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Dollar set for second straight week of gains after data shows US economic resilience

Summary

  • Dollar slips 0.1% vs , still near two-month high
  • edges up but set to snap three weeks of gains
  • Strong U.S. spending, data temper Fed cut bets
  • Dollar index falls 0.17% but on track for weekly gain

NEW YORK (Reuters) -The dollar edged lower but was still on track for the second straight week of gains against major peers on Friday after data continued to show U.S. economic resilience, which might complicate the ‘s efforts to cut .

The dollar was down 0.1% to 149.65 against the Japanese yen, on track for the fifth consecutive week of gains and trading near its highest level since August 1.

The euro was up 0.17% to $1.16845. It was on course to finish the week lower, snapping three straight weeks of gains.

US DATA TAKES STEAM OUT OF FED RATE CUT PRICING

U.S. , which accounts for more than two-thirds of economic activity, rose 0.6% in August, slightly higher than the 0.5% estimated by economists polled by Reuters.

The Personal Consumption Expenditures Price Index, which is the Fed’s preferred inflation measure, rose 0.3% last month, in line with expectations, U.S. Commerce Department data showed.

“I think it’s pretty clear that stronger economic data has taken the steam out of the pricing for Fed rate cuts and that’s sort of narrowed the interest rate differential with other countries and pushed the dollar higher,” said John Velis, Americas FX and macro strategist at BNY in New York.

“We still think that hedging behavior is quite strong so we still see lots of forward selling of dollars even while the U.S. assets, particularly U.S. equities, continue to gain influence from abroad, although that’s taken a little bit of a backseat this week as well to some degree. But I think it’s fairly clear that as Fed expectations go so will the dollar go in the short term,” Velis added.

The dollar index, which measures the greenback against a basket of currencies including the yen and the euro, fell 0.17% to 98.33. It was still on track for the second straight week of gains.

The two-year note yield, which typically moves in step with interest rate expectations for the Fed, rose 0.2 basis points to 3.666%.

Data had shown on Thursday that U.S. gross domestic product rose by an upwardly revised 3.8% from April through June, beating expectations.

The dollar was down 0.08% to 0.799 against the Swiss franc. It was still on track to finish the week higher, ending a run of six consecutive weeks of losses.

(Reporting by Chibuike OguhEditing by Mark Potter)

 

Trump slaps tariffs on drugs, furniture, trucks

Summary

  • 100% tariff on imported pharmaceutical drugs
  • 50% on and vanities
  • 30% on upholstered furniture, 25% on
  • Trump cites “national security” and support for U.S. producers

WASHINGTON (AP) — President  said Thursday that he will put import taxes of 100% on pharmaceutical drugs, 50% on kitchen cabinets and bathroom vanities, 30% on upholstered furniture and 25% on heavy trucks starting on Oct. 1.

The posts on his social media site showed that Trump’s devotion to tariffs did not end with the trade frameworks and import taxes that were launched in August, a reflection of the president’s confidence that taxes will help to reduce the government’s budget deficit while increasing domestic manufacturing.

While Trump did not provide a legal justification for the tariffs, he appeared to stretch the bounds of his role as commander-in-chief by stating on Truth Social that the taxes on imported kitchen cabinets and sofas were needed “for National Security and other reasons.”

Under the Trade Expansion Act of 1962, the administration launched a Section 232 investigation in April about the impacts on national security from pharmaceutical drug and truck imports. The Commerce Department launched a 232 investigation into timber and lumber in March, though it’s unclear whether the furniture tariffs stem from that.

The tariffs are another dose of uncertainty for the U.S. economy with a solid stock market but a weakening outlook for jobs and elevated . These new taxes on imports could pass through to consumers in the form of higher prices and dampen hiring, a process that economic data suggests is already underway.

“We have begun to see goods prices showing through into higher inflation,” Chair Jerome Powell warned in a recent news conference, adding that higher costs for goods account for “most” or potentially “all” of the increase in inflation levels this year.

The president has pressured Powell to resign, arguing that the Fed should cut its benchmark more aggressively because inflation is no longer a concern. Fed officials have stayed cautious on rate cuts because of the uncertainty created by tariffs.

Trump said on Truth Social that the pharmaceutical tariffs would not apply to companies that are building manufacturing plants in the United States, which he defined as either “breaking ground” or being “under construction.” It was unclear how the tariffs would apply to companies that already have factories in the U.S.

In 2024, America imported nearly $233 billion in pharmaceutical and medicinal products, according to the Census Bureau. The prospect of prices doubling for some medicines could send shock waves to voters as health care expenses, as well as the costs of Medicare and Medicaid, potentially increase.

The pharmaceutical drug announcement was shocking as Trump has previously suggested that tariffs would be phased in over time so that companies had time to build factories and relocate production. On CNBC in August, Trump said he would start by charging a “small tariff” on pharmaceuticals and raise the rate over a year or more to 150% and even 250%.

According to the White House, the threat of tariffs earlier this year contributed to many major pharmaceutical companies, including Johnson & Johnson, AstraZeneca, Roche, Bristol Myers Squibb and Eli Lilly, among others, to announce investments in U.S. production.

Pascal Chan, vice president for strategic policy and supply chains at the Canadian Chamber of Commerce, warned that the tariffs could harm Americans’ health with “immediate price hikes, strained insurance systems, hospital shortages, and the real risk of patients rationing or foregoing essential medicines.”

The new tariffs on cabinetry could further increase the costs for homebuilders at a time when many people seeking to buy a house feel priced out by the mix of housing shortages and high . The National Association of Realtors on Thursday said there were signs of price pressures easing as sales listings increased 11.7% in August from a year ago, but the median price for an existing home was $422,600.

Trump said that foreign-made heavy trucks and parts are hurting domestic producers that need to be defended.

“Large Truck Company Manufacturers, such as Peterbilt, Kenworth, Freightliner, Mack Trucks, and others, will be protected from the onslaught of outside interruptions,” Trump posted.

Trump has long maintained that tariffs are the key to forcing companies to invest more in domestic factories. He has dismissed fears that importers would simply pass along much of the cost of the taxes to consumers and businesses in the form of higher prices.

His broader country-by-country tariffs relied on declaring an economic emergency based on a 1977 law, a drastic tax hike that two federal courts said exceeded Trump’s authority as president. The Supreme Court is set to hear the case in November.

The president continues to claim that inflation is no longer a challenge for the U.S. economy, despite evidence to the contrary. The consumer price index has increased 2.9% over the past 12 months, up from an annual pace of 2.3% in April, when Trump first launched a sweeping set of import taxes.

Nor is there evidence that the tariffs are creating factory jobs or more construction of manufacturing facilities. Since April, the Bureau of Labor Statistics has reported that manufacturers cut 42,000 jobs and builders have downsized by 8,000.

“There’s no inflation,” Trump told reporters Thursday. “We’re having unbelievable success.”

Still, Trump also acknowledged that his tariffs against China had hurt American farmers, who lost out on sales of soybeans. The president separately promised on Thursday to divert tariff revenues to the farmers hurt by the conflict, just as he did during his first term in 2018 and 2019 when his tariffs led to retaliation against the agricultural sector.

30-year U.S. mortgage rate edges up to 6.3%

Summary:

  • 30-year mortgage rate rises to 6.3% from 6.26%
  • 15-year fixed-rate mortgage climbs to 5.49%
  • Rates end a four-week downward trend
  • Borrowing costs still influenced by Fed policy, bond markets

The average rate on a 30-year U.S. mortgage ticked up this week, ending a four-week slide that brought down borrowing costs for homebuyers to the lowest level in nearly a year.

The rate rose to 6.3% from 6.26% last week, mortgage buyer said Thursday. A year ago, the rate averaged 6.08%.

Borrowing costs on 15-year fixed-rate mortgages, popular with homeowners refinancing their , also edged higher. The average rate rose to 5.49% from 5.41% last week. A year ago, it was 5.16%, Freddie Mac said.

are influenced by several factors, from the ‘s interest rate policy decisions to bond market investors’ expectations for the economy and . They generally follow the trajectory of the 10-year Treasury yield, which lenders use as a guide to pricing home loans. The yield was at 4.19% in midday trading Thursday, up from 4.16% late Wednesday.

Starting in late July, mortgage rates mostly declined in the lead-up to the Federal Reserve’s widely anticipated decision last week to cut its main interest rate for the first time in a year amid growing concern over the U.S. job market.

But this week, Fed Chair Jerome Powell signaled a cautious approach to future interest rate cuts, in sharp contrast with other members of the Fed’s rate-setting committee, particularly those who were appointed by President , who are pushing for faster cuts.

have since moved higher in the bond market as traders pared bets for the number of upcoming cuts to rates by the Fed. That helped push up mortgage rates.

The has been in a slump since 2022, when mortgage rates began climbing from historic lows. Sales of previously occupied U.S. homes sank last year to their lowest level in nearly 30 years. And, so far this year, sales are running below where they were at this time in 2024.

This week’s rise in rates could signal a repeat of what happened about a year ago after the Fed cut its benchmark rate for the first time in more than four years. Back then, mortgage rates fell for several weeks prior to the when the Fed cut rates at its September 2024 policy meeting. In the weeks that followed, however, mortgage rates began rising again, eventually reaching just above 7% in mid-January.

Like last year, the Fed’s rate cut doesn’t necessarily mean mortgage rates will keep declining, even as the central bank signals more cuts ahead.

Still, the late-summer decline in mortgage rates has already encouraged many homeowners who bought in recent years after rates climbed above 6% to refinance to a lower rate.

Home loan applications overall rose 0.6% last week from a week earlier as mortgage rates fell, according to the Mortgage Bankers Association. But applications for home refinance loans accounted for more than 60% of all applications, MBA said.

“Even with this week’s uptick, mortgage rates remain near 11-month lows, creating opportunities for both buyers and homeowners considering a refinance,” said Hannah Jones, senior economic research analyst at Realtor.com.

Mortgage rates will have to go well below 6% to make refinancing an attractive option to a broader swath of homeowners, however. That’s because about 81% of U.S. homes have a mortgage with a rate of 6% or lower, according to Realtor.com.

Economists generally expect the average rate on a 30-year mortgage to remain near the mid-6% range this year.

Hawkeye 360 announces new CFO

Herndon-based geospatial analytics company 360 announced Wednesday that it has promoted the company’s chief business officer, Craig Searle, to .

According to Searle’s LinkedIn profile, he was a member of ‘s board of directors and audit committee from 2019 to 2023 before joining the company as vice president of strategic finance. He became chief business officer earlier this year.

“Craig’s appointment as chief financial officer marks another important milestone in HawkEye 360’s evolution as a defense leader,” HawkEye 360 CEO John Serafini said in a statement. “He brings proven financial expertise and business acumen that will strengthen our foundation as we scale to meet growing demand. Craig’s leadership will guide the financial strategy necessary to support customer mission success and advance HawkEye’s position as the premier provider of signals intelligence.”

Searle has over 20 years of finance experience, including 10 years of experience in mergers & acquisitions and capital market transactions. Before joining HawkEye 360, Searle worked as a director on the strategic investments and acquisitions team at Advance, owner of Condé Nast and other media companies.

Founded in 2015, HawkEye 360 collects radio frequency data from its constellations to identify and track activity and trends for military, maritime and intelligence clients.

In June, the company launched its Cluster 12 group of satellites from New Zealand aboard a Rocket Lab Electron rocket. India also agreed to pay the company $131 million in May for SeaVision software to counter illegal maritime activity.

Amazon to pay $2.5B in FTC Prime membership settlement

Summary:

  • agrees to $2.5B settlement with FTC over Prime practices
  • $1B civil penalty marks largest fine in FTC history
  • $1.5B to be paid back to customers enrolled or blocked from canceling
  • FTC said Amazon misled users and made cancellations difficult

SEATTLE (AP) — Amazon has reached a historic $2.5 billion settlement with the , which said the giant tricked customers into signing up for its Prime memberships and made it difficult for them to cancel after doing so.

The Seattle company will pay $1 billion in civil penalties — the largest fine in the agency’s history — and $1.5 billion will be paid back to consumers who were unintentionally enrolled in Prime, or were deterred from canceling their subscriptions, the agency said Thursday.

The surprise settlement comes just days after the trial began in U.S. District Court in Seattle this week. At the heart of the case is the Restore Online Shoppers’ Confidence Act, a 2010 law designed to ensure that people know what they’re being charged for online.

FTC officials said Amazon had its back against the wall and the consumer refund amount exceeded even the agency’s expert projections.

“I think it just took a few days for them to see that they were going to lose. And they came to us and they paid out,” said Chris Mufarrige, director of the Bureau of , on the settlement negotiations.

Amazon, however, said it was confident it would win case but that it chose to resolve it quickly instead of going through potentially years of trial and appeals. The company admitted no wrongdoing in the case, which was first filed two years ago.

“Amazon and our executives have always followed the law and this settlement allows us to move forward and focus on innovating for customers,” said spokesman Mark Blafkin in a statement. “We work incredibly hard to make it clear and simple for customers to both sign up or cancel their , and to offer substantial value for our many millions of loyal Prime members around the world.”

Certain Prime customers who are eligible for automatic refunds of up to $51 include those who may have signed up for a membership via the company’s “Single Page Checkout,” among other links, between June 23, 2019, to June 23, 2025. Those customers will be reimbursed within 90 days of the settlement order.

Amazon is also on the hook to set up a claims process for more than 30 million customers who may have been affected by the other issues at the heart of the FTC case, including its cancellation process.

Amazon Prime provides subscribers with perks that include faster shipping, video streaming and discounts at Whole Foods for a fee of $139 annually, or $14.99 a month.

It’s a key and growing part of Amazon’s business, with more than 200 million members. In its latest financial report, the company reported in July that it booked more than $12 billion in net revenue for , a 12% increase from the same period last year. That figure includes annual and monthly fees associated with Prime memberships, as well as other subscription services such as its music and e-books platforms.

The FTC said Amazon deliberately made it difficult for customers to purchase an item without also subscribing to Prime. In some cases, consumers were presented with a button to complete their transactions — which did not clearly state it would also enroll them in Prime, the agency said.

Getting out of a subscription was often too complicated, and Amazon leadership slowed or rejected changes that would have made canceling easier, according to an FTC complaint.

Internally, Amazon called the process “Iliad,” a reference to the ancient Greek poem about the lengthy siege of Troy during the Trojan war. The process requires the customer to affirm on three pages their desire to cancel membership.

The FTC began looking into Amazon’s Prime subscription practices in 2021 during the first Trump administration, but the lawsuit was filed in 2023 under former FTC Chair Lina Khan, an antitrust expert who had been appointed by Biden.

The agency filed the case months before it submitted an antitrust lawsuit against the retail and company, accusing it of having monopolistic control over online markets.

As part of the settlement terms, Amazon is prohibited from misrepresenting the terms of the subscriptions. It must fully disclose the costs to be incurred and obtain the customer’s express consent for the charge. For example, it must have a clear option for customers to accept or decline a Prime subscription being offered during a purchase, avoiding potentially confusing language such as: “No thanks, I don’t want free shipping.”

Automatic renewals for memberships must be clearly marked and the company is also required to use a cancellation process, which “must not be difficult, costly, confusing or time consuming,” according to the settlement.

Amazon said the settlement doesn’t require it to make any additional changes — only to maintain its current sign-up and cancellation process that it had put in place in recent years.

Hegseth calls sudden meeting of U.S. generals, admirals

Summary

  • Hegseth orders meeting of hundreds of at
  • offers no reason for sudden high-level gathering
  • Comes after unexplained firings of senior military leaders
  • Hegseth has also directed deep cuts to top officer ranks

WASHINGTON (AP) — Defense Secretary has summoned the military’s top officers — hundreds of generals and admirals — to a base in for a sudden meeting next week, according to three people familiar with the matter.

The directive did not offer a reason for the gathering Tuesday of senior commanders of the one-star rank or higher and their top advisers at the Marine Corps base in Quantico. The people, who described the move as unusual, were not authorized to publicly discuss the sensitive plans and spoke on condition of anonymity.

The Pentagon’s top spokesman, Sean Parnell, confirmed that Hegseth “will be addressing his senior military leaders early next week.”

Across the military, there are 800 generals and admirals of all ranks. Many command thousands of service members and are stationed across the world in more than a dozen countries and time zones.

The meeting, first reported by The Washington Post, comes on the heels of several unusual and unexplained actions that Hegseth has taken involving military leaders.

In May, Hegseth ordered that the military cut 20% of its four-star general officers, directed an additional 10% cut from all general and flag officers across the force, and told the National Guard to shed 20% of its top positions.

In February, Hegseth fired Adm. Lisa Franchetti, the Navy’s top officer, and Gen. James Slife, the Air Force’s second highest officer, without explanation. He also relieved the military’s top lawyers.

Since then, Hegseth has fired other military leaders without saying why. Most recently it was a general who led a military intelligence agency whose initial assessment of U.S. damage to Iranian nuclear sites in American strikes angered President .

RTX subsidiary lands $578.6M Army contract

Raytheon, a subsidiary of -based aerospace and defense contractor , has been awarded a $578.63 million contract to procure Stinger missiles, ancillary equipment and related support.

The (recently rebranded by the Trump administration as the ) said that the contract was solicited online, and that one bid was received. The DOD estimates the contract will be completed by Sept. 29, 2031.

In service since 1981, the Stinger is a portable, shoulder-fired guided-missile system that can be rapidly deployed by ground troops for air defense.

RTX has more than 185,000 employees globally and reported more than $80.73 billion in 2024 sales. The contractor is the second highest ranked Virginia-based company on the 2025 Fortune 500.

Virginia housing sales remained flat in August but prices rose

SUMMARY:

    • August sales were flat compared to last year, but down 7.5% from July
    • Listings rose 26%, with inventory above 2020 levels
    • Virginia’s median sales price reached $430,000, up 3.6% from last year

Virginia’s sales in August slightly dipped from the previous month. Still, reports that sales remain essentially unchanged from last year’s August numbers, even as prices continued to rise and inventory expanded.

According to an August statewide sales data report released by the trade association, the state had 24,606 active listings last month, representing a 26.2% surge from last year. There were also nearly 13,000 properties added to the market during the month. The state’s inventory is now back above 2020 levels.

“Inventory growth has been one of the big stories of 2025,” said Virginia Realtors Chief Economist Ryan Price in a statement. “With listings up more than 26% from last year, buyers across the commonwealth are seeing more options than they’ve had in a long time. While supply is improving, demand continues to be tempered by economic uncertainty.”

In terms of , there were 9,423 homes sold statewide last month, just 15 more than in August 2024 (a 0.2% increase), but down 7.5% from July’s 10,182.

Change in Virginia’s August home sales from 2024 to 2025, based on data accessed Sept. 15 .Courtesy Virginia Realtors.

“While there are more options for buyers now with listings increasing each month, climbing prices, stubbornly high for much of the year and lingering job uncertainty in some of Virginia’s larger housing markets have kept sales muted,” the report reads.

The report said some of the sharpest declines in August sales were in the region, the area and the market. However, sales activity outpaced August 2024  by double-digit rates in the Williamsburg region, the and the .

Pending sales saw a modest 3.4% year-over-year increase, with 8,611 in August. However, pending sales were down 6.3% from July, which the association says is “a typical season dip.”

The statewide median sales price in August was $430,000, a 3.6% increase from the same time last year. The report stated that while prices continue to rise, the pace of the growth is slowing, ranging from 2% to 3.6% over the last five months.

The Greater Piedmont region, the Virginia Peninsula area and the Lynchburg region saw “robust” median price growth. In contrast, the median prices declined in Lexington, the New River Valley and the Charlottesville area.

The association states that despite flat sales, higher prices resulted in the state’s sold dollar volume reaching $5.1 billion, a 4.4% year-over-year increase.

Virginia Realtors notes that homes are taking longer to sell, with the median days on market in August reaching 17 days — five days longer than last August and the slowest August pace since 2019.

However, the association sees some signs for optimism, as the state’s average 30-year fixed mortgage rate dropped to 6.26% in mid-September, the lowest in nearly a year.

“The recent drop in mortgage rates is a positive sign for both buyers and sellers,” said Virginia Realtors President Lorraine Arora in a statement. “If that trend continues, we could see stronger sales to close out what has been a muted year so far.”

Based in , Virginia Realtors represents about 35,000 Realtors and is the state’s largest trade association.

Regional jet overshoots landing at Virginia airport

No injuries were reported after a commercial regional jet overshot the designated touchdown zone at a Roanoke airport amid heavy rain Wednesday night, but was stopped in a safety area at the end of the runway, officials said. Delays continued at the airport Thursday morning.

ERJ145 flight 4339, operating as United Express, “landed long” as it arrived at around 10 p.m., according to a Federal Aviation Administration statement. It was safely stopped by an engineered materials arresting system bed at the end of the runway.

The safety area made of cellular cement blocks meant to slow and stop an aircraft that overruns the runway was upgraded last year and performed as intended, airport spokesperson Alexa Briehl said in an email. There was heavy rain in the area at the time of the incident, Briehl said.

There were 50 passengers and three crew members on board the flight operating as United Express from Washington Dulles International Airport when it overran the runway while landing at Roanoke, CommuteAir executive vice president and Sean Frick said in an email. The captain reported no injuries, Frick said.

Based in Ohio, CommuteAir is a regional airline that operates flights on behalf of .

Passengers aboard the Embraer 145 were bused to the terminal and law enforcement released them to go home a little before midnight, officials said.

All runways at the airport were closed for a time. One runway reopened after midnight to arriving and departing traffic, but the runway where the overrun occurred remained closed, the airport said.

The FAA said it will investigate.

Airport officials urged travelers to check with their airlines on Thursday morning since multiple flights were delayed.

Baldaccis pledge $13M to VCU, Library of Virginia

Best-selling Virginia novelist David Baldacci and his wife, Michelle, have pledged $13 million to and the to launch a nonpartisan initiative that will encompass experiential learning, a tailored curriculum, events and programming spaces, according to a Thursday announcement.

The gift is the largest joint contribution ever received by VCU and the Library of Virginia.

Designed to “promote constructive dialogue in a polarized world,” the effort, called the Civil Discourse and Collaboration Initiative, will build on work already underway at VCU’s College of Humanities and Sciences and the Library of Virginia and is designed to bring together universities, colleges and organizations across Virginia.

A lifelong resident of the commonwealth, earned a degree in political science from VCU. He and his wife have been active with the Library of Virginia for many years. About a year ago, the Baldaccis began conversations with Catherine Ingrassia, dean of VCU’s College of Humanities and Sciences, and state librarian Dennis Clark about the need for constructive dialogue in a divided world, according to a news release.

“I have long felt that we need to draw people together in a civil manner and learn to have frank and respectful dialogue with those with whom we have differences,” David Baldacci said in a statement. “As constructive interaction has continued to decrease, it is more important than ever to champion this type of initiative, which has, as its chief goal, the bringing together of people to solve complex problems and move the country forward.”

“This program is an important step in helping to prepare our students as leaders who bridge divides and build consensus through dialogue and understanding,” VCU President Michael Rao said in a statement.

A graduate of the University of Virginia School of Law who practiced in Washington, D.C., Baldacci has published more than 50 novels. His thriller “A Calamity of Souls” was released in March. In January, Baldacci was named the 2024 PEN/Faulkner Literary Champion, awarded for literary advocacy.

In 2002, the Baldaccis established the nonprofit Wish You Well Foundation, which funds adult literacy and education efforts.