Fed keeps 2 percent interest rates

The Federal Reserve decided to keep the federal funds rate at 2 percent, as the country faces a sluggish economy with rising inflation. 

Economic activity expanded in the second quarter, partly reflecting growth in consumer spending and exports. On the other hand, financial markets continue to struggle. Other factors influencing the decision were related to tight credit conditions, the ongoing housing contraction, and elevated energy prices, which are likely to weigh on economic growth over the next few quarters, according to the Fed’s August 5 press release.

Jobless rates highest in 4 years

The country’s unemployment rate reached its highest level in four years, for July. Unemployment climbed to 5.7 percent from 5.5 percent, as employers cut 51,000 jobs. Particularly, jobs in the manufacturing, construction and service providing industries were cut.

Analysts suggest some employers are cutting jobs because of the weighing high energy prices and existing housing situation. The Labor Department released its monthly Employment report Friday, August 1.

Read more at the US Department of Labor.

Apple 3Q profits soar

Apple Inc., a San Francisco, Calif.-based technology company, third quarter profits jumped 31 percent, which some analysts say was helped by the new iPhone and the ever-popular sleek Macintosh notebooks. This beat Wall Street’s estimate.

This hip tech savy company posted revenue of $7.46 billion and net profited $1.07 billion, for the third quarter ending June 28, or $1.19 per diluted share. These numbers compare to revenue of $5.21 billion and net profited $818 million, or $.92 per diluted share, in year ago. 

Steve Jobs, Apple’s CEO, said “We’re proud to report the best June quarter for both revenue and earning in Apple’s history.” The company shipped 2.5 million Mac computers during the quarter, according to Apple’s recent earning press release. 

Gas prices fall back

Consumers are now getting somewhat of a break, at the pump. Gas prices continued to fall overnight, according to news reports. 

According to AAA, the current (Monday, July 21) average for regular unleaded gas in Illinois is $4.17, medium at $4.49, premium at $4.63 and diesel at $4.82. The average on Sunday, July 20 was regular at $4.19, medium at $4.50, premium at $.64 and diesel at $4.87.  A year ago (2007), the regular average was $3.21, medium $3.45, premium $3.52 and diesel at $3.03.

“Gas prices in Alaska, that with the highest prices, fell to $4.66 a gallon from $4.64 the day before. Hawaii, the state with the second highest prices, saw prices fall to $4.46. California prices fell a penny to $4.44 on average,” according to CNNMoney.com 

iPhone sells TODAY

Apple’s newest sleek gadget, the iPHone 3G goes on sell this morning in the U.S. It’s an updated version of the iPhone. 

How much is it? $199 for 8 gigabytes and $299 for 15 gigabytes. Know that you’re required to purchase a mandatory two-year service agreement, but it’s about half the price of the original iPhone released last year.

What the heck is a 3G? It’s a third-generation cell phone network. This phone is expected to load Web pages twice as fast as the older version. It’s interactive capabilities are much larger than the normal capacity. 

How many iPhones are available? Of course, with most of all of Apple’s cool and yet sophisticated gadgets you’re going pay your dues of waiting in long lines.  Analysts expect 10 million people will buy the phone this year, according to various news reports. 

Check back for updates! 

ALL about Apple

www.apple.com

Student loans

The variable rates for Federal Stafford and PLUS Loans were lowered on July 1. According to FinAd, a Web site devoted to financial aid, said the existing interest rates on the Stafford Loan are 6.62 percent during in-school and grace periods and 7.22 percent during the repayment period. The current interest rate on the PLUS Loan is 8.02 percent. 

Read more details about the lowered interest rates at FinAid and Student loan rates will decrease July 1

Siemens to slice nearly 17,000 jobs

Siemens AG announced Tuesday it plans to cut approximately 16,750 jobs, or 4.2 percent of its worldwide work force, to save on operations and cut roughly $2 billion in cost. The job cuts are the result of a slowing economy, according to the Germany-based technology company. 

All About Siemens A G ADR
NYSE: SI
CEO: Dr.-Ing. Heinrich Heisinger, 48
Industry: Technology

U.S. Apartments vacancy unchanged

The U.S. Apartment vacancy was unchanged at 5.9 percent, whereas the household number fell by 40 percent from a year ago May.

Starbucks to close 600 stores

Drinkers of foam-filled lattes and $5 plastic wrapped veggie sandwiches are wondering whether their local coffee giant Starbucks will close soon. The Seattle, Wash. based bean coffee giant announced earlier this week that it plans to close 600 U.S. stores.

Source: Youtube

All About Starbucks
NASDAQ: SBUX
Founder & CEO: Howard D. Schultz
President: James C. Alling

Five Ways to Reduce Your Debt

Debt – The state of owing, as defined by Merriam Webster Dictionary. 

As Americans, our debt which includes but not limited to medical bills, student loans, credit card loans and mortgages, often times exceeds our Household Income. We buy lavishes of gold and sliver to be compared to the Jones’, but know that financial freedom is obtainable.

1. Create a realistic budget. Make an accurate list of your necessities, which includes housing, utilities, bills and other expenses. Next, prioritize your monthly bills to determine what’s essential and what you can do without. Lastly, seriously consider how you can reduce the money you spend monthly on gas, food, fun and leisure (plays, theatre, bars, alcohol, vacations, etc.)

2. Lower your credit card rate. Contact your credit card companies about lowering your interest rates. Through experience, it’s best to pay off credit cards with the highest interest rates of the cards your posses.

3. Create a rainy day fund. Expect the unexpected! This means that you’re going to have a flat tire, transmission problems, utility problems, medical emergencies, family problems and other financial emergencies. So, in other words SAVE, SAVE, SAVE. Using the money you’ve put into your emergency fund you will be reluctant to use your credit cards for fixing your car problems.

4. Pay more than the minimum. As you’ve heard before, paying the minimum ($27-$35) monthly credit card payment is not helpful in getting you out of debt.

5. Know your credit score.Knowing your FICO scores helps you to stay financially conscious. Don’t be afraid to contact one of the three credit bureaus to see whether you’re categorized as having poor, fair, good or great credit.