US financial news summary | 14 August 2023
Headlines: Tuesday 15 August 2023
- Consumer Price Index report released with inflation in July revealed to be 3.2%.
- Gas prices are up this summer as extreme heat hampers oil refinery operations
- 187,000 jobs added in July, unemployment falls to 3.5%
- 20% of student loan borrowers to pay $500 monthly when payments resume, according to study
IRS tax bill support
Can’t pay your tax bill in full?
Check out this video to see if you’re eligible to apply for a payment plan online to pay off your balance over time.
The Supplemental Nutrition Assistance programme (SNAP) is designed to provide financial assistance for low-income households. The monthly payments are a supplement for the household food budget to ensure that recipients can afford to purchase healthy food.
The programme, also known as food stamps, is jointly overseen by federal and state authorities, meaning that the delivery of the support varies across the country. In California the programme is known as CalFresh; a state-supervised and county-operated initiative.
Oliver Povey explains more on how you qualify and what's available.
JP Morgan modestly positive over US outlook
Lucía Gutiérrez-Mellado, JP Morgan AM's Director of Strategy for Spain and Portugal, forecasts a scenario of modest yet positive growth for developed economies due to robust labor and consumption markets. Recession seems unlikely in the remaining half of the year.
The presentation of the firm's market outlook and strategy reveals Gutiérrez-Mellado's prediction of the US Federal Reserve's interest rate hike to 5.25-5.5%, despite hints of only two hikes by government members. The European Central Bank (ECB) is expected to raise rates with two 0.25% hikes to 4.5%. Both central banks will maintain these higher rates longer than expected to tackle inflation. The Eurozone's technical recession, influenced by Germany, is viewed as temporary, with recovery underway due to strong labor markets and business profits. A similar trend is anticipated in the US, with attention on the impact of a regional banking crisis.
Gutiérrez-Mellado projects future regulatory alignment between major and regional banks following the regional crisis. US families' lower leverage is seen as an advantage in navigating financial tightening. While US inflation is improving, European levels remain high, influenced by service demand.
JP Morgan's stance has turned more positive, with minor shifts like increasing equity allocation. Fixed income remains favored, and bond quality rises with lower recession odds. In equities, earnings expectations correction aligns with economic slowdown predictions. Adjustments involve adding weight to Japan and the UK.
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Did you have an active Facebook account between 2007 and 2022?
If your answer is yes, and you reside in the United States, then it is possible that you were the victim of a data breach by Meta’s social network and this means that you are eligible to claim part of a million-dollar compensation.
Find out the amount that is up for grabs and how you can get some of it.
"We're the best engineers in the world, we're the best scientists in the world, the best researchers in the world. That Chips and Science Act has generated $230 billion in the last 18 months."
Biden speaks on US economy
President Biden delivered remarks on the economy while in Milwaukee earlier today. Watch and listen as he discusses FEMA efforts in Hawaii and pulls up some of his late dad's comments on the integrity behind a job.
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With the new month ticking along, SNAP recipients are keen to know the arrival dates of their new payments.
As you no doubt know, the US has various forms of economic aid with which it provides relief to those who need it most. One noteworthy program is the Supplemental Nutrition Assistance Program, popularly known as SNAP coupons.
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There are types of coins and bills that circulate and can sell for thousands of dollars to collectors. This is the case with certain 25-cent coins, which could be worth up to $10,000. Here are some tips on how to know if you have one.
The value of a 1999 Georgia State Quarter has been estimated at up to $10,000 due to errors made while the coin was being minted. This quarter is the fourth coin in the 50 State Quarters Program. The United States Mint released it on July 19, 1999, as the fourth quarter of the year, according to the US Mint.
We expect the Fed to skip rate hikes in September and November. Inflation should have decelerated even further.
Analysts expect the Federal Reserve keep rates the same after the latest inflation data. Inflation is still not approaching that hallowed two percent but the increase was in line with estimates. According to the Financial Times, traders in the futures market added to bets that the Fed would keep interest rates steady in September, putting the likelihood of a pause at 91 percent.
Food sees big price rises in July
Four of the six major grocery store food group indices increased during the month. The meat, poultry, fish and eggs index increased 0.5% in July, while the beef index increased 2.4%
The fruit and vegetable index increased 0.4% during the month and the other food at home index increased 0.2%. The Dairy and Allied Products Index rose 0.5% in July after declining in each of the previous four months.
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The food index increased 0.2% in July. The food at home index increased 0.3% over the month, while the food away from home index increased 0.2%.
On a year-to-year basis, the all-items index increased 3.2% in the 12 months ending in July. The index for all items except food and energy increased by 4.7% in the last 12 months. The energy index decreased by 12.5% in the last year and the food index increased by 4.9% in the last year.
The housing index increased by 7.7% in the 12 months ending in July. Meanwhile, transportation services increased by 9% in the last year.
20% of student loan borrowers to pay $500 monthly when payments restart
A recent study found that about half of student loan borrowers will have to pay more than $200 a month when payments restart. About one in five will see payments of more than $500.
With debt repayment resuming in October, many borrowers are wondering how they will be able to keep up with the monthly payments.
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At the beginning of the covid-19 pandemic, the federal government expanded a policy to allow schools to provide meals at no cost to all students, regardless of your income.
This measure was in effect for the 2020-21 and 2021-22 school years. Though Congress did not extend the policy for the 2022-23 school year, several states have passed laws to continue offering free school meals.
Massachusetts' free school meals
Governor Maura Healey recently made it official: Massachusetts public school students in grades K-12 will be eligible for free lunches regardless of their financial status.
This comes after an extra 4% on earnings over $1 million.
Choosing where to retire is not an option for many people. A Census Bureau report from 2022 found only 6.2 percent of people over the age of 65 move in a given year.
But if you were to move in retirement, what are the options? Bankrate has been studying people’s options for each state.
New York and California for retirees
New York was the most expensive state to live in, making it difficult for reitrees to move to the state.
California is similarly as expensive. Expensive houses are a major factor, placing it 49th place in affordability, following New York.
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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.