Inflation relief checks by state news summary | 2 November 2022

Unemployment drops further across the US

The three states with the lowest unemployment rate in September 2022 were Minnesota (2.0 percent), Vermont (2.1 percent), and Utah (2.1 percent).

On the other end of the spectrum, Washington, DC (4.7 percent) and Illinois (4.5 percent) are seeing the highest rates of unemployment. 

The majority of states are in the middle, with twenty-eight states recording a rate under 3.5 percent. 

The Federal Reserve projects increases in unemployment nationally by the end of the year, this Friday's report on October will provide an indicator if that trend has begun to happen or not. 

Those who paid down student loan debt during moratorium getting refund checks

Around 8.8 million borrowers tried to make headway on paying down their student loan debt during the moratorium on payments and interest. The pause on student loan payments was implemented in March 2020 and has been extended several times since.

However, the holiday will be coming to an end soon, expiring 31 December 2022. Millions of borrowers were hoping to take advantage of President Biden's annouced federal student loan forgiveness program.

The program came to a screeching halt though when some 22 million had already signed up after an injunction was imposed by the courts due to a lawsuit from a handful Republican states. Good news though for those that paid down their debt during the moratorium.

Bloomberg reports that despite the injunction, they will be receiving refunds as part of the covid-19 relief stimulus program. 

US NEWS

The key dates to receive the California inflation relief checks: who will collect it in October?

It's been over two weeks since payments of California’s inflation relief checks started to be sent out to residents. Payments are going out as either direct deposit or debit cards, both formats have their own payment schedules.

Bumper storage injections bring down price of natural gas

Prior to the pandemic the US averaged 92.9 billion cubic feer per day in 2019 before dropping as demand slowed in 2020. However, production has come surging back to meet demands for Liquified natural gas exports, exceeding 97 Bcf/d every day in September and surpassing 100 Bcf/d on seven days.

The substantial increase in production has allowed for larger underground storage injections, 427 Bcf in September accounting for 21% of the total, which has brought down the spot price.

Weekly domestic oil production in US drops below 12 million barrels

US domestic oil production had been making gradual gains to recover its peak of over 13 million barrels per day before the pandemic saw demand for Texas tea crater and with it the national suppliers output. From bottoming out at 9.7m bpd in August 2020, production had reached in fits and starts around 12.2m bpd in early August this year.

Since then there has been a gradual decrease of what producers are pulling out of the ground slipping to 11.9m bpd in the last week of October according to recent US Energy Information Agency data.

Federal Reserve moves to squash inflation but signals possible pivot

The Federal Reserve began raising interest rates last March to slow rising inflation in the US economy. After easing into its first rate hike in two years with a quarter of a percentage point increase, policy makers went full throttle, first with a half percentage point hike, then three straight 75 basis point increase before they met this week as inflation continued to stay persistently high.

The jump in overnight rates for lending have had the knock-on effect of raising the cost of borrowing for businesses and ordinary Americans. 

SOCIAL SECURITY

The key dates by state for the extension of food stamps: who collects SNAP in November?

The Supplemental Nutrition Assistance Program is designed to supplement the food budget of low-income families to ensure that they can afford to purchase healthy food and avoid periods of food instability. Back in January, 37 states had signed up to make their residents eligible for extra SNAP benefits, as part of the Emergency Allotment (EA) program. However, for November this number has been reduced to 21 states.

Rent increases a big driver of inflation

As inflation is rising landlords have been pushing up prices for tenants. The average cost of a single-family rental property had also increased by 12.6% even by Jnauary this year.

Cities in Florida have seen the largest increase in rental prices with renters in Palm Beach, Miami, Fort Lauderdale, Orlando, and Tampa are paying more than fifteen percent compared to this time last year. Thirty-four percent of households reported to the US Census that they were likely to be evicted next month.

Inflation a top issue for midterm voters

There's now less than a week to go until Election Day 2022, with a series of vital midterm races that could determine the future of the country and the remainder of President Biden's time in the White House. Throughout 2022 inflation has remained dangerously high, reducing consumers' purchasing power and leaving millions of households unable to cover the cost of essential purchases. As such, inflation and the economy more broadly looks set to be the crucial issue in the midterms. 

Unemployment continued to fall in 49 states

The Bureau of Labor Statistics has reported that all states but Mississippi saw sizeable decreases in their unemployment population. Mississippi also saw an increase in unemployment of 1.2 percent. 

Which states have added the most jobs?

For the year ending September 2022: Texas (+721,800), California (+712,600), and Florida (+463,300) saw the largest increases. Meanwhile, as a percent of jobs gained: Texas (+5.6 percent), Louisiana (+5.2 percent), and Florida (+5.1 percent) saw the largest increases.

US companies gouging prices for consumers

Senator Elizabeth Warren will be hoping for a Democrat win this November to push through her agenda to stop companies gouging prices during inflation. While consumers are paying more for products, comapneis are making huge profits and keep increasing prices.

The Price Gouging Prevention Act of 2022 would prohibit the practice of price gouging during all abnormal market disruptions, including the current pandemic, by authorizing the Federal Trade Commission (FTC) and state attorneys general to enforce a federal ban against unconscionably excessive price increases, regardless of a seller’s position in a supply chain.

Which states have the highest down payments to buy a house in the USA?

According to the National Association of Realtors, this year the national average down payment has been 13 percent of the value of the home. The states with the highest down payment are:

1. California: $103,000

2. Idaho: $94,000

3. District of Columbia: $86,625

4. Colorado: $83,014

5. Hawaii: $82,135

(Data according to Optimal Blue)

HOUSING COSTS

Which US cities have the highest down payments to buy a home?

Buying a house is a large outlay of money, which is why many resort to mortgage loans. In these cases, those seeking to own a home must pay an initial down payment, which is usually very high in states and cities across the country.

NEW YORK

Salary transparency law in NYC: what it is and when it will take effect

Starting yesterday, the 4 million private-sector workers in New York City will benefit from a new law which will provide more transparency in the labor market and help to close racial and gender wage gaps.

Double the amount of available jobs to unemployed - why?

The US Bureau of Labor Statistics (BLS) will release unemployment information for October later this week on 4 November.The most recent report showed the unemployment rate edging down slightly to 3.5% as well as the number of people unemployed shrinking to around 5.8 million. 

The BLS reported today that on the last day of September the number of job openings increased to 10.7 million nearly two jobs for every person that is out of work. This could give some clues to why people are not choosing these jobs; a mixture of low pay, bad conditions, and low union support. The post-pandemic vibe has changed many people's minds for what they want in a job.

What else has Joe Biden said about oil profits?

Oil companies. record profits today are not because of doing something new or innovative. Their profits are a windfall of war, a windfall for the brutal conflict that’s ravaging Ukraine and hurting tens of millions of people around the globe.

US NEWS

What did Joe Biden say about oil companies and their record profits?

US President Joseph Biden levied his fury on to gas companies as high prices for consumers have led to record profits, reenergising calls for more action to be taken while millions could suffer this winter.

The oil industry “has not met its commitment to invest in America and support the American people,” Biden said, “profits so high it is hard to believe.”

Why are oil prices so high?

Consumers in the west have been hit by spiralling fuel costs from the Russian invasion of Ukraine. The closing of oil and gas pipelines from Russia to Europe was particularly serious as Russia was the largest fuel supplier for many European countries.

Nations have not been helped by the apparent backing of Russia by OPEC, the oil production union of nations. It has scaled back production further driving up prices and leaving President Biden red-faced as he went to Saudi Arabia cap in hand a week prior to the decision. The shortness of supply has given oil companies the opportunity to hit record profits.

Inflation relief news from AS USA!

Good morning and welcome to AS USA, where we will be bringing you the latest financial news and information from the United States. We have updates on the inflation relief checks being distributed in parts of the country and news on the latest GDP figures.