Waiting for relief

Cardi B+: Teens on TikTok and Instagram are taking math lessons from AI-generated celebs including “Cardi B,” “Ariana Grande,” and “Eminem.” That’s definitely not the Real Slim Shady.

Stocks soared to record highs Thursday after the Fed’s jumbo rate cut, before cooling slightly to end the week. Fed policymakers project another half point of rate cuts this year, and investors are crossing their fingers for a soft economic landing.

🧠 Back to quizness: Take our Snacks Seven quiz to test your knowledge of the past week’s biggest biz and markets news (a lot happened). Try the first q: 

The last straw… President Biden’s student loan forgiveness program hit another red light. A judge ruled last week that the Biden admin’s plan to forgive student loans for up to 25M Americans would remain blocked for two more weeks. The first halt came earlier this month after seven GOP-led states sued against the revamped aid package, arguing it was still illegal.

Payback probs… The Biden admin has been pushing its debt-relief Plan B since the Supreme Court struck down its broader forgiveness program last year. In August, POTUS unveiled the SAVE repayment plan, cutting monthly payments for low-income borrowers. But that was also blocked by lawsuits this month, putting at least 8M borrowers in forbearance (temporary payment suspensions) and leaving millions more in limbo. 

A passing grade isn’t always enough… Biden’s forgiven $168B worth of student loans for nearly 5M Americans, but that’s well short of the 20M borrowers he'd originally pledged to provide full relief for. The latest roadblock could end the White House's goal of providing more aid before the election. While Biden’s on his way out of office, student loans remain a critical issue. Nearly half of voters in a recent survey said canceling debt was important in this year’s elections. About a fifth said student-loan debt would have a major influence on their vote.

$1.50 hot dog and soda… with a 3.5-pound pie for dessert. Costco’s set to unload earnings Thursday. The discount dominator upped its membership fees last month and announced a crackdown on moochers: its 128M members will have to scan their cards at the entrance (no more free-sample freeloaders). Costco made $4.6B from memberships last year, and the move could help it cover extra costs like its new $19.50 starting wage. The wholesale club beat estimates in Q3 as bargain-seeking shoppers snapped up bulk buys and $5 rotisserie chickens. 

Confidence is key… and American consumers’ confidence is weak. While consumer sentiment perked up last month, it was still relatively meh after years of high rates and sticky inflation. But after the Fed’s jumbo cut kicked off easing last week, we could be on the brink of a vibe shift. Gas prices have been falling for months and last week stocks surged to fresh records. Gas and stocks play an important role in how Americans feel about the economy and their finances, so we could see some optimism tomorrow in September’s consumer-confidence index.

No business in show business… Streaming’s gold rush is over, and Hollywood workers are being left in the dust. Film and TV industry unemployment hit 12.5% last month, triple the national rate. The number of original scripted shows in the US fell 14% last year, the steepest drop on record, and it’s expected to get worse. What’s happening: megamergers in entertainment have shrunk the # of studios that are open to buy content. Plus, streamers are moving mountains to splurge on live-sports deals, which some workers say is shrinking scripted budgets.

Bets on votes… The prediction-market game’s getting crowded. Wintermute, a crypto-trading firm, is set to launch a crypto-based prediction market this week that’ll take bets on Trump vs. Harris. It could challenge Polymarket, which has seen nearly $1B wagered on the presidential race. Meantime, courts are deciding whether election betting should be legal in the US. On Thursday, an appeals court heard arguments on whether US-based Kalshi — which already lets users bet on events like who’ll score an Oscar nom — could list bets on US elections.

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This week on “Tomorrow,” Amazon has an order of its own, the Department of Justice takes on Google, and Josh and Rani dissect their For You Pages only to find them lacking. Listen here.

Last year saw a record 22M US passport applications

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