US Financial News: news summary | 23 July 2023

From 2021 to 2022, petroleum exports from the US to the EU grew by a staggering forty-one percent, from 426 million barrels to 598 million barrels, according to data published by the US Energy Information Agency (EIA).

​​​​​​The EIA recently reported that prices could begin to rise later this year and next after OPEC members agreed to another cut in production in June. These cuts, coupled with a projected increase in consumption, led the EIA to project that by the end of next year, the Brent crude oil price could surpass $85 per barrel, a $10 increase from its position in June.

IRS offer tax tips videos

The Internal Revenue Service have created a series of handy tax tips videos on their YouTube channel and promise no ´funny cat´vids.

Economy’s soft landing may hinge on Fed’s tolerance of inflation

The Federal Reserve is set to raise interest rates this week in what could be its last hike. Fed Chair Jerome Powell and his colleagues are believed to be looking at increasing interest rates by a quarter percentage point in their next meeting.

There are rising hopes of a soft landing for the economy, but this is likely to be dependent on the Fed’s ability to tolerate a level of inflation that would be higher than they would like. The objective is to eventually lower inflation to its 2% target without bringing down the country into a recession.

Fed’s new payment system could deposit your paycheck instantly

The Federal Reserve’s new payment system called FedNow provides instant payment 24/7.

Once it is widely available, people can transfer funds and pay credit bills even on bank holidays. 

The system can also result in your paycheck appearing in your account as soon as you are paid.

Scalpers making quick money from Barbie-mania

The world is going Barbie-crazy, and eBay scalpers are taking advantage of the mania to make a fast buck. According to Forbes, resellers have been hawking movie merchandise on eBay at incredible markups.

One item that people have been willing to pay a lot of money for is the limited edition, bright pink Barbie cup that is exclusive to the Cinemark movie theater. It originally went for $19.99 on the Cinemark website, and is now being resold on eBay at $85, which comes out to a 325%pricehike.

Mortgage rates down but still no homes to buy

Mortgage rates dropped this week, but buyers are troubled by the lack of homes for sale.

The rate on the average 30-year mortgage decreased to 6.78% from 6.96% the week prior, according to the Federal Home Loan Mortgage Corporation.

For homebuyers, the modest dip in rates wasn’t enough to ease affordability concerns. The lack of previously owned homes on the market has kept home prices elevated this summer.

Homebuilders are the winners in today’s market. “New home construction and sales are benefiting from a lack of available and affordable inventory in the existing home market, exacerbated to some additional degree by homeowners unwilling to give up low-rate mortgages,” Keith Gumbinger, vice president of HSH.com, told Yahoo Finance.

LATEST NEWS

Will there be more direct social security payments of $914 after the summer?

According to the SSA’s schedule, those in line for the Social Security Administration’s Supplemental Security Income program will receive their August payment in 11 days, which could be worth up to $914 for individual filers.

June was the last time such payments were made, and the first week of August will be the next. Those who receive the money will normally get one pay check per month, however during some months of the year they may receive two, depending on whether the the first of the month falls on a weekend: here, beneficiaries will get the check on the last business day of the previous month so recipients can have the money by the 1st.

"Social security system is unfair"

Senator Patty Murray makes her case clear about the inequality of the current social security system.

"If you make ~$160,000 a year, you're paying the same amount into Social Security each year as a billionaire. In fact, billionaires put just half a cent of every $100,000 they make into Social Security.

"This system is unfair—it should not be controversial to try and fix it."

FINANCE

How can I save on my monthly insurance bill with a Premium Tax Credit?

Starting in 2014, under the Affordable Care Act (ACA) millions of Americans became eligible for the Premium Tax Credit that helps them pay for health insurance coverage. Those with incomes between 100 and 400 percent of the Federal Poverty Level (FPL) who purchased coverage on the health insurance Marketplace in their state were eligible.

The size of the credit and the number of people that could qualify for it was increased in 2021 with the passage of the American Rescue Plan Act (ARPA). Those with incomes over 400 percent of the FPL could now be eligible and those below 150 percent saw their contribution level lowered to zero percent of the premium.

Those temporary enhancements were extended through the end of the 2025 coverage year in the Inflation Reduction Act.

Greg Heilman reports on what it can do for you.

Michigan focus on education for jobs and pay

Michigan givernor Gretchen Whitmer has been pushing the state's focus on eduction and jobs.

"Good-paying, high-skill jobs require highly educated workers. That's why our education budget—the largest in Michigan history—invests in providing quality education after high school graduation," she tweeted.

Check out the thread to read more about what the governor is doing.

Student tax help from IRS

As the IRS explains, form 1099-K is a report of payments you got during the year from:

- Credit, debit or stored value cards such as gift cards (payment cards)

- Payment apps or online marketplaces (third-party payment networks)

Third-party payment networks are required to file Form 1099-K with the IRS and provide a copy to you when the gross payment amount is more than $600. Form 1099-K should not report gifts or reimbursement of personal expenses you received from friends and family.

Use Form 1099-K with other tax records to help figure and report your taxable income when you file your taxes.

UPS and Teamsters set to resume talks

United Parcel Service said it plans to resume labor talks with the Teamsters union representing 340,000 employees on Tuesday, in an effort to avert a strike that could disrupt supply chains and harm the economy.

The two sides began talks in April on a contract covering the company's drivers, package handlers and loaders. Talks broke down on July 5 with each side blaming the other.

UPS said it hope to "resolve the few remaining open issues" at the meeting.

A spokesperson for the International Brotherhood of Teamsters pointed to a statement detailing its goals for a five-year agreement that increases pay and full-time jobs, and strengthens protections for workers.

An existing five-year labor pact expires on July 31

Used clean cars and tax credits

If you are in search of a new car then you'll likely want to know more about the options that may qualify you for a clean vehicle tax credit.

Watch this video to learn about tax credits for used clean vehicle and visit https://www.irs.gov/cleanvehicles to see which vehicles qualify for the credit.

Joints provide harmony

"We find that the people who have joint accounts are actually reporting greater financial harmony," said Dr. Jenny Olsson.

"In other words, they're more satisfied with how they and their partner are saving and spending, there's less financial conflict, and we see that this improves over time", she continues. Olsson led a study into joint bank accounts published in the Journal of Consumer Research. 

Not only are joint accounts good for love, she says, but they're also good for finances. 

WELFARE

$1,800 Social Security payments on July 26: Who will get it?

As you'll be well aware, on a monthly basis, the Social Security Administration sends money to various beneficiaries, including retired workers and survivors. It also mandates disability payments, which include the Supplemental Security Income program and Social Security Disability Insurance.

The SSA has already sent some payments for this month and is preparing to send the last payment on July 26. Find out what you need to know.

Reserves holding steady at US banks

A feared liquidity drainage in the U.S. banking system hasn't yet materialised, with reserves actually increasing recently as the Treasury refills its coffers has not materialised yet, alleviating concerns that the bond spree could lead to more credit tightening.

Since early June, the Treasury General Account at the Fed has gone up by about $460 billion. In the week ending on July 19 reserves increased by about $58.5 billion to $3.22 trillion, while demand for the Fed's overnight reverse repo facility (ON RRP) declined by $87.3 billion.

HEALTHCARE

What is the maximum income to qualify for CHIP in California?

In 2021, 3.5 percent of children in California lacked access to health insurance, according to researchers at Georgetown University. California is the largest state in terms of population, and compared to Texas and Florida —the two following most populous states— the rate of children without access to healthcare is much lower. In Texas, the figure was 11.8 percent, and in Florida, it was a touch lower at 7.3 percent.

California has expanded Medicaid and the Medi-Cal for Kids program to provide insurance coverage to more children. Currently, Medi-Cal covers one-third of the state’s residents. Although some critics see it as a significant public expense, the reality is that when people lack insurance, the health problems of those without insurance often go untreated until they require major interventions, which are much more expensive.

Maite Knorr-Evans takes a look at the situation.

Planning for retirement

As you know, the SS retirement benefit is a monthly check that replaces part of your income when you reduce your hours or stop working altogether. It may not replace all your income so it's best to identify other ways to pay for your monthly expenses as you age.

See if you are eligible and get planning.

WELFARE

SNAP benefits: Who will receive payments on July 23?

The distribution of Supplemental Nutrition Assistance Program (SNAP) benefits, formerly known as food stamps, continues in the United States.

SNAP is a federal program that, in coordination with state governments, provides benefits to low-income families to buy food. Each month, states deposit financial assistance onto an electronic benefits transfer (EBT) card, which works like a debit card that can be used at certain approved locations.

We looked at how the rollout happened up to yesterday.

AS USA's live finance blog: welcome

Hello and welcome on Sunday 23 July 2023.

Follow along, or check in from time to time, 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 economy is performing as the Federal Reserve raises interest rates to bring inflation back to its 2% target.