Relief checks news summary | 29 April 2023
Inflation Relief: Latest Updates
Headlines | Saturday, 29 April 2023
- First Republic Bank on the verge of collapse, FDIC working on last-minute sale; set to take it over
- JP Morgan and PNC bidding to buy First Republic before Monday
- Despite First Republic turmoil, stocks end week higher
- 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
Over a quarter of baby boomers have no retirement savings
Knowing exactly how much you need to save for retirement is a difficult question to answer. The estimates vary depending on the person, where they live and what future health care needs will have to be met.
Most throw out a figure over $1 million, but the reality for baby boomers, those between ages 59 and 77, is that the median retirement savings is only $120,000. Worse, around 27% of those 59 and older have no retirement savings to speak of according to a new survey from Credit Karma.
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.
The financial troubles at Silicon Valley Bank in mid-March sent companies scrambling to secure money to cover payrolls. Over the just two days, the mass run on the bank that catered to tech-startups, their bosses and employees as well as venture capitalists helped drive the financial institution into FDIC receivership.
Its collapse though is still having ripple effects throughout the US economy, helping to pull down another San Francisco bank, First Republic, which also focuses on high net worth individual in tech and their compnaies.
The Social Security Administration (SSA) continues to send monthly checks for 2023 to retired workers. SSA also sends payments each month to recipients of Supplemental Security Income (SSI), as well as other disability and survivor benefits.
Here are the amounts and sending dates for the remaining months in this year.
The FDIC is working toward an orderly resolution of First Republic Bank or taking it into receivership.
Claim your tax refund or forfeit it to the Treasury
The IRS gives taxpayers three years from the relevant Tax Day to claim a tax refund from the agency. This is the last year to claim a refund from 2019 if you had money that was owed to you but you failed to file a tax return. The IRS is holding onto an estimated $1.5 billion that went unclaimed.
Normally, that would be 15 April but due to the extension given during the covid-19 pandemic in 2019 taxpayers will have until 17 July 2023. After that date any money that was owed to you will be gone forever and put in the US Treasury coffers.
Every month, the Social Security Administration (SSA) sends out benefits for retired and disabled workers as well as survivors of contributors to the Old-Age, Survivors, and Disability Insurance program along with Supplemental Security Income (SSI) payments. In order to receive the money, a person must have a Social Security number (SSN), in addition to meeting certain credits.
Payments are then calculated by SSA on an individual basis, for Old-Age benefits they are based on earnings and retirement age. Once the calculation is done, payments are sent. However, on some occasions, recipients may not agree with the amount they receive.
Here’s what to do if you think that you have received the incorrect amount for your monthly Social Security payment.
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.
Thanks to the Food and Farm Worker Relief Grant Program (FFWR) of the United States Department of Agriculture (USDA), certain workers can receive a payment of $600.
USDA awarded approximately $667 million in grants to 14 non-profit organizations and one tribal entity. This is using funds from the Consolidated Appropriations Act of 2021. The purpose of this program is to defray the costs of workers incurred in preparing for, preventing exposure to, and responding to the covid-19 pandemic.
The FDIC is expected to put First Republic Bank into receivership as time runs out for a rescue of the bank. What does the mean for unsecured 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.
Who is to blame for SVB and Signature Bank collapse?
Government regulators have released a set of reports that studied the failures of Silicon Valley Bank and Signature Bank in March.
The report spread the blame between bank managers who underestimated risks, to supervisors from the Federal Reserve and FDIC who could have done more to press for changes.
The Federal Reserve also cited a set of federal bank regulations that were loosened at the end of last decade. Fed officials recommend that some of these rules be changed, to avoid future failures.
Deposits at large banks experience slight dip
Deposits at commercial banks dipped in the week ended April 19, signaling no fresh worries about bank safety of the kind that drove sharp outflows in the week immediately following the collapse of Silicon Valley Bank, according to data released by the Federal Reserve.
Deposits at large banks fell to $10.61 trillion from $10.74 trillion a week earlier, on a non-seasonal basis. Deposits at small banks totaled $5.36 trillion, compared with $5.39 trillion.
The seasonally adjusted measure of deposits, which take into account typical outflows of deposits including tax season, rose, suggesting the actual outflow seen at banks may not have been as large as usual.
Big banks in competition to buy First Republic
The FDIC is reported to be poised to take over beleaguered First Republic Bank.
In an exclusive story, The Wall Street Journal reports that big banks such as JP Morgan and PNC Financial are already waiting in the wings, vying to buy the regional lender and snag their well-heeled customers.
The FDIC could place First Republic under receivership as soon as this weekend.
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.
According to Reuters, the FDIC decided that there was no more time to look for ways for the private sector to rescue the regional bank; thus, the move to put it in receivership.
70% of Americans surveyed 'stressed' about personal finances
Personal finances are giving stress to many Americans, and the reasons they cited include inflation, economy-wide instability, interest rates, and the lack of savings.
People were able to save at the beginning of the pandemic, but as they transition into post-pandemic life, they are seeing their savings dwindling.
Welcome to AS USA’s live blog on the latest financial news
The FDIC is working over the weekend to arrange an orderly resolution of First Republic Bank. Regulators have narrowed the bidding to two banks. Without purchase, the collapsing bank will be put into FDIC receivership.
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.