Hello, my most beloved subscribers!

We’ve got plenty of news to capture your interest this morning, including travel tips for the upcoming weekend, such as “don’t fly Delta out of Atlanta, mate.”

News you Need2Know

• Why Washington’s tax bill could cause your credit …

• OpenAI recruits legendary iPhone designer Jony Ive

• Majority of U.S. states now have laws banning cell …

• Top travel tips for Memorial Day weekend

• Report: Smoke filled the cabin of a Delta plane in …

• How a family brand became an organic-food pioneer

We’ve also got a poll of the day about this Jony Ive move to OpenAI. What do you think?

—Matt Davis, Need2Know Chedditor

Companies mentioned in today’s newsletter

$AAPL ( ▼ 2.89% )  $DAL ( ▼ 0.91% )  

FROM OUR WASHINGTON CORRESPONDENT

Why Washington’s tax bill could cause your credit card, car loan and mortgage rate to rise

Wall Street is getting the jitters as Republicans try to pass President Trump's “big, beautiful” domestic policy bill. The issue? Concerns that U.S. government debt is growing too fast with no plan to rein it in.

This has been a long-time concern for budget hawks. It’s also long unsettled bond investors, a powerful group of global market players who influence how much it costs the U.S. government to finance its budget by setting the rate at which it’s able to borrow money. They were already on edge from the president’s on-again, off-again tariff policies. Now this.

The yield on 30-year Treasuries went above 5% Wednesday — the highest cost of government borrowing in more than a year and a half. In other words, it’s getting more expensive for the government to borrow at a time when it may have to borrow a lot to finance its upcoming budget.

The mood on institutional trading desks is definitely concerned about the bond market. But treasury yields — a.k.a. the cost for bond traders of buying and selling of government debt — also influences retail debt rates on a wide variety of consumer debt across the country including car loans, credit card rates and mortgages. That means that your credit card, car loan and mortgage rates could all go up. And you probably won’t like that.

Investors are busy eyeing the bill congressional Republicans are trying to get through the House this week. It would extend the expiring parts of the 2017 tax cuts while adding some policies that Trump is pushing, like no taxes on tips. To offset the cost of the bill, Republicans are looking, mostly, to cut Medicaid spending.

But the bill’s price tag is high. It would add at least $2.3 trillion in debt over the next decade, according to congressional scorekeepers. That’s left some traders involved in the Treasury market on edge. For context, the U.S.’s total national debt is currently $35.8 trillion.

On May 16, Moody’s became the latest major rating agency to strip the U.S. of its AAA credit rating. That reflects an emerging consensus that the U.S.’s mounting debt burden has shifted to constrain U.S. power and leadership.

Republicans counter that the bill would spur economic growth that will in turn bring in more revenue and help alleviate debt concerns. But right now, bond markets don’t seem to be buying that argument. That could be a problem and even reshape Trump’s bill as it moves through the House.

Some market observers said the only thing that will get through to Washington would be a full blown market meltdown, rising interest rates alone won’t change things.

“Unless and until that happens, the president and most congressional Republicans are less inclined to pay heed to Wall Street's longer-term concerns and are instead focused on what they perceive as the political win right in front of them," said Stephen Myrow, Managing Partner at Beacon Policy Advisors in Washington, DC.

—Margaret Chadbourn

OpenAI recruits legendary iPhone designer Jony Ive

OpenAI is charting a bold new course in artificial intelligence by teaming up with the legendary designer Jony “I’m Wearing Scary Glasses and My Name Is Spelled Weird” Ive, the creative mind behind the design of iconic Apple $AAPL ( ▼ 2.89% ) products like the iPhone, iMac, and iPad. This high-profile collaboration is part of OpenAI’s vision to expand its foothold into hardware, blending world-class AI systems with innovative product design.

Sam Altman, CEO of OpenAI, has enlisted Ive’s design firm, LoveFrom, to work on a groundbreaking hardware project that could redefine how people interact with artificial intelligence. According to the announcement, LoveFrom will "assume deep design and creative responsibilities across OpenAI and io," a new hardware initiative being established under this partnership. Altman has emphasized the importance of this collaboration, noting that it "requires a novel approach to developing products and structures."

The deal surrounding io is monumental, around $6.5 billion. While specifics of their hardware ambitions remain, let’s say, under wraps, or perhaps even imaginary at this point, it’s clear that OpenAI is betting big on merging intelligent software with thoughtfully designed hardware.

Leadership for io will fall to Peter Welinder, a long-standing OpenAI executive with deep expertise in exploring new product categories. Welinder describes io as an effort to "build products that extend capabilities of existing platforms, and perhaps create entirely new ones in the process."

Is this great news? Or is OpenAI putting lipstick on a pig? Tell us in today’s poll of the day!

Majority of U.S. states now have laws banning cellphones in schools

A growing trend in education legislation is leading to widespread cellphone bans in schools across the United States. Since Florida pioneered the initiative in 2023, more than half of all U.S. states have enacted similar laws, with many more poised to follow suit. It reflects a broad consensus that limiting cellphone use is crucial for the well-being of students.

One of the most vocal supporters of this trend is Connecticut state Rep. Jennifer Leeper (D). She describes cellphones as "a cancer on our kids" that contributes to "isolation, loneliness, decreasing attention, and having major impacts both on social-emotional well-being but also learning."

Similarly, Republican Rep. Scott Hilton emphasized the multifaceted benefits of such legislation, noting that it’s not just an academic issue, but also "a mental health bill" and "a public safety bill."

As of now, 26 states have passed laws limiting cellphone use in schools, with eight other states and the District of Columbia implementing their own rules or recommendations. The level of restriction varies by state; for instance, Florida is considering a new bill that would ban phones for the entire school day for elementary and middle schools, extending beyond the initial ban during instructional time.

Despite broad support, the laws have faced criticism from some parents and students. For example, one parent told the Associated Press about the importance of having phones during emergencies, such as school shootings, which are also bad for kids social-emotional well-being but which we as a nation appear to have given up trying to prevent. (Am I wrong? Tell me in tomorrow’s poll!)

Meanwhile, some students argue for teaching “responsible” phone use rather than outright bans. As Kaytlin Villescas, a high school sophomore, expressed, "Schools should impart guidelines on responsible use, thereby building a culture of respect and self-regulation."

I mean, sure, Kaytlin. When you’re a junior in college, let’s talk.

Today on the ‘gram: Is it a bribe? Is it a plane?

Post of the day: The first cut is the deepest

Quote of the Day

Top travel tips for Memorial Day weekend

Memorial Day is just around the corner, and with it comes the official kickoff to summer travel. This year, AAA spokesperson Aixa Diaz predicts record-breaking numbers, with over 45 million Americans expected to travel. "45.1 million is a new holiday record for Memorial Day," says Diaz. "This will be the highest year."

Road trips are driving this surge, with 39.4 million people traveling by car. Diaz, who works for an organization intimately tied to the automobile industry, attributes this to flexibility and affordability. "Road trips are easy. They offer flexibility," she explains, "And they tend to be cheaper for most people." Air travel is also up, though, with a 2% increase expected.

For those looking to save money, Diaz advises packing snacks to avoid expensive airport purchases and booking flights on Tuesdays or Wednesdays, as weekend flights tend to be more expensive. "Think about packing things that you won't then be tempted to spend on," she suggests. Ultimately, Diaz encourages focusing on experiences rather than souvenirs, advising travelers to use their money "on a meal with your family" instead of buying "more stuff."

Should you check your 401(k) today?

👎️ 

No.

Report: Smoke filled the cabin of a Delta plane in Atlanta

On the morning of February 24, passengers aboard a Delta $DAL ( ▼ 0.91% ) flight from Atlanta found themselves in a frightening situation when smoke filled the cabin shortly after takeoff. The smoke grew so thick that the lead flight attendant could not see beyond the first row of passengers. According to the National Transportation Safety Board’s preliminary report, flight attendants struggled to communicate with the pilots amid emergency protocols, leaving everyone on board, let’s say, on edge.

The flight, headed for Columbia, South Carolina, carried 99 passengers and crew. After the smoke began emanating from its vents, the aircraft returned to Atlanta for an emergency landing. Two passengers sustained minor injuries during the evacuation, and firefighters were called to the scene to assist. Initially, Delta Airlines described the incident as “a haze in the cabin,” but the NTSB has now confirmed it was far more serious. Smoke appeared to originate “from the front doors” before it began billowing out of the plane's vents, according to the report.

One of the critical findings involved the plane’s right engine, where maintenance discovered “little-to-no oil remaining.” Pilots responded swiftly by shutting down the engine after receiving a low oil pressure warning. The NTSB report highlighted that while the oil leak is suspected to be linked to the smoke, the exact cause remains under investigation.

After landing, the captain assessed the situation and gave the urgent directive to evacuate. Passengers and crew exited via emergency slides and off the wings of the Boeing 717 $BA ( ▼ 0.52% ) , as thick smoke lingered in the cabin.

Delta is cooperating fully with investigators, while passengers are left reflecting on their unnerving experience: "The smoke was thick enough that visibility in the cabin became nearly impossible," said one witness.

How a family brand became an organic-food pioneer

Nature's Path, a brand familiar to many health-conscious shoppers, has a rich history rooted in organic principles. Arjun Stevens, the company's president, told us the firm has a commitment to "always leave the soil better than they found it." This ethos, instilled by his parents who started the business in 1985, has guided Nature's Path through decades of growth.

One of the key strategic decisions that shaped the brand's trajectory was its unwavering dedication to organic standards. As Arjun explained, "We were one of the first organic food companies that launched products into the grocery store shelves... We saw in the natural food industry that a lot of people maybe started organic and then launched so-called natural food products. But natural really doesn't mean anything. Really organic has a strong standard behind it."

This commitment to genuine organic practices, even when "natural" alternatives were tempting, set Nature's Path apart.

The company's product line reflects this integrity. Heritage Flakes, one of their first best-sellers, introduced consumers to "quinoa and amaranth and all these ancient grains that people had never heard about before in North America."

Arjun's personal favorite, Love Crunch granola, has a charming origin story. Created for his wedding, it not only tastes amazing but also "has a lot of purpose behind it." For every bag of granola sold, the firm gives some money to food banks.

Poll of the Day: Ive got a great idea!

Poll Results: You’re worried about Medicaid

We asked: Are you worried about the budget bill cutting Medicaid?

You answered:

⬜️⬜️⬜️⬜️⬜️⬜️ Na, I'm sure they'll figure out a way to keep those 8 million people covered. (81 votes)

🟩🟩🟩🟩🟩🟩 Yes. I think there's a strong change that those 8 million people might lose coverage! (806 votes)

887 Votes via @beehiiv polls

Coming soon: The Business of Beauty

Airing on Thursday, May 22, at 8 p.m. ET wherever you watch Cheddar, dive into our new show, "The Business of Beauty" where one celebrity dentist reveals the secrets behind Kylie Jenner and J.Lo's dazzling smiles, showcasing his unique, custom-made veneers process. Then, witness the revolutionary tech behind painless tattoo removal, promising a chance to erase at least some of your regrets. Finally, explore one firm’s bold claims about unlocking the "Fountain of Youth" through supplements, backed by scientific research. Discover how these innovations are reshaping beauty standards and empowering personal transformation!