Relief Checks: summary news 17 December
Inflation Relief: Latest News
Headlines: Saturday, 17 December 2022
- Supreme Court to rule on Biden's Student Loan Debt Forgiveness plan in 2023
- Wall Street dips after news that Fed will not lower rates in 2023: How this will affect you
- Interest rates up to 4.5% as Fed increases them again
- Bureau of Labor Statistics finds that inflation slowed to 7.1% in November
- Founder of failed cryptocurrency exchange Sam Bankman-Fried indicted on eight criminal charges
- National average just under $3.18 per gallon on Friday per AAA
- Biden administration approves $24 billion in student loan relief
- Supplemental Security Income recipients will be the first to receive COLA boost
- California continues distributing Middle-Class Tax Refund payments, $7.5 bn issued so far
- Some groups will receive two Social Security checks this month
Related news
Governor Gavin Newsom touts California's continued job growth
“California has added jobs for fourteen straight months and more Californians are working than ever before.
"The state also continues outpacing the nation in year-over job growth – all as millions of Californians are currently receiving the largest tax refund in history, boosting the state’s working families.”
New data shows how inflation impacted personal income in 2021
As the year come to an end, the Bureau of Economic Analysis has released a new blog on how inflation impacted households in 2021 when prices really began to trend upward.
The new report shows that PCE inflation (which does not include food or energy costs), increased to varying levels across the country, with the District of Columbia seeing a 12.5 percent boost, and consumers in West Virginia only feeling a 2.0 bump.
"Real personal income increased in 48 states and the District of Columbia in 2021. The percent change in real personal income across all 50 states and the District of Columbia ranged from 7.2 percent in Nevada to –2.7 percent in Alaska," reads the blog.
After the covid-19 pandemic left millions unemployed, workplace injuries and fatalities dropped to a record low.
However, in 2021, as workers returned to their jobs, many faced more dangerous environments leading to a nearly nine percent increase in the number of people injured or killed while on the job.
The 2021 Census of Fatal Occupational Injuries, released by the Bureau of Labor Statistics (BLS) each December, shows that while the number of deaths did not reach the tragic levels seen in 2018 and 2019, the total did surpass that recorded in 2017.
Many were expecting Donald Trump to announce his running mate last week but instead his announcement was the release of a new cryptocurrency-based collectible card set.
“They’re called Trump Digital Trading Cards,” he announced. “These cards feature some of the really incredible artwork pertaining to my life. You can collect your Trump Digital Cards just like a baseball card or other collectibles.”
While many mocked the idea, including members of his former entourage, the project has been a commercial success as all 45,000 cards meaning they made $4.5 million before other factors are taken into account.
Changes to tax deductions
For 2023 the IRS has upped the standard deduction thresholds significantly, meaning that more people will not be required to pay federal income tax:
- Single; or Married and filing separately - $13,850
- Married filing jointly and Surviving spouses - $27,700
- Head of household - $20,800
With the cost of living rising across the US you may be thinking of which areas in the US are cheaper than where you live currently. Compared to much of the world the coutnry has a high median wage but it also has a large number of places where you salary could go further. With changes to work patterns due to the covid-19 pandemic this could be as good a time as ever to explore somewhere new, especially with house prices expected to fall next year.
Business Insider as well as other outlets have published data purporting to show the cheapest cities to live in the US.
Biden celebrates inflation progress
"In a world where inflation is rising at double digits in many major economies around the world, inflation is coming down in America.
In fact, this new report is the fifth month in a row where annual inflation has fallen in the United States. Inflation outside of food and energy, a key measure of — that economists use, also fell.
Make no mistake — prices are still too high. We have a lot more work to do. But things are getting better, headed in the right direction."
How will the Federal Reserve address high inflation?
The Federal Reserve is taking an active role in the nation's fight against high inflation, announcing that there will be another interest rate hike of 0.5 percentage points. This is the fifth interest rate increase of 2022 and is a clear indicator of the Fed's proactive stance.
But is the battle against inflation worth the risk of a recession? CNBC's Jim Kramer gives his thoughts...
Inflation has been the major focus of the Federal Reserve throughout 2022 and the central bank is continuing to raise interest rates in a bid to cool price rises. The key interest rate has been increased by 0.5 percentage points to a target range of 4.25% to 4.50%, the highest since late 2007 during the banking crisis.
A forecast from the central bank showed that the interest rate could still be at 5% in a year’s time, meaning more increases are likely before they begin to taper off. At the beginning of 2022 the interest rate was nearly 0%.
Why don't wages go up with inflation?
In a good year, the government aims to ensure that the US economy grows a little to ensure that there is sustained growth. However throughout 2022 we have seen growth an a dangerously high level, pushing up prices for consumers and making everyday essentials prohibitively expensive.
At the same time, wages have been growing, but at a slower pace however too fast for the Federal Reserve. Why doesn't workers pay increase at the same rate as inflation? CNBC explains...
Come January, workers in two dozen states that get paid the minimum wage will see a raise. Three others and the District of Columbia will follow suit later in 2023.
Three states will raise their minimum wage to $15 or more, joining California and the District of Columbia as well as a handful of municipalities that have already mandated the sought for level.
We take a look at what that could mean...
What is the average gas price in the US?
After nearly six months of sustained decreases, the average price of a gallon of gasoline in the United States now sits at $3.129. This is a remarkable fall from the all-time high recored in June and will provide relief for consumers ahead of the Christmas period. Projections now suggest that it could fall below $3 per gallon before Christmas.
New unemployment claimants fall
211,000 Americans filed for unemployment benefits the week ending 10 December. That was a drop of 20,000 from the week before. The 4-week moving average also decreased by 3,000 to 227,250 initial UI claims.
What next for student loan forgiveness?
President Biden announced his plan to cancel up to $20,000 in federal student loan debt for millions of Americans in August. Days after the online portal to submit applications went live, the legal challenges to the program forced the Department of Education to put it on ice.
The Supreme Court has now agreed to hear two separate lawsuits against the White House's debt forgiveness plan. The education team of Senator Bob Menendez of New Jersey will be hosting a webinar on Friday to answer questions regarding where the plan stands.
Mortgage rates continues to fall
To bring inflation down, the Federal Reserve has increased interest rates which have brought mortgage rates to recent highs after seeing periods of historically low rates.
Earlier this week, the Fed announced further increases to rates which will likely drive up those for mortages after they had come down slightly in recent weeks.
After the covid-19 pandemic left millions unemployed, workplace injuries and fatalities dropped to a record low. However, in 2021, as workers returned to their jobs, many faced more dangerous environments leading to a nearly nine percent increase in the number of people injured or killed while on the job. The 2021 Census of Fatal Occupational Injuries, released by the Bureau of Labor Statistics (BLS) each December, shows that while the number of deaths did not reach the tragic levels seen in 2018 and 2019, the total did surpass that recorded in 2017.
Read our full coverage for more on the response from the Department of Labor and how the tragic data shows a disproportionate risk of death in the workplace for immigrants and workers of color.
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Good morning and welcome to AS USA! We'll be bringing you all the latest news and information on inflation measures and relief payments in the United States.