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Why Fed Chair Jerome Powell wears purple ties: ‘We are non-political’

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U.S. Federal Reserve Chair Jerome Powell speaks at SABEW on April 4, 2025.

Kelli Grant | CNBC

These days, experts and analysts hang on every signal from Federal Reserve Chair Jerome Powell, right down to the color of his necktie.

In response to a question about his chosen apparel on Friday before business journalists in Arlington, Va., Powell said, “I definitely wear purple ties all the time.”

Initially the Fed chair said he simply preferred the shade, but then elaborated that “it felt a little awkward to be wearing one that was identified” — referring to the political symbolism of red or blue ties, which are often associated with Republican or Democratic parties, respectively.

“We [at the Federal Reserve] are strictly non-political,” Powell said during the question-and-answer session following his prepared remarks at the Society for Advancing Business Editing and Writing conference. “I can’t stress that enough.”

“It’s not that we are bipartisan, we are non-political — we don’t do that and so purple is a good color for that, that’s all. Plus I like purple ties.”

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The Federal Reserve has always operated autonomously from the White House. As an independent agency, the central bank governs decisions about monetary policy without interference from the president or any branch of government. Therefore, it is theoretically free from political pressure.

And yet, Fed board members are nominated by the president and must be approved by the Senate. President Donald Trump nominated Powell to head the nation’s central bank in 2018, but he has a contentious history with the Fed chief ever since.

The battle over monetary policy heats up

On the campaign trail, Trump said the president should “at least have a say” in Federal Reserve decision-making. Last week, Trump called for lower interest rates, even as his sweeping tariff policy battered markets and raised fears of a rebound in inflation.

“This would be a PERFECT time for Fed Chairman Jerome Powell to cut Interest Rates. He is always ‘late,’ but he could now change his image, and quickly,” Trump said in a post on Truth Social. “Energy prices are down, Interest Rates are down, Inflation is down, even Eggs are down 69%, and Jobs are UP, all within two months – A BIG WIN for America. CUT INTEREST RATES, JEROME, AND STOP PLAYING POLITICS!”

Economists split on tariffs' impact as markets fall and recession fears rise

However, the central bank has also said that new trade policies are a barrier to cutting rates.

The Fed left its benchmark unchanged in recent meetings, in part because the new tariffs could lead to a widespread rise in prices that complicate the inflation picture, at least temporarily.

“Looking ahead, higher tariffs will be working their way through our economy and are likely to raise inflation in coming quarters,” Powell said Friday. “We are well positioned to wait for greater clarity before considering any adjustments to our policy stance.”

The central bank is “trying to juggle the opposing forces of a potentially flatlining economy and rising prices,” according to Bankrate’s senior economic analyst Mark Hamrick. “The Federal Reserve has a tough job under the best of circumstances and an unenviable one during difficult times,” he said.

“There’s greater pressure on Powell,” said Brett House, economics professor at Columbia Business School. But, “paradoxically, the easier that makes it for the Fed to maintain its independence and the more straightforward it is for them to remain true to their mandate.”

Through the Federal Reserve Act, the legislative and executive branches of the government set the mandate of the Fed to promote maximum employment, keep prices stable and ensure moderate long-term interest rates, House explained.

Trump said in December that he does not intend to fire Powell. The Fed chair said Friday that he “fully expects to serve all of my term,” which will conclude in 2026.

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As Real ID deadline approaches, there are ‘workarounds,’ experts say

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The deadline for U.S. travelers to get a Real ID is fast approaching — and those who don’t have one may not be able to board flights within the U.S.

The Real ID card is an optional, upgraded driver’s license or state identification card that is issued by a state driver’s licensing agency and marked with a star.

The good news: There are other forms of identification U.S. travelers can use — such as a valid U.S. passport, passport card, permanent resident card, or certain Department of Homeland Security trusted traveler cards — if they can’t get a Real ID by the deadline, May 7.

“There are workarounds people can use,” said John Breyault, a travel expert at the National Consumers League, a consumer advocacy group. “Most people already have the ability to travel, whether they have a Real ID or not.”

About 19% of travelers don’t yet have a Real ID-compliant type of identification, according to Transportation Security Administration data as of Thursday.

Passengers who arrive at the airport without an acceptable form of ID “can expect to face delays, additional screening and the possibility of not being permitted into the security checkpoint,” according to the TSA.

Even passengers who have a Real ID card or other acceptable ID should aim to be at the airport at least 1½ hours ahead of their flight, due to likely delays in airport security lines as enforcement gets underway, Breyault said.

What is the Real ID law?

Congress passed the Real ID Act in 2005. The law set minimum security standards for state-issued driver’s licenses and ID cards.

The federal government will require Americans who access federal facilities to have a Real ID starting May 7. That includes travelers who go through TSA airport security checkpoints and board commercial airplanes, even for domestic flights.

The rule applies to all airline passengers 18 years and older, including TSA PreCheck members.

How to get around the Real ID rule

Travelers can skirt the requirement to present a Real ID card if they have other types of approved identification.

Experts said the most common among them are: a passport or passport card; a Global Entry card; an enhanced driver’s license issued by Washington state, Michigan, Minnesota, New York or Vermont; or a permanent resident card, also known as a green card.

Here’s a list of all acceptable alternatives, according to the TSA:

  • State-issued enhanced driver’s license
  • U.S. passport
  • U.S. passport card
  • Department of Homeland Security-issued trusted traveler cards (Global Entry, NEXUS, SENTRI, FAST)
  • U.S. Department of Defense ID, including IDs issued to dependents
  • Permanent resident card
  • Border crossing card
  • An acceptable photo ID issued by a federally recognized Tribal Nation/Indian Tribe, including Enhanced Tribal Cards (ETCs).
  • HSPD-12 PIV card
  • Foreign government-issued passport
  • Canadian provincial driver’s license or Indian and Northern Affairs Canada card
  • Transportation worker identification credential
  • U.S. Citizenship and Immigration Services Employment Authorization Card (I-766)
  • U.S. Merchant Mariner Credential
  • Veteran Health Identification Card (VHIC)

‘Get that Real ID’

It may be somewhat riskier to travel with an alternative document such as a passport for domestic flights, said Sally French, a travel expert at NerdWallet.

“A passport is much more complicated to replace than a driver’s license, and it’s more expensive,” French said. “Get that Real ID.”

A traditional passport book costs $130 to renew. Real ID fees vary by state but are generally less costly, experts said. They typically aren’t more expensive than a standard driver’s license.

For example, in California it costs $45 to renew a standard driver’s license or $39 to renew a regular ID card; in Virginia, there’s a $10 one-time Real ID fee, plus a driver’s license fee, usually $32.

Desperate travelers can also gamble by showing up at the airport without a Real ID-compliant form of identification on May 7 and beyond, and hope airport agents show some mercy, French said.

It’s a “much longer screening” process and isn’t guaranteed, French said. It’s a “Hail Mary,” she said.

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What student loan forgiveness opportunities still remain under Trump

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Under the Biden administration, the U.S. Department of Education made regular announcements that it was forgiving student debt for thousands of people under various relief programs and repayment plans.

That’s changed under President Donald Trump.

In his first few months in office, Trump — who has long been critical of education debt cancellation — signed an executive order aimed at limiting eligibility for the popular Public Service Loan Forgiveness program, and his Education Department revised some student loan repayment plans to no longer conclude in debt erasure.

“You have the administration trying to limit PSLF credits, and clear attacks on the income-based repayment with forgiveness options,” said Malissa Giles, a consumer bankruptcy attorney in Virginia.

The White House did not respond to CNBC’s request for comment.

Here’s what to know about the current status of federal student loan forgiveness opportunities.

Forgiveness chances narrow on repayment plans

The Biden administration’s new student loan repayment plan, Saving on a Valuable Education, or SAVE, isn’t expected to survive under Trump, experts say. A U.S. appeals court already blocked the plan in February after a GOP-led challenge to the program.

SAVE came with two key provisions that lawsuits targeted: It had lower monthly payments than any other federal student loan repayment plan, and it led to quicker debt erasure for those with small balances.

“I personally think you will see SAVE dismantled through the courts or the administration,” Giles said.

But the Education Department under Trump is now arguing that the ruling by the 8th U.S. Circuit Court of Appeals required it to end the loan forgiveness under repayment plans beyond SAVE. As a result, the Pay As You Earn and Income-Contingent Repayment options no longer wipe debt away after a certain number of years.

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There’s some good news: At least one repayment plan still leads to debt erasure, said higher education expert Mark Kantrowitz. That plan is called Income-Based Repayment.

If a borrower enrolled in ICR or PAYE eventually switches to IBR, their previous payments made under the other plans will count toward loan forgiveness under IBR, as long as they meet the IBR’s other requirements, Kantrowitz said. (Some borrowers may opt to take that strategy if they have a lower monthly bill under ICR or PAYE than they would on IBR.)

Public Service Loan Forgiveness remains

Despite Trump‘s executive order in March aimed at limiting eligibility for Public Service Loan Forgiveness, the program remains intact. Any changes to the program would likely take months or longer to materialize, and may even need congressional approval, experts say.

PSLF, which President George W. Bush signed into law in 2007, allows many not-for-profit and government employees to have their federal student loans canceled after 10 years of payments.

What’s more, any changes to PSLF can’t be retroactive, consumer advocates say. That means that if you are currently working for or previously worked for an organization that the Trump administration later excludes from the program, you’ll still get credit for that time — at least up until when the changes go into effect.

For now, the language in the president’s executive order was fairly vague. As a result, it remains unclear exactly which organizations will no longer be considered a qualifying employer under PSLF, experts said.

However, in his first few months in office, Trump has targeted immigrants, transgender and nonbinary people and those who work to increase diversity across the private and public sector. Many nonprofits work in these spaces, providing legal support or doing advocacy and education work.

For now, those pursuing PSLF should print out a copy of their payment history on StudentAid.gov or request one from their loan servicer. They should keep a record of the number of qualifying payments they’ve made so far, said Jessica Thompson, senior vice president of The Institute for College Access & Success.

“We urge borrowers to save all documentation of their payments, payment counts, and employer certifications to ensure they have any information that might be useful in the future,” Thompson said.

Other loan cancellation opportunities to consider

Federal student loan borrowers also remain entitled to a number of other student loan forgiveness opportunities.

The Teacher Loan Forgiveness program offers up to $17,500 in loan cancellation to those who’ve worked full time for “complete and consecutive academic years in a low-income school or educational service agency,” among other requirements, according to the Education Department.

(One thing to note: This program can’t be combined with PSLF, and so borrowers should decide which avenue makes the most sense for them.)

Student loan matching funds

In less common circumstances, you may be eligible for a full discharge of your federal student loans under Borrower Defense if your school closed while you were enrolled or if you were misled by your school or didn’t receive a quality education.

Borrowers may qualify for a Total and Permanent Disability discharge if they suffer from a mental or physical disability that is severe and permanent and prevents them from working. Proof of the disability can come from a doctor, the Social Security Administration or the Department of Veterans Affairs.

With the federal government rolling back student loan forgiveness measures, experts also recommend that borrowers explore the many state-level relief programs available. The Institute of Student Loan Advisors has a database of student loan forgiveness programs by state.

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Many Americans are worried about running out of money in retirement

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Many Americans are worried they’ll run out of money in retirement.

In fact, a new survey from Allianz Life finds that 64% Americans worry more about running out of money than they do about dying. Among the reasons cited for those fears include high inflation, Social Security benefits not providing enough support and high taxes.

The fear of running out of money was most prominent for Gen Xers who are approaching retirement. However, a majority of millennials and baby boomers also said they worry about their money lasting, according to the online survey of 1,000 individuals conducted between January and February.

Separately, a new Employee Benefit Research Institute report finds most retirees say they are living the lifestyle they envisioned and are able to spend money within reason. Yet more than half of those surveyed agreed at least somewhat that they spend less because of worries they will run out of money, according to the survey of more than 2,700 individuals conducted between January and February.

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Meanwhile, a Northwestern Mutual survey reported that 51% of Americans think it’s “somewhat or very likely” they will outlive their savings. The survey polled 4,626 U.S. adults aged 18 and older in January.

Since those studies were conducted, new tariff policies have caused disturbance in the stock markets and prompted speculation that inflation may increase. Meanwhile, new leadership at the Social Security Administration has prompted fears about the continuity of benefits. Those headlines may negatively affect retirement confidence, experts say.

With employers now providing a 401(k) plan and other savings plans versus pensions, it is largely up to workers to manage how much they save heading into retirement and how much they spend once they reach that life stage. That responsibility can also lead to worries of running out of money in the future, experts say.

How to manage the ‘fear of outliving your resources’

Because of the unique risks every individual or couple faces when planning for retirement, the best approach is typically to transfer some of that burden to a third party, said David Blanchett, head of retirement research at PGIM DC Solutions.

Creating a guaranteed lifetime income stream that covers essential expenses can help reduce the financial impact of any events that require retirees to cut back on spending, Blanchett explained.

That should first start with delaying Social Security benefits, he said. While eligible retirees can claim benefits as early as 62, holding off up until age 70 can provide the biggest monthly benefits. Social Security is also unique in that it provides annual adjustments for inflation.

73% of Americans are financially stressed

Next, retirees may want to consider buying a lifetime income annuity that can help amplify the monthly income they can expect. Admittedly, those products can be complicated to understand. Therefore Blanchett recommends starting out by comparing very basic products like single premium immediate annuities that are easier to compare.

“Unless you do those things, you just can’t get rid of that fear of outliving your resources,” Blanchett said.

Without a guaranteed income stream, retirees bear all of the financial risk themselves, he said.

 “Retirement could last 10 years; it could last 40 years,” Blanchett said. “You just don’t know how long it’s going to be.”

Among retirees, there has been some hesitation to buy annuities, said Craig Copeland, EBRI’s director of wealth benefits research. Such a purchase requires parting with a lump sum of money in exchange for the promise of a guaranteed income stream.

“We see great increase in interest, but we aren’t seeing upticks in take up yet,” Copeland said. “I do think that’s going to start to change.”

What can help boost retirement confidence

To effectively plan for retirement, it helps to seek professional financial assistance, experts say.

Meanwhile, few people have a plan of their own for how they may live on the assets they’ve worked hard to accumulate, according to Kelly LaVigne, vice president of consumer insights at Allianz Life.

“This is something that you should not plan on doing on your own,” LaVigne said.

While the survey from Northwestern Mutual separately found individuals think they need $1.26 million to retire comfortably, the real number individuals need is based on their personal situation, said Kyle Menke, founder and wealth management advisor at Menke Financial, a Northwestern Mutual company.

In thinking about how life will look in 30 years, there are a variety of things to consider, Menke said. This includes stock market returns, taxes, inflation and medical expenses, he said.

Even people who have enough money for retirement often don’t feel confident in their ability to manage all of those factors on their own, he said. Financial advisors have the ability to run different simulations and stress test a plan, which can help give retirees and aspiring retirees the confidence they’re lacking.

“I think that’s where the biggest gap is,” said Menke, referring to the confidence Americans are lacking without a plan.

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