Relief checks news summary | 1 May 2023
Inflation Relief: Latest Updates
Headlines | Monday, 1 May 2023
- First Republic Bank acquired by JP Morgan Chase
- World Economic Forum foredacts 14 million jobs disappearing in five years
- New March data showed inflation cooling, Fed still expected to raise rates in May
- In March, personal income increased $67.9 billion, or around 0.3 percent
- GDP growth slowed in Q1 2023, increasing only 1.1 percent
- Median home selling prices increased 2.6 percent in March
- The rate of families with an unemployed member fell three percent from 2021 to 2022 to 4.7 percent
- Federal Tax Day has passed for most, but counties in eight states got a extension
- Housing prices continue to fall, is it a good time to buy?
- Various states will continue to issue inflation relief checks and generous tax refunds in April
Related stories:
White House responds to Q1 2023 GDP report
Today, we learned that the American economy remains strong, as it transitions to steady and stable growth. This past quarter, real personal disposable income increased and American consumers continued to spend, even as the overall pace of growth moderated. This follows reports that our economy added more than 300,000 jobs per month during the quarter, the unemployment rate remained near a 50-year low, and workforce participation for working-age Americans is the highest in 15 years.
More than two years have passed since the US federal government approved the third and last stimulus check. The payment was part of the March 2021 American Rescue Plan and offered a $1,400 check for eligible taxpayers and up to $2,800 for couples filing jointly.
Since then, millions of Americans have been waiting for a fourth stimulus check, and although the measure was never approved at the federal level, various states decided to send their own checks to residents. Below we will discuss which states can expect a direct payment in May and June.
Initial unemployment claims fell by 16,000 to 230,000 last week, stalling the recent climb in the number of unemployed workers seeking benefits.
The week before, which ended on 8 April, California (2.4), New Jersey (2.4), Massachusetts (2.1), Minnesota (2.0), Rhode Island (1.9), Illinois (1.8), New York (1.8) saw the highest number of workers on unemployment benefits.
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How much do high school teachers earn a year in the US: What is the average salary?
Teachers can make a big difference in their pupils lives as they prepare them for life in the labor force or higher education. Here’s how much they earn.
"First Republic Bank shows how deregulation has made too big to fail problem even worse"
The failure of First Republic Bank shows how deregulation has made the too big to fail problem even worse. A poorly supervised bank was snapped up by an even bigger bank—ultimately taxpayers will be on the hook. Congress needs to make major reforms to fix a broken banking system.
When saving for retirement there are several options to choose from like 401(k) plans. But what happens if you have two or more? Can you put money in both?
IRS gives certain taxpayers in Oklahoma an extension
In the afternoon of 19 April supercell thunderstorms developed in southwestern and central Oklahoma which produced large hail and 18 tornadoes according to the National Weather Service. Last week a federal disaster declaration was approved for parts of the state making emergency funding available.
At the same time the IRS announced that individuals, households and businesses in the counties of McClain and Pottawatomie would qualify for tax relief. Taxpayers in those counties will be granted additional time to file returns and pay any taxes that were originally due on or after 19 April 2023 to before 31 August 2023. These will now be due on 31 August 2023.
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JP Morgan and the FDIC announced on Monday morning that the New York banking titan would acquire the beleaguered San Francisco bank and assume its deposits in an orderly resolution.
The FDIC is reported to be preparing to place First Republic Bank under receivership. The Bank’s stock plunged after it revealed that they had lost $100 billion in deposits in the first quarter of the year.
The FDIC settled on JP Morgan's bid to purchase First Republic's assets and assume its deposits. But how will this latest bank collpase affect you?
Technology like AI will see 2%, or 14 million, of global jobs vanish in five years
The World Economic Forum released its 2023 Future of Jobs Report which surveyed a wide cross-section of the world’s largest employers. Based on their findings, respondents forecast that there will be structural job growth of 69 million globally but a decline of 83 million jobs. That means a 14 million net decrease which translates to 2% of the current global employment.
The biggest losses will be in Record-Keeping and Administrative roles, with a decline of 26 million. Large-scale job growth is expected in education, agriculture and digital commerce and trade.
Predictions for task automation decreased from the WEF’s 2020 report, dropping from 47% to 42% in the next five years. By 2027 it is expected that around 35% of reasoning and decision-making jobs will be automated while 65% of information and data processing will be.
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JP Morgan Chase acquires all deposits and assets of First Republic Bank
The FDIC announced that JP Morgan Chase Bank has purchased failed First Republic Bank and its assets as well as assuming all its deposits early Monday morning. The US banking regulators had been studying two remaining bids for the San Francisco bank over the weekend in the hopes of carrying out an orderly resolution.
On Monday, First Republic’s 84 branches in eight states will open as JP Morgan Chase branches during normal business hours. All depositors of First Republic Bank will become depositors of JPMorgan Chase Bank and will have full access to all of their deposits.
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The Child and Dependent Care Credit is designed to ease the burden of childcare for working people. If you have to pay to ensure a child or dependent is looked after while you are at work, you will most likely be able to claim the credit.
The credit can cover up to 35% of work-related care expenses with the lowest amount offered standing at 20% of care costs. The upper limit of the cost covered is $3,000 for one qualifying person or $6,000 for two or more qualifying persons.
On Wednesday, the Republican-controlled House of Representatives voted to pass the bill to raise the debt limit, cut spending, and reverse key pieces of President Joe Biden’s agenda.
While the bill does not include cuts to Social Security or Medicare to address the debt ceiling, it does include a measure against Medicaid and food stamps.
This report tells us how the bill could affect these two benefits.
Starting at the onset of the covid-19 pandemic, Congress passed a law allowing the Food and Nutrition Service (FNS) to boost the amount households received from the Supplemental Nutrition Assistance Program (SNAP). Lawmakers, however, voted to end the Emergency Allotments (EA) as they were known as part of the Omnibus spending bill passed at the end of 2022.
While the SNAP EA program was in place it is estimated that it kept 4.2 million people out of poverty and reduced childhood poverty by 14 percent. As of 1 March, SNAP EA benefits ended in the 32 states that were still paying them along with the District of Columbia, Guam and the US Virgin Islands.
Households saw their monthly allotment drop by $95 on average, some will lose hundreds of dollars to put nutritious food on the table. For those that benefited from the increased payments, they will now have to make hard choices about what they spend their money on as the cost of living has increased. That will mean cutting back on how much they eat or putting off paying bills so they can put food on the table.
Housing prices are slightly down, but lack of stock keeping prices high
The number of homes being put on the market fell nearly 23% from the same time 12 months ago according to new data from Redfin, “one of the biggest declines since the start of the pandemic.” The lack of inventory available can be blamed in part on the historically low interest rates during the pandemic that led to the great migration.
Now many homeowners have mortgages with rates below 3% and blanche at losing that great rate with the average 30-year fixed-rate once again rising toward 7%. Additionally, the transition to remote working, along with the low mortgage rates, helped drive prices sky high over the past couple years. The combination has pushed many would-be homeowners out of the market, but without much supply prices have been slow to come down. The median sale price decreased by 2.8% in April, a similar decline to the month before.
However, that same lack of supply means that those homes on the market are selling quicker once again. Almost half the home on the market are selling in less than two weeks.
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Average weekly 30-yr fixed mortgage rate ticks up slightly, 15-yr down
Average weekly 30-year fixed rate mortgage rate rose for a second week, while the 15-year fixed rate dropped. The average 30-year fixed mortgage rate advanced 0.04% to 6.42% for the week ending 27 April.The average 15-year fixed mortgage rate decreased 0.05% to 5.71%.
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The FDIC managed to work out an orderly resolution of First Republic Bank. JP Morgan Chase will purschase the failed financial institution and assume all its deposits.
The Social Security Administration continues to send monthly benefits to retired workers in 2023.
The SSA is also responsible for sending Supplemental Security Income benefits, disability and survivor benefits. This report tells us when to expect the payments for the month of May.
is working over the weekend
The FDIC managed to arrange an orderly resolution of First Republic Bank over the weekend. The failed bank will be taken over by JP Morgan Chase Bank which will assume all desposits.
Despite the latest banking turmoil, stocks finished the week on a positive note. New inflation data from March showed that price increases continue to slow. However, the Federal Reserve is still expected to raise raises when it meets next week.
In other news, the 2023 tax season has wrapped up, with nearly 86 million refunds sent to US taxpayers already. Those who have received an extension have until mid-October to submit their return.