US financial news summary | 7 June 2023

Senators worried about state of mortgages

Recession still not averted

The signing of the debt ceiling lift has done little to steady the finely-balanced financial system in the US.

Over the next two years, $1.5 trillion in mortgages will be due in the next economic hazard that policy makers will have to deal with as high interest rates batter Americans with loans. 

FINANCE

June 2023: Which states will hand out stimulus checks? Amounts and how to request them

In light of inflation from the previous year and a budget surplus, several states are continuing to distribute stimulus checks and tax refunds for relief. Here’s a breakdown of the statessending out payments in June, as well as information on how to request them and the respective amounts.

FINANCE

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.

WELFARE

Find out which states have announced stimulus payments for 2023

In addition to the health crisis, the covid-19 pandemic brought with it economic problems, to which the US government responded by approving three stimulus checks with the aim of providing economic assistance to those most in need.

Although the pandemic has reached manageable levels, inflation continues to be high and many families continue to have difficulties with putting food on the table. This has prompted some states to offer their own help in the absence of a fourth federal stimulus check.

Here are six states with aid projects for 2023.

POLITICS

Can the US get rid of the debt ceiling? What would happen then?

The debt ceiling was put into place by Congress in 1917, so lawmakers could simply vote to take it off the books. But what consequences would that have?

FINANCE

How could the job market affect the Fed’s decision on rate hike in June?

Although inflation is still more than double the target of the US central bank and despite the strong economic data, future traders are now betting that the Fed will keep rates at the current level.

BUSINESS

These are the top 10 biggest US companies

After an awful 2020 and a difficult 2022, companies have begun making seriously large revenues again. So, which companies are the most profitable? Despite Apple having the largest market capitalisation on the stock market, the company doesn’t even rank the top three if measured by revenue. 

Check out the list of the top 10 companies by revenue.

FINANCE

What day of the week is cheaper to buy gas?

Can shopping around for gas save you money? 

Being smart about filling up your tank can save you hundreds of dollars over the course of the year. Prices can vary widely from one gas station to the next but also depending on which day you head to the pump can make a difference too.

Here are the best days of the week to get gas.

Unemployment increases even as the economy added over 330,000 jobs in May

Unemployment inched up to 3.7 percent in May from 3.4 percent. 

Although the rate rose, the US economy continued to add jobs, with over 339,000 workers being added to the payroll. However, this was not enough to offset the 440,000 increase in unemployed workers, which in May reached 6.1 million people. 

The professional and business services added 64,000 jobs, more than any other sector tracked by the BLS. Healthcare, construction, and leisure and hospitalialy together added more than 125,000 jobs, representing a high percentage of all jobs created in May.

Cheaper to buy than to rent in only four cities

A new study indicates that it’s cheaper to rent than buy in most of the US, unless you’re lucky enough to live in four select cities, per Yahoo! Finance.

The typical home’s monthly mortgage cost is lower than its monthly rent in Detroit, Philadelphia, Cleveland, and Houston, according to an analysis of the 50 most popular metros by real estate brokerage Redfin. These were also the only places where more than 50% of homes in each respective market were more affordable to purchase than rent.

In all other major cities, renting was more affordable than buying, the report found, a blow to potential homebuyers.

WELFARE

In which states do Social Security recipients get the most money?

Millions of people receive Social Security payments every month, but the check amounts vary. In 2023, thanks to the 8.7% increase in the COLA, the average payments of retirees nationwide amount to $1,827.

However, the average amount varies from state to state. Learn about the places where recipients receive the most money.

WELFARE

Social Security checks: Payment schedule and mailing dates in 2023

The Social Security Administration continues to mail out checks to its beneficiaries.

Each month, the SSA sends money to retired workers, as well as recipients of Supplemental Security Income and 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 rest of 2023.

Here are the payment dates for the remaining months of this year.

Almost 750,000 could lose SNAP benefits after debt ceiling deal

The new deal to lift the nation’s debt ceiling includes new work reporting requirements for 50-something adults who receive Supplemental Nutrition Assistance Program benefits.

CNBC reports that the change could result in almost 750,000 adults ages 50 to 54 losing their federal food assistance, according to new research from the Center on Budget and Policy Priorities.

SNAP benefits, also called food stamps, provide low-income individuals and families with monthly funds for food purchases.

FINANCE

$900 refund available from IRS: Check if you’re eligible and how to claim it

In April, the IRS announced that nearly 1.5 million people nationwide were still eligible to receive a tax refund worth up to $900.

It may not just be a $900 refund either, as many low- and moderate-income taxpayers might also be eligible for the Earned Income Tax Credit. For tax year 2019, the credit was $6,557.

But who is eligible and how can it be claimed?

SOCIAL SECURITY

$1,800 Social Security checks: Specific mailing dates in June 2023

Each month, the Social Security Administration sends money to millions of people in the United States.

This includes retired workers, recipients of Supplemental Security Income, as well as remitting disability and survivor benefits. It’s now time to send payments of more than $1,800 for the month of June.

Payments are calculated on an individual basis based on the “Primary Insurance Amount”. The amount of benefits may be affected by the age of the beneficiaries, as well as the increase in the cost of living adjustment.

Here are the dates the payments will be sent this month.

WELFARE

What is the income level limit for SNAP payments in June 2023?

The Supplemental Nutrition Assistance Program is a crucial federal assistance program in the United States that aims to provide food support to individuals and families with limited financial resources. Formerly known as the Food Stamp Program, SNAP plays a significant role in combating hunger and improving nutrition for vulnerable populations.

The income eligibility requirements for the Supplemental Nutrition Assistance Program vary depending on household size and other factors.

Stocks end higher as investors await CPI, Fed meeting results next week

Stocks closed higher on Tuesday, helped by some advances in economically sensitive sectors, as investors awaited inflation data and the Federal Reserve's policy meet next week.

Inflation data is expected to show consumer prices cooled slightly on a month-over-month basis in May but core prices are likely to have remained elevated, and the Fed is widely expected to hold interest rates.

Major indexes wavered as investors took a breather after pushing the S&P 500 up almost 20% from its October 2022 lows, boosted by gains in megacap stocks, a stronger-than-expected earnings season and hopes that the central bank is nearing the end of its interest rate-hike cycle.

FINANCE

Has the Anheuser-Busch InBev stock hit rock bottom? Experts think it’s time to take advantage

The conservative backlash and boycott to Bud Light partnering with Dylan Mulvaney, a transgender TikTok influencer, sent sales of the brand nosediving. 

Likewise, the stock price of parent company Anheuser-Busch InBev has plummeted as the controversy has dragged on since it began 1 April.

However, while Bud Light may permanently lose some of its customer base, the decreased sales of the brand only represent a tiny fraction of Anheuser-Busch InBev global sales. 

This has some thinking now might be a good time to buy.

Can the day you fill up your car affect the cost?

While the price of gasoline rises and falls generally with the price of crude, you can find big differences between gas stations on any given day. Shopping around to find the best price can save you $100 per year, perhaps as much as $300 according to Patrick De Haan, lead petroleum analyst at GasBuddy.

But going out on the right day to fill up is another strategy to find cheaper gas as prices fluctuate throughout the week. If you fill up your car strategically you could save yourself another pretty penny, between $50 and $100 per year according to GasBuddy estimates.

FINANCE

Tax returns up to $6,000 dollars: Who qualifies and how to claim it

While millions of taxpayers wait to receive their 2022 refund, there is still a large number of people who have not even claimed their refund for tax year 2019; so the IRS calls them before it’s too late and the money is lost forever.

According to the tax collection agency, about 1.5 million Americans have not claimed their 2019 refund, for a total of $1.5 billion unclaimed.

FINANCE

Can you use your 401(k) to buy a house?

Saving for a deposit can be a challenge when buying a home. However, your 401(k) can be a potential source of funds to help you reach your goal. Depending on your retirement plan’s provisions, you may consider either taking a 401(k) loan or withdrawing funds directly from your account. Each method comes with its own set of advantages and considerations. 

Let’s explore the options.

Finance and economic news: Welcome!

The bipartisan debt ceiling bill finally signed into law by President Joe Biden over the weekend averted a historic and potentially catastrophic debt default.

Meanwhile, the May jobs report blew past expectations yet again. Despite the robust hirings data, investors are betting that the Fed will hold off hiking interest rates when they meet on 13-14 June, so that policymakers can analyze economic data thoroughly.

The Consumer Price Index and inflation report will also be released next week.