Finance
'It was too big a cut': Trump and his allies slam Fed after inflation report
Donald Trump and his top allies quickly jumped on a hotter-than-expected inflation report Thursday to slam the Biden/Harris administration, the Federal Reserve and central bank chairman Jerome Powell.
“The fact is that the Federal Reserve brought the interest rates down a little too quickly,” former President Donald Trump said Thursday afternoon during an appearance at the Detroit Economic Club.
“It was too big a cut and everyone knows that was a political maneuver that they tried to do before the election,” he added.
It was the most direct critique from Trump of Powell in months and came after an initial reaction from the GOP nominee to the September interest rate cut of 50-basis-points where Trump often focused on charges of a bad economy over critiquing the central bank directly.
“It was totally a political decision and inflation has started to rise,” Trump said Thursday while also charging that high interest rates “really kills the American dream for young people.”
Make America Great Again Inc. — a Trump supporting Super-PAC — also jumped in with a release Thursday saying Thursday’s inflation reading could be part of “the Fed’s worst nightmare.”
Overall, prices as measured by the Consumer Price Index increased 2.4% over the last year, which marked a slight deceleration following August’s 2.5% annual gain in prices.
But the lower annual readings were largely overshadowed by a monthly increase in September of 0.2% over August, hotter than economist estimates of a 0.1% uptick.
Democrats, including the Biden/Harris administration, chose to focus on that annual number in their reactions with National Economic Advisor Lael Brainard offering in a statement that “inflation has fallen back down to 2.4%, the same rate as right before the pandemic.”
“We keep making progress,” she added.
Political headaches for Powell
The Federal Reserve’s Open Market committee won’t gather again until after election day. Thursday’s inflation reading appeared to offer new momentum for central bank hawks counseling a more gradual pace of interest rate cuts in the months ahead.
And some initial reaction suggested a change in strategy is not likely no matter what Trump says.
Likely 25-basis-point cuts at last two meetings of the year are “pretty much baked into the cake,” offered Max Kettner, HSBC chief multi-asset strategist, in a Yahoo Finance Live Appearance Thursday.
But Atlanta Fed president Raphael Bostic did tell The Wall Street Journal Thursday following the CPI release that he was “totally comfortable” with holding steady next month and that he had already penciled in an estimate of just one more rate cut this year.
What Thursday’s campaign trail commentary could do is mark a return to political headaches for Powell that have ebbed and flowed over the course of 2024.
In August, Trump said he would like a “say” in setting interest rates, raising the prospect that the Republican nominee could seek to reduce the independence of the Federal Reserve if he wins in November.
He was even blunter earlier in the year, when he told Bloomberg in June that cuts are something “they know they shouldn’t be doing.” That came after a February Fox Business interview when Trump said of cuts: “I think [Powell’s] going to do something to probably help the Democrats.”
But when a cut finally came, Trump’s initial reaction was to focus on the economy.
“I guess it shows the economy is very bad to cut it by that much assuming that they are not just playing politics,” Trump said in September a few hours after the cut.
“It was a political move,” he offered a few days later in a Newsmax interview but only at the urging of the interview and after Trump had first mentioned the economy.
Ben Werschkul is Washington correspondent for Yahoo Finance.
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Harley-Davidson’s new CEO wants to transform how people think about the iconic motorcycle brand, so the company is trying something different.
This week, Harley announced a new strategy that focuses on lower-priced bikes, rather than relying on older, more affluent customers to buy its higher-margin touring models.
“Back to the Bricks builds on our core strengths and competitive advantages, harnessing the passion of our riders to deliver profitable growth for the Company and both our dealers and shareholders,” Harley CEO Artie Starrs said this week. “As we drive towards this new phase of growth, we remain committed to the craftsmanship and dedication that define our brand.”
Entry-level Harley-Davidsons cost about $13,000, while the higher-end Adventure Touring models average about $23,250, and the Premium Range &CVO models cost about $38,500, according to Reuters.
Harley’s new strategy targets a core profit of over $350 million from its motorcycle business by 2027 and over $150 million in cost reductions.
To kick off the new strategy, Harley is introducing Sprint, a new entry-level model powered by a smaller 440cc engine, later in the year.
What is Harley-Davidson’s “Back to the Bricks” strategy?
Harley’s new strategy relies on more than just pushing buyers toward cheaper vehicles to increase volume. The 123-year-old company has a set of five pillars on which it is building its future.
Harley-Davidson “Back to the Bricks” 5-point plan
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Deep appreciation of Harley-Davidson’s competitive advantages and legacy: The Company’s iconic brand, diversified and powerful revenue channels, and best-in-class dealer network provide a powerful foundation for growth.
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Renewed commitment to exclusive dealer network to drive enterprise profitability: Harley-Davidson’s dealers are a competitive advantage. The Company is planning actions to enable dealers to double profitability in 2026 and then double it again by 2029.
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Immediate actions to recapture share in areas where Harley-Davidson has right to win: Harley-Davidson has strong legacy equity in existing markets including new motorcycles, used motorcycles, Parts & Accessories, and Apparel & Licensing. The Company’s new strategy is focused on positioning the Company to regain share and drive meaningful volume growth in categories where it benefits from credibility, scale, and deep rider connection.
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Strong financial position with a path to stronger free cash flow and EBITDA margin: Cost and restructuring actions already underway support a path to stronger free cash flow and EBITDA margin over time.
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Bolstered management team with balance of fresh perspectives and institutional knowledge: Harley-Davidson has made a number of leadership appointments that support the Company as it leverages its innate strengths.
Written by Jitendra Parashar at The Motley Fool Canada
Dividend investing can be one of the simplest ways to build long-term wealth while creating a steady stream of passive income. But in my opinion, a good dividend stock is about much more than just a high yield. Beyond dividend yield, investors should also look for companies with durable businesses, reliable cash flows, and a history of rewarding shareholders consistently over time.
That’s exactly why many investors turn to financial stocks. Banks and asset managers often generate recurring earnings through lending, investing, and wealth management activities, allowing them to support stable dividend payments even during uncertain market conditions.
Two Canadian financial stocks that stand out right now are AGF Management (TSX:AGF.B) and Toronto-Dominion Bank (TSX:TD). Both companies offer attractive dividends backed by solid financial performance and long-term growth strategies. In this article, I’ll explain why these two financial stocks could be worth considering for income-focused investors right now.
AGF Management stock continues to reward shareholders
AGF Management is a Toronto-based asset manager with businesses across investments, private markets, and wealth management. Through these divisions, the company offers equity, fixed income, alternative, and multi-asset investment strategies to retail, institutional, and private wealth clients.
Following a 59% rally over the last 12 months, AGF stock currently trades at $16.67 per share with a market cap of roughly $1.1 billion. At current levels, the stock offers a quarterly dividend yield of 3.3%.
One reason behind AGF’s strong recent performance is its increasingly diversified business model. The company has expanded its investment capabilities and broadened its geographic reach, helping it perform well across varying market environments.
In the first quarter of its fiscal 2026 (ended in February), AGF posted free cash flow of $36 million, up 14% year over year (YoY), driven mainly by higher management, advisory, and administration fees. These fees climbed to $92.5 million as demand for the company’s investment offerings strengthened.
AGF has also been focusing on expanding its alternative investment business and introducing new investment products. With strong cash generation and growing demand for alternative investments, AGF Management looks well-positioned to continue rewarding investors over the long term.
TD Bank stock remains a dependable dividend giant
Toronto-Dominion Bank, or TD Bank, is one of North America’s largest banks, serving millions of customers through its Canadian banking, U.S. retail banking, wealth management and insurance, and wholesale banking operations.
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