Current Events in May 2018

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    Average gas price near $3 a gallon for Memorial Day weekend

    It’s the highest level since 2014

    Motorists taking road trips for over the Memorial Day weekend will pay a lot more for gasoline than they did last year.

    The AAA Fuel Gauge Survey shows the average price of gas is nearly $2.97 cents a gallon, 60 cents a gallon more than at this time last year. The national average price of regular gas is up six cents a gallon in the last week and has gained 20 cents in the last month.

    The main reason for the increase has been a surge in the price of oil – the biggest in four years. Oil prices have increased because consumers are driving more and OPEC is producing less.

    Political turmoil in Venezuela has significantly reduced oil production in that petroleum-rich nation. With the U.S. pulling out of the Iran deal, oil traders are bidding up the price of oil on the expectation that less Iranian oil would be available.

    The price of oil exceeded $80 a barrel this week for the first time since 2014, making it more expensive for refiners to produce gasoline.

    $3 a gallon not far away

    “AAA forecasts nearly 37 million travelers will hit the road for the holiday weekend,” said AAA spokesperson Jeanette Casselano. “Trends are indicating that this summer is likely to bring the national average to at least $3/gallon.”

    Today, 14 states report an average of $3 a gallon or more. Outside of the typical West Coast states, Idaho, and Utah, this count includes six Northeast and Midwest states. Connecticut, Pennsylvania, New York, Washington, D.C., Illinois and Michigan have crossed that milestone, and, Arizona, New Jersey, and Rhode Island are all within four-cents of hitting the $3 mark.

    Gasbuddy predicts the skyrocketing price of fuel will keep more people at home this weekend, as well as during the summer. In its annual survey, Gasbuddy found only 58 percent said they will take a road trip this summer, a 24 percent decrease from last year. In the survey, 39 percent cited high gas prices as affecting their summer travel decisions, compared to 19 percent in 2017.

    Pain could be temporary

    But there is some good news. The pain at the pump may not last throughout the summer.

    “With refineries now well positioned for the summer months, we may see some relief in mid-June,” said Patrick DeHaan, head of petroleum analysis at GasBuddy.

    Even so, DeHaan says gas will be the highest since the summer of 2014, with the strong likelihood that the national average price will be well over $3 a gallon before it starts to fall.

    The price of oil has already begun to back off a bit. In something of a surprise, the Energy Information Administration reported this week that U.S. oil stockpiles jumped by 5.7 million barrels. Oil supplies are more than 78 million barrels higher than they were at this time last year.

    Motorists taking road trips for over the Memorial Day weekend will pay a lot more for gasoline than they did last year.The AAA Fuel Gauge Survey shows...

    Existing home sales slide in April

    Lack of inventory and rising prices and rates pose headwinds for the market

    Sales of existing homes took a tumble last month, flashing a possible warning sign for the housing market.

    In its monthly report, the National Association of Realtors (NAR) said existing home sales fell 2.5 percent in April from March. Sales are off 14 percent from April 2017, with year-over-year sales declining for two consecutive months.

    Lawrence Yun, NAR's chief economist, says it's not because people don't want to buy homes, they just can't find homes to buy.

    "The root cause of the underperforming sales activity in much of the country so far this year continues to be the utter lack of available listings on the market to meet the strong demand for buying a home," Yun said.

    Other headwinds

    Would-be buyers are facing other headwinds. Interest rates on mortgages are climbing at the fastest pace in nearly a half century, according to Freddie Mac. The average rate on a 30-year fixed-rate mortgage is 4.66 percent, up from 4.61 percent last week. A year ago, it was 3.95 percent.

    “While this spring’s sudden rise in mortgage rates are taking up a good chunk of the conversation, it’s the stubbornly low inventory levels in much of the country that are preventing sales from really taking off like they should be,” said Freddie Mac Chief Economist Sam Khater.

    The low inventory of houses for sale not only makes it harder to find a home to purchase, it makes the ones that are available more expensive. Zillow's April Real Estate Market Report shows home values are rising at the fastest rate since just before the housing market crash.

    Median home value rises 8.7 percent

    Over the last 12 months, Zillow says national home values rose 8.7 percent, to a median of $215,600. It's not any cheaper to rent. Zillow reports median rents are up 2.5 percent over the last 12 months, to a median payment of $1,449.

    The NAR report has some good news, however. Total housing inventory at the end of April was up nearly 10 percent, but it was still down 6.3 percent from the end of April 2017. Yun says the multiple factors affecting the market continue to pose trouble for people who want to buy a home.

    "Realtors say the healthy economy and job market are keeping buyers in the market for now even as they face rising mortgage rates,” he said. “However, inventory shortages are even worse than in recent years, and home prices keep climbing above what many home shoppers are able to afford."

    Sales of existing homes took a tumble last month, flashing a possible warning sign for the housing market.In its monthly report, the National Associati...

    Obesity in early life may affect IQ and cognitive development

    A study finds that overweight and obese children tended to perform worse when it came to tests measuring neurodevelopment

    It’s important for parents of young children to ensure that their little ones are eating healthy and nutritious foods to stave off early forms of obesity. But a new study suggests that avoiding excess weight gain isn’t only physically beneficial.

    Researchers from Brown University say that children who are on the threshold of being obese or overweight in their first two years tend to develop lower IQs and poorer perceptual reasoning and memory skills. Nan Li, the study’s lead author, says the study shows just how important the first years of life are for proper development.

    "The first few years of life are critical for cognition development, and we investigated whether early-life adiposity has an impact on cognitive abilities later in life," he said. "Excess early-life adiposity was associated with lower IQ, perceptual reasoning and working memory scores at school-age.”

    Obesity and poorer outcomes

    The study looked at children who were part of the Health Outcomes and Measures of the Environment study that was conducted in Cincinnati.

    Participating children were tracked through their early lives, with researchers measuring their weight and height throughout their first two years of life. After this initial period, children had their cognitive abilities measured at ages 5 and 8.

    The researchers found that each child’s early life weight status had a significant impact on their IQ, perceptual reasoning, and memory, with heavier children scoring lower across these areas of development. The authors theorize that children who are overweight or obese early on in life suffer from inflammatory reactions that can negatively impact their neurodevelopment.

    The researchers say that further study using a larger sample size may allow them to investigate how weight status affects school performance, attention deficit/hyperactivity disorder diagnoses, and special education use.

    The full study has been published in the journal Obesity.

    It’s important for parents of young children to ensure that their little ones are eating healthy and nutritious foods to stave off early forms of obesity....

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      Chrysler recalls 4.8 million vehicles

      A defect could prevent the cruise control system from disengaging

      Chrysler (FCA US LLC) is recalling 4,846,885 model year 2014-2018 Dodge Journeys, Chargers & Durangos, RAM 2500s, 3500s, 3500 Cab Chassis vehicles (more than 10,000lb), 4500 Cab Chassis vehicles & 5500 Cab Chassis vehicles, Jeep Cherokees & Grand Cherokees & Chrysler 300s; model year 2014-2019 RAM 1500s; model year 2015-2018 Dodge Challengers; model year 2015-2017 Chrysler 200s; model year 2016-2018 RAM 3500 Cab Chassis vehicles (less than 10,000 lb); model year 2017-2018 Chrysler Pacificas; and model year 2018 Jeep Wranglers.

      The vehicles are being recalled to address a defect that could prevent the cruise control system from disengaging.

      If, when using cruise control, there is a short circuit within the vehicle's wiring, the driver may not be able to shut off the cruise control either by depressing the brake pedal or manually turning the system off once it has been engaged, resulting in the vehicle maintaining its current speed or possibly accelerating.

      If the vehicle maintains its speed or accelerates despite attempts to deactivate the cruise control, there would be an increased risk of a crash.

      Owners are advised to stop using cruise control until the software update has been performed. In the event that cruise control cannot be disengaged while driving, owners should firmly and steadily apply the brakes and shift the transmission to neutral, placing the vehicle in park once it has stopped.

      What to do

      Chrysler will notify owners, and dealers will inspect the software, and perform a software flash on the engine or powertrain control module, free of charge.

      The recall is expected to begin July 6, 2018.

      Owners may contact Chrysler customer service at 1-800-853-1403.

      Chrysler (FCA US LLC) is recalling 4,846,885 model year 2014-2018 Dodge Journeys, Chargers & Durangos, RAM 2500s, 3500s, 3500 Cab Chassis vehicles (more th...

      Jané recalls U.S. model of Jané Muum strollers

      An infant can pass through the opening between the stroller armrest and seat bottom

      Jané USA, a division of Jané Group of Charlotte, N.C., is recalling about 800 Jané Muum strollers.

      An infant can pass through the opening between the stroller armrest and the seat bottom and his/her head and neck can become entrapped by the armrest, posing entrapment and strangulation hazards.

      Thus, the strollers violate the federal Stroller and Carriage standard.

      No incidents or injuries have been reported.

      This recall involves the US model of Jané Muum strollers with a black frame, a reclining seat or hammock that is reversible and a hood. An insert is sold with the stroller for smaller babies. There is a basket for storage underneath the stroller seat.

      The recalled strollers were sold in: dark gray and black (S85), light grey and black (S49), blue and black (S46) and green and black (S47).

      “Muum by Jané” is printed on the front bottom frame. “Muum” is printed on the side frame and on the handle.

      “Jané” and “Muum,” “Jané USA LLC,” “Muum US 5399US/S85” or “S47,” “S49,” “S46” are printed on a label on the leg of the stroller.

      The strollers, manufactured in China, were sold at Albee Baby, Baby World, Kidsland, Toys R US, Dainty Baby, USA Baby stores and other stores nationwide and online at Amazon.com and other websites from July 2016, through August 2017, for between $300 and $450.

      What to do

      Consumers should immediately stop using the recalled strollers and contact Jané for a free repair. The repair consists of a free replacement armrest. Consumers can continue using the recalled strollers if they remove the armrest and harness the child properly until they receive the replacement armrest.

      Consumers may contact Jané toll-free at 844-200-7971 anytime to leave message or from 8 a.m. to 11 a.m. (ET) Monday through Thursday for a live operator, by email at info@jane-usa.com or online at www.jane-usa.com and click on MUUM USA MODEL for more information.

      Jané USA, a division of Jané Group of Charlotte, N.C., is recalling about 800 Jané Muum strollers.An infant can pass through the opening between the st...

      Amazon banning users for making too many returns

      The e-commerce giant has abruptly closed multiple users’ accounts for ‘excessive returns’

      Amazon has banned multiple customers for returning too many items, according to a report from the Wall Street Journal.

      Amazon shoppers have received emails letting them know that their accounts have been closed due to excessive return activity. In a statement, Amazon said it’s rare for a customer to be banned for abusing their service over a long period of time.

      “We want everyone to be able to use Amazon, but there are rare occasions where someone abuses our service over an extended period of time,” the company said. “We never take these decisions lightly, but with over 300 million customers around the world, we take action when appropriate to protect the experience for all our customers.”

      Algorithm flags problematic accounts

      The site decides which shoppers to ban with the help of an Amazon algorithm. Problematic accounts that surface via the algorithm are reviewed by someone on staff. Terminated accounts are the ones that “cause headaches for Amazon,” a former Amazon employee told the Journal.

      Customer behaviors that may result in being banned include "requesting too many refunds, sending back the wrong items or violating other rules, such as receiving compensation for writing reviews,” the former employee said.

      “If your behavior is consistently outside the norm, you’re not really the kind of customer they want,” the employee said.

      Some users say the algorithm isn’t entirely accurate or fair. Amazon user Nir Nissim told the Journal he received an email in March stating that his account had been shut down without prior warning. A representative told him it was because of his return activity. However, Nissim said he had only returned one item in the past year.

      In many instances (Nissim’s included), customers whose accounts were terminated for making too many returns were able to have their account reinstated. However, they had to contact Amazon customer service and dispute the bans.

      Amazon isn’t the only retailer that tracks how often shoppers return purchases. Best Buy, Home Depot, and Victoria's Secret are among other retailers that engage in the practice and, in some cares, punish shoppers suspected of abusing their return policies.

      Tracking return activity helps “detect and deter potentially fraudulent consumers, while not impacting any others," according to The Retail Equation, a California-based company that keeps a list of customers' returns in reports. The company notes that fraud costs retailers up to $17 billion annually in the U.S.

      Amazon has banned multiple customers for returning too many items, according to a report from the Wall Street Journal.Amazon shoppers have received ema...

      Uber shuts down self-driving car operations in Arizona

      The tech company is looking to pursue self-driving testing in other states

      On Wednesday, Uber announced it will be shutting down it’s self-driving car operations in Arizona. The company will be laying off 300 employees across the state and will now turn its attention to self-driving testing facilities in San Francisco, Pittsburgh, and Toronto.

      “We’ve made the tough call to wind down operations in Phoenix,” said Eric Meyhofer, the head of Uber’s Advanced Technologies Group. “This is the best path forward as we work to get back on the road as soon as possible.”

      The self-driving facility in Arizona had grown to become Uber’s largest testing ground. Amidst the company-wide layoffs, vehicle operators -- those paid to supervise vehicles during tests -- will be most affected. However, Uber plans to provide outplacement services, such as interview prep and resume building.

      Recent troubles in Arizona

      Uber’s decision to shut down its Arizona operations didn’t exactly come as a surprise based on recent news.

      In March, the company found itself under fire after one of its self-driving vehicles hit and killed a pedestrian in Tempe, Arizona. The car was in self-driving mode, though it had a human driver, when 49-year-old Elaine Herzberg was struck while walking her bike across the street outside of a crosswalk.

      Arizona welcomed Uber’s self-driving testing into the state with open arms after the company moved its fleet of self-driving vehicles there from California in late 2016. The company was in much disagreement with the California Department of Motor Vehicles, as Uber believed it shouldn’t have to comply with California regulations over self-driving vehicles.

      “California may not want you, but we do,” Arizona Governor Doug Ducey said at the time, assuring Uber that regulations would be much less stringent in his state.

      However, despite Ducey’s push to have the company in Arizona, it didn’t take long for him to suspend the testing of driverless cars on public roads. The governor watched video footage of the Tempe accident, and after seeing it firsthand ordered an indefinite suspension. In a letter to Uber, Ducey called the accident “an unquestionable failure” on the part of the company’s technology.

      Consumers’ skepticism about autonomous vehicles

      Self-driving cars have certainly been a pressing concern among consumers recently, with the growing number of accidents causing many to worry that the technology isn’t ready for open roads.

      For example, following the recent accident in Arizona, reports found that the vehicle’s autonomous feature detected the pedestrian in front of the car but failed to take action to avoid hitting her.

      According to The Information -- a tech publication -- two people who were briefed on Uber’s investigation reported the cars’ sensors saw the pedestrian but didn’t recognize her as an object to avoid. The sources explained that the car’s object-avoidance software can be adjusted so the car can make every effort to avoid hitting a solid object -- but not swerve to miss a paper bag floating in its path.

      “What if a self-driving car encounters a dangerous situation where there are two alternatives, and neither of them is good?” asks Scot Hall, CEO of Swapalease. “How does the computer make that choice?”

      A February survey found that nearly 60 percent of consumers who drive “connected cars” (i.e. - cars that have smart technology) said they wouldn’t buy a self-driving car even if money weren’t an object. In a recent AAA survey, nearly 73 percent of consumers said they would be scared to drive a fully autonomous vehicle.

      Despite consumer worry, Uber is looking to return to its self-driving testing this summer, following the conclusion of a National Transportation Safety Board (NTSB) investigation into the Arizona accident.

      “We’re committed to self-driving technology, and we look forward to returning to public roads in the near future,” Uber said in a statement. “In the meantime, we remain focused on our top-to-bottom safety review, having brought on former NTSB Chair Christopher Hart to advise us on our overall safety culture.”

      On Wednesday, Uber announced it will be shutting down it’s self-driving car operations in Arizona. The company will be laying off 300 employees across the...

      Apple offering $50 credit to consumers who paid for a new iPhone battery last year

      The credit applies to batteries purchased for iPhone 6 models or later

      Apple announced today that it is refunding $50 to consumers who paid for an out-of-warranty battery replacement for an iPhone 6 or later model any time last year.

      The $50 credit is part of Apple’s $29 battery replacement program, which went into effect in December 2017.

      Apple started offering lower-cost battery replacement options to consumers after it confirmed that software updates in older iPhone models had a feature that throttled battery performance in order to prevent unexpected shutdowns. The company faced dozens of lawsuits as a result of the feature.

      Following its admission and apology for its lack of transparency surrounding the issue, Apple said it would slash the price of replacement batteries for iPhone 6 models or later from $79 to $29. Apple later sped up its battery replacement program due to customer complaints.

      Now, Apple says it will reimburse all customers who paid the full $79 to replace an out-of-warranty battery before December 29. The offer applies to customers who had their battery replacement done at an Apple store, Apple Repair Center, or an Apple Authorized Service Provider.

      Eligible consumers will be notified via email before July 27 with details on how to obtain an electronic funds transfer or a credit on the card that was used to pay for the battery replacement.

      Apple announced today that it is refunding $50 to consumers who paid for an out-of-warranty battery replacement for an iPhone 6 or later model any time las...

      Scammers increasingly 'spoof' numbers to ensnare victims

      A telephone security firm reports huge increases in the tactic so far this year

      Hiya, a phone spam-blocking company, says scammers employing robocallers have increasingly adopted a tactic the company calls “the neighbor scam.”

      Robocalling is a powerful tool for scammers to ensnare more victims because it allows them to make multiple calls at a time. But for it to work, the victim must first answer the call.

      Since cell phones display the number of an incoming call, many people don't answer calls from unfamiliar numbers. To get around this, scammers are increasingly “spoofing” phone numbers. These calls not only appear to be coming from the victim’s own area code but from a neighbor who has the same telephone exchange.

      More likely to answer

      People who see a number displayed on their phone that looks local are more likely to answer, and when they do they may be more vulnerable to whatever scheme the scammer is running.

      From January to May this year, Hiya says more than 56 percent of its customers who received calls from scammers reported the number was spoofed with their local exchange.

      “Scammers are never idle with their tactics and, with the neighbor scam, they are experimenting with all the ways to spoof their number to get consumers to pick up the phone,” said Jonathan Nelson, director of Reputation Data at Hiya.

      He says there is increasing awareness among consumers that scammers are using this tactic, but it hasn't reduced its use. In fact, scammers appear to be refining it further.

      For example, if your phone number is 607-555-6397, the scammer's spoofing software might generate a number that appears in your caller ID as 607-555-6312. It's so close to your own number that scammers figure you're more likely to answer.

      FCC crackdown

      The Federal Communications Commission (FCC) sees this as a growing problem. Earlier this month, it imposed a record $120 million fine against Adrian Abramovich, a telemarketer it says conducted a massive robocall operation that sought to sell timeshares and travel packages.

      The FCC alleged that Abramovich made nearly 100 million spoofed robocalls, in direct violation of the Caller ID Act, which prohibits the falsification of ID information when it is intended to defraud or harm call recipients.

      There is a way consumers can tell if the call they have answered is a robocall. When you answer a call placed by a machine, you often hear a lengthy pause before the scammer realizes someone is on the line and comes on the line to begin the pitch.

      Whenever you answer a call and hear the “robocaller pause,” just hang up – even if the call appears to be coming from across town.

      Hiya, a phone spam-blocking company, says scammers employing robocallers have increasingly adopted a tactic the company calls “the neighbor scam.”Roboc...

      Consumer groups call on the FTC to investigate Tesla’s marketing of its Autopilot feature

      The groups claim the feature’s name implies it is more capable and reliable than it actually is

      On Wednesday, the Center of Auto Safety and Consumer Watchdog sent a letter to the Federal Trade Commission (FTC) requesting that the agency investigate how Tesla has marketed its controversial "Autopilot" assisted-driving technology.

      The consumer groups called Tesla’s use of the name Autopilot “deceptive and misleading” and argued that advertising the enhanced cruise-control system under the name Autopilot could make consumers think the feature makes a Tesla vehicle self-driving.

      "Tesla is the only automaker to market its Level 2 vehicles as 'self-driving,' and the name of its driver assistance suite of features, Autopilot, connotes full autonomy," the letter said.

      "The burden now falls on the FTC to investigate Tesla's unfair and deceptive practices so that consumers have accurate information, understand the limitations of Autopilot, and conduct themselves appropriately and safely.”

      Customers have misused Autopilot

      Despite owner manual disclaimers warning drivers to keep their hands on the wheel at all times while using Autopilot, two known deaths and one injury have occurred as a result of Tesla drivers relying on Autopilot to control their vehicle.

      One of the most recent crashes occurred in March. The driver told police she had Autopilot engaged and was reading her smartphone and not watching the road. In Great Britain, a driver had his driving privileges suspended for engaging Autopilot and then leaving the driver’s seat.

      The consumer groups are calling on the FTC to examine Tesla's advertising practices surrounding the feature to determine whether the company should be faulted for its customers' misuses of Autopilot.

      Deceptive marketing

      The letter cited statements made by Tesla founder Elon Musk which seemed to suggest Autopilot is safer than it actually is.

      “In an interview with CBS in April 2018, after Musk was asked what the purpose of Autopilot is if drivers still have to touch the steering wheel, he responded ‘because the probability of an accident with Autopilot is just less’,” the groups wrote.

      Earlier this month, a woman in Utah crashed her Model S into a fire truck at 60 miles-per-hour while using Autopilot. Following the collision, Musk sent a tweet that said, ‘What’s actually amazing about this accident is that a Model S hit a fire truck at 60mph and the driver only broke an ankle. An impact at that speed usually results in severe injury or death.”

      “Thus, Musk conflates Autopilot’s safety, or lack thereof, with the Model S’s ability to withstand a crash,” the letter concluded.

      Tesla has said its Autopilot pilot feature results in 40 percent fewer crashes. The National Highway Safety Administration (NHTSA) restated this claim in a 2017 report on the first driver fatality, which occured in May. Earlier this month, the agency said regulators had not actually evaluated the effectiveness of the technology.

      On Wednesday, the Center of Auto Safety and Consumer Watchdog sent a letter to the Federal Trade Commission (FTC) requesting that the agency investigate ho...

      Study finds cigarette smoke also causes major harm to muscles

      Researchers say exposure can eliminate blood vessels and reduce oxygen and nutrient intake

      Consumers are generally aware of how bad smoking cigarettes is for their lungs, but a new study shows that it can have a devastating impact on muscles as well.

      Researchers working together from several universities say that smoking limits a person’s ability to exercise by making the muscles weaker. Specifically, they say that cigarette smoke can reduce the number of blood vessels in leg muscles, which reduces the overall flow of oxygen and vital nutrients.

      “It is vitally important that we show people that the use of tobacco cigarettes has harmful consequences throughout the body, including large muscle groups needed for daily living, and develop strategies to stop the damage triggered by the detrimental components of cigarette smoke,” said Ellen Breen, the study’s lead investigator.

      Thousands of harmful chemicals

      The researchers came to their conclusions after studying how mice were affected by smoke from tobacco cigarettes. They found that the harmful damage affected rodents throughout their bodies and that decreased muscle function manifested well before any loss of respiratory function.

      While the researchers say that muscle damage to the legs was most pronounced, they could not identify exactly which chemical in cigarette smoke was responsible. They point out that cigarettes contain approximately 4,000 chemicals, many of which are harmful carcinogens.

      Going forward, the researchers hope to identify the responsible chemicals and investigate exactly how they reduce the number of blood vessels in the legs.

      The full study has been published in The Journal of Physiology.

      Consumers are generally aware of how bad smoking cigarettes is for their lungs, but a new study shows that it can have a devastating impact on muscles as w...

      Federal Reserve officials not overly concerned about inflation

      Minutes from the agency’s last meeting suggest a willingness to let prices rise for a while

      Federal Reserve officials say that if inflation rises more than their target, that's not such a bad thing.

      The release of the minutes from the latest Fed meeting, normally of interest only to Wall Street, has implications for consumers as well. The record suggests that the Fed isn't as eager to raise interest rates as most economists thought.

      For years, Fed policymakers have set 2 percent as a desired inflation rate. That would help businesses expand and, theoretically at least, give workers modest wage increases.

      But for years, there was very little inflation in the economy. In fact, in some cases there was deflation, when prices actually went down.

      While that sounds like a good thing, it's not. Think back to the housing crisis, when the price of homes plunged, leaving millions of homeowners owing more than their homes were worth, and you begin to see the dangers of deflation.

      Temporary inflation is okay

      While there are beginning to be signs of inflation in the U.S. economy, Fed officials say that's fine, as long as it's temporary. Oil prices have surged over the last couple of months, for example, but they dropped sharply this week when the government unexpectedly reported a big increase in U.S. oil stockpiles.

      Overall, the minutes reflect the belief among Fed officials that inflation will continue to rise, but that modestly rising prices – even if they exceed the 2 percent target – wouldn't hurt the economy.

      The Fed's major tool for fighting inflation is its key discount interest rate – the rate it charges banks. Raising it tends to slow economic growth. Lowering it tends to speed it up. After being at zero percent for years, the Fed began slowly raising that rate in 2016 as the economy showed signs of improvement.

      If the Fed raises that rate more slowly than expected, consumers won't see some of their interest rates rise as quickly. For example, the discount rate is tied almost directly to adjustable rate loans, auto loans, and credit card rates.

      Currently, the discount rate fluctuates between 1.5 and 1.75 percent. Despite the “dovish” sentiment expressed by the Fed officials, the policymakers appear on track to raise their discount rate again in June. The real question is how many more times they do it in the second half of the year.

      Federal Reserve officials say that if inflation rises more than their target, that's not such a bad thing.The release of the minutes from the latest Fe...

      Kroger buying meal kit company Home Chef

      Kits will be sold online and in Kroger stores

      Supermarket chain Kroger is acquiring Home Chef, a meal kit delivery company, giving it more appeal to consumers who want convenience in food preparation.

      Meal kits provide all the components and ingredients to prepare a fresh meal, with instructions for preparing it. These kits are most often sold online and delivered directly to homes.

      Following the merger, the companies say Home Chef kits will continue to be sold online, but they will also be available in Kroger stores. Kroger will continue to offer its Prep+Pared meals that are currently sold in more than 525 stores.

      Home Chef is currently headquartered in Chicago, with three distribution centers that it says can reach 98 percent of all continental U.S. households within a two-day delivery window.

      Meal kits gaining popularity

      "Customers want convenience, simplicity, and a personalized food experience,” said Yael Cosset, Kroger's chief digital officer. “Bringing Home Chef's innovative and exciting products and services to Kroger's customers will help make meal planning even easier and mealtime more delicious."

      According to Packaged Facts, meal kits have become popular with consumers who don't have time to shop for groceries or order from a food service. With meal kits, services deliver everything a consumer needs to quickly prepare a meal while using fresh ingredients.

      Because of its popularity, the industry has become crowded with players, making it hard to survive without a partner with a very large footprint.

      Food industry trend

      Teaming online meal kit delivery with brick and mortar retail appears to be a trend. Last year, Albertsons acquired Plated and integrated it into its stores. Amazon, of course, owns Whole Foods, teaming delivery and quality food products.

      For a company like Kroger, the acquisition of Home Chef holds the opportunity to expand its online offerings while providing in-store shoppers with more meal preparation options.

      In March, Walmart announced that it plans to introduce its own meal kit service to as many as 2,000 stores nationwide this year, following a market test. The meal kits will be made to feed two people and range in price from $8 to $15.

      Like Kroger's offering, consumers will be able to either buy kits in store or order them online and pick them up later that day. Three different kinds of kits are available to choose from, depending on how much cooking shoppers want to do.

      Supermarket chain Kroger is acquiring Home Chef, a meal kit delivery company, giving it more appeal to consumers who want convenience in food preparation....

      Michaels recalls spin art kits

      The kit's battery compartment can overheat, posing fire and burn hazards

      The Michaels Companies of Irving, Texas, is recalling about 110,000 Creatology Spin Art Kits.

      The battery compartment in the spin art kit can overheat, posing fire and burn hazards.

      The firm has received two reports of battery compartments overheating in the spin art kits. No injuries have been reported.

      This recall involves spin art kits sold under the Michaels private brand Creatology.

      The 34-piece kit includes one battery operated spin art wheel with cover, paint, paint brushes, and paper.

      The recalled art kits are blue and have SKU number 197861 and one of the following UPC codes printed on the barcode  the box.

      Color

      SKU number

      UPC codes

      Blue

      197861

      042409093252, 042409930601, 042409093115, 042409093061, 042409931141, 069545093113, 400100663486

      The spin art kits, manufactured in China, were sold exclusively at Michaels stores nationwide and online at www.michaels.com from August 2011, through February 2018, for about $25.

      What to do

      Consumers should immediately take the recalled spin art kits away from children, stop using them and return them to any Michaels store for a full refund.

      Consumers may contact Michaels at 800-642-4235 from 9 a.m. to 7 p.m. (CT) Monday through Friday or online at www.michaels.com and click on “Product Recalls” at the bottom of the page for more information.

      The Michaels Companies of Irving, Texas, is recalling about 110,000 Creatology Spin Art Kits.The battery compartment in the spin art kit can overheat,...

      Chrysler recalls model year 2018 vehicles with transmission issue

      An incorrect transmission park lock rod may have been installed

      Chrysler (FCA US LLC) is recalling 71 model year 2018 Dodge Chargers, Durangos & Challengers, Jeep Grand Cherokees & Wranglers, Chrysler 300s, and RAM 1500s.

      An incorrect transmission park lock rod may have been installed in the transmission.

      As a result, the transmission may not shift into 'PARK' and keep the vehicle from moving, increasing the risk of unintended vehicle movement and the risk of a crash.

      What to do

      Chrysler will notify owners, and dealers will install the correct park lock rod, free of charge.

      The recall is expected to begin June 20, 2018.

      Owners may contact Chrysler customer service at 1-800-853-1403. Chrysler's number for this recall is U43.

      Chrysler (FCA US LLC) is recalling 71 model year 2018 Dodge Chargers, Durangos & Challengers, Jeep Grand Cherokees & Wranglers, Chrysler 300s, and RAM 1500...

      Sunscreen pills don’t work, FDA warns

      Companies marketing sunscreen pills are ‘misleading consumers and putting people at risk,’ the agency says

      So-called sunscreen-in-a-pill supplements are fake and consumers shouldn’t fall for this scam, the Food and Drug Administration (FDA) said on Tuesday.

      The FDA issued warning letters to companies marketing pills and capsules that they claim will protect consumers from the harmful effects of the sun.

      The agency specifically called out four products: GliSODin Skin Nutrients’ Advanced Skin Brightening Formula, Napa Valley Bioscience’s Sunsafe Rx, Pharmacy Direct’s Solaricare, and Sunergized LLC’s Sunergetic.

      Federal safety regulators say products like these are giving consumers are false sense of security.

      “There’s no pill or capsule that can replace your sunscreen,” FDA commissioner Dr. Scott Gottlieb said in a statement. “We’ve found products purporting to provide protection from the sun that aren’t delivering the advertised benefits. Instead they’re misleading consumers, and putting people at risk.”

      Unproven claims

      The FDA accused the four companies it sent letters to of, “illegally marketing pills and capsules labeled as dietary supplements that make unproven drug claims about protecting consumers from the harms that come from sun exposure without meeting the FDA’s standards for safety and effectiveness.”

      The companies were advised to correct all violations associated with their products and to review their websites and packaging to make sure claims don’t violate federal law.  

      “Consumers should be watchful for unscrupulous companies making unproven claims,” said Gottlieb. “When the FDA sees companies taking advantage of people’s desire to protect themselves from the harmful effects of the sun, we’ll step in.”

      The FDA says legitimate sunscreens are made in a wide range of sun protection factor values, or SPF values. They are over-the-counter drugs that come in many forms, including lotions, creams, sticks, and sprays.

      To counter the effects of the sun’s harmful ultraviolet (UV) rays, health officials encourage consumers to stick to topical products, such as lotions and sprays. Other protective measures include seeking shade, avoiding the sun from mid-morning to mid-afternoon, and wearing protective clothing.

      So-called sunscreen-in-a-pill supplements are fake and consumers shouldn’t fall for this scam, the Food and Drug Administration (FDA) said on Tuesday....

      Four in 10 adults don't have enough money saved to handle an emergency

      Despite improving economic conditions, consumers are still struggling to save

      On Tuesday, the Federal Reserve released its fifth annual Survey of Household Economics and Decisionmaking, which gauges the economic well-being of U.S. households and identifies potential risks to their finances.

      Despite many Americans reporting that economic conditions have gotten better -- and seem to be looking up for the future -- the report suggests that nearly four in 10 adults can’t fund a $400 emergency expense without either borrowing from a friend or carrying a credit card balance.

      Based on answers to a series of questions, two in five adults faced what the Federal Reserve calls “a high likelihood of material hardship.” This refers to the inability to afford sufficient food, medical treatment, housing, or utilities.

      “The finding that four in 10 adults couldn’t cover an unexpected $400 expense without selling something or borrowing money is troubling,” said Greg McBride, Bankrate.com’s chief financial analyst. “Nothing is more fundamental to achieving financial stability than having savings that can be drawn upon when the unexpected occurs.”

      Things are looking up

      Other results out of the survey were quite promising for the economic future of the country.

      Among over 8,000 small businesses and 12,000 households that were covered in separate surveys in the last year by the Federal reserve and its 12 regional banks, the findings showed economic conditions are on the upswing, and only look to be getting better in the years to come.

      In 2017, 74 percent of U.S. adults said they were financially stable -- or at least making ends meet -- which was four percent higher than 2016 and 10 percent higher than the first year of the survey in 2013. Lower income households also saw improvement, as the percentage of households reporting financial struggles fell from nine percent last year to seven percent this year.

      Consumer spending also continues to increase, as it accounts for the bulk of U.S. gross domestic product. Additionally, the economy’s growth in recent years has come from a steady increase in household income.

      “The mass of the consumer sector is in pretty good shape and that should continue,” said Nathan Sheets, chief economist at PGIM Fixed Income.

      Looking back at consumer savings

      When looking at the results from the Federal Reserve survey in years past, it shows the importance of U.S. adults making a concerted effort to focus on their savings.

      In 2017, the survey reported that 30 percent of Americans were not confident they could come up with $2,000 on short notice. Additionally, a growing number of consumers were not optimistic about their chances of getting credit on short notice.

      Survey results showed that accounts had closed at the highest rate since the Federal Reserve began tracking that statistic. Consumers were also rather discouraged when it came to even applying for credit, as that number rose to 7.1 percent -- the highest level since June 2014. Consumers who successfully applied for credit in that year fell to 31.5 percent -- the lowest since February 2015.

      Establishing an emergency fund

      While saving up for a house or a car is certainly an important goal, consumers should also be cognizant of saving for emergencies -- as wide-ranging as they may be. Saving for a car repair, the sudden loss of a job, a medical bill, or appliance replacement should be the number one goal for any consumer interested in saving.  

      To get into regular savings habits, the American Bankers Associations encourages consumers to pay themselves first before paying any of their bills. Making regular deposits -- no matter how small -- is crucial to starting off on the right foot.

      Next, consumers should separate money into two categories: wants and needs. Lastly, consumers should remember that the point of saving is to gradually build money in an account over time -- not overnight. Starting with small monthly deposits and slowly increasing those payments can be a great first step.

      “This small goal can lead to a lifetime of practice,” said Allie Vered, Director of America Saves. “Saving isn’t an amount, it’s an activity that you build into so that you can get to your goals.”

      On Tuesday, the Federal Reserve released its fifth annual Survey of Household Economics and Decisionmaking, which gauges the economic well-being of U.S. ho...

      Bitcoin consumes as much energy as the country of Ireland, study claims

      Other experts say it’s difficult to determine how much energy the cryptocurrency actually consumes

      The global Bitcoin network currently consumes at least 2.55 gigawatts of electricity, or as much energy as the country of Ireland, according to a new study conducted by Dutch economist and blockchain specialist Alex de Vries.

      That figure has roughly doubled in the last six months and could triple in the next year. By the end of 2018, the study estimates that Bitcoin could use as much as 7.67 gigawatts of power -- almost as much energy as it takes to power the country of Austria.

      “With the Bitcoin network processing just 200,000 transactions per day, this means that the average electricity consumed per transaction equals at least 300 kWh, and could exceed 900 kWh per transaction by the end of 2018,” writes de Vries, adding, “Bitcoin has a big problem, and it is growing fast.”

      Requires a large amount of computational power

      Concern about the energy usage required to “mine” Bitcoin and other cryptocurrencies is based on the large amount of computer processing power it takes to verify the transactions that create the coin, as well as add them to the public ledger.

      An army of computers are needed to timestamp transactions along the blockchain, a system which prevents duplicate spending of coins through a process known as “proof-of-work.”

      While there’s no question that mining Bitcoin is energy intensive, some experts say we don’t currently have enough data to draw a definitive conclusion on Bitcoin’s energy usage.

      Experts unsure

      Jonathan Koomey, a professor at Stanford, says the way de Vries calculates the value of energy used in Bitcoin, and the price paid for that energy, may be problematic. He adds that he’s unsure where de Vries is getting the two numbers he uses for those values.

      “For two decades, people have been eager to overestimate electricity use by computing,” Koomey told NBC News. “My concern is that we simply don’t have adequate data to come to the strong conclusions that he’s coming to.”

      “The worry is that those are two numbers that are picked out of the air,” Koomey continued. “There may be some basis for them, but it’s a very unreliable way to do these kinds of calculations, and nobody who does this for a living would do it like that. It’s odd that someone would.”

      De Vries says that because cryptocurrency mining doesn’t seem to be slowing down, researchers must work on finding out what the currency’s impact is before it becomes too late to enact institutional restrictions and regulations on the practice.

      "We’ve seen a lot of back-of-the-envelope calculations, but we need more scientific discussion on where this network is headed,” de Vries said in a statement. “Right now, the information available is pretty poor quality overall, so I’m hoping that people will use this paper as a foundation for more research.”

      The research has been published in the energy journal Joule.

      The global Bitcoin network currently consumes at least 2.55 gigawatts of electricity, or as much energy as the country of Ireland, according to a new study...

      Congress votes to roll back some bank regulations under Dodd-Frank

      Critics charge that the decision ignores the lessons of the financial crisis

      Congress has approved legislation rolling back some bank regulations that were put in place in the wake of the 2008 financial crisis.

      The measure – the latest rollback of Obama administration-era rules – loosens government regulations on all but the largest national banks. While Republicans were the strongest advocates of the move, the bill was crafted to draw some Democratic support.

      The original regulations, part of the Dodd Frank package of legislation, placed a new set of restrictions on banks with more than $50 billion in assets. The measure on its way to President Trump's desk raises that to $250 billion, exempting some large regional banks, as well as smaller community banks.

      Fewer accountability measures

      The exemption means some banks don't have to undergo periodic “stress tests” and other accountability measures because their failure would not be considered a systemic risk to the economy.

      The measure was supported by the Competitive Enterprise Institute (CEI), a libertarian policy organization, which called the rollback “modest but important.”

      “The bill’s major accomplishment is some much-needed tailoring of regulation to a financial institution’s size so that hometown banks and credit unions are no longer regulated like Wall Street behemoths,” said CEI Senior Fellow John Berlau.

      But Berlau said he would have liked for the legislation to go farther, removing other Dodd Frank rules that he says have increased banking costs for consumers.

      Call for tougher, not weaker rules

      Lisa Donner, executive director of Americans for Financial Reform, takes a sharply different view. She says the rollback ignores the lessons of the financial crisis and contends that rules overseeing the financial services industry should be tougher, not weaker.

      “By easing oversight of some of the largest institutions in the United States, lawmakers have paved the way for greater consolidation among banks and less attention from regulators just as industry friendly appointees are watering down the rules,” she said.

      The group notes that the legislation exempts 25 of the 38 largest banks in the United States, which got almost $50 billion in bailout money in the wake of the 2008 financial crisis.

      The rollback measure also reduces the requirements on many banks to report mortgage lending data, while adding some safeguards for student loan borrowers.

      Congress has approved legislation rolling back some bank regulations that were put in place in the wake of the 2008 financial crisis.The measure – the...

      New York City plans to cut back on marijuana arrests and police aren’t happy

      City officials want to decriminalize certain cases due to minorities being disproportionately targeted

      New York City Mayor Bill de Blasio is reportedly asking police to stop arresting people for smoking marijuana in public following an announcement last week that the Manhattan District Attorney’s office will stop prosecuting marijuana possession and smoking cases in criminal court.

      “The dual mission of the Manhattan DA's office is a safer New York and a more equal justice system," Manhattan District Attorney Cy Vance said last week in a statement explaining the policy change.

      "The ongoing arrest and criminal prosecution of predominantly black and brown New Yorkers for smoking marijuana serves neither of these goals."

      Police unhappy with decision

      The DA was pointing to data showing that non-white New York City residents are far more likely to be arrested for marijuana possession or use in public than whites, despite using marijuana at the same amounts.

      Current laws in Manhattan require people who are caught with marijuana in public to be arrested, fingerprinted, and later appear in court. Under de Blasio’s policy change, people caught with weed would still be ticketed and summoned to appear in court, but they would not be arrested.

      Police are apparently unhappy with the policy changes. On May 18, the official Twitter account of a police union called the Sergeants Benevolent Association published a post complaining about wanting to arrest a man smoking marijuana, but no longer feeling comfortable doing so.

      “Will the NYPD back me? NOT! So I just walked away,” the SBA posted.

      New York City Mayor Bill de Blasio is reportedly asking police to stop arresting people for smoking marijuana in public following an announcement last week...