US financial news | Summary news 17 August
Headlines: Thursday 17 August 2023
- Consumer Price Index report released with inflation in July revealed to be 3.2%.
- $39 billion of student debt being wiped this week.
- Gas prices are up this summer as extreme heat hampers oil refinery operations
- 187,000 jobs added in July, unemployment falls to 3.5%
- 20% of student loan borrowers to pay $500 monthly when payments resume, according to study
Colorado has been ranked among the healthiest states in the country, and their latest program aims to ensure that this continues to be so.
The Colorado government has launched a state-wide program that will offer qualified residents up to $1,100 in rebates when they purchase an electric bike.
The first round to apply for the program began on Wednesday and will run until Monday, Aug. 21. You can submit your application at the Colorado Energy Office.
The scheme has been called the biggest e-bike rebate program in the country.
Fed officials indicate another rate hike not off the table
The newly-released minutes from the Federal Open Market Committee’s July 25-26 meeting show that while some officials were prepared to continue June's interest rates hike pause, members continue to view inflation as a threat and are willing to hike rates further to address it.
Most participants "continued to see significant upside risks to inflation, which could require further tightening of monetary policy," according to the minutes.
Participants acknowledged that there has been a softening in core goods prices, but they also stressed that inflation remained "unacceptably high" and said they would need more evidence to be sure inflation was heading toward the committee's 2% goal.
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The government gave out stimulus checks at the height of the pandemic to help Americans get through the particular financial difficulties that the situation brought about.
Though pandemic-era stimulus checks are no longer being sent out, some states continue to give financial aid to their residents in the form of income and property tax rebates. In the case of Montana and New Mexico, they are sending out checks because of their budget surplus.
Here are the states which which are distributing tax rebates.
Walmart wins over customers as inflation takes a toll
In Walmart's second quarter earnings release, the giant retailer posted same-store sales that rose 6.30%, more than the 4.04% expected, according to data from Bloomberg.
Foot traffic increased for the store by 2.8%, along with a higher ticket, up 3.4%. Online sales rose 2.3% in the quarter.
"Our customers and members are resilient," Walmart CEO Doug McMillon told investors.
"They're looking for value, and they trust us to be there for them. We see people across income cohorts come to us more frequently looking to save money on everyday needs."
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One of the most popular financial aid programs in the US is the Supplemental Nutrition Assistance Program, also known as SNAP.
Although SNAP is a federal program, the administration of payments is handled by state governments, which means that the requirements to apply, as well as the amounts, depend on the state in which the beneficiary resides.
In the case of Texas, the average payment is $281 per individual. However, there are families that may be eligible for a payment of more than $1,600 for the month of August.
EV battery imports scrutinized under US law on Chinese forced labor
Electric-vehicle batteries and other car parts are the latest products under scrutiny as part of Washington's effort to stamp out US links to forced labor in Chinese supply chains, according to a document seen by Reuters, agency statistics and sources.
Until now, enforcement of a year-old US law that bans the import of goods made in Xinjiang, China, has focused mainly on solar panels, tomatoes and cotton apparel.
But now, components that may include lithium-ion batteries, tires and major automobile raw materials aluminum and steel are increasingly subject to detentions at the border.
(REUTERS)
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Stimulus checks may as well have been the word of the year in 2020 and 2021. Multiple federal packages secured funding for Americans in some very bad financial times.
Though they are far in the past now, with no plans to revive them, tax rebates and other financial help are still being discussed at the federal level. Here are the states which are dishing out the dough to help you.
Using an Electronic Bank Transfer (EBT) card
SNAP assistance offers monthly food stamps to families who struggle to put food on their tables. The amount depends primarily on the situation of each family, as well as the number of household members. Whatever the amount that beneficiaries receive, the money is deposited to an EBT debit card, which is accepted in markets and selected stores.
As its name implies, replacement benefits are intended to repay those people who were victims of fraud or card cloning. The resources are administered by the state government, and for now, the measure applies to Mississippi residents.
Affected beneficiaries have until 13 October to report the fraud or theft, which must have occurred between 1 October, 2022 and 13 August, 2023.
It is back to school season in the US and, with vast changes to how and when families work, less people than ever take their kids to school. Usually no worries, right? A bus will come along, swoop them up and enable you to continue your working day.
At least this was the way things were working. USA Today has found every state to be struggling with keeping school bus runs going.
Job search site ZipRecruiter notes that Tuesday is the best day of the week to apply for a new job. This is because 22 percent, nearly one in four, jobs are posted on that day. Weekends see a patry 6 percent of new jobs added.
Indeed, another job search site, argues that Monday is the best day.
What is clear from both job search sites is that as early as possible is best.
The announcement in July that billions of dollars of student debt was to be forgiven is being resolved this week.
More than 804,000 people with debt that their federal student loans will be automatically discharged, relating to accounting errors in relation to Income Driven Repayment (IDR) plans. The funds available to these borrowers amount to $39 billion.
Strong retail sales underscore US economy's resilience
Retail sales increased more than expected in July as Americans boosted online purchases and dined out more, suggesting the economy continued to expand early in the third quarter and keeping a recession at bay.
The report from the Commerce Department also showed consumers splurging on hobbies, sporting goods and clothing, underscoring their resilience despite the Federal Reserve's aggressive interest rate hikes to tame inflation.
It prompted economists at Goldman Sachs to raise their third-quarter gross domestic product tracking estimate by a whopping seven-tenths of a percentage point to a 2.2% annualized rate. The economy grew at a 2.4% pace in the April-June quarter.
Demand is being underpinned by strong wage gains from a tight labor market. Though consumer spending continues to show signs of persistent strength, economists did not expect the Fed to raise rates next month, with inflation retreating.
(REUTERS)
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Tesla is seeking to boost sales by launching cheaper versions of its popular Model S sedan and Model X SUV standard range electric cars. However, the $10,000 price slash on Tesla’s oldest models comes at the expense of the vehicles’ driving ranges- they can’t go as far as their predecessors on a single charge.
The company run by billionaire Elon Musk is offering the new options as it faces more competition in the electric car industry.
Medicare drug costs are soaring
Medicare drug costs are off the charts: The 25 top Medicare Part D drugs, on average, have more than tripled since they first entered the market, according to a new report out last week from AARP’s Public Policy Institute. That far surpasses "the corresponding rate of general inflation," according to the research.
This does not bode well for retirement budgets: Fidelity’s retiree healthcare cost estimate shows that if you retire this year at age 65, you can expect to spend an average of $157,000 on medical expenses throughout retirement.
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Shares of Walmart have reached a year-long high after 13% year-to-date gains. This is particularly impressive when compared to the performance of its competitor Target, which has plunged 13%.
Walmart shares are performing very well because the retailer is perceived to have the ability to get a large share of the market heading into 2024.
Here are other reasons why the giant retailer's stock is surging.
Good morning and welcome to AS USA's live financial blog!
New CPI inflation data for July was released last week. According to the Bureau of Labor Statistics, inflation climbed to 3.2% in the year leading up to July, driven by increased expenses in housing, car insurance, and food.
We will be brining you the latest on SNAP benefits news as well as Social Security updates.