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Investors in Asia will look toward the Bank of Japan decision, which is expected to hold rates at 0.75%. View More

In this article.KS11Follow your favorite stocksCREATE FREE ACCOUNT The Bank of Japan (BOJ) headquarters in Tokyo, Japan, on Thursday, Oct. 31, 2024. The Bank of Japan kept its benchmark interest rate unchanged.Getty Images Asia-Pacific markets dipped on Thursday, tracking losses on Wall Street that saw the Dow Jones Industrial Average touch a new closing low for the year.The Federal Reserve held its key policy rate steady at 3.5% to 3.75%, with Chair Jerome Powell watering down rate-cut expectations, saying that inflation was not coming down as much as ‘hoped.’The producer price index — which tracks the change in wholesale prices — rose 0.7% in February, well above the 0.3% that economists polled by Dow Jones had estimated.Despite that, the U.S. central bank's "dot plot" still projects a cut in 2026 and another in 2027, even though the timing is unclear. The Iran war continues to fuel energy worries. International benchmark Brent crude futures rose 3.83% to settle at $107.38 per barrel. U.S. oil prices were trading at elevated levels as well, with West Texas Intermediate futures closing marginally higher at $96.32 per barrel.Investors in Asia will look toward the Bank of Japan decision, with the bank expected to hold rates at 0.75%. South Korea's Kospi lost 2.56%, leading losses in Asia after being the top gainer in the region on Wednesday, while the small-cap Kosdaq saw a smaller loss of 1.73%.Chip heavyweights Samsung Electronics and SK Hynix saw losses of over 3%. Japan's Nikkei 225 was down 2.47%, while the broad-based Topix was 1.82% lower. Australia's S&P/ASX 200 started the day down 1.5%.Hong Kong's Hang Seng index futures were at 25,479, lower than the HSI's last close of 26,025.42. Overnight in the U.S., the 30-stock Dow lost 1.63%, ending at 46,225.15, reaching a new low this year. The index also closed below its 200-day moving average. The S&P 500 fell 1.36%, while the Nasdaq Composite dropped 1.46%.—CNBC's Sean Conlon, Pia Singh and Jeff Cox contributed to this report. Choose CNBC as your preferred source on Google and never miss a moment from the most trusted name in business news.

Iran's Revolutionary Guard had threatened to attack energy facilities in Qatar, Saudi Arabia and the United Arab Emirates. View More

In this article@LCO.1@CL.1Follow your favorite stocksCREATE FREE ACCOUNT watch nowVIDEO2:0702:07Qatar's Ras Laffan struck by Iranian missilesClosing Bell: Overtime Qatar said Wednesday that Iranian missiles caused "extensive damage" at Ras Laffan Industrial City, home to the largest liquefied natural gas, or LNG, export facility in the world. Qatar's Foreign Ministry denounced the attack as a "dangerous escalation, flagrant violation of state sovereignty, and a direct threat to its national security and regional stability."Qatar reserves the right to respond in accordance with the right to self-defense guaranteed under international law, the Foreign Ministry said in a statement. Brent crude prices, the international benchmark, surged more than 7% to $111.23 by 4:52 p.m. ET. U.S. West Texas Intermediate crude was up about 4% at $100.04. QatarEnergy's liquefied natural gas production facilities, amid the U.S.-Israeli conflict with Iran, in Ras Laffan Industrial City, Qatar, March 2, 2026.Stringer | Reuters Iran's Revolutionary Guard had threatened to attack energy facilities in Qatar, Saudi Arabia and the United Arab Emirates after Israel bombed a natural gas processing facility in Iran. Emergency teams were deployed to contain fires at Ras Laffan, according to a social media post from state-owned QatarEnergy. No casualties have been reported. Qatar's Interior Ministry later said the fire at the facility had initially been brought under control. Qatar halted LNG production on March 2 due to Iranian drone strikes at Ras Laffan and Mesaieed Industrial City. The Gulf state is the second-largest LNG exporter in the world, after the U.S. Qatar accounts for nearly 20% of global LNG exports, according to data from energy consulting firm Kpler. The escalating attacks on Middle East oil and gas infrastructure threaten to intensify the massive energy supply disruption triggered by the Iran war. Oil tanker traffic through the Strait of Hormuz has plunged due to Iranian attacks on commercial ships. The Strait is the most important trade choke point for oil, with about 20% of world supplies passing through it before the war. Brent prices could average $130 in the second and third quarter if there are broad attacks on energy infrastructure and the Strait remains closed for a prolonged period, Citigroup analysts told clients in a report on Wednesday. Choose CNBC as your preferred source on Google and never miss a moment from the most trusted name in business news.

Micron's stock has soared this year while its tech peers have struggled, as the impact of rising memory costs ripples across the industry. View More

In this articleNVDASSNHZSSNLF.FKRX300HXSCLMUFollow your favorite stocksCREATE FREE ACCOUNT Micron CEO Sanjay Mehrotra speaks at a groundbreaking ceremony for the company's semiconductor manufacturing facility in Clay, New York, on Jan. 16, 2026.Heather Ainsworth | Bloomberg | Getty Images Micron's revenue almost tripled in the latest quarter as results topped analysts' estimates and guidance sailed past expectations. The stock, which is up more than 350% in the past year, slipped in extended trading.Here's how the company did relative to LSEG consensus:Earnings per share: $12.20 adjusted vs. $9.31 expected Revenue: $23.86 billion vs. $20.07 billion expectedMicron is benefiting from soaring demand for Nvidia graphics processing units that run generative artificial intelligence models. Each generation of Nvidia chip packs in more memory, creating a supply crunch. Micron has been working to add capacity, as have competitors Samsung and SK Hynix.Revenue in the fiscal second quarter increased from $8.05 billion a year earlier, according to a statement. For the current period, the company expects about $33.5 billion in revenue, up from $9.3 billion a year ago, implying growth of over 200%. Adjusted earnings per share will be about $19.15, Micron said. Analysts polled by LSEG had expected $12.05 in adjusted earnings per share on $24.3 billion in revenue."The step-up in our results and outlook are the outcome of an increase in memory demand driven by AI, structural supply constraints and Micron's strong execution across the board," CEO Sanjay Mehrotra said in prepared remarks the company issued at the time of the release. Micron's stock has been on a tear. The shares tripled in 2025 and have jumped another 62% year to date as of Wednesday's close. Among the 10 most valuable U.S. tech companies, Micron is the only one that's up. Oracle is the leading decliner, down 22%, and Microsoft and Tesla have also seen double-digit percentage drops."Looking at how the shares were trading going into this earnings report, I thought the biggest risk was high investor expectations," said Hendi Susanto, a portfolio manager at Gabelli Funds, in an email. "However, fiscal third-quarter guidance is strong, well above analysts' and my own expectations." watch nowVIDEO1:4101:41Micron flags major capex ramp as AI demand drives next buildoutFast Money Mehrotra said that AI and conventional servers are facing a "lack of adequate DRAM and NAND supply." That refers to the company's traditional memory products that have long been used in data centers and devices.Memory companies have been shifting production capacity largely to high-bandwidth memory, which is embedded onto Nvidia's latest GPUs and many other chips powering AI. Those products have higher margins. The company's GAAP gross margin, the profit left after accounting for the cost of goods sold, more than doubled in the past year to 74.4% from 36.8%, and increased from 56% in the prior quarter. Net income climbed to $13.8 billion, or $12.07 per share, from $1.58 billion, or $1.41 per share, in the same quarter last year. Micron said revenue in its cloud memory business rose more than 160% to $7.75 billion. The mobile and client unit saw even steeper growth, with revenue jumping to $7.71 billion from $2.24 billion a year ago. Memory is typically a commodity business, which comes with lower margins than other silicon products and short-term contracts. In the past few months, memory companies have signed longer-term contracts as semiconductor makers work to ensure future capacity. "As AI evolves, we expect compute architectures to become more memory-intensive," the company said in an earnings presentation. "This is why we strongly believe that Micron is one of the biggest beneficiaries and enablers of AI."Mehrotra said on the earnings call that volume production of HBM4 for Nvidia's Vera Rubin started in the fiscal first quarter, and next-generation HBM4e products will ramp in 2027. Nvidia has said it will utilize custom HBM in its next-generation Feynman GPU coming in 2028.Mehrotra added that capital expenditures will "step up meaningfully" in fiscal 2027, with construction-related costs increasing by over $10 billion. Micron is building two giant new campuses of fabrication plants in Idaho and New York to increase its memory manufacturing capacity in the U.S. Mehrotra said on the call that initial production at the Idaho site is expected by mid-2027. Micron broke ground in January on the massive $100 billion New York campus, and expects wafer output by the second half of 2028.WATCH: How Micron is building the biggest-ever U.S. chip fab, despite China ban watch nowVIDEO17:4217:42Micron is building the biggest-ever U.S. chip fab, despite China banTech Choose CNBC as your preferred source on Google and never miss a moment from the most trusted name in business news.

While no one expected the Fed to cut — much less hike — at this meeting, the market always looks for clues about what's next. View More

U.S. Federal Reserve Chair Jerome Powell holds a press conference following a two-day meeting of the Federal Open Market Committee (FOMC), at the Federal Reserve in Washington, D.C., U.S., March 18, 2026. Kevin Lamarque | Reuters The Federal Reserve on Wednesday voted to hold its benchmark interest rate steady, while adjusting its projections for the economy and the future path of monetary policy. In addition, Chair Jerome Powell covered a variety of topics in his post-meeting news conference.Here are the five top takeaways: 1. Lots of uncertainty While no one expected the Fed to cut — much less hike — at this meeting, the market always looks for clues about what's next. Neither the post-meeting statement, the update on economic projections, nor Powell's news conference provided much in that regard. The statement saw only minor tweaks, the "dot plot" saw a modest dovish shift, and Powell used some form of "uncertain" more than half a dozen times. 2. The war is a problem Forecasting the future and modeling policy at a time when the U.S. is at war with Iran is nearly impossible, Powell said. He faced repeated questions about the oil shock, and mostly emphasized how much it has muddied the waters for the Fed. "The thing I really want to emphasize is that nobody knows," he said. "The economic effects could be bigger, they could be smaller, they could be much smaller or much bigger. We just don't know." 3. Cuts coming, but timing is highly uncertain The dot plot still pointed to one more cut this year and another next year. But the grid looked more like a maze than a consensus, underlining just how little underlying consensus exists on the Federal Open Market Committee. For instance: In 2027, one official sees a hike, three see no change from the current level, four expect another cut, six see two more cuts, three forecast three cuts, one official sees four cuts, and a final participant — presumably Governor Stephen Miran — is at five. 4. Powell leaves door open to staying Each news conference, Powell is questioned on whether he will stay on as governor after his term as chair ends. He again said he hasn't made up his mind, which, of course, doesn't eliminate the possibility. But he also said he isn't going anywhere as long as the investigation into him continues, adding that he'll also stay on as sort of a "chair pro tem" until someone, presumably former Governor Kevin Warsh, is confirmed as his successor. 5. Powell rejects 'stagflation' Don't use the term "stagflation" around Powell. The chair rejected the notion that the U.S. economy, with its solid growth and low unemployment rate, is heading toward a 1970s nightmare, despite an anemic hiring rate and inflation above the Fed's target for going on five years. "It's a very difficult situation, but it's nothing like what they faced in the 1970s and [I would] reserve 'stagflation' for that," Powell said. "Maybe that's just me." They said it "The Fed didn't move today — but it didn't need to. This is a central bank that's comfortable waiting, watching, and staying flexible. One projected cut tells you everything: the Fed is not in a rush, and neither should investors be." — Gina Bolvin, president of Bolvin Wealth Management Group."Although the move was widely expected, it underscores the difficult path ahead for the Fed, which now faces pressure on both sides of its dual mandate to keep employment high and inflation muted. Complicating matters further is the fact that Fed leaders are often basing hugely important decisions on weeks- or months-old data that may not fully capture the magnitude of rapid economic shifts, raising the risk that decisions may come too late or be based on outdated assumptions." — Indeed economist Felix Aidala."I expect given the volatile situation that the committee would like to try and do as little as possible so as to not rock the boat ahead of the new Fed chair taking over." — Stephen Coltman, head of macro at 21shares. Choose CNBC as your preferred source on Google and never miss a moment from the most trusted name in business news.

Macy's posted solid fourth-quarter results as it tries to revamp some stores and close others. View More

In this articleMFollow your favorite stocksCREATE FREE ACCOUNT A person exits the Macys Flagship store in New York City on January 14, 2025. Macy's declined 2.4% to $4.7 billion during the third quarter of their Overall sales which ended Nov. 2, 2024, giving as result that 66 of the approximately 150 locations of the company will close by 2026, Closing any store is never easy, but as part of our Bold New Chapter strategy, says chairman and chief executive officer of Macys, Inc. Tony Spring. (Photo by Eduardo MunozAlvarez -VIEWpress/Getty Images)Eduardo Munoz Alvarez | Corbis News | Getty Images Macy's on Wednesday beat Wall Street's quarterly sales and profit expectations as its namesake brand showed signs of progress, yet still gave a cautious outlook for the year ahead. For the fiscal year, the company – which is made up of the Macy's chain, higher-end department store Bloomingdale's and beauty retailer Bluemercury – said it expects sales of between $21.4 billion and $21.65 billion and adjusted earnings per share of $1.90 to $2.10.Both of those would represent a drop from this past fiscal year, when revenue totaled $21.8 billion and adjusted earnings per share were $2.15. Macy's sales outlook roughly matched or exceeded analysts' expectations of $21.42 billion, but its adjusted earnings guidance came in shy of Wall Street's expectations of $2.17 per share for the year, according to LSEG.Macy's said it expects comparable sales, an industry metric that takes out short-term factors like store openings and closures, to range from a 0.5% decline to a 0.5% increase. In an interview with CNBC, CEO Tony Spring said Macy's results show that its strategy is working. All three of its brands grew in the fiscal year and holiday quarter. It marked the fourth consecutive quarter of Macy's beating Wall Street's sales guidance. And for the first time in three years, Macy's returned to positive growth, with comparable sales increasing 1.5% for the full year. Even in recent weeks, he said Macy's shoppers have shown "continued resiliency" as they spend on fresh clothing and gravitate to newer brands and trendier items. Yet, he said Macy's and other retailers have new unknowns that make the year ahead harder to predict and caused the company to take a "prudent" approach with its outlook."Given the environment that we operate in, it makes sense for us to not put a hockey stick out there and suggest that we have visibility into what the remainder of the year is going to reveal itself to be," Spring said."Where will gas prices be the remainder of the year? How long will the conflict go on in the Middle East? Will the tariffs be refunded? Will other tariffs be enhanced or raised? Will the resilient consumer continue?" he said. "We're not economists. The team is really focused on controlling what they can control."The company's full-year guidance takes into account "macroeconomic and geopolitical factors that could influence discretionary spend," according to a news release. It said the outlook anticipates a larger hit from tariffs in the first half of the year than the second half, with the first quarter "having the most meaningful impact." It also includes the impact of investments that the company is making in revamping its stores, as well as the effect of fewer store closures. Spring said the company has continued to include the pre-Supreme Court ruling level of tariffs in its full-year forecast. He said it expects Macy's tariff bill to ease later this year because it will be lapping the year-ago impact of tariffs. If the company gets a refund or if tariffs wind up at a lower level, "that will be a benefit" for Macy's, he said.Here's how the department store operator performed during its fiscal fourth quarter, compared with what Wall Street was anticipating, based on a survey of analysts by LSEG:Earnings per share: $1.67 adjusted vs.$1.53 expectedRevenue: $7.64 billion vs. $7.62 billion expectedShares of Macy's closed on Wednesday at $17.72, up nearly 5%.As of Wednesday's close, the company's stock is up about 30% over the past year, outpacing the roughly 18% gains of the S&P 500 during the same period. Shares of Macy's have fallen about 20% year to date, however. window.addEventListener("message",function(a){if(void 0!==a.data["datawrapper-height"]){var e=document.querySelectorAll("iframe");for(var t in a.data["datawrapper-height"])for(var r,i=0;r=e[i];i++)if(r.contentWindow===a.source){var d=a.data["datawrapper-height"][t]+"px";r.style.height=d}}}); Macy's net income for the three-month period that ended Jan. 31 rose to $507 million, or $1.84 per share, compared with $342 million, or $1.21 per share, in the year-ago period. Adjusting for one-time items including impairment and restructuring costs, the retailer reported earnings per share of $1.67. Sales fell from $7.77 billion in the year-ago quarter.  window.addEventListener("message",function(a){if(void 0!==a.data["datawrapper-height"]){var e=document.querySelectorAll("iframe");for(var t in a.data["datawrapper-height"])for(var r,i=0;r=e[i];i++)if(r.contentWindow===a.source){var d=a.data["datawrapper-height"][t]+"px";r.style.height=d}}}); Macy's is about two years into a three-year effort to strengthen its struggling namesake brand, lean into its better-performing and more luxury-focused chains Bloomingdale's and Bluemercury, and speed along the business' supply chain and tech operations. That turnaround strategy has been led by Spring, who stepped into the company's top role about two years ago. As part of its plan, Macy's initially said it would close about 150, or more than a quarter, of its namesake stores by early 2027.So far, Spring told CNBC that Macy's has closed a little over 80 of its namesake stores and is still planning to hit the approximately 150 closures. He declined to share how many new Bloomingdale's and Bluemercury stores the company may open and where those will be located, but said he sees a lot of opportunity to reach new markets.On an earnings call, CFO Tom Edwards said the company is now extending the closure timing for the remaining approximately 65 stores through 2028. He said the longer time frame will allow Macy's to "wait for the most favorable real estate market in order to get the most value for our shareholders and for our business." window.addEventListener("message",function(a){if(void 0!==a.data["datawrapper-height"]){var e=document.querySelectorAll("iframe");for(var t in a.data["datawrapper-height"])for(var r,i=0;r=e[i];i++)if(r.contentWindow===a.source){var d=a.data["datawrapper-height"][t]+"px";r.style.height=d}}}); Across the company, comparable sales for the fourth quarter grew 1.8% including owned and licensed merchandise and its third-party marketplace.In the fourth quarter, comparable sales for the Macy's namesake banner grew 0.4%. When including only the stores that Macy's plans to keep open, comparable sales increased 0.6%. Comparable sales for Bloomingdale's jumped 9.9%, and for Bluemercury grew 1.3%.Bloomingdale's posted its best holiday season ever, which Spring attributed to the retailer's assortment, strong store and digital experience, and ability to draw shoppers across generations. Bloomingdale's has also benefited from a shake-up in the luxury industry, particularly the bankruptcy filing of Saks Global, the parent company of Saks Fifth Avenue and Neiman Marcus. Spring said on the earnings call that "the disruption in the marketplace only gives more fuel to the fire."During the holiday season, Spring said Macy's, Bloomingdale's and Bluemercury drew in customers and less frequent, seasonal shoppers who sprang for pricier brands and items, including fragrances, sunglasses and shoes, as they looked for gifts. And even since the gift-giving season has passed, Macy's has not seen a change with consumer spending, Spring said."The middle- and upper-end consumer, which is the majority of our business, is resilient," he said. "They are buying new things, fashionable things, wardrobe changes, [they're] not as interested in essentials at this moment in time, and then, obviously the lower-income tiers are more choiceful."He said the department store operator's approach of carrying products across a wide range of prices has been "one of the best antidotes" to an unpredictable economic backdrop.Led by Spring, the company has tried to address criticisms that its Macy's department stores carried stale merchandise, relied on too thin of staffing, and had disorganized shelves and displays that had driven shoppers to competitors. While shuttering some of its namesake stores, the company pledged to invest in the approximately 350 Macy's stores that will remain open. It has stepped up staffing, added new brands and sharpened its visual displays at a growing number of locations.The company began with a test at 50 stores and has now scaled up to more Macy's namesake locations. At the 125 locations where it has increased investment, sales outperformed the rest of the Macy's chain, with comparable sales growth of 0.9%. Spring told CNBC the company has now added 75 more stores, bringing the total to 200 "reimagined" stores. That represents about 60% of Macy's namesake locations that it plans to keep open, he said.Some of the biggest changes Macy's has made at namesake stores include hiring more employees who can help customers and allowing local leadership the flexibility to put those employees in parts of the store where they can make the biggest difference, Spring said. "It always comes down to the quality of the assortment and the quality of the people and the quality of the experience. And I think we've tried to address all three," he said. "We've added brands. We've edited brands. We've made sure the shopping environment is more pleasant, less dense, [with] better storytelling, and we've added people to the stores."He said the stronger store business has lifted digital sales, which account for one-third of the brand's overall sales.Along with those changes, more of Macy's namesake stores now carry newer, trendier and often more expensive brands including Theory, Reiss, Good American and Rodd & Gunn. Spring said those have been well received and Macy's plans to add them to more locations. Choose CNBC as your preferred source on Google and never miss a moment from the most trusted name in business news.

While anxiety around AI replacing white-collar jobs has reached a fever pitch, the data center boom is creating lucrative opportunities for trade workers. View More

In this articleRAND-NLFollow your favorite stocksCREATE FREE ACCOUNT Demand for new AI data centers is surging, but they can't build themselves. Big Tech is funneling billions into building out these specialized facilities, with the four hyperscalers, Alphabet, Microsoft, Meta, and Amazon, committing nearly $700 billion in combined capex spending this year to fund these developments. Amazon said last month that it's committing $12 billion to build a new AI data center in Louisiana, which will create 540 full-time jobs on site as well as 1,700 other roles for electricians, technicians, and security specialists. Meta also invested $27 billion last year in a joint venture with Blue Owl Capital to construct its mammoth Hyperion data center in Louisiana, which is expected to consume more electricity than the city of New Orleans.  While anxiety around AI replacing white-collar jobs has reached a fever pitch, the data center boom is creating lucrative opportunities for skilled trade workers."The digital revolution requires a massive physical foundation," Sander van't Noordende, CEO of the world's largest recruitment firm Randstad, told CNBC. "Ultimately, the real constraint on global tech growth isn't solely related to a shortage of microchips, energy, or capital; it is the severe scarcity of the specialized talent required to build it." Between 2022 and 2026, demand for robotic technicians increased by 107%, according to a global analysis of 50 million job postings released by Randstad on Wednesday. For cooling — or HVAC — system engineers, the growth rate was 67%, and vacancies for industrial automation technicians grew by 51%. Meanwhile, job listings for traditional skilled trade jobs such as construction workers and electricians increased by 27%, according to Randstad's analysis. watch nowVIDEO2:3102:31How labor shortages may delay data center plansSquawk on the Street "The debate around AI's impact on the labor market often focuses entirely on the software side, specifically, whether generative models will displace white-collar jobs. But a critical reality is being completely overlooked: AI cannot build its own data centers," Noordende said via emailed comments.With roughly 12,000 data centers existing globally today, and thousands more to be built to house high-performance AI computing capacity, it's essential to update outdated mechanical, electrical, and plumbing systems every four to six years, according to Mike Mathews, digital infrastructure leader at professional services firm Marsh. Mathews noted "massive growth areas specific to labor" as a result of these retrofitting requirements, with network engineers, electricians, mechanical engineers, and plumbing and heating contractors deployed to install new liquid cooling systems. A fourth-generation plumber himself, Mathews described these roles as "new-collar" jobs, which will see traditional white-collar and blue-collar employees working alongside each other and being valued the same. "The data center space will be the first time when we've had highly compensated, high-skilled trades workers physically working next to network engineers who have college degrees. And I think it's a great social blend that we're going to have throughout data centers," Mathews added. Skills shortage driving wage premium Randstad's Noordende said that a "scarcity premium is taking effect" and that advertised wages for HVAC engineers have increased by roughly 10% to 15% in the past four years. "As AI infrastructure demand outpaces a shrinking labor supply, wage growth is rising significantly for these specialized roles," Noordende said, adding that six-figure salaries are achievable in the sector.Specialized and technical professionals moving into high-level data center roles often see a 25% to 30% pay increase, according to staffing firm Kelly Services, which shared estimates with CNBC based on internal and third-party data. It said the premium can vary by role and full-spectrum salary data is still emerging for data center positions. Nvidia's CEO Jensen Huang – a central figure behind the AI data center boom – predicted in January that "six-figure salaries" are on the horizon for the workers building AI factories. A key factor driving these salaries higher is a shortage of trade workers, with the U.S. facing a potential shortfall of 1.9 million manufacturing workers by 2033, according to 2025 data from the National Association of Manufacturers.Meanwhile, the U.S.-based Associated Builders and Contractors trade group estimates that nearly half a million new workers will be needed in 2027, up from the 349,000 needed in 2026. "[The skills shortage is] a huge issue now, and it's only going to get worse," Gary Wojtaszek, CEO of Pure Data Centres, told CNBC. "The good thing is AI won't replace any of those jobs — someone needs to man those machines, so those are really important jobs, and that is a huge challenge for the industry overall."  watch nowVIDEO5:1005:10Global data center deals hit record $61 billion in 2025Squawk Box Europe In order to overcome the skills shortage, businesses and governments will need to invest in training programs, Randstad's Noordende said.The skills shortage is also leading to cross-industry poaching as there's a lot of overlap in the operational technical skills needed for energy, defense, and tech, according to William Self, chief workforce strategist at global workforce consulting firm Mercer.Earlier in March, BlackRock launched a $100 million initiative to empower the next generation of trades workers, as CEO Larry Fink stressed that capital alone is not enough to realize the $10 trillion of investment needed for infrastructure."[The] skills profile is evolving faster than traditional job descriptions can track," Mercer's Self said in a virtual press briefing on the topic."Given the supply shortage, the companies that win this talent race will be the ones investing in both traditional recruiting and non-traditional workforce development. I'm seeing apprenticeship programs, community college partnerships, military veteran pipelines, and even internal talent academies to grow companies' own talent."  'Hazard pay rate' But the boom in demand for key AI infrastructure jobs also faces several hurdles, including an aging demographic and geographical constraints. Roughly 1 in 4 workers globally is nearing retirement age, and the talent pool is not being replenished fast enough, according to Noordende. "Unlike software developers who can often work remotely, skilled trades possess very low geographic mobility," he said. "An equipment technician or construction worker must be physically on-site. When a company builds a new AI data center or manufacturing plant, it is a region-changing event that can instantly exhaust local talent pools. Read moreBig Tech is poaching energy talent to fuel its AI ambitionsAI data center boom has to contend with realities of tough labor market What will be challenging to predict going forward is how much of a "hazard pay rate" will be built into salaries in the future, Mercer's Self said.Earlier this month, Amazon Web Services' data centers in the United Arab Emirates were targeted by Iranian drone strikes. As the conflict in the Middle East unfolds, "you could also imagine a certain psychic burden for people who are working in facilities that they know very well might be hot targets or bad actors, which could additionally increase the types of compensation packages that we would see to lure this population to these centers," Self added. Choose CNBC as your preferred source on Google and never miss a moment from the most trusted name in business news.

From mortgage rates to auto loans and credit cards, here’s a look at how the Fed's March interest rate decision may affect your finances. View More

watch nowVIDEO2:2102:21Federal Reserve votes to hold rates steadyPower Lunch Amid geopolitical turmoil, the Federal Reserve held interest rates steady at the conclusion of its policy meeting on Wednesday. An energy shock and higher inflation expectations due to the Iran war ruled out any possibility of an interest rate cut, analysts said.Since December, the federal funds rate has remained steady in a target range of 3.5% to 3.75%. The Fed's benchmark sets what banks charge each other for overnight lending, but also has a trickle-down effect on many consumer borrowing and savings rates.For Americans struggling in the face of surging gas prices and overall affordability challenges, the central bank's decision does little to ease budgetary pressures."Higher fuel costs, along with the downstream effects on shipping, travel and trade, are likely to add further pressure to consumer prices," said certified financial planner Stephen Kates, a financial analyst at Bankrate. "Cutting rates while inflation is rising would be difficult to justify, even if it might receive political support." Powell under pressure President Donald Trump has been after Fed Chair Jerome Powell to lower the central bank's benchmark rate, arguing that inflation has been "defeated." "Where is the Federal Reserve Chairman, Jerome 'Too Late' Powell, today? He should be dropping Interest Rates, IMMEDIATELY, not waiting for the next meeting," Trump wrote in a Truth Social post on March 12. Powell has just one more meeting before his term at the helm ends.Before the oil shock, inflation was holding above the Fed's 2% target but not worsening. Now the surge in energy costs could have longer-term inflation implications, experts say."If tensions in the Iran conflict ease, inflation pressures will gradually subside. Until then, the economy may have to absorb a period of higher inflation again," Kates said. How the Fed decision affects your finances The U.S.-Israel attack on Iran helped push the benchmark 10-year Treasury yield up to 4.208%. The yield on the 10-year note is a barometer for mortgage rates and other longer-term loans.Short-term rates are more closely pegged to the prime rate, which is typically 3 percentage points above the federal funds rate.Credit cardsMost credit cards have a short-term, variable rate, so they are closely pegged to the Fed's benchmark.The average annual percentage rate has held at just under 20% since November, according to Bankrate."Credit card rates don't tend to move much unless forced by the Fed, so I expect that we may see a few months of relative stability," said Matt Schulz, chief credit analyst at LendingTree. Mortgage ratesFixed mortgage rates don't directly track the Fed: They are largely tied to Treasury yields and the U.S. economy. Concerns that the expanding war in the Middle East may fuel inflationary pressures have already pushed the average rate for a 30-year, fixed-rate mortgage up to 6.29% as of Tuesday, from 5.99% at the end of February, according to Mortgage News Daily."With global uncertainty, a shaky economic outlook and the Fed's rate-cut pause likely to continue, I expect mortgage rates to remain relatively volatile," Schulz said. Student debtFederal student loan rates are also fixed and based in part on the 10-year Treasury note. Current interest rates on undergraduate federal student loans made through June 30 are 6.39%, according to the U.S. Department of Education.Car loansAuto loan debt is another pain point for over 100 million Americans, in part due to inflated prices and high financing costs, according to the Consumer Financial Protection Bureau. The average amount financed for a new car reached an all-time high of $43,759 at the end of last year, according to Edmunds. The average monthly payment on a new-vehicle purchase is at a record high, as is the share of new-car buyers with an auto payment of $1,000 or more."Car buyers continue to combat sky-high car prices by stretching their loan terms to achieve more palatable monthly payments. Unfortunately, those longer terms are tied to higher interest rates, keeping average rates inflated," said Joseph Yoon, consumer insights analyst at Edmunds. This month, higher gas prices only add to affordability concerns. One potential bright spot for car shoppers: Eligible taxpayers can deduct up to $10,000 in auto loan interest this tax season under a temporary provision enacted as part of President Donald Trump's One Big Beautiful Bill Act signed in July.Savings ratesFor savers, there's another silver lining to the Fed decision. While the Fed has no direct influence on deposit rates, the yields tend to be correlated with changes in the target federal funds rate. So, although rates on certificates of deposit and high-yield savings accounts have fallen from recent highs, they are still holding above the annual rate of inflation.As long as the central bank stays on the sidelines, "the rate pause is good news for savers," Schulz said.Subscribe to CNBC on YouTube. Choose CNBC as your preferred source on Google and never miss a moment from the most trusted name in business news.

The Federal Reserve on Wednesday released its decision in interest rates. View More

watch nowVIDEO2:2102:21Federal Reserve votes to hold rates steadyPower Lunch WASHINGTON – The Federal Reserve on Wednesday voted to hold its key interest rate steady as policymakers navigate their way through higher-than-expected inflation readings, mixed signs on the labor market – and a war.In a widely expected decision, the Federal Open Market Committee voted 11-1 to keep the benchmark federal funds rate anchored in a range between 3.5%-3.75%. The rate sets overnight funding costs for banks but influences a broad range of consumer and business borrowing.The committee in its post-meeting statement made few changes to its view on the economy, with a slightly faster pace of growth and higher inflation projections for 2026.Despite the elevated uncertainty, officials again signaled they still expect a few rate cuts ahead. The closely watched "dot plot," which reflects individual members' rate projections, pointed to one reduction this year and another in 2027, though the timing remains unclear. window.addEventListener("message",function(a){if(void 0!==a.data["datawrapper-height"]){var e=document.querySelectorAll("iframe");for(var t in a.data["datawrapper-height"])for(var r,i=0;r=e[i];i++)if(r.contentWindow===a.source){var d=a.data["datawrapper-height"][t]+"px";r.style.height=d}}}); Of the 19 FOMC participants, seven signaled they expected rates to stay unchanged this year, one more than the last update in December. While future years showed a fairly wide disbursement of forecasts, the median outlook is for an additional cut in 2027 before the funds rate steadies out around 3.1% for the long term.Stocks fell to session lows as the central bank's decision and comments from Federal Reserve Chair Jerome Powell drew more attention to the threat of persistant inflation. War's implications are 'uncertain'One factor is the uncertainty associated with the war with Iran that started nearly three weeks ago. The fighting and its impact on the Strait of Hormuz has roiled the global oil market and threatened to keep inflation above the Fed's 2% target."The implications of developments in the Middle East for the U.S. economy are uncertain," the statement said.During his news conference, Powell said it was "too soon to know" the impact of the war. "Near term measures of inflation expectations have risen in recent weeks, likely reflecting the substantial rise in oil prices caused by the supply disruptions in the Middle East," he said.Governor Stephen Miran again dissented, favoring a quarter percentage point cut amid rising concerns about the jobs climate. Governor Christopher Waller, who joined Miran in wanting a cut in January, voted this time to hold.Before the conflict, markets had been pricing in two reductions this year, with a small chance of a third. But rising oil prices and a string of firm inflation readings — entailing data from before the energy shock — have pushed expectations down to at most one cut in 2026. Faster economic growth seen In updates to their economic projections, Fed officials see gross domestic product increasing at a 2.4% pace this year, a bit faster than in December. Growth is projected to progress at a solid 2.3% rate in 2027, up three-tenths of a percentage point from the previous outlook.Officials also upped their inflation outlook for this year. They now expect the personal consumption expenditures price index to reflect a 2.7% inflation rate, both on headline and core. However, they see inflation falling back near the Fed's 2% target in ensuing years as the impact of tariffs and the war fade. Policymakers continue to expect a 4.4% unemployment rate by year's end, despite a string of weak payrolls readings.The Fed's decision to hold comes against a complicated political backdrop.President Donald Trump continues to badger Powell and his colleagues to lower rates. Earlier this week, Trump criticized Powell for not calling a special meeting to ease, even with inflation running hot and the uncertainty of the war's impact.For his part, Powell presided over what could be his next-to-last meeting as head of the central bank. His term is set to end in May, and Trump has tapped former Fed Governor Kevin Warsh as the successor. Warsh has indicated a preference for lower rates, though he has not issued any recent public statements to indicate where his thinking is now.Complicating the dynamic further is Trump's own Justice Department.U.S. Attorney Jeanine Pirro in Washington has subpoenaed Powell for evidence regarding the Fed's multibillion-dollar headquarters renovation. Powell, though, has resisted the subpoena, and accused Trump of using it as a pretext to pressure the Fed into lowering rates. A judge sided with Powell on the issue, tossing the subpoenas and agreeing with the notion that the effort was simply to twist Powell's arm to cut.However, Pirro has vowed to appeal, and Sen. Thom Tillis, R-N.C., has in turn said he would block Warsh's nomination in the Senate Banking Committee until the Powell matter is settled. Assuming the court battle continues past May, that would keep Powell in his seat until Warsh is confirmed.Powell touched on this during the news conference, saying "I have no intention of leaving the board until the investigation is well and truly over, with transparency and finality." Once it wraps, Powell is undecided. "I have not made that decision yet, and I will make that decision based on what I think is best for the institution and for the people we serve." Powell's term on the Board of Governors doesn't expire until early 2028. Correction: An earlier version of this story misspelled Sen. Thom Tillis' name. Choose CNBC as your preferred source on Google and never miss a moment from the most trusted name in business news.

The central bank's so-called dot plot showed a median estimate of 3.4% for the federal funds rate, the same as at the end of last year. View More

An eagle is seen framed though construction fence on the Marriner S. Eccles Federal Reserve Board Building, the main offices of the Board of Governors of the Federal Reserve System on September 16, 2025 in Washington, DC, U.S.Kevin Dietsch | Getty Images News | Getty Images The Federal Reserve is still expecting to cut interest rates once this year in spite of a spike in oil prices from the Iran war. The central bank's so-called dot plot, which shows the anonymous expectations of the 19 individual members, showed a median estimate of 3.4% for the federal funds rate at the end of 2026, the same as what it had projected at the end of last year. However, a closer look at the overall dot plot showed the balance of projections moved toward fewer reductions, meaning more members are forecasting one reduction from two previously. "If you notice, the median didn't change, but there was actually some movement toward — a meaningful amount of movement — toward fewer cuts by people," Fed Chair Jerome Powell said in his post-meeting remarks. "So four or five people went from two to one, let's say, two cuts to one cut." The Fed kept rates unchanged on Wednesday, voting 11-1 to keep the benchmark federal funds rate anchored in a range between 3.5%-3.75%. window.addEventListener("message",function(a){if(void 0!==a.data["datawrapper-height"]){var e=document.querySelectorAll("iframe");for(var t in a.data["datawrapper-height"])for(var r,i=0;r=e[i];i++)if(r.contentWindow===a.source){var d=a.data["datawrapper-height"][t]+"px";r.style.height=d}}}); Traders had come into the year hopeful for two interest rate cuts. However, that expectation has been getting pushed out in recent weeks because of data showing hotter inflation that could put the central bank on hold. In particular, it complicates the job of former Fed Governor Kevin Warsh, who is set to succeed current Chair Powell when his term ends in May. Warsh, who was handpicked by President Donald Trump, has expressed his support for lower rates. The Fed's Summary of Economic Projections showed higher inflation projections for the year, as well as a somewhat faster pace of growth. The forecast for personal consumption expenditures inflation climbed to 2.7% for 2026, up from 2.4% in December. The projection for core inflation, which excludes volatile food and energy prices and is more closely watched by the Fed, also rose to 2.7% from 2.5%. However, the change in real GDP rose to 2.4% from 2.3% in December. Fed funds futures were last pricing in just one rate cut in 2026, as well as the greater likelihood that the central bank may remain on hold, according to the CME FedWatch Tool. — CNBC's Gabriel Cortes and Jeff Cox contributed to this report. Choose CNBC as your preferred source on Google and never miss a moment from the most trusted name in business news.

Futures markets took any realistic chance of a cut off the table until at least December. View More

Construction work continues at the Marriner S. Eccles Federal Reserve building in Washington, DC, on Dec. 30, 2025.Brendan Smialowski | AFP | Getty Images Update: Fed votes to hold rates steady, notes ‘uncertain’ impacts from Iran warA hotter-than-expected wholesale inflation reading for February had traders contemplating the possibility that the Federal Reserve won't be lowering interest rates at all this year.Following a Bureau of Labor Statistics report that the producer price index posted its biggest gain in a year, futures markets took any realistic chance of a cut off the table until at least December.Even then, odds of a reduction at the final Fed meeting of the year fell to about 60% as persistently higher inflation — brought on by tariffs, the Iran war and elevated services costs — will keep the central bank on hold. The PPI report came just hours before the Federal Open Market Committee was to release its latest interest rate decision.The wholesale inflation reading "likely reinforces a hold decision by the Federal Reserve later today but tilts the risk toward a more hawkish tone in today's FOMC" statement, said Eugenio Aleman, chief economist at Raymond James. "Even if rates are left unchanged and we see multiple dissents, the messaging may lean toward 'higher for longer,' especially with energy inflation set to re-enter the picture in coming months."Before the war that began Feb. 28, traders had been looking for interest rate cuts in both June and September, with an outside possibility of one more in December as the Fed sought to balance its dual mandate of stable prices and low unemployment.But odds for a June cut have now slumped to just 18.4%, July is down to 31.5% and September to 43.6%, according to the CME's FedWatch tool, which calculates probabilities using 30-day fed funds futures contracts. Low convictionChances for a December reduction were at 60.5%, indicating that traders are leaning toward a cut, though with a relatively low level of conviction. Historically, the 60% level or above has been associated with Fed moves in either direction.Futures are implying a 3.43% fed funds rate by the end of 2026, compared with the current level of 3.64%.To be sure, trading in fed funds futures is volatile, and the Fed could be pushed back into an easing stance if the labor market weakens further. Fed Governors Stephen Miran and Christopher Waller have been advocating for immediate cuts, though the rest of the committee seems more inclined to hold rates where they are until the economic picture clears.Correction: The Iran war began Feb. 28. A previous version misstated the country's name. Choose CNBC as your preferred source on Google and never miss a moment from the most trusted name in business news.