US financial news summary, Monday 24 July 2023: July SNAP benefits, Social Security payments, IRS refunds...

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

The Child Health Insurance Program (CHIP) provides health coverage to millions of children and families whose incomes are too high to qualify for Medicaid but are not able to afford private health insurance. Find out how you can qualify in you're based in Florida, which criteria you need to meet and what maximum annual income level you need to be below (depending how many people live in your household). 

Here's Gidget with the details. 

1 in 5 Americans think they won't be able to retire

Do you have your retirement all mapped out or is it a period of your life you're worried about? Well, if you fall into the latter category, then it seems that you're not alone. A poll carried out by Axios/Ipsos has revealed that 1 in 5 (20% of Americans) are fearful about what the future holds for them once they have stopped working, with 70% of those worried because of financial reasons. 

Here's more on exactly why that's the case. 

Spotify the latest streaming platform to announce price hike

Ever get the feeling that life is just getting more and more expensive (stupid question, of course you have)? 

Well, another small piece of bad news (which all adds up). Those of you who have an ad-free premium Spotify prescription will soon have shell out $10.99 (up a whole dollar) per month for the privilege. The company's Duoplan will rise by $2 to $14.99, while the family plan will increase by $1 to $16.99. The student plan will also go up by $1 to $5.99 a month.

Existing subscribers will get a one-month grace period before the new pricing goes into effect, according to Spotify. 

"A momenotus week" coming thanks to US Federal Reserve, ECB and Bank of Japan

“The Fed is expected to deliver what could be the last hike of a cycle that has been one for the books. The ECB will likely signal that it is coming close to the end of its own cycle out of negative rates, which is a big ‘mission accomplished’ in its own right,” said Goldman Sachs strategist Michael Cahill on Sunday. “But as they are coming to a close, the BoJ could out-do them all by finally getting out of the starting blocks. This should be a momentous week.”

What does that all mean? Well, it's complex, as the three banks involved all face different situations. 

Economists believe there is a strong chance the US will enter in recession in the next year

Results of the National Association for Business Economics survey were released on Monday and showed that a "strong majority" of business economists believe that the "odds of the US entering a recession in the next 12 months" are 50% or less.

Almost three quarters of the panelists (71%) reported such an outlook in results of the NABE poll - in sharp contrast to April's survey, which showed an almost even, 50-50 split between those forecasting a downturn and those who were not.

For the first time since 2021, a majority of respondents (53%) report that wages at their firms were unchanged in Q2 2023, while 47% of respondents report rising wages—significantly lower than the 63% in the April survey.

Re

US business activity slumps to five-month low

US business activity hit a five-month low in July, dragged down by decelerating service-sector growth but falling input prices and sluggish hiring indicate the Federal Reserve could be making headway in their battle against inflation.

S&P Global said its flash US Composite PMI index (which tracks manufacturing and service sectors), was down to 52 in July from a reading of 53.2 in June. July's reading showed the sixth straight month of growth but was restrained by softening conditions in the service sector. Readings above 50 indicate expansion. The slowdown may be viewed positively at the Fed, which is keen to see activity cool to lower inflation.

EMPLOYMENT

How much money do servers make in California? This is the hourly wage

The service industry is one of the most in-demand fields in the United States, especially during the holiday season. This is particularly true for California, which is the state with the highest level of employment for waitstaff. Also, by law, it has a minimum wage that is higher than what is dictated at the federal level.

Find out how much money servers in the Golden State earn per hour and per year.

WELFARE

Stimulus checks in July 2023: which states pay it and amounts

After inflation reached historic levels last year, several entities in the US approved the sending of stimulus checks or tax refunds to help those who were most affected.

Although inflation has fallen considerably in recent months, several states across the country continue to send out checks or tax refunds to help their residents. Here are the states that are sending financial assistance in July and how much they will be giving out.

Corina and Gidget have more

Social security to meet disability requirements

Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI) programs provide assistance to people who meet our requirements for disability.

Before you apply, please review the basics to make sure you understand what to expect during the application process. Also, gather the information and documents you’ll need to complete an application.

The SSDI program pays benefits to you and certain family members if you are “insured.” This means that you worked long enough – and recently enough - and paid Social Security taxes on your earnings. The SSI program pays benefits to adults and children who meet our requirements for a qualifying disability and have limited income and resources.

While these two programs are different, the medical requirements are the same. If you meet the non-medical requirements, monthly benefits are paid if you have a medical condition expected to last at least one year or result in death.

Find out more and apply here.

More $1,800 Social Security payments coming this week

The SSA has already sent some payments for this month and is preparing to send the last payment on July 26.

According to the schedule established by the agency, generally Supplemental Security Income benefits are sent on the first day of each month. However, if the first day of the month falls on a Saturday or Sunday, the payment is advanced to the last Friday of the previous month.

Meanwhile, on the third day of each month, the SSA sends money to beneficiaries who started receiving their payments before May 1997. If the third day of the month falls on a Saturday or Sunday, the payment is also advanced.

The rest of the checks are sent on Wednesdays, according to the date of birth of the beneficiaries.
 

Fed announcement thoughts

As this week's Fed meetings falls in the middle of a jungle of earnings, stock investors will have a lot to price on their plate, so a hawkish statement from the Fed may not directly impact stock prices if earnings are good enough.

WELFARE

How do I get public housing assistance in NY?

New York City is known for its high cost of living, and consistently makes it to the list of most expensive places to live in the US. One factor that contributes to its pricey nature is the cost of housing.

The biggest expense for most residents is housing, and in cities like New York, demand for homes often exceeds supply, leading to higher rents and property prices. Additionally, the limited space in Manhattan and other desirable neighborhoods drives up prices even further.

Gidget Alikpala brings you the latest on how you can get public housing assistance.

IRS looks to aid retirement savers

Did you know you may be able to take a tax credit for making eligible contributions to your IRA or employer-sponsored retirement plan?

Also, you may be eligible for a credit for contributions to your Achieving a Better Life Experience (ABLE) account, if you’re the designated beneficiary.

Check out the official IRS website for more details.

BUSINESS

Twitter plans on changing logo and name: What are some examples of company rebranding fails?

As Twitter owner Elon Musk reveals that the platform’s new logo will be in the shape of an “X”, more and more questions have arisen over the social media's financial viability.

Kieran decided to look at a few that didn't go so well.

Futures edge up ahead of more Big Tech earnings

U.S. stock index futures inched higher on Monday as earnings from megacap growth and technology companies roll in and investors look ahead to a rate decision from the Federal Reserve later this week, Reuters reports. Meta Platforms, Microsoft and Alphabet are among the big names reporting this week, with investors cautious after less-than-stellar reports by Netflix and Tesla.

The EV maker eased 1.5% in premarket trading after UBS downgraded its rating on the stock, while other megacap growth and technology stocks edged higher.

The centerpiece event of the week is the Fed's policy meeting, with the central bank expected to raise interest rates by 25 basis points on Wednesday.

A majority of economists polled by Reuters still expect this will be the last increase of the current tightening cycle, after data this month showed signs of disinflation, eliminating the need for the Fed to lift rates further and supporting the thesis that has helped buoy stocks in recent weeks.

The tech-heavy Nasdaq has rallied 34% so far this year, outperforming its Wall Street peers, as rate-sensitive megacap growth companies jumped on hopes that the Fed's aggressive rate hike cycle will end soon and optimism over artificial intelligence.

Social security services for you

If you're not already aware, the social security website is constantly expanding its online services to give you freedom and control when conducting business with them.

Today, you can apply for retirement, disability, and Medicare benefits online, check the status of an application or appeal, request a replacement Social Security card (in most areas), print a benefit verification letter, and more – from anywhere and from any of your devices!

Check it out!

Fed’s tolerance of inflation key to economy bump

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.

Barbie-mania driving revenue across industries

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.

SOCIAL SECURITY

$914 Direct Payment from Social Security on August 1: who will receive it?

Whatever your case may be, if you are a Social Security beneficiary, the Administration will send your payment automatically month after month according to the check distribution schedule. Below we will explain who is receiving a payment of up to $914 dollars on August 1.

Here's Daniela and Greg to tell you more.

Mortgage rates down but still no homes to buy

Mortgage rates dropped last 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.

The unfair social security system

Have you ever thought about the inequality of the current social security system. Here's Senator Patty Murray making her case.

"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."

AS USA's live finance blog: welcome

Hello and welcome on Monday 24 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.