Company’s stakeholders than what was contemplated by the Company’s existing Plan,” the regulatory filing said. “The Company continues to advance through its restructuring process, which will significantly deleverage the Company and position it for long-term success,” Spirit said in the filing.

Signage at the Frontier Airlines check-in counter at Denver International Airport in Denver on Monday, Feb. 7, 2022. ( Michael Ciaglo/Bloomberg via Getty Images / Getty Images)

The company, barring any new developments, will not delay its plans to emerge from Chapter 11 during the first quarter of 2025.

The carrier first filed for bankruptcy protection in November to reduce the company’s total debt and provide increased financial flexibility. Spirit’s multiple failed mergers – one with Frontier and another with JetBlue – left the ultra-low-cost carrier in a bind after repetitive quarterly losses.

SPIRIT AIRLINES PLANS TO SELL PLANES, CUT JOBS

The company reportedly attempted to reignite potential merger talks with Frontier Airlines last year, after the airline was outbid by JetBlue.

A Frontier Airlines airplane taxis past a Spirit Airlines aircraft at Indianapolis International Airport in Indianapolis on Monday, Feb. 7, 2022. (Photographer: Luke Sharrett/Bloomberg via Getty Images / Getty Images)

In 2022, Frontier and JetBlue had been in a monthslong bidding war for Spirit after Frontier Group Holdings and Spirit announced a definitive merger agreement. JetBlue won with its enticing bid worth $3.8 billion.

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ULCC FRONTIER GROUP HOLDINGS 8.16 +0.38 +4.88%

However, in January 2024, the deal with JetBlue was blocked by regulators over concerns that the deal would hurt the availability of low-cost air travel tickets.

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Spirit announced plans last fall to sell multiple aircraft and lay off workers as it tried to raise cash and revive operations. It also said it identified approximately $80 million in annualized cost reductions that it plans to implement in 2025.

January 29, 2025
Trump proposes abolishment of federal income tax, bringing US back to ‘richest period’ in history

‘The Big Money Show’ discusses President Donald Trump’s ‘aggressive’ economic agenda.

Pitching a monumental and potentially controversial proposal to his Republican allies, President Donald Trump is seemingly floating the idea of scrapping federal income taxes altogether.

“We had no income tax. The income tax came in…1913. As I said in my speech last week, instead of taxing our citizens to enrich foreign nations, we should be tariffing and taxing foreign nations to enrich our citizens,” Trump said during his conference address in Doral, Florida, on Monday.

“It’s time for the United States to return to the system that made us richer and more powerful than ever before,” he added. “You know, the United States in 1870 to 1913, all tariffs. And that was the richest period in the history of the United States, relatively speaking.”

The first federal income tax was passed on February 25, 1913, as part of the 16th Amendment. This gave Congress constitutional authority to levy taxes on corporate and individual income, according to the Internal Revenue Service (IRS).

WHITE HOUSE ECONOMIST TEASES THE ‘BIGGEST’ FISCAL REFORM ‘AMERICAN HAS EVER SEEN’

U.S. Treasury data indicates that $4.92 trillion was collected in federal income taxes for the 2023 filing year. But as Trump plans to create a new “External Revenue Service” that would be tasked with collecting revenue from tariffs, economists and market experts seem mixed, with some pushing back and noting that U.S. importers bear the brunt of the cost of tariffs rather than firms overseas.

President Donald Trump pitched the idea to eliminate federal income tax during his address at a GOP conference in Doral, Florida, on Monday. (Getty Images)

“Tariffs are not external revenue; they are taxes on U.S. importers that shrink both the U.S. economy and U.S. incomes. Higher tariffs will create a drag on the U.S. economy and will threaten to offset the benefits of tax cuts elsewhere. They should not be relied upon as a major source of tax revenue,” Tax Foundation Vice President Erica York previously told FOX Business.

“Markets like certainty. So if you tell me, ‘10% tariff,’ if I’m a company like GM, I can handle that,” Taylor Riggs, “The Big Money Show” co-host, pointed out on Tuesday. “If you tell me that every month it’s going up by 2.5%, I have a hard time planning around that, because how do I figure out: do I buy the goods now? What if the tariffs go up? Is it a negotiating tool?”

“This whole idea about eliminating the income tax, or redefining it and coming in with a 10% tariff tax and giving an income tax break to Americans, encourages them to work more, in my opinion, encourages them to spend more, in my opinion,” Slatestone Wealth chief market strategist Kenny Polcari also chimed in.

Trump senior advisor for trade and manufacturing Peter Navarro discusses the battle over TikTok and bringing ‘prosperity’ to the United States on ‘The Claman Countdown.’

“So then you end up having a stronger and better economy,” Polcari continued. “I think the market likes it.”

During his successful campaign to return to the White House, Trump touted plans to impose an across-the-board tariff of 10% or 20% – as well as a larger tariff of 60% on goods imported from China.

He also threatened to impose a 25% tariff on goods from Canada and Mexico, which are both parties to the U.S.-Mexico-Canada Agreement (USMCA) – a free trade agreement Trump negotiated during his first term as a successor to the North American Free Trade Agreement (NAFTA).

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Walser Wealth Management President Rebecca Walser and Culture+Group CEO and co-founder Lili Gil Valletta discuss which world leaders will cave to President Trump’s tariff threats on ‘Making Money.’

More recently, President Trump also teased moving nearly 90,000 IRS agents hired under the Biden administration to the border to patrol the area.

Democrats in 2022 approved $80 billion in funding for the IRS, including hiring roughly 87,000 new agents across a 10-year period as part of the Inflation Reduction Act. President Joe Biden signed the legislation into law that year.

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FOX Business’ Eric Revell and Fox News’ Emma Colton contributed to this report.

January 29, 2025
Brandon Marshall’s ‘I Am Athlete’ aiming to push boundaries with new REVOLT Sports partnership

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Former All-Pro wide receiver Brandon Marshall has been leading the charge in the athlete-drive media space since his playing days on the gridiron came to an end, and he is taking a groundbreaking step with his “I Am Athlete” platform with a new partnership looking to push boundaries in sports media.

REVOLT, the leading Black-owned multimedia platform, announced on Wednesday their new REVOLT Sports vertical, which is headlined by “I Am Athlete.”

Marshall spoke to FOX Business Digital about this new venture from his perspective with “I Am Athlete,” where he could not contain his excitement about how far the respective platforms can go for the culture by working together.

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Former NFL wide receiver Brandon Marshall, right, interviews Clemson Tigers running back Travis Etienne Jr. at the House of Athlete Scouting Combine for athletes preparing to enter the 2021 NFL draft at Inter Miami Stadium. (Sam Navarro-USA TODAY Sports / IMAGN)

“What excites me about the partnership is what I can learn and how far we can go,” he explained. “The creative economy is one of the highest economies out there, so great market to invest in. It’s been through a lot over the last couple years, and it’s going to continue to go through a lot of changes. What I found being independent, almost like an artist, like a musician, sometimes you can go farther and be more efficient when you have the machine behind you.

“So, REVOLT gives us that machine. I’m excited about what they’re already doing with us through this partnership, and also what I’m learning. That’s the goal for a lot of us creators, is to own and participate in the upside.”

REVOLT Sports Weekly powered by “I Am Athlete” is the main component behind this partnership, which features Marshall alongside media personality and cultural commentator Kayla Nicole as co-host.

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On the show, Marshall, Nicole, special guests and celebrity contributors do not just break down the latest in sports, but also culture – a main reason why Marshall knew this was the right “machine” to get behind.

“‘I Am Athlete’ lives at the intersection of hip-hop and sports,” Marshall said. “So, talking about things that are relevant to the culture – pop culture, whatever you have it – is just a general conversation that is natural to us. That’s what you’ll get from this show every single week. We’ll dive into the hottest topics in sports, and also the biggest stories in pop culture.”

Deon Graham, chief content officer at REVOLT, added, “Sports have always been synonymous with our culture, shaping our communities and reflecting some of the stories that matter most. With the launch of REVOLT Sports, we’re not just adding to the conversation – we’re redefining it, authentically. Partnering with ‘I Am Athlete’ allows us to create hundreds of hours of content that further connects sports, culture, and community like never before.”

Brandon Marshall, chief executive officer and founder of House of Athlete, speaks to reporters during the House of Athlete Scouting Combine for athletes preparing to enter the 2021 NFL draft at Inter Miami Stadium. (Sam Navarro-USA TODAY Sports / IMAGN)

REVOLT Sports Weekly’s first episode was a prime example of how this new partnership is looking to push boundaries when it comes to sports programming.

Joined by Marshall’s former UCF teammates, Josh “Beezo” Bellamy and Mike Sims-Walker, the panel discussed not only the NFL’s Championship Sunday matchups in the AFC and NFC, but they discussed whether celebrating rapper “Big Meech” with a “Welcome Back” party next month after spending 16 years in jail for drug trafficking and money laundering is right for the community.

The group also talked about the new Unrivaled women’s 3-on-3 basketball league, specifically the fashion statements that have been displayed by the WNBA stars in the groundbreaking league.

At the end of the day, this partnership aims to be raw and authentic – two pillars they were living by independently to begin with.

REVOLT Sports, co-hosted by Brandon Marshall and Kayla Nicole, aims to push boundaries with sports and culture talk in a new partnership with “I Am Athlete.” (REVOLT Sports / Fox News)

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“I think you have to be raw and authentic to win in today’s landscape when you talk about media. That’s what people want,” Marshall said. “How you dress, how you talk, even the way the show is shot. We’re tired of over-produced content, over-produced conversations. So, that’s what is needed to separate yourselves in this space. So, for me, those are the only conversations I can participate in. I can’t sit down with people that I can’t learn from, that I can’t teach something to – conversations that aren’t impactful.

“It feels good to be in a place finally with a network and also just in today’s times where those conversations are embraced.”

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January 29, 2025
Trump Media shares surge after company expands into financial services

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Shares of Trump Media, the parent of social media app Truth Social, surged on Tuesday after announcing plans to expand into financial services.

The company’s stock climbed as much as 17% in premarket trading on the news.

Trump Media said in a press release that its board approved an investment of up to $250 million to be custodied by Charles Schwab.

“We look forward to launching Truth.Fi, introducing TMTG’s investment vehicles, and unlocking synergies,” said TMTG CEO Devin Nunes. “Truth.Fi is a natural expansion of the Truth Social movement. We began by creating a free-speech social media platform, added an ultra-fast TV streaming service, and now we’re moving into investment products and decentralized finance.”

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DJT TRUMP MEDIA & TECHNOLOGY GROUP CORP 30.04 +0.51 +1.71%

“Developing American First investment vehicles is another step toward our goal of creating a robust ecosystem through which American patriots can protect themselves from the ever-present threat of cancellation, censorship, debanking, and privacy violations committed by Big Tech and woke corporations,” he added.

The Sarasota, Florida-based company said it plans to allocate these funds into various investment options, including exchange-traded funds, separately managed accounts, Bitcoin, and other similar cryptocurrencies.

Reuters contributed to this report.

January 29, 2025
Small Business Administration nominee Kelly Loeffler says small biz is in her DNA

FOX Business host Larry Kudlow discusses President Donald Trump’s desire to end wars and create a strong economy on ‘Kudlow.’

Former U.S. Sen. Kelly Loeffler of Georgia, President Donald Trump’s pick for Small Business Administration (SBA) administrator, plans to go before the Senate’s Small Business and Entrepreneurship Committee on Wednesday, when she plans to speak about Trump’s vision for the country, as well as what qualifies her for the job.

In a copy of her written remarks obtained by FOX Business, Loeffler speaks about her roots growing up as the fourth generation on her family’s farm in Illinois, adding that “small business” is in her “DNA.”

“My wonderful parents, Don and Lynda, didn’t have degrees, but they had faith and grit,” she wrote. “They worked relentlessly to sustain our farm and small trucking company – risking everything to provide for us while navigating volatile commodity markets and complex regulations and facing countless day-to-day challenges.

“It’s where my Midwestern work ethic was ingrained, working in our soybean fields and waiting tables at local restaurants – preparing me for a lifetime of starting and growing businesses,” she continued. “I became the first in my family to graduate college and later earned my MBA.”

FIRST ON FOX: TRUMP SMALL BUSINESS ADMINISTRATION PICK LOEFFLER TO MEET WITH GOP SENATORS

Former U.S. Sen., Kelly Loeffler, R-Ga., is President Donald Trump’s nominee to be administrator of the Small Business Administration. (Anna Moneymaker/Getty Images / Getty Images)

After college, Loeffler helped grow a startup into a Fortune 500 company, and for 10 years, she co-owned the Atlanta Dream of the WNBA. She also wrote that she launched a financial technology company, Bakkt, as the founding CEO and first employee.

“I recall managing budgets in Excel spreadsheets, hiring my first team member, and working with regulators as much as I recall ringing the bell when two of those companies went public,” Loeffler wrote.

Later in her statement, Loeffler talks about how she plans to leverage her decades of business experience to champion America’s entrepreneurs.

FIRST ON FOX:TRUMP CABINET NOMINEE LOEFFLER PLEDGES TO DONATE SALARY TO CHARITY IF CONFIRMED

Former U.S. Sen. Kelly Loeffler campaigns in Milton, Georgia, in 2022. (Jessica McGowan/Getty Images / Getty Images)

“We’ll cut red tape and modernize the agency while restoring the accountability and transparency that taxpayers deserve,” she wrote. “I will crack down on fraud, with a zero-tolerance policy, while shifting SBA’s focus from Washington D.C. back to Main Streets across America. And if confirmed, I’ll collaborate across government and the private sector to deliver efficiency and results. Importantly – we will responsibly and urgently meet the challenge of disaster relief. I am committed to serving all who are impacted, from North Carolina to California to Hawaii.

“Each taxpayer dollar entrusted to SBA should have an economic multiplier effect – delivering productive capital to grow manufacturing, strengthen rural communities, create jobs, and develop critical technology like AI and chips,” Loeffler added. “I believe we must continue to empower entrepreneurs from all walks of life, including women and veterans.”

Loeffler is part of a team that Trump is putting together that aims to put “America first.”

SMALL BUSINESS OPTIMISM JUMPS TO 6-YEAR HIGH FOLLOWING TRUMP WIN

President Donald Trump arrives with Sen. Kelly Loeffler, R-Ga., at a campaign rally in 2021. (Alex Wong/Getty Images / Getty Images)

She wrote about the SBA’s founding mission of empowering small businesses and growing the economy, needing to be restored.

“That’s exactly what the America First agenda does – by ending inflation, cutting taxes, unleashing American energy dominance, slashing regulation, and reining in fraud, waste, and abuse across government,” she wrote. “In the last four years, small business has lost ground – burdened by inflation, big government regulation, and uncertainty that threatens the very existence of Main Street. President Trump’s proven agenda will restore the small business economy, marking a return to ‘Made in America’ – with a golden era of prosperity and growth.”

Loeffler and her husband Jeff have long been major donors to Republican causes and candidates, including Trump. Loeffler served as co-chair of Trump’s inaugural committee.

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If confirmed by the Senate, Loeffler says she would donate her annual federal pay of approximately $207,500 to charity.

The pledge by Loeffler, whose net worth is estimated at roughly $1 billion, follows her actions in Congress from 2019 to 2021, when she donated her Senate salary of $174,000 per year to over 40 Georgia charities and nonprofits.

Fox News Digital’s Paul Steinhauser contributed to this report.

January 29, 2025
Coca-Cola issues European safety recall over ‘excessively high chlorate content’

President Trump, an avid Diet Coke drinker, had the beverage served up at his inauguration luncheon.

Coca-Cola has recalled “all variants” of multiple beverages produced in a Belgium facility “due to excessively high chlorate content,” according to a press release.

Certain cans and bottles of Coca-Cola, Sprite, Fanta, Fuze Tea, Minute Maid, Nalu, Royal Bliss and Tropico were among the products recalled in Belgium, Luxembourg and the Netherlands, the beverage company said. Zero and light versions of the beverages are included.

The recall affects cans and bottles with the production codes 328 GE to 338 GE.

“The production code can be found on the bottom of the can or on the neck/label of the glass bottle,” Coca-Cola said.

COCA-COLA ANNOUNCES NEW ORANGE CREAM FLAVOR: ‘ICONIC AND NOSTALGIC TASTE’

Coca-Cola bottles are seen at a shop in Srinagar, Jammu and Kashmir, on Jan. 28, 2025. Coca-Cola recalls its drinks in some countries across Europe after detecting ”higher levels” of the chemical chlorate. (Firdous Nazir/NurPhoto / Getty Images)

Soda packaging is seen in a grocery store in Las Vegas on Nov. 17, 2023. ( Jakub Porzycki/NurPhoto via Getty Images / Getty Images)

People who purchased the affected products are asked not to consume them but to return them where they bought them for a refund.

“Chlorate originates from chlorine disinfectants widely and legally used in water treatment and in food processing with drinking water being by far the main contributor,” the European Commission says on its website.

YES, FOOD AND DRINKS TASTE DIFFERENT ON A PLANE AND THERE’S A REASON

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KO THE COCA-COLA CO. 62.33 -1.56 -2.45%

Cans and returnable glass bottles bearing a production code ranging from 328 GE to 338 GE are the affected products in the Coca-Cola European recall. (Coca-Cola / Fox News)

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Consuming high levels of chlorate from drinks and food “could result in potential serious health effects,” such as impaired thyroid function and inhibition of iodine uptake, the commission says. It is especially harmful to infants and children.

“We apologize to consumers and our business partners,” Coca-Cola said in a recall announcement published on their website in French, adding that an independent expert analysis found that risk to consumers “is very low.”

January 29, 2025
Energy giant announces major investment in US to power demands

Keyser, W.Va., Mayor Damon Tillman and Southeastern Montana Development Corporation executive director Jim Atchison examine President Trump’s efforts to reboot the U.S. energy industry and fight inflation on ‘The Bottom Line.’

GE Vernova, the energy spin-off from the company formerly known as GE, announced Wednesday it plans to invest nearly $600 million in its U.S. facilities over the next two years in order to help meet surging electricity demands in America and beyond.

The global Massachussetts-based firm said the investments will focus on gas power, grid, nuclear and onshore wind manufacturing sites, creating some 1,500 new manufacturing and engineering jobs across several states.

GE CEO and GE Aerospace CEO Lawrence Culp, Jr., (3rd L) and CEO of GE Vernova Scott Strazik (2nd R) ring the opening bell at the New York Stock Exchange (NYSE) April 2, 2024, in New York City. (TIMOTHY A. CLARY/AFP via Getty Images / Getty Images)

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GEV GE VERNOVA INC. 355.12 +25.12 +7.61%

“These investments represent our serious commitment and responsibility as the leading energy manufacturer in the United States to help meet America’s and the world’s accelerating energy demand,” GE Vernova CEO Scott Strazik said in a statement.

“These strategic investments and the jobs they create aim to both help our customers meet the doubling of demand and accelerate American innovation and technology development to boost the country’s energy security and global competitiveness,” he added.

TRUMP ANNOUNCES LARGEST AI INFRASTRUCTURE PROJECT ‘IN HISTORY’ INVOLVING SOFTBANK, OPENAI AND ORACLE

GE Vernova said nearly half the funds will be directed to expanding its gas turbine manufacturing business, with new projects in Greenville, South Carolina; Schenectady, New York; Parsippany, New Jersey and Bangor, Maine.

A worker at GE Vernova’s facility in Bangor, Maine. (GE Vernova / FOXBusiness)

Roughly $100 million of the investment will go toward expanding innovation at its Advanced Research Center in Niskayuna, New York, with an additional $15 million alone going toward Generative Artificial Intelligence (AI) work.

BUSINESS, ENERGY GROUPS PRAISE TRUMP’S DAY 1 ACTIONS

The company also plans to expand capacity on its Grid Solutions facilities in Charleroi, Pennsylvania and Clearwater, Florida. It is also adding more resources for its nuclear business, dedicating more than $50 million to enhancements at its Wilmington, North Carolina, factory and to launch its next-generation nuclear fuel design.

Worker at GE Vernova facilityi n Wilmington, North Carolina (GE Vernova / FOXBusiness)

As part of the plans, GE Vernova is also adding capacity for onshore wind factories in the U.S., with plans to invest nearly $100 million in its manufacturing facilities in Pensacola, Florida; Schenectady, New York; and Grand Forks, North Dakota, as well as its remanufacturing facilities in Amarillo, Texas.

Finally, GE Vernova is also planning another $10 million-plus investment in its Pittsburgh, Pennsylvania facility over the next two years to expand capabilities across its Electrification segment, with the aim of adding U.S. manufacturing capacity to support the U.S. energy grid, as well as demand for solar and energy storage.

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GE Vernova has around 75,000 employees spanning more than 100 countries across the globe, and its technology helps produce around 25% of the world’s energy, according to the firm.

January 29, 2025
What will the Fed do with interest rates and how will Trump react?

Speaking before the World Economic Forum in Davos, Switzerland, Trump said he’ll call for interest rates to be lower than current levels. A possible sign he is setting up a possible battle with the Federal Reserve.

The Federal Reserve is set to announce its next interest rate move on Wednesday, which could prompt a reaction from President Donald Trump, who recently called for the Fed to lower interest rates.

Members of the Federal Open Market Committee (FOMC) are expected to leave the target for the benchmark federal funds rate unchanged at a range of 4.25% to 4.5% – which would be the central bank’s first pause in this rate-cutting cycle following three consecutive cuts that brought rates down from 5.25% to 5.5%.

Inflation has persisted in the economy despite easing considerably from the 40-year high of 9.1% annual inflation recorded in June 2022. The most recent reading of the consumer price index (CPI) came in at 2.9%, above the Fed’s 2% target rate. Due in large part to stubborn inflation, the probability of Fed pause at the January meeting was 99.5%, according to the CME FedWatch tool.

The Fed’s anticipated pause could prompt Trump to renew his criticism of the central bank and Fed Chair Jerome Powell, following the president’s call for lower interest rates last week.

TRUMP SAYS HE WON’T FIRE FED CHAIR JEROME POWELL

President Donald Trump nominated Fed Chair Jerome Powell to the role in 2017 but has criticized the central bank’s policies under his leadership. (SAUL LOEB/AFP via Getty Images / Getty Images)

In a speech to the World Economic Forum last week, President Trump said that he plans to bring down the price of oil and, in turn, energy prices to address inflation – which he said should serve as the impetus for the Fed to cut interest rates.

“With oil prices going down, I’ll demand that interest rates drop immediately. And, likewise, they should be dropping all over the world. Interest rates should follow us,” Trump said.

Trump, who nominated Powell to his role as Fed chair in 2017, has criticized the chairman repeatedly over the years. During his first term in the White House, Trump threatened to fire Powell and called him a “bonehead.”

While Trump was campaigning to return to the White House last year, he criticized the Fed’s interest rate cuts as “political” – though he said in June that he wouldn’t attempt to fire Powell and reiterated that last month.

ODDS OF U.S. RECESSION DECLINING: NABE ECONOMISTS

January’s Federal Reserve meeting is the first since the start of President Donald Trump’s second term. (SHAWN THEW/Pool via REUTERS / Reuters Photos)

The potential impact of Trump’s economic policies, including his plans for tax cuts and federal spending as well as tariffs on imports, will likely feature prominently when Powell speaks to the press Wednesday after the Fed’s decision is announced.

Bank of America Global Research wrote in a note to investors previewing the Fed meeting that they expect Powell’s post-meeting press conference will include a heavy focus on the Fed’s next move as well as how the central bank plans to weigh Trump’s policies as they anticipate future rate cuts or further pauses.

“Powell will probably get asked again about the Fed’s response to the Trump policy agenda. We think he will stick to his stance that there is a lot of uncertainty about which policies will get implemented, and the Fed shouldn’t pre-judge or preempt them,” the Bank of America economists wrote. “But he will also probably note that some FOMC members (e.g. Waller and Williams) have already integrated policy into their outlook.”

FED MINUTES SHOW POLICYMAKERS SEE IMMIGRATION, TARIFF SHIFTS CREATING INFLATION UNCERTAINTY

Federal Reserve Chair Jerome Powell has said the central bank will base its decisions on the latest trends in economic data. (Photo by Liu Jie/Xinhua via Getty Images / Getty Images)

Earlier this month, the FOMC released the minutes of its December meeting in which policymakers cited a high degree of uncertainty about the economic impact of potential changes in trade and immigration policy.

That uncertainty, along with persistent inflation in the regular economic data releases, suggested that the process of slowing inflation back to its 2% target “could take longer than previously anticipated.”

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With inflation lingering, Fed watchers expect policymakers will take a slower approach to rate cuts in 2025. The probability of the Fed holding rates steady for its next meeting in March was 68% as of Tuesday afternoon, according to the CME FedWatch tool.

January 29, 2025