US financial news summary | 7 July 2023
US financial news live updates
Headlines | Friday, 7 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
- FTC warns of scams following Supreme Court's 6-3 ruling against Biden's Student Loan Forgiveness Program
- 16 million student loan borrowers had debt relief approved, what will happen now?
- When do student loan repayments restart?
- PCE data shows both headline and core inflation declined in May year-on-year to 3.8% and 4.6%, respectively
- US consumer confidence jumps to highest level since January 2022
- Dates for Social Security payments in July
European Commission proposes digital Euro
Are Europeans ready to introduce a digital version of the euro? After coins and banknotes, the European Commission is now proposing the digital euro, a virtual version of the currency issued by the European Central Bank that could be used free of charge alongside cash in the eurozone.
Silent conflict between China and the USA
Despite protests of US Treasury Secretary Janey Yellen to the contrary, not everyone is as sanguine about the the Asian nation's motives as they seek to control key materials in critical markets.
US and China do not look to weaken ties
US Treasury Secretary Janet Yellen is in the middle of a four-day visit to Beijing and has confirmed that the US and China are not seeking to weaken their economic ties.
In what is intended as a relationship-repairing mission, Yellen said that "the United States does not seek a wholesale separation of our economies. A decoupling of the world’s two largest economies would be destabilising for the global economy, and it would be virtually impossible to undertake.”
Ever wondered how much it costs to run with the bulls in Pamplona? As the Fiesta de San Fermín gets underway, our own Joe McMahon looks at the ins and outs of following in Hemingway's footsteps.
Opinion may vary widely on what the definition of wealthy in the United States is, but rest assured when it comes to the actual facts and figures, it really comes down to what city you live in and not just what you have in the bank.
Here are some of the average net worths you need to be considered wealthy across the US:
· Dallas: $2.3 million
· Atlanta: $2.3 million
· Phoenix: $2.4 million
· Denver: $2.5 million
Student loans are a tricky topic to navigate, with confusion going forward over what borrowers may owe after the legal limbo the debt forgiveness program went through.
That in turn has raised concerns that when repayments start again many could be at risk of defaulting. With the SCOTUS decision now out, the Department of Education will be able to definitively tell borrowers how much they owe and what their monthly payments will be.
The New York State Supplemental Nutrition Assistance Program (SNAP) remains an essential mechanism by which citizens of the state can gain access to food and other benefits that would otherwise be impossible for various individuals and families to enjoy.
While everyone virtually rushes over to Threads and creates their new account while leaving Twitter like a discarded bird nest, Elon Musk triumphs in the list of the world's richest CEOs.
SNAP benefits, as well as the distribution of food stamps, often uses Electronic Benefit Transfer (EBT) cards.
These store the money needed to pay for food, but they cannot be used everywhere. The Department of Agriculture has a set of requirements that precludes many businesses from accepting EBT cards.
If you're eligible for SNAP benefits, here's a list of some of the most common stores that accept the stamps.
US economy added 209,000 jobs in June as labor market cools
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 surveyed by Bloomberg had expected that 225,000 non-farm payroll jobs were added in June. Friday's report marks the first time in 15 months that non-farm payrolls have come in lower than Wall Street expected. Updated data revealed 306,000 jobs were created during May, about 33,000 less than previously reported.
The June unemployment rate was 3.6%, down from 3.7% in May. Economists had expected 3.6%, per Yahoo Finance.
Another payment is being sent this month by one of California’s guaranteed income programs. Breathe Program recipients receive a monthly payment of $1,000 dollars and will continue to collect it until August 2025.
These are the beneficiaries who will receive this amount on July 15.
Each month, the Social Security Administration sends money to a variety of people, including retired workers, survivors, and those who receive health benefits such as Social Security Disability Insurance and the Supplemental Security Income.
Some Social Security recipients will receive an extra payment this month. Here is a list of states where the money is granted, and when they will be sent.
The Supplemental Nutrition Assistance Program, or SNAP, benefits, cannot be requested federally and must be applied for in your state.
Millions of Americans are enrolled in the program, and these benefits provide an essential help to families struggling to put food on the table.
The SNAP program is administered by the US Department of Agriculture Food and Nutrition Service program, but each state has its own application form. Learn how to apply for the benefit.
Stock market down as labor market strength stokes rate-hike fears
Wall Street's main indexes ended sharply lower on Thursday in a broad sell-off after data showing a strong labor market boosted bond yields and fanned fears the Federal Reserve will be aggressive in raising interest rates.
The S&P 500 posted its biggest daily percentage drop since May 23. The Dow logged its biggest single-day fall since May 2.
Private payrolls surged far more than expected in June, data showed, suggesting the labor market remained solid despite growing risks of a recession. A separate report showed job openings dropped in May, but remained at elevated levels.
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.
Layoffs fall to seven-month low in June
Employers slowed downsizing in June, marking the lowest number of layoffs since October 2022, per Reuters.
According to the latest job cuts report from employment firm Challenger, Gray & Christmas, employers said they were cutting 40,709 jobs in June, down 49% from the number of cuts announced in May.
The planned pace of layoffs in June was well above the 32,517 cuts announced in June 2022. There are 458,209 cuts so far this year, a 244% increase from the 133,211 layoffs announced through June 2022, as employers brace for the prospect of recession.
If you've been an avid Apple user for years, you may have an old iPhone tucked away in a drawer somewhere.
Check it out because some models could sell for up to $100,000. Find out if yours is a valuable cellphone.
Bud Light is out with a new ad after sales plummeted, trying to win back its core consumers to show it’s about “good times, goodwill, and easy enjoyment.”
Will Bud Light’s new ad campaign bring back consumers?
US labor market showing resilience
The US Bureau of Labor Statistics report that new claims for unemployment benefits increased last week, while private payrolls surged in June, suggesting that the labor market remained on solid ground. Over the month, the number of hires and total separations were little changed at 6.2 million and 5.9 million, respectively.
On the last business day of May, the number of job openings decreased to 9.8 million (-496,000), following an increase in April. Job openings increased in educational services (+45,000), state and local government education (+37,000), and federal government (+24,000).
The Federal Reserve held off on raising interest rates when they held their June meeting, but will they continue to do so this month?
Fed chief Jerome Powell, in testimony before Congress, said there is a long way to go in the battle against inflation, and that they expect to increase rates before the year is over.
Meta has launched a direct challenge to Twitter with the new app Threads, garnering millions of users in hours as it sought to take advantage of its rival's much-weakened state after a series of chaotic decisions made by owner Elon Musk exasperated the application's users.
Learn more about Mark Zuckerberg's latest social media platform.
Hello and welcome to AS USA's live blog covering financial news
The US Bureau of Labor Statistics reports that new claims for unemployment benefits increased slightly last week, while private payrolls surged in June, suggesting that the labor market remained on solid ground. Over the month, the number of hires and total separations were little changed at 6.2 million and 5.9 million, respectively.
Meanwhile, after the Supreme Court ruled that President Biden didn’t have the authority to issue his broad student loan debt forgiveness executive order, millions of borrowers who had hoped to benefit from the debt relief will need to reassess how to deal with what they owe.
Experts worry that once repayments start in the fall it could take a toll on the economy, others are concerned that many borrowers could drown under debt. The Federal Trade Commission is warning those who have loans to beware of scammers who may take advantage of the confusion following the SCOTUS decision.
For now, American consumers feel the most confident about the economy since January 2022 as the US economy continues to chug along. The new PCE inflation report showed price increases slowing more than expected. Despite that good news, and because of it, the chances of the Federal Reserve resuming interest rate hikes in July jumped.