Showing posts with label Federal. Show all posts
Showing posts with label Federal. Show all posts

Sunday, May 17, 2026

Steve Ballmer explains the Federal Reserve (video)


Just the Facts on the Fed
 
The newly confirmed Fed Chair Kevin Warsh is beginning his tenure as head of the Federal Reserve. The Fed is the nation's central bank, but you can’t walk into a branch to open a checking account. Instead, the Fed's decisions can make your car payments cheaper or a job harder to find.
 
So how does the Fed work? Glad you asked! USAFacts Founder Steve Ballmer just dropped this new video on the Fed and we couldn’t wait to share it with you. 
Join Steve as he breaks down the Federal Reserve's complex role in the American economy. He'll break down complicated concepts, provide visuals to shed light on the institution, and even make a few costume changes. 
 
This is the first Spotlight edition of the USAFacts newsletter, which we’ll send when we have a cool new way to explore data with you. You can expect to get them about once a month. 
 
Here's a preview of what you'll find in the video, plus data to understand the Fed's role in your economic well-being:  
The Federal Reserve is the most important bank you’ll never use.
  • It’s a bank for banks. It holds cash reserves, moves money between banks, and can lend to them whenever needed.

  • The Fed has five responsibilities. The one that affects you most directly is its mandate to conduct monetary policy to keep inflation in check and employment high. Through it, the Fed can influence interest rates across the entire economy. (Here are the other four.)  
Speaking of inflation
  • When the Fed lowers interest rates, it can lead to the running economy “hot.” It can make it cheaper for you to buy a house, get a car loan, or borrow money to open a business. But if money’s easier to borrow, it can fuel inflation.

  • Last month’s inflation rate was 3.8%. The Bureau of Labor Statistics measures inflation through changes in the Consumer Price Index (CPI), a metric designed to track the price of a “basket of goods and services.” 
  • Think a dollar doesn't go as far as it used to? You're right. Track how the dollar’s value has changed with our inflation calculator! Explore the value from 1913 to now, or at any point in between.

  • Workers’ wages aren’t keeping up with inflation. Nominal wages rose 3.6% from April 2025 to April 2026, while prices grew 3.8%.

  • When the Fed raises interest rates, it can lead to the economy running “cold,” making things more expensive and slowing inflation. When borrowing is hard, it can slow the economy and drive up unemployment.  
How the Fed influences interest rates
  • The Fed changes the interest it charges on loans it gives and pays on other banks' cash reserves it holds, effectively setting the limits at which other banks can charge interest. The average overnight rate at which banks transact is called the federal funds rate. Get a jargon-free explanation of the federal funds rate from Steve himself.
  • If the Fed raises the federal funds range, your bank’s costs go up. Your bank might raise interest rates on new loans. Mortgages, car loans, credit cards, and short-term business loans all get more expensive. That can ripple across the economy: people buy less, inflation can decrease as demand falls, less demand means companies may need fewer workers — causing unemployment to rise.

  • The federal funds rate target range has changed about 30 times in the last 10 years. In 2022, inflation climbed well above the Fed’s 2% goal. In response, the Fed raised the federal funds target range seven times in a single year. 
  • The Fed uses the Personal Consumption Expenditures Price Index (PCE) to measure inflation. The PCE tracks changes in the prices consumers pay across the economy. This differs somewhat from the CPI (the inflation measure most Americans are familiar with) because the two indexes use different methods and baskets of goods and services to calculate price changes.

  • Sometimes interest rate changes aren't enough, so the Fed uses other tools. One of them is to create money. (Sounds nice, right?) Here’s how
 
Thank you for joining us for this first Spotlight email! Watch the video now, then learn more about the Federal Reserve


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Sunday, March 15, 2026

Don't get sick, research cuts may prevent the solution from being discovered

"Think about the disease that worries you most — the one that runs in your family. Or, maybe, someone you love is living with it. Whether that’s cancer, Alzheimer’s, diabetes, or depression, odds are the US government has been funding the research to treat it.

That research is a big reason we have drugs that made fatal blood cancers survivable, treatments that turned HIV from a death sentence into something people live full lives with, and a vaccine that all but prevents cervical cancer.

But, last year, the US funded dramatically fewer grants to do medical research that can lead to breakthroughs like those. New data released by the NIH this week shows how the damage from those cuts broke down. The numbers are striking across the board."

Read the full story at the link -
https://www.vox.com/future-perfect/482363/nih-medical-research-grants-cut-2025



Monday, March 2, 2026

Corporation for Public Broadcasting shuts down

"Today (3/1/26), the Corporation for Public Broadcasting formally dissolved as a corporate entity.

For nearly 60 years, CPB stewarded the federal appropriation for public media in ways that enhanced the lives of all Americans, ensuring everyone, regardless of where they live or how much they earn, has access to public media and the essential services it provides, free of charge. As a whole, public media provided such value, at so little cost to the taxpayer, that it received bipartisan support for decades and few thought it would be defunded.

However, throughout 2025, CPB and public media became the target of heightened, relentless partisan attacks with the goal of defunding CPB. Millions of Americans who value their public media station and recognize that public media's trusted, educational and informational content is vital to our democracy, expressed support for public media and petitioned Congress to preserve federal funding for CPB. 
Against the wishes of the majority of Americans, in July 2025, Congress defunded CPB by passing the Rescission Act of 2025 — a maneuver that enabled Congress to "claw back" already appropriated funds by just a single-vote margin.

Since then, CPB has survived mainly on private donations because Congress failed to provide basic closing costs. The CPB team has worked with unwavering professionalism to honor existing commitments and distribute remaining grants to local stations, producers, PBS, and NPR, even when only a handful of us remained. We mark their dedicated service with respect and gratitude.

Some have asked if CPB could survive on private donations alone until a more favorable political climate emerges that would favor restoring funding to CPB. The CPB Board of Directors gave very careful consideration to many options and concluded that dissolution was the only responsible path.

The longer CPB tried to exist without funding, the greater the probability that our remaining funds would never reach the public media system. Moreover, we grew increasingly concerned that funding directed to public media could become subject to new content restrictions, and that compliance would further harm stations and erode the trust we worked decades to build.

These risks were real and dangerous, and we would not allow them to take shape.
We could have survived by complying with demands for political control over news coverage, by rewriting history, by limiting the stories and information shared with the American public, by abandoning diverse talent, or by supporting content that increases divisiveness through disinformation.  

But the American people deserve more. So, CPB took its last stand.

We invested in the innovative, sustainable solutions that will empower public media to survive in our absence.

Since October, we have provided over $170 million in funding into  organizations, stations, and programs with the power to carry public media forward.

We made strategic investments that preserve public media’s legacy and strengthen its future, safeguarding the American Archive of Public Broadcasting so our shared civic history endures; maintaining national distribution of locally produced programming through American Public Television; supporting trusted, research-backed educational content; commemorating the nation’s 250th anniversary through StoryCorps; and advancing rigorous research that documents public media’s impact and role in supporting our democracy.

All of these measures reflect CPB’s enduring purpose: to strengthen education, preserve democratic memory, amplify local voices, and ensure that public media remains valuable to the public it serves.

The Board took the heart-wrenching but necessary step to dissolve this venerable institution not only for financial reasons but to protect CPB from continued attacks or other interventions that would diminish the institution, as has occurred at other federally funded agencies.

We are grateful for the public's decades of support for our mission and work, and thankful for your continued support to local stations struggling in the wake of the rescission. 

The Public Broadcasting Act, which envisioned a public media system that put the public interest above profit, still exists. Let us look to a future when public media funding is restored in ways that honor that mission.

Thank you."

"Often when you think you’re at the end of something, you’re at the beginning of something else." - Mister Rogers

Friday, January 30, 2026

USA Facts: Which states contribute more than they receive?

USA Facts: Which states contribute more than they receive?
USA Facts: Which states contribute more than they receive?
"In FY 2024, the federal government collected around $5.07 trillion from states and their residents. With 38% coming from the nation’s 4 most populous states: California (15.9%), Texas (8.2%), New York (7.6%), and Florida (6.4%).

19 states sent more money than they received — California has the largest difference of $276B between what they sent and what they got back.

About $4.87 trillion was redistributed back to states and residents through programs like Social Security, Medicaid, Medicare, food stamps, and education grants.

The states that received the most funds compared to what they paid were:

📍 Virginia (+$89B)
📍 Alabama (+$45B)
📍 South Carolina (+$39B)

Where does your state fall?"

* Mass is in the Top 19 in sending more than receiving back


See more at USA Facts -> https://usafacts.org/

Friday, October 31, 2025

Dan Rather: Have We Reached The Tipping Point?


The president has stooped to using hunger as a political gambit
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Have We Reached The Tipping Point?

The president has stooped to using hunger as a political gambit

Oct 30
 
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A person receiving groceries at a Miami food bank. Credit: Getty Images

While there are seemingly no winners when the government shuts down, this time around, millions of Americans are losing big… losing food, losing paychecks, losing benefits, losing security, and losing hope.

They are pawns in a game of political brinksmanship. You can't even label them collateral damage because that would imply that what is happening to them is unintentional. It is not. The president fully intends to inflict harm on tens of millions of Americans to notch a win.

The Hungry
Nearly 42 million Americans receive food assistance through the Supplemental Nutrition Assistance Program (SNAP). Originally called food stamps, it's a program that's been around for decades. I was covering the White House in 1964 when President Lyndon Johnson signed the measure into law as part of the War on Poverty.

Last week, the Department of Agriculture said it will withhold money earmarked by Congress to pay for SNAP during the shutdown, the first time emergency funds have not been released in such a case.

Even though the USDA is legally required to fund the program, the president is holding the money hostage. You are reading that correctly. He is withholding food assistance from some of the most vulnerable Americans, more than 16 million of whom are children, in a political ploy to push the Democrats to fold.

One of those Democrats, Rep. Rosa DeLauro of Connecticut, called him out. "This is perhaps the most cruel and unlawful offense the Trump administration has perpetrated yet — freezing funding already enacted into law to feed hungry Americans while he shovels tens of billions of dollars out the door to Argentina and into his ballroom," she said.

Democratic Michigan State Senator Mallory McMorrow did not hold back when encouraging her fellow senators to vote to temporarily fund SNAP. "The Trump administration and the Republicans supporting him are using food as a political weapon. This is a choice… They are choosing to let children go hungry. We will not stand for that choice," she said.

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Even if state governments like Michigan's have the money to fund the program for the duration of the shutdown, the USDA has said they will not be reimbursed.

An end to the shutdown won't even mean a return to normal funding levels for SNAP. The $186 billion cut to SNAP, outlined in the president's July spending bill, will go into effect as soon as the government reopens.

For many households, SNAP is not a cushion, it's a lifeline. When that lifeline is cut, the ripple effects can be immediate and profound. And it's not just low-income families at risk, the knock-on effect of canceled or reduced benefits could echo throughout the economy.

SNAP dollars help feed more than 40 million people, which in turn supports farmers, truck drivers, and grocery store workers. When those funds stop flowing, small businesses in low-income neighborhoods often take the first hit.

Twenty-three Democratic state attorneys general have sued the USDA to release the money. On Thursday, the U.S. District Court judge hearing the case said she will likely order the administration to send the emergency SNAP funds to the states, which administer the program. The contingency funding is enough to keep the program solvent for two and a half weeks, but getting the money to recipients will take a few days.

Federal Workers
730,000 federal employees are working without pay, and an additional 670,000 have been furloughed without pay, according to the Bipartisan Policy Center. Normally, they all would receive back pay when the shutdown inevitably ends. But as we know, there is nothing normal about this administration. The president has said that federal workers may not get back pay, even though, by law, that is not his call to make.

Some cherry-picked segments of the federal workforce are getting paid: active duty military, immigration enforcement agents, and other law enforcement agents.

Billionaire and Trump financial backer Timothy Mellon has donated $130 million to the federal government — apparently, a new Trump loyalty test — to pay the 1.3 million members of the military. That sounds like and is a lot of money, but it works out to just $100 per service member. So what is Mellon hoping to get for his largess other than some positive press?

And of course, members of Congress are still getting a paycheck, even though the House hasn't been in session since Speaker Mike Johnson, who earns $223,500 a year, sent them home weeks ago.

Things are becoming dire for the federal employees, who have now gone without a paycheck for a month. Eligibility for assistance like unemployment is not guaranteed and varies by state.

In communities with large federal workforces, food banks have been hastily set up. Airlines have started buying lunch for air traffic controllers, who are working without a paycheck. In California, the governor has deployed the National Guard to help food banks as they brace for increased demand.

Anyone With Health Insurance
The fight over extending Covid-era subsidies for Obamacare is shining a spotlight on a growing problem: the staggeringly high cost of health insurance in America. The United States has the most expensive healthcare system in the developed world and the only country without universal healthcare, according to the World Health Organization.

Employer-provided insurance is the most popular, covering 154 million, or 54% of people with insurance. Public insurance, which includes Medicare, Medicaid, and Veterans Health Care, accounts for about 36%. Ten percent get insurance through the Affordable Care Act. Eight percent of Americans are uninsured, an historic low.

If federal subsidies for insurance purchased through the Affordable Care Act are not extended, premiums will skyrocket, in some cases doubling, even tripling. But the elimination of subsidies is only part of the reason for the rise in premiums.

Anyone who pays for health insurance in America will see premiums jump in 2026. The increase, the biggest in 15 years, is expected to be as high as 9% in some cases, according to Mercer, a benefits consultancy.

An analysis by the Los Angeles Times found that because of the increases, insurance for a family of four in 2026 will cost $27,000, or the price of a new Toyota Corolla. Higher premiums will mean some people will either opt for cheaper coverage or no coverage at all, driving up premiums even further.

The White House refuses to come to the negotiating table unless Democrats agree to open the government first. Someone might want to tell the president that's not how negotiating works. Meanwhile, he and his posse of congressional enablers are losing the battle of public opinion. In a new Washington Post-ABC News-Ipsos poll, 45% of respondents blame the president and the Republicans, while 33% blame Democrats.

We are beyond finger pointing. In these trying times, those looking for something positive to do, here's a way. Consider donating to your local food pantry or volunteering with an organization like Feeding America or Meals on Wheels. If you need assistance the Feeding America website allows you to search for local food banks. Good-hearted Americans will continue to step up.

What should not get lost in all the scare tactics and the political paralysis in Washington is that tens of millions of people go hungry every day in America, the richest country in the world. And that is before the shutdown and callous political maneuvering. The small help some of them get, an average of $190 a month, is being weaponized by a billionaire.

Steady is free, but we'd appreciate it if you would consider joining as a paid subscriber. That helps us maintain Steady and continue to make it available for everyone.

No matter how you subscribe, I thank you for reading.

Stay Steady,
Dan

 

© 2025 Dan Rather
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