Inflation relief checks by state news summary | 7 November 2022

Gates Foundation gives $1.4 bln climate help to smallholder farmers

The Bill & Melinda Gates Foundation has pledged $1.4 billion to help smallholder farmers cope with the impacts of climate change, part of efforts at global climate talks in Egypt to scale up supply of so-called adaptation finance.

The world is currently not doing enough to help poorer nations withstand the effects of global warming, the United Nations said last week. By 2030, the annual financing need will be $340 billion, it added.

The Gates Foundation's commitment, announced at the COP27 conference in Sharm el-Sheikh, will help smallholder farmers in sub-Saharan Africa and South Asia build resilience into their work practices and improve food security.

More than 2 billion people depend on smallholder farms for food and income, yet currently less than 2% of global climate-related finance is devoted to helping them adapt to climate change, the foundation said.

Dollar steadies ahead of midterms

The dollar steadied during Asia trade on Tuesday after some of the momentum ebbed out of bets on China's reopening, and as traders looked ahead to U.S. midterm elections.

Market focus is shifting to U.S. midterm elections later in the day, with a Republican victory and consequently gridlock in Congress forecast. A conclusive result could take days.

Some analysts say that outcome could be positive for bonds and negative for the dollar if it leads to less fiscal stimulus.

"If we get a gridlock outcome or Republican sweep, it won't be so easy to get fiscal stimulus through next year, which means then that (Federal Reserve chair Jerome) Powell can afford to take the foot off the interest rate hike accelerator," said Damien Boey, chief macro strategist at Barrenjoey in Sydney.

US NEWS

2022 Midterm Elections: What are the main issues that matter most to American voters?

Predictably the economy is dominating discussions around the election. According to a new NBC News poll 81% of respondents were either somewhat dissatisfied or very dissatisfied with the state of the economy, while only 19% were satisfied. This is the lowest satisfaction since 2010 in the immediate aftermath of the banking crisis.

Pollsters Gallup note that the high cost of living as well as the general economy are the two most important problems facing the US. Axios also has a tracker analysing searches by people in the US during the run-up to the election. Jobs and taxes were the two most searched topics for nearly the entire period of 23 May to today.

Today’s analysis reaffirms what an overwhelming 80% majority of Americans already recognize according to a recent poll:  under the guise of inflation, certain corporations excessively hiked prices far beyond what their costs necessitated, further driving inflation. 

As American corporations report their highest profit margins the United States has seen in over seventy years, executives of leading companies are admitting on earnings calls that they’re taking advantage of inflation.  One executive argued that ‘a little bit of inflation is always good in our business’ while another admitted that his company’s prices wouldn’t fall with decreasing costs, stating ‘we don’t reduce prices on the back end of these increases.’  

It is unacceptable that certain companies and industries are engaged in extreme price hikes under the cover of inflation. 

What is to blame for inflation?

Rep. Raja Krishnamoorthi, Chairman of the Subcommittee on Economic and Consumer Policy, released a staff analysis entitled “Power and Profiteering:  How Certain Industries Hiked Prices and Drove Inflation,” which details how certain corporations have engaged in excessive price hikes, raking in record profits while U.S. consumers have faced high inflation. 

It was released on 4 November and is the first committee investigation into how excessive profiteering is a factor in the inflation mess.

US NEWS

How do I request an IRS Verification of Non-Filing Letter?

To claim various forms of federal financial aid the recipient must first submit documents confirming their earnings history for the previous year. In most instances that means providing your most recent tax return filing, but not everyone is required to file taxes.

Initiatives like the Free Application for Federal Student Aid (FAFSA) require the recipients to provide their parents’ federal income tax, so officials can judge the claimant’s household income. If they and their parents do not file taxes, they can prove this by obtaining a Verification of Non-filing Letter from the IRS.

Here's how to claim the Verification of Non-filing Letter form the IRS

What are today's average mortgage rates? Monday, 7 November

The Federal Reserve's interest rate hikes have had a significant effect on the US housing market in recent months, making mortgages far more expensive for borrowers and cooling interest in property. 

Here's a snapshot of typical mortgage rates for Monday, 7 November:

Standard 30-year fixed mortgage: 7.29%, an increase of 0.15 percentage points from last week’s 7.14%.

Standard 15-year fixed mortgage: 6.48%, an increase of 0.09 percentage points from last week’s 6.39%.

5/1 adjustable rate mortgage (ARM): 5.59%, an increase of 0.07 percentage points from last week’s 5.52%. 

Which states have seen increases in unemployment claims?

In October, various states saw increases in workers claiming unemployment benefits. The current number has been hovering between 200,000 and 250,000 initial claims for the last few months. This comes as the national unemployment rate increase from 3.5 to 3.7 percent in October. 

For the week ending on 22 October, New York (+1,726), Georgia (+1,301), New Jersey (+1,100), Pennsylvania (+1,062), and Illinois (+1,016), saw the largest increases in initial claims, while Missouri (-2,213), Florida (-2,004), Michigan (-804), Tennessee (-628), and Puerto Rico (-510) saw the largest decreases. 

Read the most recent report on unemployment benefits. 

The full story on inflation

Many regions around the world experienced inflationary cycles in the late 20th century. Some economists have pointed out that if workers have enough power, and they demand higher wages, companies will often move up prices to absorb tthe real power of those increases.

Should workers continues in a strong bargaining position, they can demand higher wages, and if companies, in turn, increase prices, the inflationary cycle begins. 

In the US, we are seeing a similar trend. Record low unemployment, with many sectors expecting high demand and not enough workers to fill the positions, has left workers in a position to ask for higher salaries and more generous benefits. 

Firms have responded by increasing prices, and as Robert Reich notes, the profits being generated are reaching a 70-year record. 

There are other factors that are contributing to inflation, lockdowns in China that have limited the global supply of goods, pushing up prices and the war in Ukraine which has disrupted energy markets... But some economists argue that the focus should be on companies, using these other issues as justification to increase prices. 

The US is not alone in concerns over inflation

Reuters has reported on the results of a new survey that shows inflation remains a top concern across G-20 countries, showing that the issue is global and less reflective of domestic policy. 

And, as countries gather in Egypt for the Climate COP to discuss international cooperation on climate action, the survey shows that governments are undermining environmental standards to combat inflation. 

FINANCIAL ASISTANCE

Who is eligible to request unclaimed stimulus check payments and when is the deadline?

The US government approved the sending of three stimulus checks to deal with the Covid-19 pandemic. Although the Internal Revenue Service (IRS) announced that it had finished sending the third payment, also known as Economic Impact Payment (EIP), some people can still claim the $1,400.

Read our full coverage for details on how the stimulus checks can still be claimed. 

President Biden responds to better than expected job numbers

Let me be clear.  We’re going to do what it takes to bring inflation down.  But as long as I’m president, I’m not going to accept an argument that the problem is that too many Americans are finding good jobs.  Or that too many working Americans finally have more dignity in the workplace.  Or that our largest, most profitable corporations shouldn’t have to pay their fair share.

What are the most competitive industries for hiring?

The Bureau of Labor Statistics has reported that the healthcare sector has more than 2.1 million job openings, representing that around nine percent of all jobs remain unfilled. 

Additionally, there remain many openings in accommodation and food service as well as professional and business services. High job opening rates indicate that there may be less competition for these jobs, giving applicants more power to negotiate salaries and benefits. 

US trade deficit increased in Q3 2022

The Bureau of Economic Analysis has reported an increase in the US trade deficit after months of decline. A trade deficit occurs when a country imports more products than it exports. 

In Q3, from July to September, exports decreased by "$2.8 billion, or 1.1 percent, in September to $258.0 billion." Driving this decrease could be the increase in interest rates which makes US exports more expensive as the dollar strengthens against other currencies. 

Hello and welcome to AS USA's live blog on inflation relief, following the latest news from Washington DC to Wall Street. 

Inflation is hitting families across the US hard, and as election day approaches, both parties are trying to convey their plans to deal with the looming price crisis. 

This winter, the US Energy Information Adminstration has estimated energy costs could increase by over twenty-five percent compared to last winter. With OPEC slowing down production and US energy companies unwilling to invest the capital expenditure needed to boost production, prices at the pump could rise as well. 

To help households struggling, various states, including those run by Republicans, have sent inflation relief checks out, to increase disposable income and offset the negative impacts of inflation on consumer spending. 

From the White House, President Biden seems confident that the courts will be unable to challenge his move to cancel up to $20,000 in student debt for some borrowers.