US financial news summary | 16 June 2023

WELFARE

Social Security checks: Payment mailing date schedule in 2023

Each month, the Social Security Administration sends money to retired workers. The agency also sends payments monthly to recipients of Supplemental Security Income, as well as recipients of disability and survivor benefits.

The SSA is already sending the payments for the month of June. However, it is worth knowing the calendar and delivery dates of the benefits for the following months of 2023.

FINANCE

$1,000 checks in California in June 2023: Who qualifies and how to apply

As you are likely aware, several government institutions in the United States continue sending checks or tax refunds to help their residents facing financial difficulties. One such state is California.

Read more in our full coverage. 

Low-income recipients to receive extra Social Security payments in June 2023

Supplemental Security Income amounts will increase for some recipients in June. 

Here’s who will get an extra boost to their monthly payments.

USA

Find out which Bank of America branches are closing in June

Several banks, including Bank of America, have multiple branch closings scheduled for June. Here’s how many the second largest bank in the US will close and where.

FINANCE

The 10 cities in the US where summer jobs pay the best

Teens are returning to the work force after decades of decline, especially to take up summer jobs. But where do they get paid the most?

Here’s a look…

FINANCE

When will the federal student loan payments resume? Here’s how to get ready

President Joe Biden is still trying to get one of his flagship election policies put into law: student debt cancellation. Originally, student debt was to be cancelled, all $1.7 trillion of it. Then it was watered down to $20,000 per student, but now it could be reduced to nothing. The ruling from the Supreme Court on the matter this summer will determine its fate.

With almost every other major policy tossed by the wayside, be it the ‘green new deal’ or secure abortion rights on the federal level, it is crucial for the youth vote in next year’s presidential election that the president can secure the debt forgiveness.

Read more

FINANCE

What is deferred interest and how does it work?

Deferred interest refers to a financial arrangement where interest charges on a loan or credit card are temporarily postponed, or deferred.

For example, a shop might offer a “buy now, pay later” promotion with deferred interest. During the promotional period, typically ranging from six months to a year, no interest is charged on the purchases made. However, if the balance is not paid in full by the end of the promotional period or if any payment is missed, the accumulated interest for the entire deferred period will be applied retroactively.

POLITICS

Student loans: This is what the GOP proposes to fix college debt crisis

Instead of regulating the predatory student loan industry, five Republican- proposed bills aim to provide borrowers with more transparency regarding the amount of debt they may incur while pursuing higher education. 

This group of legislators views a college degree as a marketable commodity, unlike many political leaders in other high-income nations that prioritize access to higher education or technical training as equally important as primary and secondary education.

FINANCE

Inflation in the United States: What food items increased in price in May 2023?

After reaching all-time highs in June 2022 exceeding a 9 percent year-on-year increase, the inflation rate is on the decline.

According to the most recent data release from the United States Bureau of Labor Statistics, inflation compared to last May fell by 0.9 percent, standing at 4.0 percent; exceeding economists’ expectations, who had expected a 4.5 percent rise.

With this, the inflation rate is at its lowest level in the last two years. However, this does not mean that inflation will not continue to go up, it only reflects that the rates are increasing at a slower pace compared to the previous year.

Read more in our full coverage on which food products have seen the greatest increase in price. 

FINANCE

When could the Fed raise interest rates again after pausing in June?

When announcing on Wednesday that the Federal Reserve would not increase interest rates in June, Chair Jerome Powell made clear that the pause was not likely to be permanent.

Chair Powell explained that by raising interest rates at such a rapid rate, the Fed had “covered a lot of ground” but added that “the full effects of our tightening have yet to be felt.” To account for the lagging effects, the Free Open Market Committee (FOMC) decided to pause any further rate hikes but noted that “nearly all Committee participants view it as likely that some further rate increases will be appropriate this year.”

Read more in our full coverage. 

Initial unemployment benefit claims hold steady at 262,000

Last week another 262,000 people claimed unemployment benefits for the first time, the same number that submitted an initial clean the week prior. This level is the highest since late 2021 and shows that the labor market is softening. Close to 1.8 million workers were claiming benefits in early June. 

Which states have seen the greatest increase and decrease in unemployment? 

The states that saw the largest number of new claims for the week ending on 3 June were Ohio (+6,447), California (+4,103), Minnesota (+2,693), Pennsylvania (+2,069), and Tennessee (+732); on the other end of the spectrum: Connecticut (-2,544), New York (-1,325), Texas (-617), New Jersey (-560), and Oregon (-450) saw claims fall by the highest level. 

Social Security check pay dates in June

These are the dates of payment of Social Security benefits in the remaining days of this month, according to the calendar of the Social Security Administration.

1st: SSI Recipients

2nd: Payees who started receiving payments before May 1997

14th: Beneficiaries with a date of birth between the 1st and 10th day

21st: Beneficiaries with a date of birth between 11 and 20

28th: Beneficiaries with a date of birth between 21 and 31

30th: SSI Recipients (July Payment)

30-year fixed-rate mortgage average ticks down but expected to stay elevated

The average weekly 30-year fixed rate went lower for a second week in a row, nudging down 0.02% this week to 6.69%. However, that is nearly one percent higher than a year ago and more than double the rate the two years prior to 2022. And, it isn’t expected to come down much in the near future, perhaps even increasing again.

While just one of several factors, elevated mortgage rates are in part why there is suchlimited housing stock available for would-be buyers as those who own are reluctant to sell. That should come as no surprise when four out five homeowners have a mortgage rate of less than 5%. Almost a quarter have a mortgage rate of sub 3% according to Redfin data.

“People who are sitting on the sidelines, waiting for mortgage rates to decline, should know that’s unlikely to happen in the foreseeable future,” says Chen Zhao, Lead Economics Researcher at Redfin.

“If a home that’s in your price range and has everything on your wishlist hits the market, there’s no good reason to wait.”

Hello and welcome to AS USA's live blog covering financial news. 

This has been a big week. The US Federal Reserve Chair, Jerome Powell, made an announcement on Wednesday stating that there will be no increase in interest rates for June. This marks the first time in the last fifteen months that rates will remain unchanged. Although Chair Powell mentioned the possibility of a rate hike in July, the Free Open Market Committee is currently assessing the impact of their monetary policy changes and has decided that a temporary pause is the most prudent course of action.

On Tuesday, the Bureau of Labor Statistics announced that in May, the Consumer Price Index rose 0.1 percent, bringing the annualized inflation rate down to four percent. The increase was driven by the housing sector, where costs have increased eight percent over the last year, with renters facing an especially higher burden with the average new lease rising by 8.7 percent. 

Yesterday the Department of Labor released the unemployment claims report for this week. Last week, claims held steady at 262,000 new claims, a sign that the labor market is cooling down and a greater number of workers are being separated.