US financial news summary | 6 August 2023

Things to look out for in the world of finance this week

A new week is about to begin, so what do we need to keep an eye on in the world of finance?

Stocks have had a tough start to the month of August, which wasn't necessarily expected, how will they react moving forward?

Meanwhile, the labour market also dropped off last month, with fewer jobs added that had been expected. At least the unemployment rate in the US has fallen. 

A Consumer Price Index (CPI) report will come out on Thursday which will give us an inflation update. How much of a rise is anticipated...?

How much should you save for health care expenses in your retirement?

According to statistics, a single person aged 65 in 2023 will need around $157,500 saved (after tax) to cover health-care expenses in retirement, a figure which rises to roughly $315,000 for an average retired couple aged 65. 

Seems a lot? A Health Savings Account (HSA) could come in useful. It can be an additional 'retirement account', you may be able to use it if you decide to retire abroad and you can even let your HSA compound if you don't need it. 

Here's more on how HSA's can help. 

Are seniors citizens in the United States among the developed world's poorest?

About 23% of Americans over age 65 live in poverty, according to the Organization for Economic Co-operation and Development, which ranks the U.S. behind 30 other countries in the 38-member bloc, which collectively has an average poverty rate of 13.1%. 

However, other metrics suggest that the situation is not quite as bleak as that. So, which is it and why is it such a complex mater to get to the bottom of? 

FINANCE

Cash back credit cards: What are they and how do they work?

Cash back credit cards are a type of card that offers holders a percentage of their purchases back in the form of cash rewards.

These rewards are typically a percentage of the total amount spent on the credit card, and they can be redeemed as a statement credit, a check, a direct deposit into a bank account. Sometimes, they can be claimed as a gift card or merchandise.

Here’s how cash back credit cards generally work.

FINANCE

Missing deposits from Wells Fargo: What to do if you are affected

Wells Fargo has been dealing with a glitch that makes customers unable to view or access money in their accounts. The bank's clients began reporting the issue on Thursday, and Wells Fargo clarified that the issue did not affect all its customers. 

According to latest reports, the bank said the issue has been resolved.

Here’s what to do if this problem has happened to you.

187,000 jobs added in July, unemployment falls to 3.5%

The US economy added fewer jobs than expected in July, but solid wage gains and a decline in the unemployment rate back to 3.5% pointed to continued tightness in labor market conditions.

The Labor Department's employment report also showed job gains in May and June were revised lower, potentially suggesting demand for labor was slowing in the wake of the Federal Reserve's hefty interest rate hikes.

But with 1.6 job openings for every unemployed person in June, the moderation in hiring may also be the result of companies failing to find workers.

The mixed report did not change growing perceptions among economists that the Fed could engineer a "soft landing" for the economy, though much would depend on the direction of inflation after annual increases in prices slowed sharply in June.

(REUTERS)

ECONOMY

What are the unemployment rates in the major states? Florida, Texas, NY, California...

The latest figures from the Labor Department indicate that unemployment in the US has gone down to 3.5%, just above the lowest level since late 1969.

The national unemployment rate has ranged from 3.4% and 3.7% since March 2022, but what are the numbers for the major states of the country?

WELFARE

Social Security benefits: Can you receive two checks in the same month?

Each month, the Social Security Administration sends money to different beneficiaries, including retired workers and survivors, who are the children, spouses, widows, widowers or parents of a deceased beneficiary.

The SSA also sends disability benefits to recipients of the Supplemental Security Income program and Social Security Disability Insurance.

Although only one monthly payment is usually sent, in some months of the year, some recipients receive two checks, while others receive none.

Gas stations' high profit margins costing drivers more

Aside from the price of oil, another factor has been pushing fuel costs higher for the last three years: gas station profit margins.

New research by economist Michael Havlin shows that the profit margin on gasoline is about 77% higher than in May 2019, the first month for which government data is available. Compared with February 2020, before the covid-19 pandemic erupted, gasoline margins are 62% higher. The latest numbers are for May 2023.

The profit margin on gas was about 6.7% in 2019, so at current levels, it’s close to 12%.

WELFARE

Social Security checks up to $4,555 in August 2023: Who will receive them and when?

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.

WELFARE

SNAP in Texas: The process you must complete in August 2023 to avoid losing your benefits

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”.

Jobs most vulnerable to Artificial Intelligence

About one in five workers have jobs with key tasks that are more likely to be aided or replaced by AI, according to a recent report from Pew Research Center.

The findings, based on an analysis of federal data, found that jobs that rely on analytical skills like critical thinking, writing, science and math tend to be "more exposed" to the emerging technology. Interestingly, workers in industries more exposed to AI are more likely to say they think it will help rather than hurt their jobs.

The report noted that it’s unclear how many jobs are at risk due to AI, although some findings suggest jobs are already being lost to the technology. AI contributed to nearly 4,000 job cuts in May, according to a report from Challenger, Gray & Christmas. 

FINANCE

What are the top 10 most expensive and cheapest states to live in 2023?

In the United States, a little more than $2,000 a month is paid for services and household bills on average. According to the 2023 US Bill Payment Market Report by bill payment service Doxo, the average household spends $2,046 per month and $24,557 per year on these costs.

Based on utility bill payments, here are the most expensive and cheapest states to live in.

IRS

IRS refunds will be faster: Here’s how it will work

The Internal Revenue Service has launched a campaign to digitize all tax returns that are filed on paper by 2025. When this is done, taxpayers are expected to receive their refunds up to four weeks earlier, while the time to process returns is projected to be cut in half.

The IRS has been unable to provide many of its forms online. This, however, will change next year.

Good morning and welcome to AS USA's live financial blog!

Latest figures from the Labor Department show that 187,000 jobs were added in July, while the unemployment rate went down to 3.5%.

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.

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.