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President Donald Trump on Friday called for the Federal Reserve’s board of governors to usurp the power of Fed Chair Jerome Powell, criticizing the head of the U.S. central bank for not cutting short-term interest rates.Posting on his Truth Social platform, Trump called Powell “stubborn.” The Fed chair has been subjected to vicious verbal attacks by the Republican president over several months.The Fed has the responsibility of stabilizing prices and maximizing employment. Powell has held its benchmark rate for overnight loans constant this year, saying that Fed officials needed to see what impact Trump’s massive tariffs had on inflation.If Powell doesn’t “substantially” lower rates, Trump said, “THE BOARD SHOULD ASSUME CONTROL, AND DO WHAT EVERYONE KNOWS HAS TO BE DONE!”Two of the seven Fed governors, Christopher Waller and Michelle Bowman, issued statements Friday saying they see the tariffs as having a one-time impact on prices and the job market as likely softening. As a result, the two dissented at the Fed meeting on Wednesday and pushed for slight rate cuts relative to what Trump was seeking.Even though Trump, who nominated Waller and Bowman, has claimed the U.S. economy is booming, he welcomed their arguments.“STRONG DISSENTS ON FED BOARD,” he said in a separate Truth Social post. “IT WILL ONLY GET STRONGER!”Friday’s jobs report showed a rapidly decelerating economy, as just 73,000 jobs were added in July and downward revisions brought down the June and May totals to 19,000 and 14,000, respectively.Trump sees the rate cuts as leading to stronger growth and lower debt servicing costs for the federal government and homebuyers. The president argues there is virtually no inflation, even though the Fed’s preferred measure is running at an annual rate of 2.6%, slightly higher than the Fed’s 2% target.Trump has called for slashing the Fed’s benchmark rate by 3 percentage points, bringing it down dramatically from its current average of 4.33%. The risk is that a rate cut that large could cause more money to come into the economy than can be absorbed, possibly causing inflation to accelerate.The Supreme Court suggested in a May ruling that Trump could not remove Powell for policy disagreements. This led the White House to investigate whether the Fed chair could be fired for cause because of the cost overruns in its $2.5 billion renovation projects.Powell’s term as chair ends in May 2026, at which point Trump can put his Senate-confirmed pick in the seat. Follow the AP’s coverage of the Federal Reserve System at https://apnews.com/hub/federal-reserve-system. Josh Boak, Associated Press
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E-Commerce
How much does Oreo parent Mondelez crave the chocolate-peanut butter alchemy of Reeses? It has twice attempted to acquire Reeses parent, The Hershey Company, in 2016 and 2024. Well, if you cant buy em, collab with them, as Oreo and Reeses rocked the snackternet in late July with news of the forthcoming permanent additions to their lineups: Reeses Oreo Cup and the Oreo Reeses Cookie. I caught up with the top marketers from both Reeses and Oreo to understand how these two iconic brands came together. Paid subscribers will learn: How you create a partnership that goes beyond novelty and creates true value for customers and companies alike. Why these kind of partnerships are essential to wooing Gen Z customers. The role TikTok and fan culture played in making this collab happen. What the two brands learned from the 2014 limited edition Reeses peanut butter-filled Oreos. [Image: Hershey] The Oreo-Reese’s combo isn’t just some parent company internal mash-up, like Flamin Hot Mountain Dew. These are two separate corporations, coming together for a joint product. The Reeses Oreo Cup is an adaption of the classic peanut butter cup, but combining milk chocolate and white creme peanut butter cups with Oreo cookie crumbs. The Oreo Reeses Cookie is Reeses peanut buttery creme with Oreo cookie crumbs, sandwiched between Oreos classic chocolate cookie wafers. Both Hersheys and Mondelez stock prices are down by almost 5% over the past year, though Mondelezs Q2 earnings, reported this week, showed its second-quarter net revenue was up 7.7% to $8.98 billion, while Hersheys Q2 revenue (GAAP) climbed 26.0% year over year, reaching $2.6 billion. Michelle Deignan, Vice President of Oreo U.S. at Mondelez International, and Dan Mohnshine, Vice President, U.S. Confection Marketing at The Hershey Company, say both companies see this as both a strategic win in the grocery aisle, as well as a significant long-term investment in fan engagement. We spoke Deignan and Mohnshine to understand how these two iconic brands came together. They offer five lessons for creating a partnership that goes beyond novelty and creates true value for customers and companies alike. Lesson 1: Listen to the fans Both Mondelez and The Hershey Company credit a long and sustained enthusiasm among fans across social media with encouraging this official partnership. You always know you’re onto a winner when you create something that fans are already doing and asking for, says Deignan. Go to TikTok and youll see fans putting a Reese’s Peanut Butter Cup inside two Oreo wafers. So that was the perfect jumping off point for us. Mohnshine says the key for both brands was just listening to consumers. Reese’s and Oreo are the combination most named, especially among Gen Z audiences who are interested in collaborations, generally, but especially when it involves two iconic brands. So it was an easy conversation for us. [Images: Mondelz International, Inc.] Lesson 2: It pays to commit Between the two brands, Oreo has definitely been more active on brand product collaborations. Weve seen variations on the cookie from Coca-Cola, Sour Patch Kids, Ritz crackers, Barefoot Wines, streetwear kings Supreme, as well as artist collabs with Lady Gaga and Blackpink. Reeses may not have the laundry list of brand partners, but the brand has long toyed with a variety of ways it can deliver its distinct combo of peanut butter and chocolate. Witness the Chocolate Lava Big Cup, and PBJ versions. Deignan says the key for this new partnership was to build on what the brand has already done in a way that would get people excited and talking about it. Specifically, this was about leveling up from a limited edition collab the two brands released in 2014. It featured Reeses peanut butter creme in an Oreo cookie. We have history here, and people have been begging us ever since to bring it back, says Deignan. It didn’t have quite the creamy, distinctive flavor. I think that we’ve nailed it this time around, and we feel like we’ve elevated that experience. Like Oreo, Reeses uses LTO (limited time offers) to test the market. Mohnshine says the brand does extensive research to determine if certain ideas are going to have staying power. The Reese’s Oreo cup has that, and in some way, we didn’t even have to do the research because consumers were literally asking for it. Its always great to see confirmation show up in the scientific research to complement what we observe online. When evaluating these ideas, Mohnshine says the brand has two main objectives: How do we drive news on the brand and excitement on the brand? And is there a way that we̻re actually building and leaning into that brand equity in an even bigger way? [Image: Hershey] Lesson 3: Iron out your collab strategy If youve ever been in a corporate boardroom in any decision-making capacity or situation, you know that combining two signature products like this successfully is a minor miracle. First, each brand had to be really clear up front with some basics like: who is the target consumer? Then there is establishing the rules of engagement and decision rights, which are critical. Its collaboration, collaboration, collaboration, but also holding standards, says Mohnshine. Each of us have strong, high expectations that consumers have for our brands. So when you bring them together, how does Oreo show up within Reese’s? How does Reese’s show up within Oreo? There is a strong need to fit those brand standards. There’s some judgment involved by the leaders on the marketing team, and there’s also delivery from an R&D and technical perspective. Are you doing this in a way that a consumer would believe it? And we went through stringent testing to ensure that. Lesson 4: Prepare for a lot of back and forth Giant brands of any kind have to navigate plenty of red tape and internal process to get anything done. The potential is high for that complexity to lead to tension when you have two brands trying to accomplish something together. Both Deignan and Mohnshine say there is value in that inherent tension. When you bring two brands the size of ours together, our job is to truly make sure that we celebrate and protect what’s distinctive about both, says Deignan. That has been our common north star over the last two years, and that filters through everything. What’s been great about the process is, whilst collaborative, we’ve also made each other better, and we’ve pushed each other to make the best product and communications available. There’s going to be tension, there’s going to be some additional collaboration and communication required versus your typical process, says Mohnshine. However, to Michelle’s point, having the partners push each other to be better, you end up in a better place, even if it takes a little bit more communication and rigor. [Image: Hershey] Lesson 5: Use collabs to drive business results For many brands, collabs have gone far beyond sheer novelty and now impact significant business results. Deignan says that Oreo collabs have consistently helped grow its consumer base over the years. They deliver particularly well with Gen Z and younger demos, of course, dependent on the collab and the partnership you have, says Deignan. The role that these collabs play in our overall brand strategy and bringing households into the brand has been a key component of why we’ve continued to build and keep them as a mainstay in our playbook. For Reeses, Mohnshine says a collab like this helps the brand branch out beyond its comfort zone. For us, the most important thing is breaking the framework with how we execute and envision innovation, he says. And that means taking more of an external viewpoint, not just on consumers, which is table stakes, but also on partners, collaborators, even retailers. The idea is to look at the total ecosystem and bring something that’s truly newsworthy and think in nontraditional ways.
Category:
E-Commerce
Apple shares rose 2% in premarket trading on Friday, after the iPhone maker’s quarterly results topped Wall Street expectations, indicating resilience in the face of global trade tensions and intensifying artificial intelligence rivalry. Driven by a sharp rebound in its flagship phone sales, Apple posted its fastest revenue growth since 2021 and forecast “mid to high single digit” growth for the current quarter, well above analysts’ 3.27% estimate. “Although there are specific drivers like China subsidies that can be attributed for some of the exceptional strength, the acceleration in revenue growth is equally surprising, especially in a quarter when consumers typically hold off purchases ahead of the next iPhone launch in September,” J.P.Morgan analysts said. Apple has been rebalancing its manufacturing footprint, sourcing iPhones from India and other products such as Macs and Apple Watches from Vietnam, while much of its product line still benefits from tariff exemptions. CEO Tim Cook warned that tariffs would raise costs by $1.1 billion in the current quarter after the company said it took an $800 million hit from tariffs in the third quarter. The company also faces stiff competition from hardware rivals such as Samsung Electronics in the premium smartphone space and software giant Alphabet, which is rapidly embedding AI into Android and ramping up AI spending with growing returns. Among the ‘Magnificent Seven’ stocks, Apple has lagged behind this year, with its stock down 17%, as it grapples with staying competitive in the fast-evolving AI space.Apple has delayed the release of its AI-enhanced virtual assistant Siri, and was slow to launch Apple Intelligence, but Cook said the company is making headway and scaling up its AI spending to catch up with Big Tech rivals.”Brand loyalty gives Apple time to get the AI transition right, but it needs to start delivering”, said Matt Britzman, senior equity analyst, Hargreaves Lansdown. Joel Jose and Alun John, Reuters
Category:
E-Commerce
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