Why The U.S. Is Getting Serious About UFOs

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="462" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/10/107275413-1690199074848-gettyimages-1550550550-RAFAPRESS_23072023-07631-820x462.jpeg" alt="" class="wp-image-428388" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/10/107275413-1690199074848-gettyimages-1550550550-RAFAPRESS_23072023-07631-820x462.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/107275413-1690199074848-gettyimages-1550550550-RAFAPRESS_23072023-07631-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/107275413-1690199074848-gettyimages-1550550550-RAFAPRESS_23072023-07631-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/107275413-1690199074848-gettyimages-1550550550-RAFAPRESS_23072023-07631-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/107275413-1690199074848-gettyimages-1550550550-RAFAPRESS_23072023-07631.jpeg 929w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Rafael Henrique | Lightrocket | Getty Images</figcaption></figure>



X, the social media service formerly known as Twitter, will launch two new tiers of subscriptions for users, its owner Elon Musk said on Friday.



One tier will be “lower cost with all features, but no reduction in ads,” while the other is “more expensive, but has no ads,” Musk said.



This week, X announced it will begin a test that charges users $1 per year in New Zealand and the Philippines in order to “post &amp; interact with other posts.” X said it is part of a program designed to fight spam and bot activity. Those who opt out will only be able to read posts.



It’s unclear if the $1 annual subscription is one of the two new subscription tiers that Musk is referencing.



The social media company already has a $8 per month subscription service called X Premium. Users who signed up to this can get the blue checkmark on their account as well as other features, such as the ability to edit a post.



Since taking over Twitter in October 2022 and rebranding to X, Musk has made sweeping changes, including making cuts to trust and safety teams and removing the blue checkmark from non-paying accounts. The blue checkmark helped users identify authentic accounts belonging to public figures. Musk has also reinstated previously banned accounts on the platform.



Those changes have scared off advertisers. In July, Musk said X’s cash flow remains negative because of a nearly 50% drop in advertising revenue coupled with “heavy debt.”



New subscriptions could be a bid to improve the company’s finances and open new revenue streams.



X is facing challenges from less mature players such as Meta’s Threads and Bluesky.

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X, formerly Twitter, will launch two new subscription tiers, Elon Musk says

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="461" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/10/107320246-16977353202023-10-19t170313z_1243074500_rc2sv3al61dp_rtrmadp_0_usa-fed-powell-820x461.jpeg" alt="" class="wp-image-428381" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/10/107320246-16977353202023-10-19t170313z_1243074500_rc2sv3al61dp_rtrmadp_0_usa-fed-powell-820x461.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/107320246-16977353202023-10-19t170313z_1243074500_rc2sv3al61dp_rtrmadp_0_usa-fed-powell-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/107320246-16977353202023-10-19t170313z_1243074500_rc2sv3al61dp_rtrmadp_0_usa-fed-powell-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/107320246-16977353202023-10-19t170313z_1243074500_rc2sv3al61dp_rtrmadp_0_usa-fed-powell-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/107320246-16977353202023-10-19t170313z_1243074500_rc2sv3al61dp_rtrmadp_0_usa-fed-powell-1536x864.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/107320246-16977353202023-10-19t170313z_1243074500_rc2sv3al61dp_rtrmadp_0_usa-fed-powell.jpeg 1600w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Photo: via CNBC</figcaption></figure>



Federal Reserve Chairman Jerome Powell acknowledged recent signs of cooling inflation, but said Thursday that the central bank would be “resolute” in its commitment to its 2% mandate.



In a widely anticipated speech delivered to the Economic Club of New York, Powell evaded committing to a specific policy path but gave no indication that he was leaning toward a push higher for interest rates.



As Powell spoke, futures market traders erased any possibility of a rate hike in November and decreased the chances of a move even in December. He acknowledged the progress made toward bringing inflation back down to a manageable level but stressed vigilance in pursuing the central bank’s goals.



“Inflation is still too high, and a few months of good data are only the beginning of what it will take to build confidence that inflation is moving down sustainably toward our goal,” Powell said in prepared remarks. “We cannot yet know how long these lower readings will persist, or where inflation will settle over coming quarters.”



“While the path is likely to be bumpy and take some time, my colleagues and I are united in our commitment to bringing inflation down sustainably to 2 percent,” Powell added.



The speech comes with questions over where the Fed heads from here after a succession of interest rate hikes aimed at cooling inflation. Stocks turned higher after Powell spoke and the 10-year Treasury yield backed off its highs for the session.



Powell said he doesn’t think rates are too high now.



“Does it feel like policy is too tight right now? I would have to say no,” he said. Still, he noted that “higher interest rates are difficult for everybody.”



Powell noted the progress made toward the Fed’s twin goals.



In recent days, data has shown that while inflation remains well above the target rate, the pace of monthly increases has decelerated and the annual rate has slowed to 3.7% from more than 9% in June 2022.



“Incoming data over recent months show ongoing progress toward both of our dual mandate goals —maximum employment and stable prices,” he said.



The speech was delayed at the onset by protesters from the group Climate Defiance who charged the dais at the club’s dinner and held up a sign saying “Fed is burning” surrounded by the words “money, futures and planet.”



After a short delay, Powell noted the labor market and economic growth may need to slow to ultimately achieve the Fed’s goal.



“Still, the record suggests that a sustainable return to our 2 percent inflation goal is likely to require a period of below-trend growth and some further softening in labor market conditions,” Powell said.



Fed officials have been using interest rate hikes in part to try to level out a supply-demand imbalance in the jobs market. The Fed has raised rates 11 times since March 2022 for a total of 5.25 percentage points. Coming from the near-zero level for the fed funds rate, that has taken the benchmark rate to its highest level in some 22 years.



“We’re very far from the effective lower bound, and the economy is handling it just fine,” Powell said.



The comments come the same day initial jobless claims hit their lowest weekly level since early in 2023, indicating that the labor market is still tight and could exert upward pressure on inflation.



Robust job creation in September and a slow pace of layoffs could put progress on inflation at risk.



“Additional evidence of persistently above-trend growth, or that tightness in the labor market is no longer easing, could put further progress on inflation at risk and could warrant further tightening of monetary policy,” he said.



In recent days, other Fed officials have said they think the Fed can be patient from here. Even some members who favor tighter monetary policy have said they think the Fed can halt rate hikes at least for now while they watch the lagged impact the rate hikes are expected to have on the economy.



Markets widely expect the Fed to hold off on additional rate hikes, though there remain questions over when officials might begin cutting rates.



Powell was noncommittal on the future of policy.



Given the uncertainties and risks, and how far we have come, the Committee is proceeding carefully. We will make decisions about the extent of additional policy firming and how long policy will remain restrictive based on the totality of the incoming data, the evolving outlook, and the balance of risks,” he said.

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Powell says inflation is still too high and lower economic growth is likely needed to bring it down

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="461" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/10/107311996-1696509877442-gettyimages-1248374546-US_JOB_FAIR-820x461.jpeg" alt="" class="wp-image-428364" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/10/107311996-1696509877442-gettyimages-1248374546-US_JOB_FAIR-820x461.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/107311996-1696509877442-gettyimages-1248374546-US_JOB_FAIR-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/107311996-1696509877442-gettyimages-1248374546-US_JOB_FAIR-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/107311996-1696509877442-gettyimages-1248374546-US_JOB_FAIR-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/107311996-1696509877442-gettyimages-1248374546-US_JOB_FAIR-1536x864.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/107311996-1696509877442-gettyimages-1248374546-US_JOB_FAIR.jpeg 1920w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Jobseekers during a Construction Career Fair at Cape Fear Community College in Wilmington, North Carolina, US, Wednesday, March 15, 2023.  Allison Joyce | Bloomberg | Getty Images</figcaption></figure>



Initial filings for unemployment benefits dipped last week, indicating that the U.S. labor market remains tight and a potential factor in persistent inflation.



Weekly jobless claims totaled a seasonally adjusted 198,000 for the period ended Oct. 14, the Labor Department reported Thursday. That marked a decline of 13,000 from the previous week and was below the Dow Jones estimate for 210,000. It was the lowest weekly level since Jan. 21.



Claims have been in a general deceleration pattern since the summer, but some economists worry that could change. Announced layoffs have been on the rise in recent weeks, indicating that the tide of lower claims could turn soon.



Continuing claims, which run a week behind, totaled 1.734 million, up 29,000 from the previous week and higher than the FactSet estimate for 1.698 million.



The labor market has been a critical factor in the Federal Reserve’s deliberations over monetary policy. Officials worry that a still-tight labor market could provide upward pressure on prices even after the central bank has raised rates 11 times totaling 5.25 percentage points since March 2022.



Markets were awaiting a speech later in the day from Fed Chair Jerome Powell, who is expected to provide some guidance on where policymakers head from here.



Following the report, stock market futures were mixed while Treasury yields held higher.



The labor market thus far has shown few effects of the United Auto Workers strike as well as other labor unrest. Claims spiked briefly over the summer but have been in a generally declining pattern since early August, holding in a range below 230,000 in recent weeks.



This week’s report covers the survey week the Labor Department uses for its nonfarm payrolls report.



In other economic news Thursday, the Philadelphia Fed reported its manufacturing index rose 5 points in October but remained in contraction territory at -9, lower than the -6.8 forecast. The survey gauges companies reporting expansion against contraction, so any reading below zero indicates contraction.



New orders, shipments and employment all turned positive after being in negative territory for September.

107311996-1696509877442-gettyimages-1248374546-US_JOB_FAIR

U.S. weekly jobless claims total 198,000, fewer than expected

Why It’s Becoming Harder To Get Into Airport Lounges

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/11/107076508-1667332344080-jer-820x547.jpg" alt="" class="wp-image-420977" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/11/107076508-1667332344080-jer-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/107076508-1667332344080-jer-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/107076508-1667332344080-jer-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/107076508-1667332344080-jer-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/107076508-1667332344080-jer-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/107076508-1667332344080-jer-scaled.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">U.S. Federal Reserve Board Chairman Jerome Powell takes questions from reporters after the Federal Reserve raised its target interest rate by three-quarters of a percentage point to stem a disruptive surge in inflation, during a news conference following a two-day meeting of the Federal Open Market Committee (FOMC) in Washington, June 15, 2022.
Elizabeth Frantz | Reuters</figcaption></figure>



Federal Reserve Chair&nbsp;<a href="https://www.cnbc.com/jay-powell/">Jerome Powell</a>&nbsp;is set to deliver what could be a key policy address Thursday, in which he will be tasked with convincing markets the central bank is committed to keep hammering away at inflation, but perhaps now needs a little less force.



The top monetary policymaker will speak at noon ET to the Economic Club of New York at a critical time for the U.S. economy.



Inflation numbers <a href="https://www.cnbc.com/2023/09/29/pce-inflation-august-2023-good-news-for-inflation-hawks.html">have been improving</a> lately, but Treasury yields have been surging, sending conflicting messages about where monetary policy might be headed. Markets largely expect the Fed to stay on hold with rates, but they will be looking to Powell for confirmation and clarification on how officials view both current conditions and longer-term trends.



“Powell is always tacking back to whatever helps feed the narrative that they need to stay vigilant, and for understandable reasons,” said Luke Tilley, chief economist at Wilmington Trust. “I just expect him to keep talking about the strength of the economy and the surprising strength of the consumer in the third quarter as a risk for inflation. That is enough ammunition to keep talking about staying vigilant.”



Essentially, Tilley expects the Powell message to break into three parts: The Fed needed to get rates high quickly, which it did; that it had to find a peak level, which is part of the current debate; and that it needs to figure out how long rates need to stay this high to get inflation back to its 2% target.



“Really, their ultimate goal is to keep financial conditions tight so inflation comes down,” he said. “He’s going to use that framework, even if he’s dovish about Nov. 1 (the next Fed rate decision) or December to shift the hawkishness to that third question of how long to keep them this high.”



“Higher for longer” has become an unofficial mantra in recent days, with Philadelphia Fed President Patrick Harker&nbsp;<a href="https://www.cnbc.com/2023/10/13/philadelphia-fed-president-harker-advocates-holding-interest-rates-where-they-are.html">earlier this week mentioning the term</a>&nbsp;specifically for how he feels about policy.



Harker was one of several Fed officials, including governors Philip Jefferson, who&nbsp;<a href="https://www.federalreserve.gov/newsevents/speech/jefferson20231009a.htm" target="_blank" rel="noreferrer noopener">spoke earlier this month</a>, and Christopher Waller,&nbsp;<a href="https://www.cnbc.com/2023/10/18/feds-waller-says-officials-can-wait-watch-and-see-before-acting-on-interest-rates.html">who spoke Wednesday</a>, to advocate holding off on rate hikes at least in the immediate future while they weigh the effects of incoming data. Waller said the Fed can “wait, watch and see” before it moves on rates.



Powell is expected to join the chorus Thursday, even if his message is filled with caveats about not becoming complacent in the fight against inflation.



“Powell has to present himself to investors as the dispassionate neutral leader and allow [others] to be more aggressive,” said Jeffrey Roach, chief economist for LPL Financial. “They’re not going to declare victory, and that is one reason why Powell is going to continue to talk somewhat hawkish.”



To that point, New York Fed President John Williams on Wednesday moved some of the way there, when he repeated another familiar mantra, that the Fed will have to keep the “restrictive stance of policy in place for some time” to deal with inflation, according to a Reuters report.



Similar to the other speakers, Powell likely will reiterate a data-dependent focus for the Fed after a much more aggressive path in which it has raised its benchmark borrowing rate 11 times for a total of 5.25 percentage points, its highest level in 22 years. The Fed&nbsp;<a href="https://www.cnbc.com/2023/10/11/fed-minutes-october-2023-.html">opted not to hike</a>&nbsp;in September.



He also, though, will be looked to for some guidance as to how he feels about rising yields, in light of the&nbsp;<a href="https://www.cnbc.com/2023/10/18/30-year-fixed-mortgage-rate-just-hit-8percent-for-the-first-time-since-2000.html">10-year Treasury having inched closer to 5%</a>, its highest point in 16 years.



The chair “will stick to the message … that the data has been coming in stronger than expected, but there has also been a big move in yields, which has tightened financial conditions, so no urgency for a policy response in November and the Fed can adopt a wait-and-see approach,” Krishna Guha, head of global policy and central bank strategy at Evercore ISI, said in a client note.



Guha said that a Fed on hold now will only be a “down payment” on “extra cuts” in rates for 2024 as inflation and economic growth both weaken.

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Fed Chair Powell to deliver key speech Thursday. Here’s what to expect

How rising interest rates are causing Americans financial discomfort #Shorts

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="462" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/10/107318903-1697602700881-gettyimages-1730510609-AFP_33YK49A-820x462.jpeg" alt="" class="wp-image-428296" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/10/107318903-1697602700881-gettyimages-1730510609-AFP_33YK49A-820x462.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/107318903-1697602700881-gettyimages-1730510609-AFP_33YK49A-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/107318903-1697602700881-gettyimages-1730510609-AFP_33YK49A-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/107318903-1697602700881-gettyimages-1730510609-AFP_33YK49A-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/107318903-1697602700881-gettyimages-1730510609-AFP_33YK49A.jpeg 929w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Russia’s President Vladimir Putin and Chinese President Xi Jinping walk side by side to a group photo session during the third Belt and Road Forum for International Cooperation at the Great Hall of the People in Beijing on Oct. 18, 2023. Grigory Sysoyev | AFP | Getty Images</figcaption></figure>



In a rare international appearance since the war in Ukraine, Russian President Vladimir Putin addressed a live audience at the third Belt and Road forum in Beijing on Wednesday.



In the opening ceremony speech, Putin invited other countries to participate in the development of the Northern Sea Route. The meeting marks the 10th anniversary of the Belt and Road Initiative summit.



Speaking to 1,000 delegates representing over 130 countries, Putin said he agreed with Chinese President Xi Jinping that the Belt and Road idea “folds logically within multilateral efforts” to increase global cooperation.



“In the European part of Russia, we form an international north-south corridor &#8230; It connects Russian ports in the Baltic and Arctic with the ports on the coast of the Persian Gulf and the Indian Ocean along the entire route from our northern city,” Putin said according to a Google translation of his prepared remarks.



The Northern Sea Route is a 3,480 mile-long shipping route between the Pacific and Atlantic oceans which runs from the entrances of Novaya Zemiya straits in the west along the Russian Arctic Coast above Siberia.



Additionally, Moscow is working with foreign partners to also build railway routes from Central Siberia south toward China, Mongolia, and other ports of the Indian and Pacific Oceans, said Putin.



“Russia is the biggest country in the world,” Putin said. “That is why the connectivity of all the partners is relevant for the relations between the partners.”



Russia has a total area of 17,098,242 km², the largest in the world.



The successful development of the NSR “would potentially make Russia critical to global trade and communications between Asia and Europe,” according to an analysis by Foreign Policy.



Putin met Chinese counterpart Xi Jinping on Wednesday in Beijing in efforts to strengthen their “no-limits” partnership, against the backdrop of an escalating Middle East conflict and the ongoing Ukraine war.



Putin added that the “One Belt, One Road” initiative is consistent with Russian ideas to “create an integration circuit where freedom of trade, investment, and labor would be fully ensured.”



This marks Putin’s third attendance at the Belt and Road Forum, with the previous two held in 2017 and 2019.



In his opening address, Xi emphasized the progress made by the initiative, which he said would receive billions in new funds.



“The China Development Bank and the Export-Import Bank of China will each set up a 350 billion yuan ($47.9 billion) financing window,” Xi said. This will be on top of an additional 80 billion yuan which will be injected into the Silk Road Fund.



Xi added that China will continue to deepen cooperation in areas such as green infrastructure and green transportation to support the BRI International Green Development Coalition.



Xi and Putin are also set to hold bilateral talks Wednesday.



In the decade since Xi launched the Belt and Road Initiative, new infrastructure investments have helped extend China’s influence in the developing world.

107318903-1697602700881-gettyimages-1730510609-AFP_33YK49A

Russia’s Putin speaks at China’s Belt and Road forum in rare international appearance

How To Steal And Lose More Than $3 Billion In Bitcoin | CNBC Documentary

Why Saudi Arabia’s economy needs sport

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/10/107317953-1697478459810-gettyimages-1417002156-dsc08657-820x547.jpeg" alt="" class="wp-image-428251" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/10/107317953-1697478459810-gettyimages-1417002156-dsc08657-820x547.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/107317953-1697478459810-gettyimages-1417002156-dsc08657-300x200.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/107317953-1697478459810-gettyimages-1417002156-dsc08657-135x90.jpeg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/107317953-1697478459810-gettyimages-1417002156-dsc08657-768x512.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/107317953-1697478459810-gettyimages-1417002156-dsc08657-1536x1024.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/107317953-1697478459810-gettyimages-1417002156-dsc08657-scaled.jpeg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Martin-dm | E+ | Getty Images</figcaption></figure>



Gen Zers are cutting back on spending.



More than half, 53%, say a high cost of living is a barrier to their financial success, according to a new survey from Bank America.



Nearly 3 in 4 young adults surveyed, 73%, have changed their spending habits amid record-high inflation.



“Many of them are buckling down,” said AJ Barkley, head of neighborhood and community lending at Bank of America, calling the results “good news.”



Among the changes they are making include cooking at home more frequently, with 43%; spending less on clothes, 40%; and limiting grocery shopping to essentials, 33%.



Most plan to keep up those changes in the next year, according to the firm’s August survey of almost 1,200 young adults ages 18 to 26.



<h2 class="wp-block-heading" id="h-gen-z-faces-unique-financial-challenges"><a></a>Gen Z faces unique financial challenges</h2>



Yet, more than a third of young Gen Zers have also faced setbacks in the past year, the survey found, which may have led them to stop saving or take on more debt.



Gen Z faces unique financial challenges compared to older generations. College graduates earn 10% less compared to their parents, recent research found.



High inflation — and affordability concerns among Gen Zers — extend beyond U.S. borders. A Deloitte survey released earlier this year that included about 14,500 members of Gen Z in 44 countries found living paycheck to paycheck was a concern cited by about half of that generation, with 51%; followed by needing to take on a side job, 46%; and cost of living, 35%.



<h2 class="wp-block-heading"><a></a>‘This is really the time to build a solid foundation’</h2>



But there is good news, according to Bank of America’s research. Most respondents feel confident they can manage their day-to-day expenses, budget and credit. Yet, they show less confidence when it comes to saving for retirement or investing in the stock market, the results found.



“This is really the time to build a solid foundation that is going to allow you to be successful throughout the many next decades of your financial life,” said Douglas Boneparth, a certified financial planner and president of Bone Fide Wealth in New York. Boneparth is also a member of the CNBC Financial Advisor Council.



Experts say these three tips can help members of Gen Z learn to manage their money wisely.



<h2 class="wp-block-heading">1. Make saving a habit</h2>



More than half of Gen Z, 56%, do not have enough emergency savings to cover three months’ worth of expenses, Bank of America’s survey found.



It’s a good idea to sock away any extra cash you can, said Boneparth, and to think about what’s important to you to stay motivated.



“Get in the habit of being a consistent saver,” Boneparth said.



Having that cash cushion set aside can help you continue to pursue your goals, even as life throws surprises your way. “It’s never a straight line,” Boneparth said.



<h2 class="wp-block-heading"><a></a>2.&nbsp;Start investing for retirement now</h2>



While retirement may seem like a far-off goal, especially in the early years of your career, it’s actually when you have your biggest advantage to accumulate wealth, according to Barkley.



Any money you invest now will have more time to accumulate gains that compound over time.



“They should be thinking about retirement now,” Barkley said.



To get started, an employer-provided 401(k) may help with those initial contributions and may even include an extra boost from a company match, if offered.



Young investors may also open an individual retirement account on their own. Experts often recommend making post-tax contributions to a Roth IRA early on, as you may be prohibited from contributing to those accounts later in your career when your income is higher.



<h2 class="wp-block-heading"><a></a>3.&nbsp;Resist the urge to give into FOMO</h2>



Gen Z women are more apt to feel pressured to spend to keep up with their social circles, Bank of America found.



Social media is a big driver of those feelings, with 41% of women Gen Zers saying their feeds make them wish they had more money for nonessential spending, versus just 24% of men.



All Gen Zers would be wise to avoid that FOMO, according to Ted Jenkin, a CFP and CEO of oXYGen Financial in Atlanta. Jenkin is also a member of the CNBC FA Council.



“Your friends are not posting their net worth on Instagram and TikTok, so be wary that people may not be doing as well as they appear on social media,” Jenkin said.



It also doesn’t hurt to avoid credit card debt and to check your credit score regularly, Jenkin said.

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<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/10/107316512-1697153033777-gettyimages-1648081445-AFP_33UD6V9-820x547.jpeg" alt="" class="wp-image-428218" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/10/107316512-1697153033777-gettyimages-1648081445-AFP_33UD6V9-820x547.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/107316512-1697153033777-gettyimages-1648081445-AFP_33UD6V9-300x200.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/107316512-1697153033777-gettyimages-1648081445-AFP_33UD6V9-135x90.jpeg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/107316512-1697153033777-gettyimages-1648081445-AFP_33UD6V9-768x512.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/107316512-1697153033777-gettyimages-1648081445-AFP_33UD6V9-1536x1025.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/107316512-1697153033777-gettyimages-1648081445-AFP_33UD6V9-scaled.jpeg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Yellow taxi cabs drive down a road in Senegal’s capital city of Dakar on Sept. 6, 2023. John Wessels | Afp | Getty Images</figcaption></figure>



BEIJING — An ambassador of an African country to China has criticized the International Monetary Fund and the World Bank for restrictive lending policies.



“The problem is that the ratings we are making for the African [countries] should be different,” Ibrahima Sory Sylla, ambassador for the West African country of&nbsp;Senegal, said Thursday at an event at Peking University.



He said ratings from Fitch or Standard and Poor’s don’t take into account local factors such as&nbsp;food security&nbsp;— but they are the basis for IMF and World Bank assessments of economic sustainability.



The number of people in West Africa experiencing an acute lack of food surged by nearly 40% in a year, according to a&nbsp;Reuters report&nbsp;in December citing the United Nation’s World Food Programme. The figure surged 60% during that time for the number of East Africans, the report said.



Senegal significantly increased its borrowing from China in 2021 and 2022, according to the Chinese Loans to Africa database managed by Boston University’s Global Development Policy Center.



While that reflected a spike in West African borrowing, such loan activity was more muted in other parts of Africa — reversing a growth trend of the last 20 years, the data showed.



“What we can understand is that so many [multilateral development banks] through the G20 [debt] suspension initiative, they said you have to go through this initiative, but when you [do so], they suddenly decided to downgrade your risk,” Senegal’s Sylla said. “And most of the developed countries, the Western countries, they can go beyond to 200% of the ratio between the debt and the GDP. Their rating is not downgraded.”&nbsp;



The IMF, World Bank and S&amp;P did not immediately respond to CNBC’s request for comment.



A Fitch Ratings spokesperson told CNBC all its sovereign rating decisions are “taken solely in accordance with one globally consistent and publicly available rating criteria.”



“Rating decisions are based on independent, robust, transparent and timely analysis,” the person added.



“My sincere belief is that IMF officials, World Bank officials, they are sincere in their belief that their debt sustainability framework works and works for the greater good,” said Jang Ping Thia, lead economist and manager of the economics department at the Asian Infrastructure Investment Bank.



“Many times, the IMF chief at the desk, try their best to stretch the envelope for the country,” Thia said at the same event Thursday.



Thia said he just returned from a trip to Africa two weeks ago and saw a “brand-new city” being built by many Chinese contractors — but with very low occupancy.



“That makes me very worried,” he said, declining to name the specific African country.



“The loan itself matters, infrastructure matters, but timing and debt management and absorption capacity matters, coordinating and staggering out and having a plan,” said the AIIB economist. “Build slowly, get people in, build more, is sometimes much more efficient, maybe not as big [a] bang.”



<h2 class="wp-block-heading" id="h-belt-and-road-forum"><a></a>Belt and Road Forum</h2>



The event about Chinese financing to Africa came just days before the country was set to hold its third Belt and Road forum, a gathering of countries involved in the China-led initiative for regional infrastructure development. Russian President Vladimir Putin is set to attend the forum, scheduled for Tuesday and Wednesday in Beijing.



Critics say the Belt and Road Initiative is a way for China to expand its global influence, while forcing poor countries to take on debt for infrastructure development, only to find themselves unable to repay the loans.



From 2000 to 2020, China loaned $160 billion to African countries, according to a report released Thursday by Peking University’s Institute of New Structural Economics. The research claimed every 1% increase in Chinese loans resulted in an increase of 0.176% in African economic growth.



Allan Joseph Chintedza, ambassador of Malawi to China, said the report should look also at the repayment period for Chinese loans.



“The gesture and what the [Belt and Road Initiative] is trying to do is perfect. It would be very sad if we actually lost out because we are not addressing some of the key issues that we need to address that you gave,” Chintedza said, without specifying.



The East African country needs&nbsp;to provide a “sustainability letter”&nbsp;from the Chinese government in order to borrow more from the IMF, Chintedza added. “Instead of us concentrating on implementing these agent programs, we are caught in between negotiations of trying to raise [funds], to improve or at least justify the debts that we have.”



“I think the majority of the loans has to be extended because that’s the only way we can be given breathing space to be able to meet the requirements but also to invest in the social sense,” he said.



Malawi has borrowed $484.6 million from China since 2000, according to the Chinese Loans to Africa Database, which does not track repayments.



“I cannot deny that the financing cooperation between China and Africa are facing some challenge or difficulties, because [of] some [countries] defaulting and the debt problem is in front of us,” said Wu Peng, director-general for the department of African affairs&nbsp;at China’s foreign ministry.



“So we cannot ignore this challenge. But I have &#8230; confidence that we still can cooperate in this field,” Wu said, adding that he is working with Chinese banks on loans for railway projects in Western Africa, which will likely be announced “in weeks.”

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