US financial news | Summary news 23 August
US financial news: live updates
Headlines: Wednesday 23 August 2023
- Existing-home sales fell in July, prices rose for first time in five months
- Teamsters members ratify new contract with UPS avoiding crippling strike
- 30-year fixed-rate mortgage weekly average hits highest level in 20 years at 7.09%
-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
- 187,000 jobs added in July, unemployment falls to 3.5%
- 20% of student loan borrowers to pay $500 monthly when payments resume, according to study
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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.
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Bearing in mind that the deposit of the coupons is under the administration of state governments, below are the payment dates of SNAP benefits in August for each state of the country.
What are SNAP coupons?
One noteworthy program is the Supplemental Nutrition Assistance Program, popularly known as SNAP coupons.
Through this program, monthly coupons are provided to families in need who are struggling to put food on their tables. The amount depends on the situation of each family, especially on the number of household members.
A week prior to striking on 1 August, the International Brotherhood of Teamsters reached an agreement with UPS on over 60 changes and improvements to the national master agreement.
On Thursday, an overwhelming majority of the rank-and-file members ratified the new five-year contract which the union is touting as “the most historic collective bargaining agreement in the history of UPS.”
The UPS Teamsters' contract with the package delivery company will see pay increases across the board.
With storms battering parts of the US, some homes are likely to be damaged by strong winds and floodwaters. Fixing up a home is stressful enough, but this can be compounded by the hassle of dealing with insurance companies in the process of repairing whatever has been destroyed.
While this task can be challenging, following some pointers can increase the chances of receiving a fair settlement to repair the damage to a home.
Elon Musk to remove headlines from links to news stories on X
Elon Musk is pushing to change how news links appear on his social media platform X, formerly called Twitter, in a move that could potentially undermine the ability of news publishers to draw audience.
X is planning to remove the headline and text while retaining just the lead image from links to news articles shared on the platform, Musk said in a post.
The move is likely an attempt by Musk to get users to spend more time on X and push them to opt for the subscription service for more details.
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.
Investors expecting Fed chair to strike hawkish tone on interest rate policy
Federal Reserve Chair Jerome Powell is due to speak at a meeting of central bankers in Jackson Hole, Wyoming on Friday. Investors are keen to hear what Powell has to say with regard to the Fed’s interest rate policy going forward. Among professional and retail investors, over 80% surveyed by Bloomberg are predicting a hawkish tone from the head of the US central bank.
Over the past year plus policymakers have implemented one of the most aggressive series of rate hikes in 40 years to tame rampant inflation. Despite this the US economy is still powering along with unemployment low even as growth and new hires become more moderate.
While the rate of inflation is approaching the target of 2%, the expectation is that it will remain elevated for years to come. Likewise, the sentiment is that the central bank will keep interest rates higher for longer and that cuts won’t come until disorderly weakness appears.
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.
Dow and S&P dip as concerns rise Fed will keep interest rates higher, longer
The Dow Jones Industrial Index dipped half a percent and the S&P 500 lost over a quarter percent on Tuesday. The Nasdaq eked out a minor gain for the day. Investors are worried that the Federal Reserve will keep rates higher for longer.
Chair Jerome Powell is due to speak later this week at a meeting of central bankers in Jackson Hole, Wyoming. It’s hoped that he will provide clarity on what the central bank’s policy will be moving forward to bring inflation back to policymakers’ target of 2%. Price increases ticked up slightly last month to 3.18% after declining 12 consecutive months.
Teamster members ratify new contract with UPS avoiding strike
Over 86% of rank-and-file UPS Teamster members voted to ratify a new five-year contract with the shipping company. Details of the agreement were hammered out just days before workers were set to strike 1 August, however, until it was ratified by union members the specter of industrial action remained.
The new contract will give an $2.75 per hour across-the-board pay rise to workers applied retroactively to 1 August. Full-time workers will get a minimum hourly $7.50 rise over the life of the contract. It also addresses drivers’ complaints about a lack of air conditioning in roughly 95,000 delivery trucks.
Daily average rate for 30-year fixed-rate mortgage hits 23 year high
One of the factors limiting affordability for would-be homebuyers besides high prices has been rising mortgage rates. The weekly average rate for a 30-year fixed-rate mortgage hit 7.09% for the week ending 17 August, its highest level in 21 years according to Freddie Mac data.
On Tuesday, the daily average hit 7.49% according to Mortgage Daily News, a rate not see since December 2000.
Existing-home sales fell in July, prices rose year-over-year
The National Association of Realtors reported on Tuesday that sales of existing homes fell in July by 2.2% nationwide, down 16.6% year-over-year. Sales were down from 12 months prior in all four regions, only in the West did sales increase in July.
“Two factors are driving current sales activity – inventory availability and mortgage rates. Unfortunately, both have been unfavorable to buyers,” said NAR Chief Economist Lawrence Yun.
Meanwhile, the median sale price for all types of homes, $406,700, increased 1.9% last month compared to the same time last year. Prices were unchanged in the West but rose in Northeast, Midwest and South.
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.
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Certain Social Security beneficiaries will receive two checks in September. Find out who will receive them and when the exact payment dates will be.
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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.
The vast majority of American households lack flood insurance despite the risk being present in all 50 states and increasing as the climate changes. When water inundates a property, those without flood insurance can expect hefty out-of-pocket costs to clean up and repair as regular homeowner's insurance does not cover flood damage.
The cost of acquiring flood insurance pales in comparison to the costly damage that just an inch of water in your home can cause.
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.