US Finance News summary | 10 october 2023
US Finance: Latest Updates
Headlines: Monday, 9 October 2023
- The US unemployment rate held steady at 3.8 percent in September
- Gas prices are dropping in the US, how low will they go?
- Thrifty Food Plan adjustment for SNAP benefits goes into effect
- Next week, the SSA will announce the 2024 Cost-of-living adjustments (COLA); forecasts estimate the COLA will be around three percent.
- States delivering checks and refunds in October
- 125,000 more borrowers become eligible for student loan forgiveness after the White House announced an additional $9 billion in debt relief.
Halloween holiday spurs candy sales
It's the month of trick-or-treating, and candy companies are laughing all the way to the bank.
The most popular Halloween candies so far this year are Hot Tamales, M&M's, and Reese's Cups, with the peanut butter candy taking the top spot.
Starbucks, Whole Foods, other chains close stores in San Francisco
Effective Oct. 22, Starbucks plans to close seven stores in San Francisco. There will then be 52 remaining Starbucks locations in the city.
Other companies that recently closed locations in San Francisco include Amazon, which closed a Whole Foods Market just 13 months after opening it earlier this year, Office Depot, and Anthropologie, which left Union Square in May.
Gap also closed down Old Navy, Banana Republic, and Athleta stores this year, while Nordstrom closed its flagship store in August. Saks Off 5th shut its doors this fall.
Medicare federal health insurance has played a great role in public health in recent years. Retirees, young people with disabilities, and even people with a terminal illness have been able to enjoy this alternative insurance to private coverage.
Losing your Medicare card can be an inconvenience as it may cause delays in getting medical care. Here’s what to do if this happens to you.
Wall Street advances as investors monitor Mideast conflict
Wall Street's major indexes closed higher on Monday while energy stocks rallied as investors digested the latest news about the conflict between Israel and the Palestinian Islamist group Hamas.
The Israeli military said it called up reservists and was imposing a total blockade of the Gaza Strip in signs it could be planning a ground assault there to defeat Hamas which launched a deadly attack over the weekend.
But late in the afternoon, a senior Hamas official said the group is open to discussions over a possible truce with Israel.
News of the conflict sparked an oil rally due to supply concerns. But stock indexes managed to reverse earlier declines the with help of more dovish Federal Reserve official comments.
(REUTERS)
In August 2023, the average Social Security payment made to retired workers was $1,840. This month, as can be expected, another round of payments to the more than sixty million beneficiaries will be made. While not all will receive $1,800, and based on data from 2022, the median payment amount was $1,590.
E-commerce giant Amazon held Amazon Prime Day in July, but the company is celebrating another major savings event exclusively for Prime members this month ahead of the holiday shopping season.
The shopping promotion, called Amazon Prime Big Deal Days, will be held on Oct. 10 and 11, lasting 48 hours. The company will be offering exclusive discounts and deals on a wide variety of products, including electronics, clothing, and home goods. Make sure you get the best offers.
At the beginning of each fiscal year, which for the US government begins on 1 October, the US Department of Agriculture, the agency responsible for the Supplemental Nutrition Assistance Program (SNAP), makes adjustments to account for the impact of inflation on benefits. This year, as a result of legislation passed by Congress in the spring, the USDA will also be tightening the eligibility requirements to receive SNAP benefits.
Read more on how new legislative changes will impact SNAP eligibility over the coming years.
As bank customers move online and make fewer trips to their local branches, many national financial institutions are closing down locations. This is not a new trend. Insider Intelligence reported that between 2017 and 2021, nine percent of all branches — around 7,000 locations— shut their doors.
The branches currently being shut are typically found in cities where another location exists, leaving customers with an office in case they require in-person assistance.
In addition to Social Security payments, the other programs administered by the SSA are Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI).
These benefits increase each year thanks to the cost of living adjustment (COLA), which is calculated and applied to payments to prevent inflation from consuming the value of the benefits.
When will the increase in Social Security benefits be officially announced?
Food insecurity and SNAP benefits
The Supplemental Nutrition Assistance Program (SNAP), formally known as food stamps, supports over 20 million households to purchase food through the distribution of monthly benefits on a pre-paid ETB card. The program has income limits, but those who could benefit from the program should determine whether this option is available to them. States administer SNAP benefits, and establishing if you are eligible can be done by contacting the agency responsible for the program in your state.
On 12 October, the Bureau of Labor Statistics will release the September Consumer Price Index (CPI) report, which will provide greater insights into how inflation is impacting the average shopper.
In August, consumers spent more on groceries, among other basic goods and services like housing and gasoline, than in previous months. Over the last year, grocery prices have increased by three percent, following a thirteen percent surge in average prices the year prior.
Levels of food insecurity are on the rise in the United States, with the Urban Institute reporting that in December 2022, around 24.6 percent of households were experiencing food insecurity.
Next Thursday, October 12, the increase to the Social Security COLA will be revealed, but what is it and how is it calculated?
Thousands of Kaiser Permanente workers are on strike for better pay and conditions. What happens to membership fees during a strike?
Why are mortgage rates continuing to move upward?
Would-be homebuyers are not only dealing with elevated housing prices but mortgage rates not seen in more than 20 years. The weekly average 30-year fixed rate mortgage, after climbing four straight weeks, hit 7.49% for the week ending Thursday 5 October. That’s up from 6.5% a year ago and less than 3% in 2021.
That is putting the pinch on many budgets. “A homebuyer on a $3,000 monthly budget has lost nearly $40,000 in purchasing power over the last year,” according to Redfin.
Forecasts earlier this year saw mortgage rate tapering off by the end of this year, but the economic situation envisioned hasn’t come to fruition. The Federal Reserve has said that it expects to keep interest rates elevated for longer as policymakers try to bring inflation under control. While a majority of investors think that the Fed will hold off on another hike when they meet at the end of the month, they have said that one more could be in the offing before the end of the year.
One ray of sunshine though is that new listings rose 3% in September and contrary to other years the amount of homes on the market hasn’t dropped off as much as it normally does after the summer homebuying season.
“That may be partly because listings didn’t have much more room to fall–but nonetheless, it’s a glimmer of hope for buyers because it means they have a bit more to choose from and could eventually ease price increases,” says Redfin.
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This week, the Social Security Adminstration will release the 2024 Cost-of-living adjustment (COLA), which will be applied to Social Security benefits and the other programs administered by the SSA. We will bring you the latest forecasts, but beneficiaries should be prepared that the figure is likely to be less than half of the 8.7 percent that was granted this year.
On Friday, the BLS released the September Unemployment Report, which found that unemployment held steady at 3.8 percent last month. This is one closely watched indicator by the Federal Reserve, which has paused rate increases in current months, awaiting more information on how the hikes implemented over the last year have impacted the labor market and consumer and producer prices.