Today's News You Need2Know

• Defense Secretary Hegseth fighting for his job

• Retail CEOs meet with Trump on tariffs

• 'Conclave' streaming now on Amazon Prime

• Here’s how to avoid your student loan defaulting

• Gold soars to a new high on more uncertainty

• The future of electric air taxis is here

Companies mentioned in today’s newsletter

$FOX ( ▼ 0.02% ) , $WMT ( ▼ 0.69% ) , $WMT ( ▼ 0.69% ) , $TGT ( ▲ 0.38% ) , $HD ( ▼ 0.94% ) , $LOW ( ▼ 0.93% ) , $AMZN ( ▲ 0.47% ) , $ACHR ( ▲ 1.11% )

Defense Secretary Hegseth fighting for his job — From our Washington correspondent

This story is by our Washington Correspondent, Margaret Chadbourn. Hi, Margaret! 👋🏻

I’d call it the number one news story the White House wants to wish away. Defense Secretary Pete Hegseth is defiant, fighting to keep his job as more questions are being raised about his judgement with the latest “Signalgate” saga playing out. It turns out Hegseth shared sensitive military details in a second group chat. This time, the text chain included his wife, brother, and longtime personal lawyer.

Congressional Democrats are characteristically up in arms over Hegseth’s missteps, but so far, almost all Republicans are standing by the embattled Pentagon chief.

The editor of The Atlantic revealed in a news article back in March that he was inadvertently included in a group Signal thread about a U.S. military operation in Yemen. The revelations set off a firestorm of criticism against Hegseth, national security adviser Michael Waltz, and several other top Trump officials.

President Trump is downplaying Hegseth’s transgressions as he also faces turmoil among his top advisers with several staffers being fired for leaking to the media. Despite a chaotic first three months overseeing the Pentagon, the White House is standing by the former Fox News host and National Guard officer.

Hegseth lashed out at his critics yesterday during a friendly interview with his former employer — Fox $FOX ( ▼ 0.02% ) — and followed the preferred Trump-scandal playbook. He blamed the mainstream media for what he called smear tactics against him, and repeated his charge that the president’s enemies are trying to sabotage his agenda. Hegseth is trying to prove he is doing exactly what he promised to do in the job: take on the armed forces by eliminating what he called a focus on diversity at the expense of military readiness.

Trump is known to turn on people quickly once they become problems, even when, as in this case, he doesn’t want to look like his adversaries forced him to cave. That means the pressure is still on Hegseth to assure the president he’s an asset, not a liability, long term.

Retail CEOs meet with Trump on tariffs

Amid ongoing tariff concerns, top retail executives met with President Trump earlier this week to talk about the way forward. The meeting included not only the CEOs of Walmart $WMT ( ▼ 0.69% ) and Target $TGT ( ▲ 0.38% ) but also Home Depot $HD ( ▼ 0.94% ) (notably absent was Marvin Ellison, the CEO of Lowe's $LOW ( ▼ 0.93% ) — I guess he didn’t get the invite).

The focus was to address how tariffs are squeezing margins and affecting consumer spending habits by raising the cost of goods. The executives are aiming to collaborate on a path forward that can alleviate the burden of tariffs while ensuring the continued availability of affordable products.

Tariff-related issues are acutely felt by consumers, as they often lead to higher prices on everyday goods. The collaboration between key retail giants and influential political figures like Trump underscores the complexity of international trade policies and their direct impact on domestic markets. Target CEO Brian Cornell called the meeting “productive” afterwards.

'Conclave' streaming now on Amazon Prime

Following the death of Pope Francis, the movie “Conclave” has seen a 283% increase in streams on Amazon Prime $AMZN ( ▲ 0.47% ) . While the conclave traditionally holds sacred significance for Catholics, the broader spike in interest suggests heightened global awareness of the church’s evolving role in modern society. If you’ve not seen the movie, it’s worth a watch. Ralph Fiennes is particularly strong as a well-meaning cardinal trying to navigate Vatican politics.

Post of the day: @dieworkwear

Here’s how to avoid your student loan defaulting

The temporary relief provided to student loan borrowers during the COVID-19 pandemic is coming to an end, with the U.S. Department of Education preparing to resume collection efforts on loans in default starting next month.

The move will have significant financial implications for the approximately 5.3 million borrowers currently in default on their federal student loans. The resumption of collections marks a major transition as borrowers face the reality of wage garnishments, tax refund interceptions, and potential reductions in Social Security benefits.

Beginning May 5th, the Education Department will initiate involuntary collections through the Treasury Offset Program. Borrowers will receive notices outlining their options, but the consequences of default are severe.

While the resumption of collections may feel daunting, there are steps borrowers in default can take to regain control of their financial situation:

1. Consider Loan Rehabilitation: Borrowers can work with their loan servicer to enter a loan rehabilitation program. This requires nine consecutive months of on-time payments, after which the loan can return to good standing. However, loan rehabilitation is available only once.

2. Explore Income-Driven Repayment Plans: Income-driven repayment (IDR) plans calculate monthly payments based on income and family size, potentially making payments more affordable.

3. Check Loan Status: Borrowers should log into their studentaid.gov accounts to confirm the status of their loans and ensure their contact information is up to date to receive collection notices.

Beyond collections, loan defaults have long-term consequences, including significant credit score drops (potentially by 100 points or more) and damage that stays on credit reports for seven years. A default can make it harder to qualify for loans, rent housing, or open new credit accounts. Best of luck taking care of it.

Should you check your 401(k) today?

👍️ 

Yep.

Gold soars to a new high on more uncertainty

As global economic uncertainty continues to deepen, gold — often considered a "safe haven" investment — has been climbing to historic heights. Investors seeking refuge from volatile markets have pushed gold prices to record levels, marking a sharp surge fueled by geopolitical tensions, inflation fears, and wavering confidence in traditional assets.

On Monday, the going price for New York spot gold hit an unprecedented $3,424.24 per troy ounce, climbing $1,097 higher than this time last year. Gold advocates argue that the precious metal offers many benefits, including portfolio diversification, inflation protection, and the security of owning a tangible asset. Gold's soaring prices aren’t just tied to fear — they’re also being driven by central bank demand and investor interest, making the commodity attractive in volatile times.

However, gold investment has its risks. The Commodity Futures Trade Commission warns buyers to be cautious, noting that gold prices can be highly volatile — especially when demand spikes during periods of economic turmoil. Critics also question gold’s effectiveness as an inflation hedge, pointing to more efficient alternatives such as derivatives or diversified investments. #NotFinancialAdvice

Quote of the Day: Adam Goldstein

The future of electric air taxis is here

Adam Goldstein, founder and CEO of Archer Aviation $ACHR ( ▲ 1.11% ) , sat down with us at the New York Stock Exchange to discuss the company's ambitious plans for electric air taxis. Goldstein highlighted the significance of being a publicly listed company on the NYSE. “It's been an amazing journey and the New York Stock Exchange has been very supportive of Archer and the whole industry,” he said. He emphasized the “opportunity to raise capital, and that's what America is really known for, access to capital markets, liquidity, and the ability for new companies to start and change the world.”

So, what exactly is Archer Aviation all about? Goldstein explained, “We're building the future of aviation. We're building electric air taxis.” The primary objective is to alleviate ground traffic congestion. “The goal is to take people off the ground that are stuck in traffic, spending 60, 90 minutes, and put them into the air so they can fly in 5 to 10 minutes and really try to improve people's lives.”

Discussing plans, particularly in the New York City area, Goldstein outlined the strategy: “There's nine major nodes that we will launch with. First are the big international airports, which, of course, Newark, JFK, LaGuardia.” He also included “the New York City heliports, the West Side, East Side, and then the downtown Skyport, and then the regional airports.” This network aims “to help enable home-to-airport trips, and starting with our partner, United Airlines.”

With significant financial backing, including $730 million raised in the fourth quarter, Archer is gearing up for launch. Are you ready for your air taxi to JFK?

Poll of the Day: Pete Hegseth’s job security

Results from Tuesday’s poll:

We asked: Is Donald Trump right to attack Fed Chair Jerome Powell over the economy?

You answered:

⬜️⬜️⬜️⬜️⬜️⬜️ Yes, it's good to see Trump standing up for the economy (76)

 🟩🟩🟩🟩🟩🟩 No, he should let Powell do his job unimpeded (1346)

1422 Votes — via @beehiiv polls

Don’t miss: ‘NYC Innovates’

Our new “NYC Innovates” show goes live next Monday wherever you watch Cheddar, but those of you who want to watch it before then can check it out on YouTube!

"NYC Innovates" uncovers the groundbreaking ideas and passionate minds driving the city's evolution across diverse industries. In this episode, join host Chris Castellino as he explores remarkable transformations.

Witness how the iconic, Michelin-starred restaurant Eleven Madison Park, under Chef Daniel Humm's visionary leadership, made the bold pivot to an entirely plant-based menu. Plus: Dive into the resilient spirit of NYC's music scene at Le Poisson Rouge. Learn how this fiercely independent Greenwich Village venue, founded by David Handler, thrives amidst industry giants by championing eclectic artists and fostering a unique connection with its audience. Finally, journey to a Brooklyn startup, Air Company, where CEO Gregory Constantine reveals how they're tackling climate change head-on by transforming captured carbon dioxide into valuable, sustainable products — from premium vodka to revolutionary jet fuel, partnering with major airlines and even the Department of Defense. Tune in, and be inspired!