US financial news summary | 27 August 2023
US financial news: live updates
Headlines: Sunday 27 August 2023
- Markets rebounded on Friday with only the Dow Jones finishing the week in the red
- Fed Chair Jerome Powell indicated that another interest rate hike may be necessary
- Weekly average rate of 30-Yr fixed-rate mortgages rise for fifth straight week
- Initial unemployment claims dropped to 230,000 last week
- Existing-home sales fell in July, prices rose for first time in five months
- White House launches SAVE, its new income driven student loan repayment plan
-Minimum wage in Florida set to increase in September
- New requirements to receive SNAP benefits in 2024 set to take effect soon
- Gas prices are up this summer as extreme heat hampers oil refinery operations
- 20% of student loan borrowers to pay $500 monthly when payments resume, according to study
French winemakers are facing a blend of problems that has left them with an oversupply. The EU and France are allocating millions to destroy the excess.
Each month, the SSA sends benefits to retired workers and survivors; that is, the children, spouses, widows, widowers, or parents of a deceased beneficiary.
The SSA also sends disability benefits from the Supplemental Security Income (SSI) program and Social Security Disability Insurance (SSDI).
Some recipients can receive up to $914 on Sept. 1. Find out if you are one of these beneficiaries, as well the full schedule for the month.
The White House launched its new plan to reduce monthly student loan repayments for borrowers which will also provide a shorter path to debt forgiveness.
Fairfax County in the state of Virginia has launched the Economic Mobility Pilot program, which will provide monthly payments of $750 to 180 eligible families for 15 months.
The guaranteed income program has a total budget of $2 million, which was approved by the Board of Supervisors and will be funded by the American Rescue Act.
According to the parameters of the project, those who want to participate in the Fairfax County Economic Mobility Pilot will need to meet a set of requirements.
Everyone can access SSI payments when they retire, but the same is not the case for disabled Americans and SSDI payments. Aspects like work credits and definitions of disability make the process difficult and confusing, potentially preventing people who are eligible for the support from accessing it.
Indeed, a survey conducted by attorneys at Atticus, a law firm specialising in helping seniors access their benefits, has found that the vast majority of Americans do not know their rights with regard to SSDI payments.
The cost of living is an important factor when deciding where to live. This refers to the amount of money needed to pay basic living expenses such as food, shelter and utlilities among a few.
Because the prices of certain goods and services change from place to place, so does the cost of living. Since 1968, the Council for Community and Economic Research (C2ER) has collected and published data of the cost of living index.
Here are the 15 most expensive cities in which to live in the United States.
High mortgage rates cutting homebuyers’ purchasing power
Freddie Mac reported the weekly average for 30-year fixed-rate mortgages on Thursday which climbed for a fifth straight week. The latest average rate is now 7.23% for the week ending 24 August according to Freddie Mac data. However, daily rates have been approached 7.5% earlier this week.
The combination of high mortgage rates and high home prices has eaten into would-be homebuyers purchasing power. As Redfin points out, a homebuyer with a monthly budget of $3,000 can now afford a $429,000 home compared to a $500,000 at the same time last year when mortgage rates were 5.5%.
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Fed stands ready to raise interest rates further, as needed
The Federal Reserve may need to raise interest rates further to ensure inflation is contained, Fed Chair Jerome Powell said on Friday, nodding both to easing price pressures and the surprising over-performance of the economy.
Powell said Fed policymakers would "proceed carefully as we decide whether to tighten further," but also made clear that the central bank has not yet concluded that its benchmark interest rate is high enough to be sure that inflation returns to the 2% target.
Recent data has raised a new concern, said Powell.
"We are attentive to signs that the economy may not be cooling as expected," with consumer spending "especially robust" and the housing sector possibly rebounding".
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Nvidia is not a household name, but not being very well-known does not get in the way of its success.
The stock market has done well in 2023, and one reason for the uptick is this technology company that specializes in designing and manufacturing graphics processing units (GPUs), as well as related software and hardware technologies.
The Santa Clara, California based company has jumped 222% this year as a result of spectacular sales. It recorded year-over-year sales growth of 101% to $13.5 billion for the three months ending in July, which was a new high for Nvidia.
The reason for this impressive performance? The artificial intelligence boom.
Supplemental Security Income (SSI) recipients will receive two payments in September.
According to SSA’s schedule, SSI payments are sent on the first day of each month. However, if the first day falls on a weekend, the payment will be sent in advance. If the first of the month falls on a Saturday or Sunday, the payment for that month is sent the Friday before during the previous month.
To receive SNAP benefits, it is necessary to meet certain requirements such as meeting gross and net income limits, resources, among others. Despite being a federal scheme, each state administers its program, and the requirements may vary in different areas.
The Food and Nutrition Service of the United States Department of Agriculture establishes certain general criteria, which usually change each year, taking effect each October. Benefit amounts also change annually.
After the Fiscal Responsibility Act of 2023 was signed into law, some requirements to be able to receive SNAP benefits have changed and will go into effect very soon.
Currently, the standard minimum wage in Florida is $11 - but this amount is to rise to $12 from 30 September 2023.
What’s more, automatic increases of $1 are scheduled to take place every year until 2026, as follows.
Seniors in Maryland may be eligible to receive up to $1,000 through property tax bill credits. Find out who qualifies and how to apply for the money.
Good morning and welcome to AS USA's live financial blog!
We will be bringing you the latest on SNAP benefits news Social Security updates and student debt plans, as well as other financial news affecting US consumers as policymakers continue work to tame inflation.