US financial news | Summary news 18 September
US financial news: live updates
Headlines: Monday 18 September 2023
- What you need to know about the UAW strike
- Federal Reserve officials will meet next week to discuss a possible rate hike
- Various locations of major banks will close across the country next year
- United Auto Worker members went on strikeafter the 'Big 3' automakers did not meet worker demands
- Consumer Price Index shot up 0.6 percent in August:how will the Federal Reserve respond?
- Grocery prices are up three percent compared to last year
Read more from AS USA:
Prices at the pump are on the rise once again, jumping eight percent in two months. According to the Bureau of Labor Statistics (BLS), increases in gas prices accounted for half of the 0.6 percent increase in the Consumer Price Index seen in August. Although drivers of gasoline-powered cars are likely to feel an additional pinch, consumers could see prices rise across the market as transportation costs for businesses balloon.
Read more in our full coverage on the relationship between gas prices and consumer spending.
Many questions are circulating around the United Auto Worker’s ‘Stand Up Strike’ that began last week. Union members of the ‘Big 3′ automotive companies, Ford, GM, and Stelantis, are currently working without a contract as negotiations continue between union leaders and corporate executives.
The UAW faced a series of public relations disasters in 2020 after the Justice Department charged various leaders and automotive bosses with corruption-related charges, including tax evasion and racketeering. The federal agency required the UAW to hold a referendum asking members if they wanted to adopt new voting rules, allowing them to elect their leaders directly. The measure was approved, and elections were held in March 2023. Shawn Fain was elected UAW President against incumbent Ray Curry, and with Fain running on a much more militant platform, the win was seen by many members as a pivotal moment in the union’s history.
Read more on the strike in our full coverage.
In the US, a retiree’s average social security check in August was $1,840.27. For some retirees, these incomes are supplemented by pensions (56 percent) and private retirement accounts like Roth IRAs or a 401(k) (42 percent). Even with public and private options, poverty impacts around one in every ten seniors, highlighting the challenges many older generations face when they exit the workforce.
Even with public and private options, poverty impacts around one in every five seniors, underscoring the challenges many older generations face when they exit the workforce. The average for all OECD countries is 13.1 percent.
To compare the retirement security of workers in the US, we looked at four different variables: the poverty rate for seniors, the average age of retirement, the average number of years spent in retirement, the average, and the retirement savings programs (public and private) available to the average worker.
Read our full coverage for more details.
Poverty high amongst seniors in the US
Even with public and private options, poverty impacts around one in every ten seniors, highlighting the challenges many older generations face when they exit the workforce.
Even with public and private options, poverty impacts around one in every five seniors, underscoring the challenges many older generations face when they exit the workforce. The average for all OECD countries is 13.1 percent.
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While most drivers are paying much less than they were a year ago when the average national price broke over the five-dollar mark, geopolitical action means prices are on their way up again. Prices have been rising since the summer and once again California is the most expensive state for gas in the country.
According to AAA, a gallon of regular gasoline is above $5.60 on average in California, while drivers in One county in California has the most expensive in the nation, Los Angeles-Long Beach, with the price close to $6 in Mono.
In which US state is gas most expensive and where is it the cheapest?
Why are California’s gas prices the highest in the US?
California imposes some of the highest state taxes on gasoline in the country. These taxes include both a state excise tax and a sales tax, which can significantly increase the price of gasoline at the pump.
Furthermore, the prices across the country are on the rise due to the fast increasing price of crude oil.
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Health costs generally outpace other sectors of the US economy but the last two years have been an exception. However, because medical inflation typically lags behind what is experienced in the rest of the economy, broader inflation, which peaked in mid-2022, is expected to flow through to the health system.
This will put upward pressure on premiums for next year. The Peterson-KFF Health System Tracker looking at data from 320 insurers participating in the ACA marketplace found a median proposed premium increase of 6 percent. A more detailed analysis showed a median 9 percent rise in proposed premiums.
Here's how inflation is trickling into the cost of health insurance.
Some key areas of the economy are showing signs which bode well for inflation to continue cooling in the United States through the end of the year.
Some key areas of the economy are showing signs which bode well for inflation to continue cooling in the United States through the end of the year.
Online banking is taking hold of the nation and this is forcing brick-and-mortar branches to shut across various states.
Those who need a little pick me up to fight off the Monday blues or any excuse to chomp into a hamburger, you’re in luck!
It’s National Cheeseburger Day and burger joints are serving up some juicy deals.
With certain Social Security recipients due to be get their monthly check this week, we offer the lowdown on the SSA’s payment schedule.
Some states continue to send stimulus checks or tax refunds to their residents to give their residents a financial lift.
Seeing fees and penalties applied to your bank account, credit card bill, or student loan payment? They could be junk fees.
Next year, many Social Security recipients in the United States can expect to receive a boost to their monthly benefits as a result of the annual cost-of-living adjustment (COLA). The Senior Citizens League, which is one of the country’s largest non-partisan seniors’ groups, recently made their latest prediction for how big the increase will be when announced next month.
The rate of tax levied on gasoline and diesel can vary hugely between states, meaning that the recent fuel price rises have hurt some more than others. California currently has the highest rate of state gas tax.
If you do some interstate driving it might be worth checking out the relative rates of tax. Drivers in some states pay very little compared to their neighbours.
Why are California’s gas prices the highest in the US?
California is by far the most expensive state for gas. Since the beginning of the year the average price of a gallon of gas has been climbing steadily, now standing at $5.688 a gallon according to the AAA. This is nearly $2 higher than the national average of $3.881.
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The United States housing market slumped in the second half of 2022 with the value of homes falling by 4.9%, the fastest rate seen since the 2008 housing crisis. The market has slightly increased in value but repeated interest rate increases have been pushing down new sales.
Aside from the list price of the property, there are countless additional expenses to be considered when buying a home, such as the rate of property tax in the area that you are buying.
146,000 auto workers will be on strike in the coming weeks. Three factories have been closed initially, while UAW president has said his union will expand the strike as much as they need until their demands are met.
They arenot the only big union on strike right now. The film actor and writers strike (SAG-AFTRA) has also been ongoing since the summer. Films have been postponed and series put on hold as virtually no work is taking place in Hollywood right now.
So why are big strikes taking place now?
Nominally, it is because the workers are unhappy. A combination of pay (autoworker CEO pay has increased 42% in 4 years compared to workers’ 6%) and conditions (how the arts moves forward in the AI age) are often the case.
This is all coming to a head amidst high inflation and high interest rates, shrinking people’s purchasing power and putting their homes under threat.
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Public in wide support for strikes
The public are in support of the action of both major strikes, the United Auto Workers (UAW) and the film actor and writers strike (SAG-AFTRA). Approval of labor unions is also at its highest point since 1965, according to polling.
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The United Auto Workers (UAW) union strike is set to halt production of some of the most popular cars sold in the US. While no new vehicles will be produced, the companies affected, Ford, GM, and Stellantis, turned up production in the run up to the strike.
At present, only three factories are affected by walkouts. These are the Ford assembly plant in Wayne, Michigan; the GM assembly plant in Wentzville, Missouri; and the Stellantis assembly complex in Toledo, Ohio.
Welcome to AS USA's live financial blog!
We'll be reporting on other financial news affecting US consumers as inflation ticks up, consumer spending slows, and the Federal Reserve prepares to decide if interest rates will be increased once again at their next meeting.