A new Federal Reserve survey has found that children who grew up in poverty were twice as likely to struggle with financial challenges later in life, Federal Reserve Chair Janet L. Yellen said Thursday.
The survey showed that more than half of young people age 25 to 39 who reported that as children they worried over issues like having enough food were currently facing financial challenges, Yellen said. That was double the number with financial troubles who did not face such concerns as children.
Yellen told a Fed conference that the findings underscored the need to provide children with the resources to achieve financial success later in life.
In the survey, which the Fed will publish later this spring, Yellen said there was a clear connection between childhood struggles and financial problems later in life.
“Young adults who regularly or sometimes worried when they were children about care, safety or having enough to eat are also less likely to be employed, less likely to have consistent income month-to-month and less likely to pay all of their current monthly bills in full, compared with those who never or rarely worried about these concerns as children,” Yellen said.
— Associated Press
U.S. health-care conglomerate Johnson & Johnson is the latest company to suspend all digital advertising on Google’s YouTube, over concerns that its ads may have appeared on channels that broadcast offensive videos.
Wireless carriers Verizon and AT&T said Wednesday that they would suspend digital ads on YouTube, joining a list of well-known British brands that are deserting Alphabet’s Google.
Google has come under intense scrutiny for ads appearing alongside videos on YouTube carrying homophobic or anti-Semitic messages. The company said Wednesday that it has started an extensive review of its advertising policies.
J&J said it wanted to ensure that its product advertising did not appear on channels that promote “offensive content.”
The suspensions do not affect Google’s biggest ad product — search. According to eMarketer, Google’s 2017 global ad revenue is projected to be $73.75 billion, grabbing 62 percent of the $99.62 billion search market. Search accounts for 83 percent of Google’s overall ad revenue.
Long-term U.S. mortgage rates slid this week from their highest levels of 2017. Mortgage buyer Freddie Mac said Thursday that the rate on 30-year, fixed-rate home loans fell to 4.23 percent from 4.30 percent last week. The benchmark rate stood at 3.71 percent a year ago and averaged 3.65 percent in 2016, lowest in records dating to 1971. The rate on 15-year mortgages tumbled to 3.44 percent from 3.5 percent.
The trial between bankrupt brokerage MF Global, run by former New Jersey governor
Jon Corzine, and its former accounting firm, PwC, came to an end Thursday, with both parties saying they have reached a settlement. Terms of the settlement were not disclosed. MF Global had been suing PwC for as much as $3 billion, alleging that negligence by the firm’s accountants led to confusion about the current financial health of MF Global at a time of global market turmoil. That confusion led MF Global to file for bankruptcy in late 2011.
ABC News said three of its Twitter accounts were hacked Thursday morning, sending out profanity-filled tweets to its millions of followers. The tweets have since been deleted, and ABC News said that it “resolved the issue quickly.” The hacked accounts included the main ABC News one, which has nearly 10 million followers, and two accounts related to its morning show “Good Morning America.” Twitter declined to comment, saying that it does not discuss individual accounts for privacy and security reasons.
Disney chief executive Bob Iger is getting a one-year contract extension. The Walt Disney Co. on Thursday ended speculation that Iger, 66, would retire this year, extending his contract to July 2, 2019. Iger’s base salary of $2.5 million will remain, but he gets a $5 million signing bonus, according to filings with the Security Exchange Commission. Iger made a total of $43.9 million in 2016, when tacking on stock awards and other perks.
Alaska Airlines has bad news for loyal customers of Virgin America: Their airline’s name is being dumped. Alaska says it will retire the Virgin brand, probably in 2019. Alaska Airlines bought the carrier last year for $2.6 billion.
German candymaker Haribo, famous for its fruit-flavored gummy bears, plans to build its first production facility in the United States and start making confectionery here in 2020. Family-owned Haribo, which employs 7,000 people worldwide in 10 countries, said Thursday that it has decided to acquire property in Wisconsin for the factory.
— From news reports
8:30 a.m.: Commerce Department releases report on durable-goods orders for February.