US financial news summary | 11 August 2023
Headlines: Friday 11 August 2023
- Consumer Price Index report released with inflation in July revealed to be 3.2%.
- Inflation in the US was at 3.2% in June, as Fed bids to cut rate to 2%
- Gas prices are up this summer as extreme heat hampers oil refinery operations
- 187,000 jobs added in July, unemployment falls to 3.5%
- Treasury Secretary Yellen calls US credit rating downgrade "entirely unwarranted"
- Biden administration launches new student debt repayment plan
Take a look at related AS USA news articles:
Medical debt is a serious problem in the US, a country without socialised medicine. According to research from the Kaiser Family Foundation, 41% of adults in the country face healthcare debt - 100 million people.
When getting married makes financial sense
"Getting married comes with tax benefits that unmarried couples don’t enjoy. Property you receive from your spouse, for instance, is treated as a gift for income tax purposes and therefore isn’t taxable to you".
It'll never catch on as a chat-up line but the reality is that getting married, in many instances, makes financial sense due to certain perks married couples receive. But what is the future of marriage? Many want to do it, plenty think it's outdated, lots can't afford it.
Short-term, it can cost a lot of money, but there are long-term benefits (as long as it works out).
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What are parent student loans and how do they work?
If you have a child who is about to enter college in the fall and you want to help them out financially so they don’t have be burdened by student debt for most of their adult life, you may want to take out a loan for them.
Student loans are the most common and best-know option but you could also apply for a Parent PLUS loan, which should offer a little bit of extra financial help.
Not familiar with those? Here's Gidget to explain how they work.
Free Taco Bell Tuesdays in August: Where and how to get your free Doritos Locos Tacos
Eating out has become an expensive habit for many of us. However, if you're feeling lethargic and you don't fancy cooking, specifically on a Tuesday, then one fast food chain has got your covered.
Taco Bell have revealed that "Taco Tuesday" is a phrase that no longer belongs to Taco John's. To celebrate the momentous event and to thank everyone who supported their “Free Taco Tuesday” campaign, Taco Bell is giving away a free Nacho Cheese Doritos Locos Taco to their customers every Tuesday from Aug. 15 to Sept. 5.
How and where can you get them? Gidget explains.
Accidentally registered for the Walmart+ rewards scheme? Suffered unwanted charges at their self-service checkouts? Well, it turns out you're not alone, as a whole host of people inadvertently signed up in July during Walmart+ Week. We mentioned a little bit earlier that more and more people are avoiding using self-service checkouts in stores across the United States, and this is part of the reason why.
At self-service checkouts in Walmart stores across the US, the promotion appeared on screen in a single-click prompt that presented customers with the options “Not interested” or “Add membership to cart”. Many people accidentally selected “Add membership to cart”.
If you are one of those people, you've got the chance to get your money back.Corina explains how.
What will happen after the “on-ramp” period?
There is a one-year debt leniency program that will begin 1 October, 2023 and end on 30 September, 2024 to help borrowers avoid the harshest consequences of missed, partial or late payments,” according to the Education Department.
Individuals who fail to make payments on time or experience delays will not have their information shared with credit reporting agencies, nor will they be categorised as being in default.
Afterwards, if you do not make payment on your student loan within 90 days, it will be marked as delinquent, resulting in a negative impact on your credit score amongst other consequences.
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After being extended multiple times, the debt moratorium will end at the end of August with student debt payments resuming on 1 September. With 70% of borrowers not knowing that payments are to resume, this will be a worry for many having to trump up hundreds of extra dollars a month. Debt forgiveness plans died in the Supreme Court earlier this year.
July July’s Consumer Price Index data was released yesterday, showing a 0.3 percent increase in grocery prices.
This rise was primarily attributed to the higher costs of beef products; the price of uncooked beef roasts surged by 6.5 percent in just one month. Uncooked beef steaks saw a rise of 2.3 percent, while uncooked ground beef experienced a 1.5 percent increase. Overall, the combined cost of beef and veal increased by 2.4 percent in the past month.
Refinancing your mortgage can be particularly beneficial if you want to lock in a stable interest rate and monthly payment, especially if you’re concerned about potential interest rate hikes in the future. With continued rate hikes expected until at least the end of the year, homeowners may be looking to secure their property amidst rising prices.
One option to achieve this could be switching from an adjustable-rate mortgage to a fixed-rate mortgage.
What is an adjustable-rate mortgage?
An adjustable-rate mortgage (ARM) is a type of home loan where the interest rate is not fixed for the entire duration of the loan, unlike a fixed-rate mortgage. Instead, the interest rate on an ARM can change periodically, typically after an initial fixed-rate period. At the beginning of the loan term, usually 5, 7, or 10 years, the interest rate is fixed and remains constant.
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In an effort to moderate the economy and alleviate the factors contributing to price increases, the Federal Reserve has been consistently its benchmark interest rate to over 5.25 percent, marking the highest point reached in 22 years.
Next month will have the Federal Reserve meeting again. Will it be raised?
When you quit your job, you have several options regarding what you can do with your 401(k) retirement account. The most obvious ones are transferring your 401(k) to your new job and converting it to a traditional Individual Retirement Account (IRA).
There is another option but few people advise it.
Just as a follow-up to that lost post, a reminder of the dangers of using self-service checkouts in stores. If you're a regular user, they can save you time and the need to actually speak to someone (for some people, that's a good thing). But there are also drawbacks, as we have seen at Walmart.
Perhaps one day, all shop assistants will be replaced by machines but, until that day comes, you have the option to choose. And many people refuse to go solo.
Flash your college ID to cut costs
Back-to-school shopping isn't usually much fun and, on top of that, has become more expensive this year due to inflation (like most things). If you happen to be a college student, however, then don't forget about one powerful weapon you have at your disposal - your college ID card.
There's a fair chance that you're not aware of the discount potential of flashing said card at various different places. This handy guide will help you out, pointing you in the direction of discounts on electronics, restaurants, software, furniture and home goods, and clothes.
There's even some advice on the best credit cards for college students.
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Employer-sponsored retirement plans like 401(k)s and pensions are becoming more and more common. There are many differences between the three main options: 401(k), IRA and pensions. So what are the distinctions between these pension programmes?
Good morning and welcome to AS USA's live financial blog!
New CPI inflation data has been released for July. According to the Bureau of Labor Statistics, inflation climbed to 3.2 percent in the year leading up to July, driven by increased expenses in housing, car insurance, and food. July witnessed a 0.2 percent increase in prices compared to the previous month, mirroring the identical 0.2 percent month-on-month rise observed in June.
Latest figures from the Labor Department show that 187,000 jobs were added in July, while the unemployment rate went down to 3.5%.