Inflation relief checks by state live online update: summary news 23 November
Headlines: Monday 23 November 2022
- Full list of dates now available for California inflation relief payment
- White House confirms extension to the student loan moratorium
- Gas prices continue to drop as Thanksgiving holiday approaches with millions set to travel
- 30-year fixed mortgage rates see biggest drop in almost 40 years
- FTX collapse continues to roil cryptocurrency markets, Bitcoin dipped to lowest point in two years.
- Class action lawsuit filed against FTX founder and numerous celebrity promoters, including Tom Brady
- Mass resignations at Twitter, Elon Musk closes offices to workers
- White House considers extending the student loan moratorium
Browse our latest articles:
A number of stores across the US have changed their work policy for Thanksgiving in recent years. Businesses will be focusing more on their online sales which soared by over 30 percent during the covid-19 pandemic, and are expected to continue to rise.
Shoppers shouldn’t get their hopes too high of scoring spectacular deals of old, with inflation having pushed pre-discount prices higher. Additionally, some sought after items may be hard to find, with supply chains continuing to be disrupted due to pandemic and war related problems.
So, here is a list of stores that will and won’t be open on Thanksgiving and opening hours on Black Friday, but as times may vary by location check first before you head out the door.
A substantial majority of participants judged that a slowing in the pace of increase would likely soon be appropriate.The uncertain lags and magnitudes associated with the effects of monetary policy actions on economic activity and inflation were among the reasons cited regarding why such an assessment was important.
Interest rate hikes to slow
Reflecting statements that multiple officials have made over the past several weeks, a Fed meeting summary pointed to smaller rate hikes coming. It is expected the rate-setting Federal Open Market Committee to drop to a 0.5 percentage point increase in December.
This year there has been four straight 0.75 percentage point hikes.
Housing prices have been on a tear since the covid-19 pandemic caused the great American migration. The underlying reasons for the dramatic rise in the cost of buying a house nationwide are many. However, the raising of rates by the Federal Reserve to tackle high inflation has sent mortgage rates climbing as well.
Despite the biggest one-day drop since 1981, a 30-year fixed rate home loan is still double what it was at the start of the year. The higher interest payments coupled with overvalued homes have caused a slump in the sale of existing homes. This is both good news and bad news depending on your vantage point but not as dire as the last downturn.
Gas prices lower this Thanksgiving
Americans aren't letting high prices keep them from celebrating Thanksgiving, with around 55 million planning to travel more than 50 miles from home according to AAA. The vast majority will be going by car to their destination and they will be grateful that gas prices continue to drop. Once adjusted for inflation, this year's price per gallon will be 8 cents cheaper than last year.
Partisan lawsuits blocked relief to millions who had been approved and prevented our processing of applications. It seems odd to force people to make payments on loans that we contend have been lawfully forgiven.
Biden extends student loan payment pause to protect millions approved for relief
Before the Department of Education stopped accepting applications for student loan debt relief, around 26 million had already submitted a petition. The agency as well had approved 16 million of those and sent them to loan servicers to be discharged once the legal challenges have been settled in the courts.
However, because that process will likely drag out though beyond when the pause on student loan repayments was set to expire 31 December, President Biden once again extended the moratorium. Students will either have breathing space until 30 June or when the matter is settled in the courts.
Just like for all other holidays, retailers are promoting their discounts on products for Black Friday earlier and earlier each year. Several retailers have already begun hyping their Black Friday sale prices well before the official 25 November shopping extravaganza.
Here are a look at some deals available and things to consider before facing the crowds on Friday.
The California Franchise Tax Board (CFTB) has sent payments for the Middle Class Tax Refund to over 17 million Californians. The inflation relief payments, which range from $200 to $1,050, are being sent as either direct deposit or debit card.
The agency responsible for disbursing state tax refunds has finally posted the complete payment schedule.
Plentiful savings could save the US from recession despite Fed rate hikes
The Federal Reserve began raising interest rates in March. Of the six hikes so far this year, the past four were back to back three-quarter percentage points each. This aggressive move to bring down four-decade high inflation has sparked worries that it may tip the economy into a recession.
A recent report by Goldman Sachs doesn't see this happening in 2023, partly because any reduction in demand for workers will come from the huge surplus in vacancies as opposed to layoffs. Helping to keep the economy growing and keep demand for workers is the large amount of savings that both consumers and corporations are still sitting on.
This monetary cushion it is predicted should keep the economy afloat as long as the Fed doesn't overshoot with rate hikes. The next meeting of policy makers is scheduled for 13-14 December.
Other ways to save money traveling for Thanksgiving than finding cheaper gas
The number of holiday travelers this Thanksgiving is expected to be higher than last year, making it the third busiest in history. Americans that are taking their car to see their loved ones to celebrate are planning to drive farther this year as well.
While it will cost more to fill up your car in 2022 compared to other Thanksgivings, travelers are getting a welcome reprieve as the holiday approaches. But besides finding that gas station selling fuel at a lower price drivers can also save money by planning their trip wisely, paying attention to how they are driving and making sure their car is ready for the trip.
Gas prices rapid decline going into Thanksgiving weekend
The nearly 50 million Americans that are planning to hit the road this holiday weekend can expect to pay a little less at the pump when they fill up their car. The US national average has dropped around 16 cents since a week ago. California could soon see the average price drop below $5 per gallon for the first time since March.
Black Friday is nearly upon us and the now-infamous shopping day has encouraged consumers to turn feral in recent years. Videos of people flooding into shops and snaffling as much as they can epitomised the early days of the unofficial holiday.
In the context of people struggling to pay for things due to high inflation, any deal may look enticing. However, companies are more than aware of the lure of Black Friday and it has been proven that deals on offer are often no better compared to other times of the year.
FTX victims may never get their assets returned
The fallout from the collapse of cryptocurrency trading exchange FTX has continued today, with lawyers warning that customers who lost assets as a result of the failing may not be able to get them back. In early November FTX filed for bankruptcy after panic set in and investors sought to withdraw their assets, leaving the company owing $8 billion.
I'm completely confident my plan is legal... But right now it's on hold because of these lawsuits. We're not going to back down though on our fight to give families breathing room.
But it isn't fair to ask tens of millions of borrowers eligible for relief to resume their student debt payments while the courts consider the lawsuit.
To give borrowers some respite during a period of extreme economic insecurity, former President Trump imposed a pause on student loan debts. This meant that borrowers were temporarily freed from the requirement to make repayments and also that interest stopped accruing on the outstanding balance.
The moratorium had be scheduled to come to an end on 31 December, but the latest extension pushes back the deadline to “no later than June 30, 2023″.
Repayments will not have to resume for 60 days after the moratorium is lifted.
Welcome to AS USA!
Good morning and welcome to AS USA, your one-stop-shop for financial news and inflation payment updates...