Funeral Director Daily take:  Today is the day that the United States Supreme Court will hear arguments in what I refer to as the “Tariff” case.  As most Americans know President Trump has actively set tariff rates on different countries around the world by using the International Emergency Economic Powers Act  (IEEPA).  It is the first time that act has been used by a President for the implementation of tariffs since it was enacted in 1977.

From my layman’s point of view, the case centers on if the President has the power to impose tariffs, unilaterally, under this act.  Being a revenue issue tariffs have historically been a power that was thought to rest with Congress.  However, over the years Congress has delegated certain powers to the Executive branch of government and it is the President’s opinion that tariffs, at least in certain instances, are one of them.

Part of the President’s argument will be that tariffs are no longer simply a tax and spending issue.  The President believes that how we deal with the economics of the world are now a part of our national defense strategies as well as part of our economic strategies.

Here are a couple of articles that might help you in understanding what is involved:

• Supreme Court showdown on tariffs shaping up as landmark case.  National Constitution Center
• Listen Live:  Supreme Court will hear Trump tariff case in key test of Presidential power.  PBS News Hour
• How Congress delegates its tariff powers to the President.  National Constitution Center

Funeral Director Daily take:  I’ve brought up the “K-shaped” economy before.  Some statistics are believed to show that the upper asset end of the American consumers have fared very well, with asset growth and income, in the last few years and the lower asset group of Americans have fared not near as well —  actually not being able to bring in an income to simply pay their bills, much less having any chance to build their assets.

There is actually a little more evidence to that thought as in the past week credit reporting bureau TransUnion issued a report that the number of consumers classified as “low-risk, super prime borrowers” is on the rise.  The report states that in the past six years those with these very strong credit ratings has grown from 37.1% of Americans to 40.9% of Americans.

On the other hand, the report indicates that “the subprime segment, or riskier consumers with credit scores of 300 to 600, has also increased, . . while, the percentage of consumers in the in-between levels — near prime, prime, and prime plus — is lower than it was pre-pandemic, as more Americans shift to either extreme of the credit risk spectrum.”

Article — More consumers are slipping into the riskiest credit segment.  Yahoo Finance

Funeral Director Daily take —  Last but not least, and almost missed within the election and tariff court news, is the fact that last week the members of the Federal Reserve Board lowered the Federal Reserve rate by 1/4 of a percentage point.  That was somewhat expected, and will lower the cost of borrowing in America, however, there were some that thought the rate would be lowered by 1/2 of a percentage point.

• Article — Fed lowers rates, but Powell suggests move may be last of 2025.  Reuters
• Article –  Fed’s Goolsbee, Cook, Daly join growing chorus of officials undecided on December rate cut.  Yahoo Finance

Funeral Director Daily take —  What businesses may feel it next?. . . .The “it” being that Chipotle CEO Scott Boatwright says is “Young Americans face growing student loan bills, slower wage growth and an unfavorable job market” which is reducing the amount being spent at what are referred to as “quick service restaurants” such as Chipotle.

Article — Younger Americans are dining out less.  Restaurants are feeling the the Squeeze.  Yahoo Finance

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