💰 5 Fact Friday: Will This Man Be America’s New CFO?

ECONOMY
1. Meet Trump’s CFO Pick 🏆

President-elect Trump just nominated hedge fund heavyweight Scott Bessent as Treasury Secretary, and the markets are popping champagne. 🥂

First things first: What's the Treasury Secretary do, anyway?

Think of them as the nation's Chief Financial Officer (CFO), responsible for:

• Overseeing federal finances

• Managing government revenue

• Acting as the president's principal economic advisor

The Treasury Secretary ensures Uncle Sam can pay his bills and (hopefully) keeps the economy humming.

So, who's Scott Bessent?

A seasoned financier with a knack for global macroeconomics. He's no stranger to the big leagues, having served as Chief Investment Officer at Soros Fund Management. Yep, that Soros—the Wall Street legend with a controversial reputation.

Bessent's nomination sent the U.S. dollar down 1%—but don't panic! Investors are betting on a softer stance on tariffs and deficit reduction, which could mean smoother sailing for international trade. Stocks rallied, bonds surged, and even cyclical sectors like homebuilders and retailers got a nice bump.

Why all the market love?

Depending on your stance, Bessent is seen as either a steady business as usual pick or the "adult in the room." Regardless, his Wall Street savvy is expected to balance out Trump's bold promises.

He's advocated for gradual, phased-in tariffs rather than overnight shake-ups. Less shock to the system means happier investors (and fewer heart attacks on Wall Street).

But it's not all sunshine and rainbows.

Bessent's ties to George Soros have raised eyebrows in some circles. Plus, as a deficit hawk aiming to cut the budget deficit to 3% of GDP by 2028 (from 6.4% today), he might push for some belt-tightening that could ruffle feathers.

Bottom line: Markets are optimistic that Bessent's appointment signals a pragmatic approach to economic policy. The real test? Whether his Wall Street wisdom can mesh with Trump's "America First" agenda.

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STOCKS
2. Chipping In For Chipmaking 🏭

The Biden administration is racing to deploy CHIPS Act funds before January 20.

At the center of this urgency: Intel, which just landed nearly $8 billion in funding—on top of a $3 billion Department of Defense contract—to ramp up its U.S. chip-making factories.

Sounds great for American tech, right? Well, not everyone is convinced.

Let's crunch the numbers:

• Stock Slide: Intel's shares have plunged 59% over the past 5 years, dropping from highs near $70 to around $24 today.

• Massive Losses: The company reported a $1.6 billion loss in Q2 2024, followed by a staggering $16.6 billion loss in Q3.

• Belt-Tightening: To stop the bleeding, Intel announced 15,000 layoffs, suspended dividends, and plans to cut $10 billion in costs by 2025.

So, why is the government investing in a struggling giant?

The Biden administration views Intel’s revival as a cornerstone of national security and tech independence, particularly as Taiwan dominates the global semiconductor supply.

If China were to invade Taiwan, the U.S. could face catastrophic disruptions in key industries relying on chips—including smartphones, vehicles, medical devices, and military equipment.

But former President Trump isn’t buying it.

On Joe Rogan's podcast, he blasted the move: "That chip deal is so bad… We put up billions of dollars for rich companies."

He argued that instead of handing out hefty grants, the government could've leveraged high tariffs on imports to compel chip makers to build plants stateside. "You tariff it so high that they will come and build their chip companies for nothing," Trump said.

The debate is heating up: Is this a smart investment in America's future, or are we tossing taxpayer dollars into a money pit?

REAL ESTATE
3. Housing Market Slump To Continue? 🏠

Fannie Mae just revised its outlook for the 2025 housing market, and spoiler alert: it's not pretty. They now project home sales to grow by only 4% next year, down from their original estimate of 11%. Ouch.

But don't pack up those open house signs just yet. They're forecasting a rebound in 2026 with sales growing by 17% year over year. So, if you're dreaming of that white picket fence, patience might be your new best friend.

Why the slowdown?

Affordability—or the lack thereof.

The average monthly mortgage payment on a new loan has skyrocketed to around $2,900, up roughly 50% from 2021. Historically, owning a home has been about 14% more expensive than renting. Now? Try 35-42% higher.

Higher mortgage rates, soaring home prices, and increased insurance costs are tag-teaming prospective buyers. No wonder 54% of consumers think it's a bad time to buy a house.

It's not just buyers feeling the pinch. The average number of homes sold per real estate agent each year has dropped to 21, down from 54 in 2004. Talk about a tough crowd.

Bottom line: The housing market is navigating some choppy waters right now. With affordability near record lows and existing home sales expected to remain under pressure, it's a waiting game. But if you can hold tight until 2026, there might be sunnier skies (and lower mortgage rates) on the horizon.

TAX
4. 2025 Tax Brackets Are Here 💵

The IRS just dropped the new 2025 tax brackets (for returns due in April 2026). Here’s the overview:

First, the standard deduction got a boost:

• $15,000 for single filers

• $22,500 for heads of household

• $30,000 for married couples filing jointly

Now, onto those marginal tax rates.

Quick refresher: These tax rates only apply to the portion of your income that falls within each specific bracket. If you earn $60,000, for example, the first part of your income is taxed at 10%, then the next chunk is taxed at 12%, and then the remainder (over $48,475) is taxed at 22%.

Here’s what the 2025 brackets looks like:

• 37% for single incomes over $626,350 and $751,600 for married couples

• 35% for incomes over $250,525 ($501,050 for couples)

• 32% for incomes over $197,300 ($394,600 for couples)

• 24% for incomes over $103,350 ($206,700 for couples)

• 22% for incomes over $48,475 ($96,950 for couples)

• 12% for incomes over $11,925 ($23,850 for couples)

• 10% for incomes up to $11,925 ($23,850 for couples)

Beyond the brackets, inflation adjustments are sprinkled throughout the tax code, thanks to a 2.8% increase this year. Notable changes include:

• Earned Income Tax Credit bumps from $7,830 to $8,046.

• FSA contributions climb from $3,200 to $3,300.

• Adoption credit rises to $17,280.

• Foreign income exclusion jumps to $130,000.

• Annual gift exclusion increases to $19,000.

• Estate tax exemption goes up to $13.99 million (for those, uh, planning their final exit in 2025).

Keep these changes in mind as you plan ahead—they could mean a little more (or less) cash in your pocket come April 2026.

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STOCKS
5. Guess Today’s Mystery Stock 🕵️‍♂️

Can you guess this low-cost travel company? Here are five clues about a stock that's faced some serious turbulence in 2024:

1. This company’s proposed merger with a peer in the travel industry was blocked by regulators earlier this year due to concerns it would limit competition.

2. Unfortunately, after the failed merger, the company couldn’t stabilize its financial footing. It recently filed for Chapter 11 bankruptcy, which is reflected by the addition of a 'Q' to its stock ticker.

3. Following the bankruptcy filing, the stock price dropped below 25 cents, leading to its delisting from the NYSE.

4. Just days before filing for bankruptcy, the CEO received a $3.8 million bonus as an incentive to oversee the company’s financial restructuring.

5. This no-frills carrier—famous for its bright yellow planes—is betting on "Project Bravo" to turn things around in 2025. The plan includes adding upscale options like free Wi-Fi, extra legroom, and empty middle seats.

Got a guess? Tap here to reveal the answer → 

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