US Financial News: news summary | 19 July 2023
Headlines | Wednesday, 19 July 2023
- Latest retail data showed US consumers still shopping, but less than expected
- Interest rate hike expected when Fed policymakers to meet next week
- SNAP recipients whose benfits were 'skimmed' can get reimbursed
- Biden administration cancels $39bn in student loan debt for 800k borrowers
- Inflation in the US dropped to 3% in June,lower than forecast
- June jobs report: The US economy added 209,000 jobs in June as labor market cools
- How to participate in the SNAP Program as a merchant
- The White House announces the SAVE planto help student loan borrowers
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Employees can request their Social Security pension upon collecting 40 credits, or the equivalent of having worked for around ten years. The benefit to be received depends on the salary during the work period, as well as the years worked and the age of the person at the time that the benefits are applied.
However, there is a certain group of people who can claim monthly Social Security payments even if they never worked formally in their life; that is, even if they never contributed to the Social Security Administration.
Regional bank shares rise on interest income, deposits stabilizing
Major US regional banks said their deposits mostly stabilized and net interest income rose after the first-quarter collapse of Silicon Valley Bank sparked industry turmoil, sending their shares soaring on Wednesday.
Three major regional banks met or beat profit expectations as higher interest rates allowed them to charge more for loans.
M&T Bank's deposits rose to $162.1 billion from $159.1 billion at the end of the first quarter, but fell about 4.9% year-on-year.
M&T Chief Financial Officer Daryl N. Bible said he expected a modest uptick in deposits in the second half of the year as business activity picks up.
US Bancorp said average deposits totaled $497.27 billion, down 2.6% from the end of the first quarter, but up 9% on the year. At Citizens, deposits fell less than 1% over the same period to $173.2 billion. First Horizon's deposits increased 6% quarter-on-quarter.
(REUTERS)
The Social Security Administration administers several common benefit programs, two of which are Social Security and Social Security Disability Insurance. For those who at some point claimed SSDI, there are certain rules that they may not be subject to when they begin receiving their Social Security benefits.
Those who have claimed disability insurance and will soon begin or recently began to claim Social Security benefits should be aware of the five-year rule.
Chipotle to give away free meals for goals scored by the USWNT
Chipotle is giving you an incentive to cheer for the US women's national soccer team during the 2023 World Cup.
You will have a chance to win free food during the team's first three games in the group stage of the tournament. The USWNT's first match is Friday at 9 p.m. ET vs. Vietnam.
During that game and the subsequent two games when the team scores a go-ahead goal, a tying goal, or a lead-extending goal, a unique code for a free entrée will be posted on the US Women’s National Soccer Team Twitter account (@USWNT). The first 2,500 fans to text the code to 888222 will get a free digital entrée.
Summer is in full swing in Los Angeles, California, bringing with it very high temperatures and threats of fire. The authorities advise people to prepare for the hottest time of the year, and in line with this, the Department of Water and Power wants to help certain eligible residents cope with this heat wave.
Find out how to avail of subsidy for air conditioning in the City of Angels.
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Nurses are a key element in the health sector, as they provide the necessary care to help patients with daily tasks. As the profession belongs to the field of health care, it is also one of the jobs with a growing demand.
According to the Bureau of Labor Statistics Occupational Employment and Wage report, California is the state with the highest level of employment for registered nurses, as well as the highest salary for these workers in the country.
Find out how they earn in the Golden State.
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According to the National Office of Oceanic and Atmospheric Administration, the 2023 Atlantic hurricane season began on June 1 and will end around November 30.
Most of the activity is observed from August to October, and some states are particularly vulnerable to severe weather. In some of these states, such as Florida, financial help is offered to residents to help them prepare and protect their home.
Find out more about the My Safe Florida Home Program, which was enacted by the state legislature to “harden Florida homes against hurricanes and save homeowners money.”
New business applications hit two-year high in June
Applications to start new businesses surged to the highest level in two years in June, despite high interest rates and uncertain economic outlook, according to a Commerce Department report.
Business applications increased 6.2% in June compared with May with a seasonally adjusted 465,906 new applications.
Filings from applicants that have a high likelihood of creating a payroll and adding jobs to the economy, such as those from existing corporate entities or those indicating they are already hiring, rose 6.0% to 149,536 new applications. The data is collected from business applications for tax identification numbers.
June's resurgence emphasizes growing optimism among small businesses inspired by the Fed's recent pause in rate hikes, as well as the growing expectation that the central bank's aggressive rate hiking strategy is nearing an end.
(REUTERS)
Six proposals for bitcoin exchange-traded funds accepted by SEC for review
The US Securities and Exchange Commission (SEC) has accepted six spot bitcoin exchange-traded fund (ETF) proposals for review as of Wednesday. This is the first step in the federal watchdog agency’s process for deciding on whether or not to approve them. The six firms include BlackRock, Bitwise, Fidelity, Invesco, VanEck and WisdomTree.
Prior applications for spot bitcoin ETFs had been rejected for not meeting anti-fraud and investor protection standards according to the SEC. However, earlier this month Nasdaq said that it would work with Coinbase to address those issues and work to police trading in the underlying bitcoin market.
The first bitcoin futures ETF was approved in October 2021, which follow the price of bitcoin futures contracts, unlike a spot ETF that will directly track the price of bitcoin. That move helped boost the volatile value of the oldest cryptocurrency to its all-time peak of $69,000 the following month.
While the 15 April tax filing deadline has come and gone, it's always good to keep up on potential tax filing requirements and forms like IRS Form 8832.
The primary purpose of IRS Form 8832 is to inform the US tax authority of the classification of one’s business entity. There are three options: corporation, partnership, or entity disregarded as separate from its owner.
Read more on how this form can be used.
A breakdown of ‘skimming’ scams
‘Skimming’ is the act of capturing credit card data without the cardholder’s knowledge. Criminals use skimming devices to gather this information, which can then be used to create counterfeit cards or for other fraudulent purposes.
The cardholders will be unaware that their information has been compromised until unauthorized charges appear on their accounts or they experience other forms of identity theft. This is particularly troubling for SNAP beneficiaries due to the precarious financial situation that necessitates the use of SNAP in the first place.
SNAP recipients in can receive money back that was scammed. Scammers using ‘skimming’ devices to steal Electronic Bank Transfer (EBT) cards from some of America’s poorest families have taken millions of dollars.
However, to counter this, spending plans announced by the US Department of Agriculture last December requires states to reimburse stolen funds. Maryland was the first state to have their plan approved, rescuing $2.5 million for nearly 4,000 victimes.
Employer-sponsored retirement plans like 401(k)s and pensions are becoming more common. Successful savers may utilize either method to maximize employer contributions and other retirement advantages as they prepare for retirement. So what are the distinctions between these two pension programs? Read our full coverage to find out.
Real wages are moving up
After inflation made dramatic cuts into purchasing power over the last year, the BLS reported that between June 2022 and June 2023, real hourly wages for workers increased 1.2 percent. This figure accounts for the impact that inflation has had on wages.
This increase while not likely to provide much comfort to many households, shows that workers still hold some power in the labor market to demand higher pay as the demand for labor continues to remain elevated.
Slowing retail growth not likely to stop Fed interest rate hike in July
The forces meant to hold back real spending power after 16 months of Fed tightening - drawdowns in pandemic savings, high inflation, higher borrowing costs - fell short of meaningfully slowing consumption.
The resilient consumer shows the Fed has very little reason to think its tightening has gone too far at this point.
June retail sales show US consumers resilient but spending slowing
The Commerce Department’s June retail sales data shows that US consumers are still spending, albeit at a slower pace than the prior month. Retail sales increased 0.2% last month, compared to the revised figure from May, 0.5% instead of 0.3%. Despite the lower figure in June it is not expected to sway Fed policymakers decision to implement another rate hike when they meet next week after keeping them unchanged last month.
A longer life expectancy is an important indicator of the standard of living in a place.
These are the 10 stateswith the highest life expectancy in the US.
Mortgage rates decreasing would make biggest dent in housing affordability
The quick increase in mortgage rates created an uphill battle for many Americans who want to buy a home by locking up inventory and making the homes that do hit the market too expensive. The typical home is selling for about 40% more than before the pandemic.
Mortgage rates dropping closer to 5% would make the biggest dent in the affordability crisis by freeing up some inventory and bringing monthly payments down. But there are a few other things that would boost turnover and help make homes more affordable. Building more housing is imperative, and federal and local governments can help by reforming zoning and making the building process easier. Financial incentives, like reducing transfer taxes for home sellers and subsidizing major moves with tax breaks, would also add to supply.
Low supply has would-be homebuyers struggling to find houses to purchase
Americans that want to purchase a home are having difficulty finding one on the market. That is the result of homeowners who secured ultra-low mortgages not willing to sell as rates climb toward 7% from around 3% at the end of 2021. The situation is especially being felt in California where just 6 out of every 1,000 homes changing hands in the first half od 2023.
Nationwide, the turnover number is 14 out of every 1,000 homes according to Redfin data. That is compared to 19 out of every 1,000 in the year before the pandemic.
US banks' mortgages face mandates exceeding global standards
US bank regulators are set to release their plans next week for a sweeping overhaul of capital rules, with the latest draft including requirements for large lenders' residential mortgages that go beyond international standards, according to Bloomberg News.
The changes would be part of the US version of a global accord known as Basel III that followed the financial crisis, according to the report.
The plans are set to be unveiled on July 27 by the Federal Reserve, the Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency (OCC), according to Bloomberg.
omebuilder confidence up as demand for new construction continues
Builder confidence was positive again in July, according to the National Association of Home Builders/Wells Fargo Housing Market Index.
The index reading rose to 56 from 55 in June, marking the seventh consecutive month that sentiment increased and marking the highest level since June of last year. Economists polled by Bloomberg were also anticipating a 56 reading for July.
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Teaching is an important and difficult job. Educating minds comes with a lot of responsibility, but sometimes the pay is low.
According to the most recent Bureau of Labor Statistics Occupational Employment and Wages report, the average annual salary of an elementary school teacher in the United States is $68,000.
According to the same report, the median salary for high school teachers is $67,790 a year. However, the pay varies from one state to another in the country, and there are some where the salary is higher than average.
Find out which states offer the best compensation to teachers.
The cost of housing in the United States has increased by 3.5% since January, as inflation in other goods and services markets has begun to fall. Renters are feeling the pinch, with the average rental price rising 8.3% since June 2022. While part of the rise can be explained by the decrease in rental prices seen in the early months of the pandemic, prices remain 20% higher than they were in the summer of 2019. These substantive increases come as real wages for private sector workers in the United States have fallen by 1.2% in the same period.
Here are the top ten rental markets that have seen the most rapid price growth this year
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Every month, the Social Security Administration sends money to different beneficiaries, including retired workers and survivors. It also mandates disability payments, which include the Supplemental Security Income program and Social Security Disability Insurance.
SSA has already sent some payments for this month and is continuing to send the remaining payments.
Here’s how much money is sent on average and what payments are sent on July 19.
Hello and welcome to AS USA's live blog
Follow along as we bring you the latest information on SNAP benefits, IRS refunds and Social Security benefits. Likewise, we'll keep you informed on how the US ecnomy is performing as the Federal Reserve raises interest rates to bring inflation back to its 2% target.