US financial news summary | 4 August 2023
Headlines: Friday 4 August 2023
- Treasury Secretary Yellen calls US credit rating downgrade "entirely unwarranted"
- Job openings fall to lowest level in more than two years in June
- Biden administration launches new student debt repayment plan
- Federal Reserve has announced a 0.25% hike in interest rates
- Inflation in the US was at 3% in June, as Fed bids to cut rate to 2%
- Initial unemployment claims fell by 9,000 in week ending 15 July, to 228,000
Take a look at related AS USA news articles:
High Deductible Health Plans (HDHPs) and Health Savings Accounts (HSAs) are components of a healthcare strategy that can potentially reduce your healthcare costs while offering certain tax advantages.
Here’s how they work and how they can help you save money.
The unemployment benefits system in the United States involves government programs designed to provide financial assistance to people who are actively seeking employment but are currently without a job.
Your state considers the specifics of your work history and how much you previously earned in order to determine how much your benefit amount would be.
If you make $800 a week in New York, how much would your estimated weekly benefit be?
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Each month, millions of beneficiaries receive money from the Social Security Administration, many of them retired workers and survivors.
The SSA also sends out disability benefits which include the Supplemental Security Income (SSI) program and Social Security Disability Insurance.
Some beneficiaries may be entitled to receive up to $4,555 each month.
Find out who will receive them in August, and when the dates are.
Homebuyers need to earn 13% more than last year to get a starter house
A new study shows that homebuyers must earn 13% more than a year ago to afford the typical starter home in the US., according to Yahoo Finance.
Entry-level buyers had to make an annual salary of at least $64,500 in June to afford the typical starter home, according to real estate brokerage Redfin, up from $57,300 a year ago. Redfin defines affordable as no more than 30% of a buyer’s income going to a housing payment.
These conditions reflect the increasing house prices and high mortgage rates, along with such economic factors as inflation and wages not increasing as quickly as shelter costs.
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A new month has arrived and with it the distribution of another round of SNAP coupons.
Supplemental Nutrition Assistance Program benefits are designed to help low-income families who struggle to put food on their tables.
All SNAP recipients need to have their case considered “active” for some time due to the certification period. This means that they must be certified periodically to continue receiving benefits, in a process known as “recertification”.
Apple sees sales slump continuing, shares drop 2%
Apple forecast that a sales slump would continue into the current quarter, sending shares down despite beating Wall Street sales and profit targets in the fiscal third quarter.
Apple shares dropped about 2% after the company predicted what could be the fourth quarter in a row of declining sales. For the just-ended period, strength in services drove the profit beat, but weaker than expected sales of Apple's most famous device, the iPhone, underwhelmed investors. Executives said iPhone sales would improve in the fourth quarter, but did not say how much.
Apple is in a delicate position, with its entrenched iPhone battling for share against Android rivals in a mature market, while its next big product - the Vision Pro mixed-reality headset announced in June - is not yet in the hands of consumers.
(REUTERS)
Family leave, also known as parental leave, are the protections offered to families with newborn children.
The federal minimum of twelve weeks of unpaid leave is paltry compared to the rest of the developed world. It is the only one of the 38 OECD nations to not have paid maternal leave as standard while the amount of time itself is below the World Health Organisations’ recommendation of a 16-week minimum.
Which individual states offer paid support for new families?
Student debt is hanging around
Student debt forgiveness is off the cards and has been since the Supreme Court struck down the plan last month.
Under that plan, 40 million students with outstanding debt could apply for the forgiveness program which would have written off $10,000 of debt per person.
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The SAVE plan aims to lower monthly payments for borrowers and eliminate them entirely for individuals who meet the income criteria. It will also halt the accumulation of unpaid interest as long as repayments are made promptly.
It is very simple. You simply have to be enrolled in an IDR plan for paying back your student debt.
Yellen: Fitch downgrade 'unwarranted' amid US economy's strength
Treasury Secretary Janet Yellen voiced more complaints about Fitch Ratings' downgrade of the main US credit rating, calling it "entirely unwarranted" because it ignored improvements in governance metrics during the Biden administration and the country's economic strength.
Yellen said the rating agency's announcement failed to take into account a resilient US economy, with low unemployment, falling inflation, continued growth and strong innovation.
She said Fitch's "flawed assessment" was based on outdated data and failed to reflect improvements in governance indicators over the past two and a half years of President Joe Biden's administration.
(REUTERS)
Rating agency Fitch downgraded the US government’s top credit rating earlier this week, from AAA to AA+. The last time the US had its credit rating downgraded was 5 August 2011. This was the first time the rating had fallen below AAA and was the result of another drawn-out debt ceiling negotiation procedure.
There are several implications for a country and its economyif its credit rating is downgraded.
Good morning and welcome to AS USA's live financial blog!
Treasury Secretary Janet Yellen called Fitch Ratings' downgrade of the main US credit rating "entirely unwarranted" because it ignored the country's economic strength. The downgrade also surprised investors.
Job openings fell to the lowest level in more than two years in June, but remained at levels consistent with tight labor market conditions.
With student loan repayment set to start in October, much focus is on SAVE, President Joe Biden’s new student debt repayment plan.
We will also be providing real-time coverage of crucial topics like SNAP benefits and Social Security payments.