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The Dow Jones Industrial Average plunged more than 500 points on Tuesday after hot inflation data for January dimmed hopes that the Federal Reserve would begin cutting interest rates next month.

The Dow, which tumbled as 750 points, slid 1.4% — its worst day since since March 2023. The S&P 500 slipped 1.4%, while the tech-heavy Nasdaq Composite fell 1.8%.

Both the Dow and the S&P 500 had hit record highs this year before plunging following the release of the Consumer Price Index, which rose a stiffer-than-expected 3.1% on an annual basis.

The figure — which tracks changes in the costs of everyday goods and services — remains far off from the Fed’s 2% target.

Core CPI a number that excludes volatile food and energy prices increased 0.4% in January, to 3.9%.

The figure, a closely-watched gauge among policymakers for long-term trends, was also higher than what economists anticipated.

“Inflation staying sticky is everyone’s biggest fear and this report is showing its not going down,” Chris Zaccarelli, the chief investment officer of Independent Advisor Alliance, said. “The knee- jerk reaction is for stocks and bonds to sell off. That makes sense. Then we’ll wait for the next report and if that’s lower this will turn out to be just a blip.”

The increase could delay the prospect of three interest rate cuts the Fed anticipates to make in 2024.

Wall Street had initially expected that the first time rates were brought down from their current 22-year high would be in March.

Fed Chair Jerome Powell said after the latest policy meeting that “it’s not likely that this committee will reach that level of confidence in time for the March meeting.”

The CME FedWatch Tool shows that a May rate is also largely off the table.

The probability of a May rate cut slumped from 52.2% to 36.6% on Monday while the chance of a slash in June now stands at 78.6%, down from 92.2%.

Atlanta Fed President Raphael Bostic, who is voting on the Federal Open Market Committees policy decisions this year, told CNN that he’s anticipating the first of three cuts to take place in the fourth quarter — weeks after the mid-year slowdown Wall Street is now expecting.

By the end of the year, inflation will be near “the lower twos,” he said.

This isnt a TikTok video or something like that where you get trends happening so fast. It takes a while for the decisions of individual decisions and millions of people to come together and to start to create trends, he told CNN.

At the same time, theres a significant risk if the Fed leaves interest rates where they currently are for too long, Bostic warned.

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He also noted how difficult it’s been to tamp down inflation as the job market has remained surprisingly strong.

Januarys monthly jobs report added a blockbuster 353,000 new jobs to the economy — nearly double analysts’ expectations. 

Although inflation appears to be slowing, the economy remains Americans overall top concern, cited by 22% of poll respondents, as they have struggled with inflation and other aftershocks of the COVID-19 pandemic, according to a Reuters/Ipsos poll released last month.

Since taking office, Biden has made a pitch for lower supermarket prices, pushed drug makers to lower insulin costs, hotel chains to reduce fees and tried to diversify the meat-packing industry after beef prices skyrocketed in the aftermath of the pandemic.

Alfredo Ortiz, president and CEO of Job Creators Network, told The Post in a statement that “inflation remains historically high and is nothing to cheer about.”

“Talk to any American going to the grocery store, hardware store or pharmacy, and they’ll tell you prices continue to rise at a painful rate.”

A December 2023 report on shrinkflation — when businesses cut product sizes but keep prices the same — found that household paper products were 34.9% more expensive per unit than they were in January 2019, with about 10.3% of the increase due to producers shrinking the sizes of rolls and packages.

Researchers also found that the price of snacks like Oreos and Doritos had gone up 26.4% over the same period, with shrinking portions accounting for 9.8% percent of the increase.

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Politics

Ex-Reform MP Rupert Lowe alerts coastguard to ‘migrants’ – who were a charity rowing team

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Ex-Reform MP Rupert Lowe alerts coastguard to 'migrants' - who were a charity rowing team

MP Rupert Lowe alerted the coastguard to potential migrants on a boat – who turned out to be a charity rowing crew.

The independent Great Yarmouth MP posted a picture on social media on Thursday night of a boat near some wind turbines off the Norfolk Coast, saying he had alerted the authorities.

He wrote dinghies were coming into Great Yarmouth, “RIGHT NOW”.

“If these are illegal migrants, I will be using every tool at my disposal to ensure those individuals are deported,” he added.

Politics latest: Lammy to meet US vice president in UK

But the “dinghy” was actually an ocean rowing boat crewed by ROW4MND, a team of four attempting to row from Land’s End to John O’Groats for motor neurone disease research.

Rupert Lowe MP. Pic: PA
Image:
Rupert Lowe MP. Pic: PA

Mr Lowe, who was suspended from Reform UK in March, posted on Friday morning that it was a “false alarm” and was a boat of charity rowers, “thank goodness”.

More on Reform Uk

He said he would donate £1,000 to their charity “as a well done” – but warned people to “watch out for any real illegal migrants”.

“We received a huge number of urgent complaints from constituents – I make no apologies over being vigilant for my constituents. It is a national crisis,” he wrote.

“No mass deportations for the charity rowers, but we definitely need it for the illegal migrants!”

The ROW4MND crew were passing Great Yarmouth on their way to John O'Groats. Pic: PA
Image:
The ROW4MND crew were passing Great Yarmouth on their way to John O’Groats. Pic: PA

Police wanted to send a boat to check

It is the first of four gruelling rows the crew will take over four years in an attempt to raise £57m for motor neurone disease research, inspired by the deaths of rugby players Rob Burrow and Doddie Weir from the condition.

Matthew Parker, Mike Bates, Aaron Kneebone and Liz Wardley said the coastguard initially contacted them and asked if they could see a dinghy nearby.

Ex-Royal Marine Mr Bates, a British record holder for rowing across the Atlantic solo, said it soon became clear the coastguard was asking about their boat.

“I looked to my right and there was maybe a dozen individuals stood on the shoreline staring at us,” he told the PA news agency.

After the coastguard accepted they were not carrying migrants, they rowed on through the night but hours later were contacted again by the coastguard because the police had “asked if they could send a lifeboat out to check who we were”.

The crew leaving Newlyn Harbour in Cornwall last week after starting their challenge again. Pic: PA
Image:
The crew leaving Newlyn Harbour in Cornwall last week after starting their challenge again. Pic: PA

‘I’ve not been mistaken for a migrant before’

A friend then forwarded Mr Lowe’s post, which Mr Bates said was “a moment of light relief”.

“We found it hilarious. I’ve not been mistaken for a migrant before,” he said.

“The best comment was the one asking where the Royal Navy were when you need them. I’m a former Royal Marine, so the Royal Navy were on the boat.

“But it was almost like a vigilante-style, people following us down the beach.

“They hadn’t twigged that we were parallel to the shore for hours and not trying to land.”

Read more:
Is Corbyn’s comeback a headache for Starmer – or a red herring?

Gruelling four-year challenge

The crew set off from Land’s End on 25 July, heading north, but bad weather forced them to stop, and they decided to return to Land’s End and start again, heading anticlockwise around the UK.

Next year, the team is hoping to row from John O’Groats to Land’s End, then from California to Hawaii in 2027 and New York to London in 2028.

Mr Bates said: “We’re rowing for hope, we’re rowing to find a cure, and hopefully we’ll raise £57m – we certainly will if MPs keep talking about us. Maybe Rupert will give us a donation.”

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Environment

Tesla used car prices keep plumetting, dips below average used car

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Tesla used car prices keep plumetting, dips below average used car

Tesla used car prices continue to plummet, while the average used car price is increasing. Despite being considered a premium brand, used Tesla vehicles are now cheaper than the used car sale price.

Isn’t this nuts?

Last year, Tesla’s used car prices started to drop along with the rest of the used car market in the US.

However, when the market started to recover in March 2025, Tesla’s used car prices didn’t. It continued to drop.

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In fact, it has now dropped so much that the average used Tesla vehicle costs less than the average used car on Car Gurus:

This is unprecedented. Although the brand has taken a significant hit over the last year, Tesla is still regarded as a premium brand in the industry. The fact that its average used car sale price would dip below the industry average, which includes inexpensive mass-market vehicles, is quite exceptional.

Used Tesla car prices are now down 4.59% year-over-year, compared to the market average being up 1.22%:

Make/Model Avg Price Last 30 days Last 90 days Year over Year
CarGurus Index $28,039 +0.19% +1.22% +1.22%
Tesla $27,814 -1.75% -4.59% -4.59%

All Tesla vehicles are down year-over-year, with the Cybertruck unsurprisingly leading the charge.

However, Cybertruck has started to recover in the last few months, along with Model 3.

The Model Y, which is by far Tesla’s most popular model by volume, is dragging the average down as it continues to fall:

Make/Model Avg Price Last 30 days Last 90 days Year over Year
Cybertruck $83,963 +0.88% +0.3% -30.44%
Model 3 $23,318 +0.2% +0.75% -8.04%
Model S $26,534 -5.48% -9.53% -22.61%
Model X $37,747 -2.33% -9.24% -16.8%
Model Y $29,216 -0.49% -0.68% -11.97%

Electrek’s Take

Many Tesla owners have been selling their used vehicles and switching to new brands, increasing the supply and putting pressure on prices.

I expected this, but I didn’t expect the pressure to be so great that prices would dip below the average used prices.

This is significant.

It’s proof that the Tesla brand has taken a massive reputational hit and there’s no clear recovery in sight.

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Politics

Roman Storm conviction for Tornado Cash sets ‘dangerous precedent’

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Roman Storm conviction for Tornado Cash sets ‘dangerous precedent’

Roman Storm conviction for Tornado Cash sets ‘dangerous precedent’

Tornado Cash developer Roman Storm’s conviction misapplies money transmitter laws, crypto industry group says.

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