US financial news summary, Tuesday 25 July 2023: July SNAP benefits, Social Security payments, IRS refunds...
US finance news: latest updates
Headlines: Tuesday 25 July 2023
- Federal Reserve to decide on interest rate hike on Wednesday
- Inflation at 3% in the US, as Fed bids to cut rate to 2%
- Latest retail data showed US consumers still shopping, but less than expected
- Initial unemployment claims fell by 9,000 in week ending 15 July, to 228,000
- June jobs report showed that US added 209,000 jobs last month
Take a look at related AS USA news articles:
What to expert from Wednesday's Federal Reserve meeting
The inflation picture is improving, yet the Federal Reserve is still expected to approve yet another interest rate increase on Wednesday, the 11th since March 2022. Could it be the last one for a while? Let's hope so.
That is expected to be the main takeaway from Wednesday's meeting, although Luke Tilley, chief economist at Wilmington Trust Investment Advisors, isn't happy. “The hike that’s going to happen is unnecessary, and probably the last couple were unnecessary. By the time we get to November, that’ll be even clearer.”
Time, as ever, will tell.
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Consumer confidence high but spending set to slow
Consumers are feeling increasingly confident about the current state of the US economy and what's coming in the near future., with the Conference Board's Consumer Confidence Index for July hit a reading of 117, the highest level in two years, according to data released on Tuesday morning.
However, RBC Capital Markets' Blake Gwinn believes that report pains something of a false picture, with spending expected to slow due to student loan repayments kicking in, among other things.
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IMF growth projections
The International Monetary Fund (IMF) raised its outlook for the world economy this year, estimating that risks have eased in recent months. Global gross domestic product will expand 3% in 2023, the IMF said in an update to its World Economic Outlook. While that’s still a slowdown from last year's figures (3.5%), it’s marginally faster than its 2.8% projection back in April.
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AS USA's Joe Brennan has full details on the schedule for social security payments following the summer period.
One in five Americans don't expect to retire - poll
In case you missed it, a new Axios/Ipsos poll has found that one in five Americans don’t think they’ll ever retire.
Released late last week, the survey’s results indicated that most of those who don’t believe they’ll stop working cited financial worries as their reason for this.
“A decisive majority (70%) say that they won’t ever retire because they can’t or won’t be able to afford to retire, versus 19% of people who just don’t want to retire,” Ipsos said.
Beneficiaries of the SNAP food assistance scheme can get half-price membership of the Walmart+ rewards scheme, which includes discounts on selected products and a subscription to the streaming service Paramount+.
Month after month, the Social Security Administration (SSA) issues millions of payments to program beneficiaries, who are mostly retired workers. However, there are some people with disabilities who may be eligible for Supplemental Security Income payments (SSI) or Social Security Disability Insurance (SSDI).
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.
Daniela Barrera and Greg Heilman explain who is receiving a payment of up to $914 dollars on August 1.
No more interest rate hikes after July - experts
Expects appear to be confident that the Federal Reserve's potential July interest rate hike would be its last for the moment.
In a note to clients, Oscar Munoz, the chief US macro strategist for TD Securities, said: "We anticipate that July will bring the Fed’s last rate increase of this cycle."
And some economists feel the Fed shouldn't implement any more hikes at all for now, after pausing its run of rises in June.
"I think that the current rate should be the peak," Chris Tilley, the chief economist at Wilmington Trust, told Yahoo Finance. "I actually think that they've sort of gone a little bit more than they needed to."
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.
Corina González and Gidget Alikpala take a look at the states that are sending financial assistance in July, and how much they will be giving out.
With over 42 million recipients, the Supplemental Nutritional Assistance Program, commonly known as SNAP, is a food assistance scheme that is one of the largest social aid programs administered in the United States.
SNAP benefits are focused on low-income households, and the funds are deposited each month on an Electronic Benefits Transfer (EBT) card that can be used at most grocery stores.
AS USA's Daniela Barrera and Maite Knorr-Evans have the lowdown on who is eligible for the program.
"Momentous week" as Fed meets over interest rate hike
A "momentous week" is in the offing, a Goldman Sachs strategist has told CNBC, as the US's Federal Reserve prepares to decide on whether or not to implement another rise in interest rates.
“The Fed is expected to deliver what could be the last hike of a cycle that has been one for the books," Michael Cahill said.
After 10 straight hikes, the Fed opted against making it 11 in a row in June - but it appears that a 0.25 percentage-point rise could be in store this month.
The European Central Bank and the Bank of Japan are also poised to decide on potential interest rate rises this week.
AS USA's live finance blog: welcome
Good morning and welcome to our daily financial news feed for Tuesday 25 July 2023.
We'll be looking ahead to the Federal Reserve meeting on Wednesday, as the body decides whether to institute another interest-rate rise to curb inflation in the US.
You can also follow our live blog for news on SNAP benefits, IRS refunds and Social Security benefits.