Happy New Year 2025

Tag: rate

Kathy Hochul does apparent about-face on natural gas as NYC utility signals major rate hikes

New York Gov. Kathy Hochul has approved permits to expand capacity on a major bi-state pipeline despite years of pushing green policies like bans on natural gas use in new construction.

The Hochul administration signed off on permits to expand capacity in the Iroquois Pipeline – a crucial 414-mile route from St. Lawrence County — near the border with Cornwall, Ontario, – running down the Adirondacks, through western Connecticut, under Long Island Sound and forking toward Commack, Long Island, or Hunts Point, Bronx.

That move comes as the state Department of Environmental Conservation admitted the approvals are “inconsistent with” statewide greenhouse gas emissions limits imposed in recent years, according to the New York Post.

Hochul said this week that just as she is trying to institute $500 “inflation refunds” for middle-to-low income families, that money is going “right out the door” to Consolidated Edison (ConED).

REPUBLICANS RIP HOCHUL’S INFLATION REFUNDS: BRIBE TO MAKE NYERS LIKE HER

ConEd, the main utility provider in New York City and Long Island, is planning to implement 11.5% increases in electric rates and 13% increases in gas rates – amounting to about $500 per year – unless the New York Public Service Commission (PSC) steps in, according to FOX-5.

The PSC is already under pressure from Hochul to audit the salaries of ConED executives amid chatter about the rate hikes. Hochul’s actions come after years of crackdowns on fossil fuel production and consumption by New York Democrats.

In 2019, then-Gov. Andrew Cuomo signed the Climate Leadership & Community Protection Act from then-Sen. Todd Kaminsky, D-Long Beach, which moved the state away from fossil fuels and established a net-zero goal by 2040.

Two years later, the state shuttered the massive Indian Point nuclear energy production facility on the Hudson River opposite Haverstraw.

Cuomo said at the time that he had been concerned for years about the safety of the plant. “It does not belong on the Hudson River and in close proximity to the most densely populated area in the country… This is a victory for the health and safety of New Yorkers, and moves us a big step closer to reaching our aggressive clean energy goals.”

Albany Democrats, led by Hochul, have since banned furnaces and gas heating in new construction.

The governor also announced a “cap and invest” program to force Big Oil to invest in green energy by paying for emissions. According to the Post, a report from the PSC also indicated ConED and fellow utility National Grid were also “barely able to provide adequate [energy] supply” during a recent Arctic storm that brought temperatures near 0 degrees Fahrenheit to the Empire State.

HOCHUL’S CHRISTMASTIME BOAST OF SAFER SUBWAYS CAME AMID STRING OF VIOLENT ATTACKS

The sun sets on the Empire State Building, One Vanderbilt and the Chrysler Building in New York City on March 14, 2021. (Photo by Gary Hershorn/Getty Images)

As for Hochul’s efforts to audit ConED, Republicans agreed the rate hikes are and have been outrageous, but that particular move would not help.

“Natural gas is a proven, reliable source of energy and vital for consumers in the Northeast,” said State Assembly Minority Leader Will Barclay. “The green dreams of environmental extremists are meaningless if people can’t heat their homes in mid-February. It’s incredible to see radical liberals protest a necessary measure that allows New Yorkers to stay warm in the winter. But reliability, affordability, and common sense have never been priorities of New York’s climate cult.”

Additionally, the state’s natural-gas-rich Southern Tier – a 200-mile area roughly running from Jamestown to Hancock along the Pennsylvania border – has been affected by a statewide ban on fracking, which state lawmakers representing the area have fought yet-unsuccessfully to undo.

This, even as communities just a few miles southward in Pennsylvania continue to extract natural gas from the same Marcellus Shale Range on their side of the line.

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Hochul added to the ban by further prohibiting a new, safer form of fracking using carbon dioxide instead of liquids.

While former Pennsylvania Gov. Tom Wolf enacted a moratorium on state parkland fracking, there has been no fracking activity to speak of along the NY-17 corridor for many years.

After then-Gov. David Paterson announced the state’s original fracking moratorium in 2008 – later becoming an outright ban under Cuomo – some Southern Tier villages whose economies depended on energy production considered trying to “secede” to Pennsylvania.

Fox News Digital reached out to Hochul and ConED for comment but did not receive a response by press time.

Charles Creitz is a reporter for Fox News Digital.

He joined Fox News in 2013 as a writer and production assistant.

Charles covers media, politics and culture for Fox News Digital.

Charles is a Pennsylvania native and graduated from Temple University with a B.A. in Broadcast Journalism. Story tips can be sent to [email protected].

February 18, 2025
January inflation gives Fed more reason to hold on interest rate cuts

Egg prices soared by more than 15% in January. (iStock)

Annual inflation increased to 3% in January, rising above expectations and giving the Federal Reserve further reason to slow down interest rate cuts.

Inflation increased 0.5% monthly, slightly exceeding expectations and above the previous month’s increase of 0.4%, according to the Consumer Price Index (CPI) released by the Bureau of Labor Statistics (BLS). Core CPI, which excludes food and energy, rose by 0.4% in January, coming in at the same level as December’s increase. This brought the year-over-year rate to 3.3%.

Shelter costs rose 0.4% and were the most significant contributor to the monthly increase in January, accounting for nearly 30% of the monthly increase in all items. Gas was up 1.8% over the month. Food prices continued to rise, increasing 0.4% last month. The food at home index rose 0.5%, driven primarily by the soaring costs of eggs, which increased 15.2% in January.

“The unexpected acceleration in inflation marks the third consecutive monthly uptick in the consumer price index and extends a reflationary trend since two consecutive flat months for the index in May and June 2024,” Jim Baird, Plante Moran Financial Advisors’ chief investment officer, said in a statement. “Against a backdrop of solid demand, inflation has accelerated. It’s a reality that may spook consumers who remember the Covid-19 era price spike all too well.

“It will also make President Trump’s proposed import tariffs a tougher sell than was the case during his first term, when both inflation and interest rates were exceptionally low,” Baird continued.

If you are struggling with high inflation, you could consider taking out a personal loan to pay down debt at a lower interest rate, reducing your monthly payments. Visit Credible to find your personalized interest rate without affecting your credit score.

SENIORS TO GET MODERATE COST OF LIVING BUMP IN SOCIAL SECURITY PAYMENTS NEXT YEAR

The Fed pauses on further rate cuts

The increase in inflation, combined with a stable jobs market and economic growth, has given the Federal Reserve more room to work.

The Federal Reserve held interest rates at 4.5% to 4.75% in January, prompted by strong economic indicators that gave the central bank more room to wait. Federal Reserve Chair Jerome Powell said that the central bank intend to remain cautious about additional rate cuts so long as the job market remains solid and prices continue to climb.

“The murkiness of evolving trade policy creates a significant unknown for Fed policymakers who will have to grapple with the potential conflicting policy challenges of slower real growth and higher inflation,” Baird said. “While even bearish forecasts are a far cry from the stagflationary environment of the 1970s, the playbook would seemingly still apply.

“Arresting inflation is likely to remain the priority for the Fed, even at the expense of near-term growth,” Baird said. “The fear of inflation expectations becoming unanchored is just too much for policymakers to ignore.”

You can take out a personal loan before future rate hikes to help pay down high-interest debt. Visit Credible to find your personal loan rate without affecting your credit score.

FHFA ANNOUNCES HIGHER MORTGAGE LOAN LIMITS FOR 2025

How higher for longer impacts your wallet

All signs point to the Fed holding interest rates higher for longer, which means consumers will continue to be impacted by stubbornly elevated interest rates impacting a range of credit products, including credit cards, mortgages, unsecured personal loans and auto loans, according to Charlie Wise, TransUnion’s senior vice president of research and consulting.

“Consumers should avoid building and carrying large credit card balances, particularly in light of very high interest rates on this type of debt, and whenever possible pay more than the monthly minimums due on their cards,” Wise said in a statement.

Additionally, Wise advised that consumers keep a close watch on their credit profiles and keep them in the best shape possible so that when rates finally drop to a more manageable level, they are ready to refinance their existing debts into more affordable loans.

Using a personal loan to pay off high-interest debt at a lower rate could help you reduce your expenses and put money back in your wallet. You can visit Credible to find your personalized interest rate today.

BIDEN CANCELS MORE STUDENT LOANS WITH ONE WEEK LEFT TO HIS TERM

Have a finance-related question, but don’t know who to ask? Email The Credible Money Expert at [email protected] and your question might be answered by Credible in our Money Expert column.

February 13, 2025
What would be the impact of a credit card interest rate cap?

A ‘Mornings with Maria’ panel provides their reactions to the December jobs report, detailing the impact it may have on the U.S. economy.

New legislation in Congress that was introduced by an unlikely duo of senators seeks to impose a credit card interest rate cap, with the potential for such a bill becoming law aided by President Donald Trump’s campaign pledge on the subject.

Sens. Bernie Sanders, I-Vt., and Josh Hawley, R-Mo., introduced legislation that would cap credit card interest rates at 10% for five years after the bill’s enactment. The two populist senators touted the measure as a means of fulfilling a campaign pledge made by Trump’s campaign last year.

The bill’s introduction coupled with White House support for the proposal could allow for the idea to gain traction, although there would be consequences to the policy and it still faces a long road to enactment.

“Credit card rate caps have always been the longest of long shots because there’s so many people lined up against it for various reasons, but it shouldn’t surprise anybody that a rate cap is enormously popular,” Matt Schulz, chief credit analyst at LendingTree, told FOX Business.

JOSH HAWLEY, BERNIE SANDERS PROPOSE CAPPING CREDIT CARD INTEREST RATES AT 10%

Credit card interest rates could be capped at 10% under a bill offered by Sanders and Hawley. (iStock)

Schulz said that LendingTree conducted a poll that showed respondents continued to support the idea of a credit card interest rate cap even if it means restricted access to credit and diminished credit card rewards.

“It’s still a long shot, but there’s no question that the idea politically kind of has some wind at its back right now, and if it’s ever going to happen, this may be as likely a time as ever for it to happen,” he said.

Schulz added that credit cards offered by federally chartered credit unions are capped at 18%, which do still offer rewards but aren’t as lucrative as those offered by larger banks. He went on to say that a cap at that level or 20% would be significant for consumers dealing with credit card debt while potentially having a better chance at becoming reality.

US CREDIT CARD DEFAULTS SOAR TO HIGHEST LEVEL IN 14 YEARS

Several leading trade groups representing the financial services industry sent a letter to Hawley and Sanders outlining their opposition to the duo’s proposed 10% credit card interest rate cap. Signatories to the letter included the Consumer Bankers Association, America’s Credit Unions, American Financial Services Association, Bank Policy Institute, Independent Community Bankers of America, American Bankers Association and the National Bankers Association.

The letter cited economic research showing that government price setting on APR caps hurts consumers, in part because it “would eliminate access to credit cards for millions of consumers and drive them to sources of credit which are far more costly and less regulated.”

Sen. Bernie Sanders, I-Vt., accused financial institutions of “extortion” and “loan sharking” for having credit card interest rates over 25%. (Kevin Dietsch/Getty Images / Getty Images)

The groups noted the state of Illinois imposed a rate cap, which the Federal Reserve researched and found was responsible for reducing the number of loans to subprime borrowers by 38 percent. They also referenced a study by researchers at Dartmouth who found Oregon’s 36% all-in APR cap was responsible for “harming, not helping, consumers on average” and “restricting access caused deterioration in the overall financial condition of Oregon households.”

“As responsible and well-regulated financial institutions, we share the goals of reducing the cost of consumer credit and increasing financial inclusion. Unfortunately, the 10 percent rate cap proposed in this legislation would stifle our shared financial inclusion goals, reduce access to credit and push consumers to far more costly and less regulated lenders,” the groups wrote.

CONSUMER WATCHDOG WARNS COMPANIES AGAINST DEVALUING CREDIT CARD REWARDS, LAUNCHES TOOL TO AVOID SCAMS

Sen. Josh Hawley, R-Mo., said high credit card interest rates are “exploitative” and capping them would provide “meaningful relief.” (Tom Williams-Pool/Getty Images / Getty Images)

While it’s unclear whether Congress will consider legislation capping credit card interest rates, Schulz noted that there are still steps consumers can take to ease their financial burden.

“The good news is that there are plenty of things you can do yourself to lower your interest rates without waiting for Congress to come in as the cavalry in lowering rates. You can get a 0% balance transfer credit card if you have good credit. You could look at a low interest personal loan, that’s a good option if you can’t get a 0% balance transfer card,” he said.

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“You can even call your credit card issuer and ask for a lower rate. LendingTree did a survey last year where we found that 76% of people who asked for a lower interest rate on one of their credit cards got one, and the average reduction was about 6 percentage points which is really significant,” Schulz said. “So it’s absolutely worth the call, because that sort of success rate shows that it’s not just people with 800 credit scores and long track records who are getting their way – it’s regular folks too who really need the help.”

February 11, 2025
State Farm asks California to approve rate hikes after wildfires

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California homeowners, already devastated by last month’s wildfires, could see their insurance rates go up by more than 20% if they’re covered by State Farm.

California’s largest private insurer, State Farm, is seeking a 22% average rate increase for homeowners. In a letter urging the California Department of Insurance (CDI) to “immediately approve” the request, State Farm said the hikes would help “avert a dire situation.”

An aerial view of homes which burned in the Eaton Fire on Jan. 19, 2025, in Altadena, California. (Mario Tama/Getty Images / Getty Images)

CALIFORNIA INSURANCE CRISIS: LIST OF CARRIERS THAT HAVE FLED OR REDUCED COVERAGE IN THE STATE

The insurer is looking to increase rates by 22% for non-tenant homeowners, 15% for renters and condo owners, and 38% for rental dwellings. In its open letter to the CDI, State Farm says the increased rates would go into effect on May 1, 2025.

“As of February 1st, State Farm General (Fire only) has received more than 8,700 claims and has already paid more than $1 billion to customers,” the insurer wrote in a press release on its website. “State Farm General will ultimately pay out significantly more, as collectively these fires will be the costliest disasters in the history of State Farm General.”

Homes burn as powerful winds drive the Eaton Fire on Jan. 7, 2025 in Pasadena, California. (David McNew/Getty Images / Getty Images)

WILL HURRICANES AND WILDFIRES CAUSE INSURANCE PRICES TO RISE NATIONWIDE?

The insurer added that it must increase current rates to ensure it could pay possible future claims. Additionally, State Farm announced that rates for Californians would be going up because the “risk is greater” in the Golden State.

“We look forward to working alongside regulators, policymakers and industry leaders on creating a sustainable insurance environment in California – one that balances risk and increased rates, ensures long-term market stability and keeps insurers like State Farm General a vital part of California’s future,” the company said.

State Farm faced backlash at the height of the wildfires over a March 2024 announcement that it would discontinue coverage of 72,000 home and apartment policies in the summer. In March 2024, the insurer issued a letter to the CDI, saying the depletion of State Farm’s capital was “alarm signaling the grave need for rapid and transformational action.”

A firefighting plane makes a drop on the Palisades fire in Pacific Palisades on Tuesday, Jan. 7, 2025. (Brian van der Brug / Los Angeles Times via Getty Images / Getty Images)

STATE FARM, OTHER INSURERS SLAMMED FOR DROPPING COVERAGE

While insurers can and do receive approvals for larger increases — State Farm secured a 20% increase in home and auto premiums in January 2024 and subsequently requested a 30% increase for home policies last summer — the process can be time-consuming and the size of rate hikes approved by the regulator may not be sufficient for insurers to continue offering policies while preserving their financial stability.

The January 2025 wildfires only highlighted California’s ongoing insurance crisis as several providers had already fled the state, stopped writing new policies or otherwise reduced their risk exposure in the Golden State. This includes Allstate, Nationwide, and Farmers.

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As of Tuesday, according to Cal Fire, the wildfires burned more than 57,600 acres and destroyed over 16,200 structures.

February 4, 2025
Fed hits pause on interest rate cuts for now

Fed holds on further interest rate cuts. (iStock)

Interest rates will stay higher for longer as the Federal Reserve pauses further interest rate cuts to give inflation room to drop closer to its 2% target rate.

The Federal Reserve held interest rates at 4.5% to 4.75%, prompted by strong economic indicators that gave the central bank more room to wait. Federal Reserve Chair Jerome Powell said at a press conference on Wednesday that the Fed intends to remain cautious about additional rate cuts so long as the job market remains solid and prices continue to climb.

“Over the course of our three previous meetings, we lowered our policy rate by a full percentage point from its peak,” Powell said. “That recalibration of our policy stance was appropriate in light of the progress on inflation and the rebalancing in the labor market. With our policy stance significantly less restrictive than it had been and the economy remaining strong, we do not need to be in a hurry to adjust our policy stance.”

Gross domestic product (GDP) grew at an annual rate of 2.3% in the fourth quarter of 2024, slightly lower than the expected 2.6% growth rate. In December, annual inflation increased to 2.9%, rising modestly above the 2.7% annual inflation rate of the previous month, according to the Consumer Price Index (CPI) released by the Bureau of Labor Statistics (BLS). The labor market is stable, and unemployment is low, at 4.1% in December.

“The nation’s economy continues to be resilient against long-term economic setbacks, which means that the Fed is in no imminent need to continue its rate cuts,” CoreLogic Chief Economist Selma Hepp said. “And with the economic activity expected to remain robust and continue to post a 2%+ growth rate, the case for further monetary loosening in the coming months is increasingly less compelling.”

If you’re worried about the state of the economy, you could consider paying down high-interest debt with a personal loan at a lower interest rate. Visit Credible to speak with a personal loan expert and get your questions answered.

BIDEN CANCELS MORE STUDENT LOANS WITH ONE WEEK LEFT TO HIS TERM

Mortgage rates likely to remain elevated

Interest rates are likely to remain untouched until the second half of the year, which could delay relief for homebuyers, according to David Sober, the SVP of Enterprise Business Development at Voxtur Analytics.

“Interest rate reductions [are] not expected until the second half of the year,” Sober said. “This keeps the housing economy in an extended period of malaise, with affordability at its lowest point in memory. Independent mortgage banks will continue to dominate the mortgage market due to the ability to offer more innovative ways to buy homes. It will be a pleasant surprise if mortgage rates dip to 6% in 2025.”

One bright spot is that the incoming President Donald Trump administration could spur more substantial economic growth and, therefore, higher incomes, giving Americans more buying power. Moreover, lower household tax rates are anticipated to boost disposable household income even if incomes don’t rise, according to the Realtor.com Housing Forecast.

Beyond those scenarios, Hepp said home builders continue to add more new homes to supply and are offering rate buydowns on new construction, keeping those sales strong.

Homebuyers can find competitive mortgage rates by shopping around and comparing options. You can visit an online marketplace like Credible to compare rates with multiple lenders at once.

FHFA ANNOUNCES HIGHER MORTGAGE LOAN LIMITS FOR 2025

What higher rates mean for your wallet

President Donald Trump said in a speech to economic leaders at the World Economic Forum in Davos, Switzerland earlier this month that he would “demand that interest rates drop immediately.” Powell declined to comment on the speech but said the Trump administration had not contacted him.

“As the economy evolves, we will adjust our policy stance in a manner that best promotes our maximum employment and price stability goals,” Powell said. “If the economy remains strong and inflation does not continue to move sustainably toward 2%, we can maintain policy restraint for longer.”

Consumers who may have anticipated a more aggressive rate reduction policy in 2025 will have to wait longer for relief from the high borrowing costs incurred during the rate increases that the Fed implemented in recent years to combat inflation.

“While inflation concerns have significantly abated, they still remain,” Michele Raneri, vice president and head of U.S. research and consulting at TransUnion said in a statement. “As a result, it is quite possible that there will be fewer rate cuts over the course of next year than anticipated only a few months ago. Consumers should continue to monitor their own credit scores and credit reports to make sure they are in the best possible position to act when rates do come down.”

Using a personal loan to pay off high-interest debt at a lower rate could help you reduce your expenses and put money back in your wallet. You can visit Credible to find your personalized interest rate today.

SENIORS TO GET MODERATE COST OF LIVING BUMP IN SOCIAL SECURITY PAYMENTS NEXT YEAR

Have a finance-related question, but don’t know who to ask? Email The Credible Money Expert at [email protected] and your question might be answered by Credible in our Money Expert column.

January 30, 2025