Thursday, May 2, 2024
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Fed Leaves Interest Rates Where They Are, Signals Delay in Cuts

By
Brad Kadrich
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The inflation rate has dropped from a historic high of 9.2% to around 3.6%, but apparently that’s now low enough for the Federal Reserve to consider cutting its prime interest rate.

In a statement issued after its most recent meeting, the Fed decided not to cut rates, instead leaving it at 5.3%, a 20-year high. The Fed said in its statement that inflation remains “stubbornly high” and that potential rate cuts won’t happen until there is “greater confidence” in reaching its 2% target.

“In recent months, inflation has shown a lack of further progress toward our 2% objective,” ” Chair Jerome Powell said at a news conference after the meeting. “It is likely that gaining greater confidence will take longer than previously expected.”

While continuing to say the Fed’s decision on when to cut rates – which economists expect will come perhaps this summer — will depend on the most-up-to-date economic data. “My expectation is that over the course of this year, we will see inflation move back down,” he said.

At its March 20 meeting, Fed officials indicated three rate reductions would likely come in 2024, perhaps starting in June. Rate cuts by the Fed would lead, over time, to lower borrowing costs for consumers and businesses, including for mortgages, auto loans and credit cards.

The Associated Press reported that, given the persistent inflation rate, financial markets now expect just one rate cut this year, in November, according to futures prices tracked by CME FedWatch.

On Wednesday, the Fed announced it would slow the pace at which it’s unwinding one of its biggest COVID-era policies: Its purchase of several trillion dollars in Treasury securities and mortgage-backed bonds, an effort to stabilize financial markets and keep longer-term rates low, according to the AP.

Ford’s U.S. Hybrid Sales Hits All-Time Monthly Record

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Press Release
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Customer reception to Ford hybrid vehicles continues to accelerate, with U.S. sales reaching 17,997 in April, a 60 percent improvement from the same month a year ago and a new monthly record, the automaker said in a release posted to its website Thursday..

Sales of the new F-150 PowerBoost Hybrid set a new monthly record in April – up 93.6% – making F-150 Hybrid America’s top-selling full-size hybrid pickup.

Ford officials said early customers of the new 2024 model are overwhelmingly choosing to upgrade to the available 7.2kW Pro Power Onboard feature, which brings power to a jobsite, tailgate party, or power appliances during a power outage.

So far this year, Ford officials said in the release, Maverick Hybrid is the best-selling hybrid pickup overall; customers bought 26,061 Maverick Hybrid trucks over the first four months of 2024.

Most of those customers – 59% – are coming from other brands and segments, notably trading in their small SUVs for a Maverick.

Job Openings Fall to Lowest Level in 3 Years, But Remain Historically High

By
Brad Kadrich
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If the increasing interest rates are supposed to slow the U.S. job market, it doesn’t appear to be working.

While U.S. job openings dropped in March to the lowest level they’ve seen in three years, they’re still historically high.

According to statistics released by the Labor Department Wednesday, employers posted 8.5 million vacancies in March, down from the 8.8 million reported in February and the fewest since February 2021.

The number of Americans quitting their jobs fell to the lowest level since January 2021, but layoffs fell.

Monthly job openings are down from a peak of 12.2 million in March 2022 but remain at a high level. Before 2021, they’d never exceeded 8 million — a threshold they have now reached for 37 straight months, according to the Associated Press. As the Federal Reserve raised its rate 11 times starting in March 2022, the economy kept growing, companies kept hiring and unemployment stayed low, coming in under 4% for 26 straight months. That’s the longest such streak since the 1960s. Employers have added a healthy average of 276,000 jobs a month this year and Friday’s April jobs report is expected to show they tacked on another 230,000 last month, according to a survey of forecasters by the data firm FactSet.

Consumer Confidence Drops as Inflation Persists

By
Brad Kadrich
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Apparently, consumers in the U.S. may be getting leary of the stubbornly high inflation rate.

Consumer sentiment fell in April on dimmer views of personal finances and the economy as inflation expectations climbed. Bloomberg reported that the University of Michigan’s final April index fell to 77.2 from 79.4 in March, according to figures issued Friday. The median estimate in a Bloomberg survey of economists called for the gauge to hold at its preliminary reading of 77.9.

Consumers expect prices will climb at an annual rate of 3.2% over the next year, the highest since November and up from the 2.9% expected in March. They see costs rising 3% over the next five to 10 years, also a five-month high, Bloomberg reported.

While “consumers’ frustration over high prices in their day-to-day spending decisions grew this month, price concerns for large purchases — durable goods, vehicles, and homes — were all little changed from last month,” Joanne Hsu, director of the survey, said in a statement.

Some 38% of consumers reported that high prices were impacting their living standards, up from 33% who said so last month, according to the report.

Consumers’ perceptions of their current financial situation and the economic outlook over the next year both slid to four-month lows.

The current conditions gauge dropped to 79 from 82.5. A measure of expectations fell to 76 from 77.4.

“Consumers continue to express uncertainty about the future trajectory of the economy pending the outcomes of the upcoming election,” Hsu said.

This month, the university began a transition to online surveying rather than telephone calls. March data comprised more than 600 phone interviews and nearly 200 web interviews, Bloomberg said.

Fed: Economic Data Doesn’t ‘Meet Bar’ to Justify Cuts

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Press Release
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At Wednesday’s Fed decision, the Federal Open Market Committee said the first quarter’s economic data didn’t reach their high bar to justify interest rate cuts. However, the Fed is still expected to announce details of how they will slow the run-off of their balance sheet, sometimes called tapering the quantitative tightening program, after one of the next couple of Fed decisions.

For context, the Fed pumped trillions of dollars of cash into the financial system between 2020 and 2022 to support the recovery from the 2020 recession. In mid-2022 the Fed began reducing the size of their balance sheet to reverse this stimulus, a process that continues today.

Each month, the Fed is accepting repayment of up to $60 billion of the Treasuries they own as those bonds mature, and up to $35 billion in mortgage-backed securities (MBS). They reinvest maturing amounts that exceed this cap. As the Fed accepts repayment, they drain cash from the financial system and the economy.

After one of the next few Fed decisions, they will likely reduce the monthly limit for Treasury repayments to around $30 billion from $60 billion, and hold unchanged the monthly limit on mortgage-backed security repayments (Actual MBS repayments vary from month to month, rising in months with more existing home sales, falling in months with fewer, since the mortgage pre-payments by home sellers are currently the biggest driver of MBS pre-payments). The Fed will probably end balance sheet reduction in late 2024 or early 2025.

Friday’s jobs report will likely show American employers added jobs solidly again in the month of April, while average hourly earnings growth moderated again in year-over-year terms to the slowest pace since mid-2021.

Real GDP growth slowed to 1.6% annualized in the first quarter of 2024, below the 2.5% consensus forecast or Comerica’s forecast of 2.1%. This marked real GDP’s slowest quarter since the first half of 2022.

From a year earlier, real GDP grew 3.0% in the first quarter after 3.1% growth a quarter earlier. A big part of the first quarter’s slowdown was due to businesses adding to inventories more slowly, and because the trade deficit widened. Slower growth of government spending was another headwind. The Fed won’t mind seeing real GDP growth slow, since the labor market is still in very good shape.

The bigger concern from last week’s data releases was hot inflation by the Fed’s preferred measure, the Personal Consumption Expenditures (PCE) price index. PCE inflation in March was 0.3%, as was core PCE inflation excluding food and energy, both matching economic forecasters’ expectations.

But PCE inflation was revised slightly higher in January and February, causing year-over-year PCE inflation to accelerate to 2.7% in March from 2.5% in February, and core PCE inflation to hold unchanged at 2.8%; both were slightly higher than expected. In the PCE report, inflation of service prices excluding energy and housing a.k.a. Supercore PCE inflation was 0.4% in March after 0.2% in February and 0.7% in January. In year-over-year terms, Supercore PCE inflation was 3.5% in March following 3.4% in February and 3.6% in January—all considerably higher than the Fed’s 2% target.

Bill Adams is a senior vice president and chief economist at Comerica. Waran Bhahirethan is a vice president and senior economist at Comerica.

Unemployment Claims Remain Unchanged From Last Week

By
Brad Kadrich
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It was steady as she goes in the U.S. job market last week.

The number of Americans applying for unemployment benefits didn’t change last week and is still historically low, even in the face of high interest rates and elevated inflation.

According to statistics released Thursday by the Labor Department, 208,000 workers filed unemployment claims for the week ending April 27, the same as the previous week. That’s the fewest since mid-February.

The four-week average of claims, which softens some of the weekly volatility, fell by 3,500 to 210,000.

Weekly unemployment claims, considered a proxy for the number of U.S. layoffs in a given week, have remained at historically low levels since the pandemic purge of millions of jobs in the spring of 2020.

Last month, U.S. employers added a better-than-expected 303,000 jobs. The unemployment rate dipped from 3.9% to 3.8% and has now remained below 4% for 26 straight months, the longest such streak since the 1960s.

There are signs that the labor market may be softening. Earlier this week, the government reported 8.5 million job openings, the lowest number of vacancies in three years, the Associated Press reported.

In total, 1.77 million Americans were collecting jobless benefits during the week that ended April 20. That’s also the same as the previous week.

Founders Fund Names Rishi Moudgil Executive Director

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Press Release
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Rishi Moudgil

ANN ARBOR  – Michigan Founders Fund, which is leading the vision for Michigan to be the most successful, inclusive and community-minded startup ecosystem in the country, has named Rishi Moudgil as its next Executive Director.

Moudgil brings extensive social impact and entrepreneurial experience to the role. He previously served as Founding Executive Director of Greenlight Fund Detroit, which, with two community investment funds, took an inclusive and scalable approach to locally-led problem solving, designed to improve the lives of families in Detroit, in an effort that was modeled nationwide. Earlier in this career, he launched both tech and community-based ventures in Southeast Michigan. He also ran the Great Lakes Entrepreneurs Quest, Michigan’s first statewide entrepreneurial support program, and founded the University of Michigan’s Center for Social Impact at the Ross School of Business.

MFF works to drive density among founders committed to the state, which, in turn, increases access to capital and talent. MFF members are high-growth entrepreneurs and venture capitalists who are committed to organizational values of connection, culture, and community. They have each made the Michigan Pledge to donate 1% of equity or carry to a Michigan-focused grantmaking fund that financially supports impactful organizations across the state. To do this work, MFF designs and implements robust, founder-first programming to further relationship-building, startup advancement, and community impact, while coordinating statewide initiatives in talent development and ecosystem-building, in order to build the most inclusive entrepreneurial network in the country.

“Rishi has a unique and distinct record of successful organization-building and commitment to social impact that perfectly matches the aspirations of MFF, and with his values and his voice to guide the next phase of MFF’s growth, I’m very optimistic about the future of Michigan’s entrepreneurship ecosystem, and for the long-term direction of our state’s collaborative economic culture,” said Dug Song, MFF co-founder and board co-chair. “Having known of Rishi’s work for a long time, we are honored and incredibly excited that he has taken on the leadership of the Fund, especially at this moment where our ability to match the enthusiasm of a growing entrepreneurial movement with the broad-reaching benefits of our potential impact for the entire state has never felt greater.”

Blending his dedication to social impact and community-centered investment with his expertise in the entrepreneurship space, Moudgil’s new leadership role at MFF reflects his commitment to building networks, narratives and pathways to equitable economic access.

“I’m fiercely committed to supporting founders, regardless of their backgrounds, to pursue their dreams of building high-growth businesses here in Michigan, in any part of the state, while giving back to their local communities. MFF welcomes entrepreneurs into an active, mission-driven community where working together to create scalable wealth, jobs and opportunities in Michigan is an attainable and sustainable goal,” said Moudgil.

MFF member and founder of Moment for Parents, Marianna Kerpolla, said “As a member that believes deeply in the power of this community, I believe Rishi is an incredible asset for the Michigan Founders Fund. He’s a deep thinker who’s dedicated his career to the intersection of social impact and entrepreneurship. He’ll be a great catalyst for growth in the MFF community thanks to his ideas, connections, and energy.”

As for the future of the MFF, Moudgil is encouraged by indicators that Michigan has recently attracted venture capital investment at the fastest rate of any U.S. state, with annual VC investment growing by 886 percent between 2016 and 2020. Since MFF’s founding in 2020, the Fund has grown to over 150 members and hosted events attracting more than 1,500 attendees, including Michigan Tech Week in 2022 and 2023.   

“Whether innovating in industries like life sciences, tech, or agriculture, in addition to traditional strengths including manufacturing and mobility, there are many solvable challenges where Michigan founders are leading the way,” said Moudgil. While Moudgil observes the rapid engagement among MFF members and supporters as positive, he also emphasizes that the overall population of Michigan’s startup ecosystem doesn’t yet reflect the state’s demographic diversity. MFF has been focused on meeting this challenge throughout the talent pipeline, including placing dozens of underrepresented college-level interns within high-growth start-ups, and attracting over 200 Michigan students at MFF-led seminars and skill-building workshops. 

“Leading with inclusivity is a key differentiator for our founder-driven coalition operating at a statewide scale. We are building a successful, engaged network that’s representative of people across all demographics,” said Moudgil. “Working collectively, MFF is positioned to take real, measurable steps toward a more equitable, robust economy by investing in people that haven’t typically benefited from well-connected, high-growth ecosystems. We want to ensure all our great hotspots of entrepreneurship can work together as one Michigan community,” said Moudgil.

Joshua Damm Named Partner in Honigman’s Corporate Department  

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Press Release
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Joshua Damm

Detroit — Honigman LLP announced that Joshua W. Damm has joined its Corporate Department as a partner in the firm’s Public Company, Securities and Governance Practice Group.

Based in Detroit, Damm specializes in securities offerings, ongoing securities laws compliance, public company reporting and corporate governance counseling. He advises companies and boards of directors on day-to-day SEC and stock exchange reporting and compliance requirements, as well as corporate governance policies and practices. He also represents a broad range of clients in equity and debt transactions, including IPOs, follow-on and secondary equity offerings, at-the-market offerings, reverse merger and de-SPAC transactions, PIPE transactions, convertible note offerings and liability management transactions.

 “We are thrilled to welcome Joshua to our Corporate Department as a partner,” said Donald Kunz, Chair of Honigman’s Corporate Department. “His background and broad experience in securities offerings, reporting and corporate governance will add tremendous value to the team, further enhancing our ability to provide exceptional service to our clients.”

Damm joins the firm from Fenwick & West LLP, where he served as a Senior Associate. He earned his Juris Doctor (J.D.) from Georgetown University Law Center and his Bachelor of Arts (B.A.) from the University of Michigan.

Natalie Baggio Takes On New Leadership Role With Corewell Health

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Press Release
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Natalie Baggio

Natalie Baggio, RN, will become the new president of Corewell Health in Southwest Michigan, effective July 1. She will report to the system’s Chief Operating Officer, Darryl Elmouchi, M.D., and also will actively engage with the health system’s leadership team.

Baggio currently serves as senior vice president, chief nursing executive and chief operating officer for Corewell Health in Southwest Michigan. She joined the organization in 2017. She will succeed Dr. Loren Hamel, who is retiring at the end of June.

“Natalie has done a tremendous job and has been taking on more and more responsibility over the years. She has demonstrated a commitment to championing innovative ideas that have improved processes and patient care,” Dr. Elmouchi said. “She cares deeply about the community.”

Prior to joining Corewell Health, Baggio served in multiple health care leadership roles at Mercy Health South in St. Louis, Missouri. Natalie earned a bachelor’s degree in organizational leadership from Greenville College, a bachelor of science in nursing from Chamberlain College of Nursing, a master of business administration from Webster University, and a doctor of nursing practice from Baylor University. Natalie is currently enrolled in the Johnson & Johnson Nurse Innovation Fellowship Program.

“I am pleased to accept this role and honored to continue serving our patients, team members and the community here at Corewell Health,” Baggio said. “I am incredibly grateful for the mentorship and guidance from Loren throughout my leadership career. I look forward to the opportunity to further build upon the strong foundation we have created together for better health here in Southwest Michigan.”

Dr. Hamel added, “Corewell Health has benefitted greatly from Natalie’s innovative and human-centered leadership, and I am so proud of all that she has accomplished. Natalie cares deeply about our patients and our team members. I am confident in her ability to further advance health care throughout Southwest Michigan and build upon our vision for a future where health is simple, affordable, equitable and exceptional.”

Kim Burchardt Named Controller for Owen-Ames-Kimball

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Press Release
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Kim Burchardt

GRAND RAPIDS — Owen-Ames-Kimball Co., local professional construction firm, announceD the promotion of Kim Burchardt as Controller.

“We are thrilled to promote Kim to Controller. It was evident during the search process that we needed to find a person who possessed the right skill set and experience, but also shared our O-A-K values,” said O-A-K Chief Financial Officer Todd Steffen. “Throughout the past 12 years, she has consistently taken on new tasks and projects, always going above and beyond to support the team.”

Burchardt’s main duties will be to oversee the accounting department in Michigan, handle day-to-day financial activities, manage payroll, conduct project analysis, and lead other projects.

“I’m excited to take this next step in my career and continue working with our wonderful team members in accounting and across the board with O-A-K,” Burchardt said. “I’m looking forward to continuing our growth as a company.”

Burchardt was hired in 2012 to the accounting department and holds a double Bachelor’s Degree in Accounting and Finance from Davenport University.

Campbell Names New Managing Partners

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Press Release
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Christopher Caris, Paul DeLano, Lincoln Hill and Barbara McAllister

DEARBORN — Campbell Marketing and Communications, one of the largest privately held marketing communications agencies in the U.S., along with its Board of Directors, is pleased to announce the addition of four new managing partners.

Christopher Caris, Paul DeLano, Lincoln Hill and Barbara McAllister join current managing partners David Losek, David Scheinberg, Gregory Shea, and Joseph Vandervest in the company’s ownership group. The four new managing partners are longtime Campbell members of the firm’s leadership team, with tenures ranging from 18 to 25 years at the agency.

The moves come on the heels of the retirement of longtime Campbell executive vice president and managing partner Kevin Kennedy early in 2023.

“Campbell has always been – since our founding 42 years ago – an owner-operated agency,” said David Scheinberg, the firm’s chairman. “To have these four long-time and highly esteemed leaders join the ranks of ‘hands on’ company ownership is a very proud and gratifying milestone.”

Caris, who joined Campbell in 1999, is one of the nation’s leading experts in automotive collision parts and crash repair. He has led Campbell’s original equipment manufacturer (OEM) support in this area for more than two decades and chairs multiple OEM roundtables on the topic. He was named vice president in 2016.

DeLano, an employee since 2006, is the firm’s Chief Financial Officer. He originally joined the Campbell team as facilities manager before moving into the accounting and finance department. He was appointed comptroller in 2020 and vice-president of accounting and finance in 2022.

Hill joined the agency in 1999 as an intern in the Motorsports group. He joined the creative team in 2007 and was appointed Creative Director in 2017. He was named vice president in 2022.

McAllister, an employee since 2001, is the agency’s Chief Operating Officer, having been appointed to the role in January 2024. She led all of Campbell’s work on behalf of Ford’s corporate citizenship efforts for nearly 15 years. She was named vice president in 2016.

Collins Einhorn Farrell PC Adds Attorney Rachel Combs

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Press Release
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Rachel Combs

SOUTHFIELD, Mich. – Collins Einhorn Farrell PC announced that attorney Rachel L. Combs has joined the firm.

As a member of the firm’s Professional Liability Group, Combs focuses her practice on the defense of professionals in the legal, medical/dental, insurance, accounting, architectural, engineering, and real estate fields.

She also has experience in first- and third-party insurance defense and veteran’s law. During law school, Combs served as the Form and Accuracy Editor for The Journal of International Law and Commerce. She also serves as an Officer in the Michigan Army National Guard. Combs earned her Juris Doctor from Syracuse University College of Law. Prior to that, she received her Bachelor of Arts degree in Political Science from Central Michigan University.

Japanese, Asian Brand Vehicles Ready to Rally at M1 Concourse in Pontiac

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Press Release
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Tricked-out Subarus, Mazdas, Hondas, Nissans and Toyotas from past to present will zoom in to 1 Concourse Drive in Pontiac, along Woodward Avenue, for Cars & Coffee on Saturday, May 4 from 8 to 11 a.m.

Guests can expect a flurry of modified neon green and bright blue cars, rear spoilers galore, and a chance to look under the hood of these trailblazers in auto technology. 

The state’s largest Cars & Coffee event of its kind, a monthly tradition with a massive following, is an open-to-all communal culture that brings car owners and fans together in the Motor City for an unmatched experience. While JDM vehicles are the focus, other unique and collector cars are welcome. Cars & Coffee is presented by Golling Chrysler Dodge Jeep RAM.

On-site activities include a complimentary or specialty coffee from vendor Rootless Coffee, a food truck, M1 merchandise, and displays from Snap-on, Yankee Air Museum, Rhino Dyno, Suburban Exotics, and Ziebart.

M1’s Cars & Coffee was named within the Top 5 national people’s choice car shows by USA Today’s 10Best editors. M1 is one of the few unique tracks like it in the world, with 11 challenging turns, a 30-foot-wide track, and an elevation change of 30 feet throughout its 1.5-mile span. 

Tickets are available at no cost in advance: https://m1concourse.com/trackevent/cars-and-coffee-japanese-domestic-manufacturing-jdm-asian-brands

Officials Confident NFL Draft Exceeded Economic Impact Estimates

By
Brad Kadrich
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More than 775,000 people crowded into the streets of downtown Detroit over the weekend, a record for NFL Draft attendance.

Some 34 million watched television coverage of the first night of the draft Thursday.

And, when all is said and done, officials are confident the economic impact on the city will easily exceed the pre-draft prediction of between $150 million and $175 million.

Put together, it was enough for Mayor Mike Duggan and other officials to take a victory lap at a post-draft press conference Monday morning.

“It is remarkable to read sports journals, business journals … talking about the recovery of the city,” Duggan said during his speech. “I feel like we are a 10-year overnight success, and the credit really belongs to the people who live in the city. We made an impression that’s going to last a long time, and Detroiters should be proud of the way we welcomed America.”

Visit Detroit CEO Claude Molinari said an analysis by sports economists won’t be ready until June, but he’s confident the amount will exceed the initial estimates.

“I think we’re going to go way beyond that,” said Molinari, who said he thought Detroit hotels may have had “their best week ever.”

According to Duggan, Detroiters made “a lasting impression” with the warm welcome they gave America last week. Duggan, who attended last year’s draft in Kansas City, said 2024 draft was unique because of the involvement of local businesses, which contributed to everything, including items such as food sales.

“We had 60 Detroit companies who were working here,” Duggan said. “This has been different than other NFL drafts. It was Detroit companies who did the work … I understand the NFL is now asking them to help future cities talk about how the local businesses benefit when the NFL comes to town.”

Downtown traffic is expected to return to normal by May 7.

Eric Larson, CEO of the Downtown Detroit Partnership, called the NFL Draft in Detroit “was “the ultimate team effort.”

“There are not enough superlatives to describe what happened in Detroit last weekend,” Larson said in a statement. “The 2024 NFL Draft … was an unprecedented success, and Downtown Detroit took center stage for three days and delivered in every category. The NFL Draft in Detroit was a testament to the power of community. The National Football League (NFL), Detroit Lions, City of Detroit, Detroit Police Department, Detroit Fire Department, Visit Detroit, Bedrock Detroit, and the stellar Downtown Detroit Partnership Team and Business Improvement Zone Ambassadors demonstrated leadership, vision, and meticulous attention to detail.”

Duggan said the city needed to “change our national reputation.”

“We very consciously built up a national narrative and shared all of that with the national media,” the mayor said. “I’m gonna say I was really pleased, and I think there’ll be a significant lasting effect.”

Pentastar Aviation Named No. 1 FBO in the Americas for Fourth Consecutive Year

By
Guest Submission
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Pentastar Aviation, a trusted partner in global private aviation services, was once again crowned the No. 1 FBO in the Americas by Aviation International News (AIN), retaining the top place of the highly competitive industry survey for the fourth consecutive year.

“Our entire team is dedicated to providing exceptional service to our customers, and the commitment we’ve made to exceed expectations in our operations has paid dividends with this latest recognition from AIN and its readers, who trust us to deliver an outstanding experience with every trip,” said Brad Bruce, Pentastar President and CEO. “We are proud to receive this honor and retain our place as the leading, most awarded FBO in the U.S.”

AIN readers evaluated hundreds of aircraft handling facilities on a 1 to 5 scale in five categories—line service, passenger amenities, pilot amenities, facilities, and CSRs—awarding Pentastar an overall score of 4.81, an improvement of 0.03 points from 2023. Pentastar is also the only facility to be ranked among the top 10 locations in all five categories for the second straight year. The AIN FBO Survey 2024 results are viewable here.

Founded in 1964 and located at Oakland County International Airport in Waterford, Michigan, Pentastar has serviced both regional and global travelers to create an ease of access into southeast Michigan and the surrounding areas for personal travel and corporate flyers alike. In addition to its award-winning FBO with detail-oriented, high-end service, Pentastar also provides private charter flights, comprehensive aircraft management services, full MRO services, and advisory and consultative guidance.

For more about Pentastar Aviation, visit pentastar.aero.

Just Lead: Advancing Racial Equity Leadership Awards – Nominations Open

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Guest Submission
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New Detroit Inc., the nation’s first racial justice coalition that works toward racial equity and dismantling systemic racism, has announced it is accepting nominations for its inaugural “Just Lead: Advancing Racial Equity 2024 Leadership Awards.” Just Lead is New Detroit’s annual leadership conference that celebrates and informs leaders in racial equity. The awards are open to leaders in Michigan with an emphasis on impact in Southeast Michigan.

New Detroit will choose one recipient from the following categories:

•Lifetime Achievement: With this award, we celebrate a leader whose lifetime efforts have made a lasting impact on advancing racial equity.

•Young Leader (up to age 30): This award recognizes a young leader who has demonstrated leadership in advancing racial justice in their communities, schools, workplaces or other institutions.

•Just Lead Racial Equity in Leadership: This award will be given to an individual in a leadership role in business, municipal or nonprofit organizations who has made an impact towards racial equity.

•Just Care® Racial Equity in Healthcare: This award will recognize an individual or organization that has demonstrated commitment to correcting health disparities within minority populations.

•Just Place® Racial Equity in Public Space: With this award, we celebrate an individual or organization that has demonstrated significant leadership and impact for ensuring our public spaces are vibrant, welcoming and accessible for all

New Detroit will recognize five leaders from the above categories at its annual Just Lead Conference on October 17, 2024 at a luncheon at the Icon, Detroit. The awardees will also participate in a fireside chat with New Detroit’s CEO, Michael Rafferty at the Conference.

Ford’s First-Quarter Profits Down 28 Percent

By
Brad Kadrich
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Ford Motor Co. said Wednesday it made $1.3 billion in net income in the first quarter of 2024, a 28% decrease year-over-year.

That profit, the automaker said, came on $42.8 billion in revenue, which was up 3.1%. Analysts, Yahoo Finance had been reporting, were projecting the Dearborn automaker to land around $37.63 billion in revenue and 40 cents for earnings per share.

Ford’s shares in post-market trading were up 2% to $13.31 per share, the Detroit News reported.

“Customers want vehicles that they’re passionate about, choices in how they’re powered, quality that’s constantly getting better and great value,“ CEO Jim Farley said in a statement. “With Ford+, we’re increasingly giving them all those things in ways that others don’t and creating a company that will lead for the long haul.”

For the January-through-March quarter, Ford posted adjusted operating earnings of $2.8 billion, down 18% year-over-year, from January through March.

Ford’s U.S. sales were up nearly 7% in the first quarter, though F-Series trucks were down 10%. The automaker now has a full lineup of the refreshed F-150 full-size trucks, including the Lightning all-electric model, and the new midsize Ranger being shipped, the News reported.

The loss posted by Ford Model e, the business unit dedicated to electric vehicles, was $1.32 billion compared to $722 million a year ago. Lightning shipments were held up starting in early February over an undisclosed quality issue.

Ford maintained its guidance for full-year adjusted operating income of $10 billion to $12 billion. The company increased adjusted free cash flow upward: $6.5 billion to $7.5 billion from the initial outlook of $6 billion to $7 billion. Additionally, Ford anticipates capital expenditures for the year of $8 billion to $9 billion, narrowing the $8 billion-to-$9.5 billion original estimation.

The company also remains on track to cut $2 billion in areas like materials, freight and manufacturing, according to the News’ report.

AARP Study: Older Americans Don’t Think They’ll Be Able to Retire

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Press Release
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A new AARP survey finds that 20% of adults ages 50+ have no retirement savings, and more than half (61%) are worried they will not have enough money to support them in retirement.

The findings also reveal a decline in overall sense of financial security among men, 42% of whom describe their financial situation as “fair” or “poor,” up from 34% in the beginning of 2022. However, roughly 40% of men who are regularly saving for retirement believe they are saving enough, compared to just 30% of women.

In a release posted to the organization’s website, AARP Senior Vice President Indira Venkateswaran said every adult “deserves to retire with dignity and financial security,” but that many don’t expect to be able to.

“Far too many people lack access to retirement savings options and this, coupled with higher prices, is making it increasingly hard for people to choose when to retire,” Venkateswaran said. “Everyday expenses continue to be the top barrier to saving more for retirement, and some older Americans say that they never expect to retire.”

Nearly one-third (30%) of older adults who carry over a credit card balance from month-to-month report carrying a balance of $10K or more, while 12% described their balance as $20K or more, up from 8% roughly a year ago.

Despite this, 33% of respondents ages 50+ believe their finances will be better 12 months from now, but the lingering effects of inflation and high costs are still apparent:

  • More than one-third (37%) are worried about covering basic expenses, such as food and housing.
  • More than a quarter (26%) are worried about covering family caregiving costs.
  • Seven in 10 (70%) are worried about prices rising faster than their income.
  • Over a quarter (26%) of people who are not yet retired say they expect to never retire.


“America is facing a serious retirement crisis. AARP has a long history of supporting legislation to expand access to retirement savings, but Congress must act more swiftly to provide the financial support older Americans need and deserve,” said Nancy LeaMond, AARP Executive Vice President and Chief Advocacy & Engagement Officer. “We have worked with 19 states to create programs to make it easier for people whose employers don’t offer a retirement plan to be able to save for their future. But about two-thirds of states have yet to act, and we await action from the federal government.”

Americans are 15 times more likely to save for retirement when they have access to a workplace plan. Yet nearly 57 million people do not have access to a retirement plan at work.

Congress is currently considering different pieces of legislation that would expand retirement security, including the bipartisan Retirement Savings for Americans Act of 2023, which would provide retirement savings accounts to eligible workers without employer-sponsored retirement plans, and the Automatic IRA Act of 2024. 

Eight states have auto-IRA programs up and running: California, Colorado, Connecticut, Illinois, Maine, Maryland, Oregon, and Virginia, while Massachusetts has a multiple employer plan in place. Ten other states have passed legislation and are at various stages of implementation, including Washington, where auto-IRA legislation was signed into law last month.   To view the full Financial Security Trends Survey and methodology, visit aarp.org/financialtrends. And learn more about AARP’s ongoing efforts to make it easier for everyone to save for retirement.

U.S. Growth Slowed Sharply Last Quarter to 1.6% Pace

By
Brad Kadrich
-

The consistent hikes in interest rates by the Federal Reserve – 11 increases since May 2022 – and the resulting higher-than-normal rates may be having an effect on the nation’s economy.

Reports show the nation’s economy slowed last quarter, growing at an annual rate of 1.6%, indicating the rates may be affecting borrowing and spending.

Thursday’s report from the Commerce Department said the gross domestic product — the economy’s total output of goods and services — decelerated from its brisk 3.4% growth rate in the final three months of 2023, according to a report from The Associated Press. Consumers continued to drive growth in the January-March quarter but slowed their spending.

Although inflation has slowed sharply, to 3.5% from 9.1% in 2022, prices remain well above their pre-pandemic levels.

The economy’s gradual slowdown reflects the much higher borrowing rates for home and auto loans, credit cards and many business loans.

Despite that, the United States has continued to outpace the rest of the world’s advanced economies. The International Monetary Fund has projected that the world’s largest economy will grow 2.7% for all of 2024, up from 2.5% last year and more than double the growth the IMF expects this year for Germany, France, Italy, Japan, the United Kingdom and Canada, the AP reported.

Kristalina Georgieva, the IMF’s managing director, cautioned last week that the “flipside″ of strong U.S. economic growth was that it was ”taking longer than expected” for inflation to reach the Fed’s 2% target, although price pressures have sharply slowed from their mid-2022 peak, according to the AP.

Unemployment Claims Drop to Lowest Level in 9 Weeks

By
Brad Kadrich
-

The number of Americans filing for unemployment benefits has been on something of a roller-coaster lately.

This week, it was down.

Fewer Americans applied for unemployment benefits last week, according to figures released by the Labor Department, which showed that unemployment claims for the week ending April 20 fell to 207,000, a 5,000-claim drop from the previous week’s 212,000. That’s the fewest since mid-February.

The four-week average of claims, which smooths out some of the weekly up-and-downs, ticked down by 1,250 to 213,250.

Weekly unemployment claims have remained at historically low levels since the pandemic purge of millions of jobs in the spring of 2020.

Last month, U.S. employers added 303,000 jobs. The unemployment rate dropped slightly, from 3.9% to 3.8%, and has now remained below 4% for 26 straight months, the longest such streak since the 1960s.

A total of 1.78 million Americans were collecting jobless benefits during the week that ended April 13, 15,000 fewer than the previous week.

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