US financial news summary | 11 July 2023
US financial news live updates, July 11
Headlines | Tuesday, 11 July 2023
- June jobs report: Economy added 209,000 jobs in June as labor market cools
- Federal Reserve expected to raise interest rates later in July
- Layoffs fall to seven-month low in June
- The White House announces the SAVE planto help student loan borrowers
- When do student loan repayments restart?
- US consumer confidence jumps to highest level since January 2022
- When to expect SNAP benefitsthis month
- Dates for Social Security payments in July
With the aim of encouraging travel by public transport, cities in the United States have dropped fares for transit: Where is the bus or train fare-free?
For millions of parents, childcare makes it possible to go to work and to — to be productive during the course of their day. Childcare helps these Americans stay in the workforce, go to job training, or secure a paid job and earn money for college or retirement. Childcare helps them determine their own future and live with dignity.
Kamala Harris announces new steps to lower childcare costs
Vice President Kamala Harris announced new proposals on changes to rules to lower childcare costs for American families on Tuesday. One proposal will cap co-payments for working parents to 7% of a family’s income under the Child Care & Development Block Grant (CCDBG) program.
As well, it will try to make it easier for parents to access the program by encouraging states to accept online applications. Additionally, to automatically assume that siblings of children in the program are also eligible. Furthermore, it will ensure that childcare providers that participate in the program get paid on time relying on enrollment instead of attendance.
"Low-income families often spend one third of their yearly income on childcare, more than they spend on their rent or mortgage," said Harris. "No family should have to choose between high quality care for their child or to give up their career or put food on the table."
Not to be stopped by the Supreme Court, the White House announced the new Income-Driven Repayment (IDR) plan, called the Saving on a Valuable Education (SAVE) plan. The concept of the SAVE plan was announced in January, which will replace the Revised Pay As You Earn (REPAYE) plan, is touted as being “the most affordable repayment plan in history.”
The SAVE plan aims to lower monthly payments for borrowers and eliminate them entirely for individuals who meet the income criteria. It will also halt the accumulation of unpaid interest as long as repayments are made promptly.
You can find out how to qualify for this extra support.
The United States provides various financial aid payments for residents who could use the help. In many cases, these payments are aimed at those who present a tax return to the Internal Revenue Service
But what about residents who can’t file taxes because they don’t have enough income to do so? Well, in New Mexico a new form of financial aid has been approved for low-income people who cannot file taxes for this reason.
The Federal Reserve has been watching the US labor market closely as it has been taking steps to rein in inflation. The most recent data on the labor market showed hiring slowed in June to its lowest pace in two and a half years.
Employers added 209,000 new payrolls last month, missing economists’ expectations of a 225,000 net gain.The data on inflation in June is due out this week, it’s expected to show further cooling. Investors are still predicting a rate hike from the Fed.
The IRS is reminding taxpayers not to leave money on the table, perhaps as much as $6,557.
There are several food aid programs in the United States, the most popular being the Supplemental Nutrition Assistance Program or SNAP, formerly known as food stamps.
This system provides low-income families benefits to buy food using an Electronic Benefits Transfer card. This works like a debit card that can be used at certain grocery stores.
July 11 SNAP Payments: Who will get it?
Bank of America to pay $250 million in fines and compensation
Bank of America has agreed to pay $250 million in fines and compensation to settle claims the bank systematically double-charged customers fees, withheld promised credit card perks, and opened accounts without customer authorization.
Bank of America agreed to pay $100 million in restitution to harmed consumers and another $150 million in civil penalties after the Consumer Financial Protection Bureau and Office of the Comptroller of the Currency said the bank violated a number of laws beginning in 2012.
Insurance premiums for Florida homes jump 42% the past year
Florida Gov. Ron DeSantis says he wants to “make America Florida.” But homeowners might say, "no thanks", since nobody wants the sort of insurance bill Florida property owners have been finding in their inboxes, per Yahoo Finance.
The average premium for homeowners insurance in Florida hit $6,000 per year for 2023, compared with just $1,700 for the US as a whole, according to the Insurance Information Institute. Florida premiums have soared by 42% in the last year alone, and by 206% since DeSantis first became governor in 2018.
These premiums are the highest in the country, by far.
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, some 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.
Americans who borrowed money for their higher education and are carrying a debt should start preparing for the resumption of payments on their federal student loans. After more than three years of a moratorium, interest will begin accruing once again in September and the first payments will come due in October.
However, there is some relief in sight. Starting in 2024, it will be easier for employers to match contributions to 401(k) accounts when employees make payments on their student loan debt.
Stocks end higher as investors digest Fed officials' comments
Stocks ended higher on Monday following last week's losses, while Federal Reserve officials' comments bolstered the view that the central bank may be near the end of its tightening cycle.
The S&P 500 added slight gains before the close, with caution prevailing for much of the session ahead of Wednesday's consumer prices report and the start of second-quarter earnings later this week.
Investors are anxious to see if price pressures are continuing to moderate. That could shed light on the interest rate outlook, with many traders expecting the Fed to raise interest rates by 25 basis points this month.
Several Fed officials said additional interest rate hikes are needed to bring down inflation that is still too high, but the end to the central bank's current monetary policy tightening cycle is getting close.
"The market is obviously poised for the opening of earnings season," but investors are also hyper-focused on consumer prices and a heavy roster of Fed speakers this week, said Quincy Krosby, chief global strategist at LPL Financial in Charlotte, North Carolina.
This summer, Amazon’s big annual event returns- Amazon Prime Day 2023- which will take place on July 11 and 12. During these two days, you will be able to get the best offers directed exclusively at Prime customers.
Here are the best tips to take advantage of the discounts of this campaign.
When purchasing a house, you’ll most likely have to take out a loan.
Before going to a lender to apply, one of the key elements to keep in mind is the interest you will have to pay on your mortgage.
More than one million taxpayers have until July 17 to claim an IRS tax refund of nearly $900. The tax agency says this deadline is a hard one, and you must submit your return if want to claim the money.
Bitcoin forecast to quadruple in value by 2024
Standard Chartered has ramped up its bullish Bitcoin prediction, according to Bloomberg, targeting as much as $120,000 by the end of 2024. This is almost quadruple the current price, as increasingly cash-rich miners reduce sales of the token.
“Increased miner profitability per BTC mined means they can sell less while maintaining cash inflows, reducing net BTC supply and pushing BTC prices higher,” according to Geoff Kendrick of Standard Chartered.
One of the main food aid programs provided by the United States government is the Supplemental Nutrition Assistance Program (SNAP), which provides benefits to low-income families to buy food using an electronic benefits transfer (EBT) card.
SNAP benefits, which help Americans put meals on the table, have been higher this year.
Here’s the maximum amount that the beneficiaries have been receiving in 2023.
From next year, more Californian students will be able to access cheaper tertiary education thanks to the expanded Middle Class Scholarship program. The program was created last year to bridge the gap between the lower-income students who qualify for significant financial aid and the higher-income students who have the resources to pay for their education.
An additional $227 million will be allocated to make the budget $859 million; 360,000 students will benefit from $1,000 to $3,000 to fund their studies.
Hello and welcome to AS USA's live blog covering financial news
The US economy added 209,000 jobs in June, missing Wall Street estimates and reflecting a slowdown from the previous month, according to data from the Bureau of Labor Statistics.
Economists had expected that 225,000 non-farm payroll jobs were added in June. The report marks the first time in 15 months that non-farm payrolls have come in lower than Wall Street expected.
The June unemployment rate was 3.6%, down from 3.7% in May. Economists had expected 3.6%.
Over the month of June, the number of hires and total separations were little changed at 6.2 million and 5.9 million, respectively.
Meanwhile, the Federal Reserve is expected to raise interest rates once more when they meet later this month.