US Financial News: news summary | 26 June 2023
US financial news latest updates
Headlines | Monday, 26 June 2023
- Median price of homes sold in May continued to increase
- Texas and California will receive largest pot of funding to increase internet connectivity as a part of the Broadband Equity Access and Deployment program
- Initial unemployment claims held steady last week at 264,000
- The program that grants double food stamps in NY
- Walmartwill pay 4 million dollars in compensation to customers
Pandemic led to a rapid surge in retirees
The pandemic caused a significant decrease in the country's labor force participation rate due to widespread layoffs. Even as workers began to return to work, participation remained low, partly due to the large number of new retirees.
According to a report by the St. Louis Federal Reserve, there were 2.4 million more retirees in April than expected before the pandemic. Many older workers opted for retirement due to concerns about their health and the state of the US economy. However, if economic conditions worsen, some younger retirees may be tempted to return to the workforce.
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With over forty-two million recipients, the Supplemental Nutritional Assitance Program, commonly known as SNAP, is one of the largest social assistance programs administered in the United States. SNAP is a federal program that is administered at the state level, leading to wide variations in the eligibility criteria and the amount of benefits distributed.
Regardless of the state, SNAP benefits are focused on low-income households, and the funds are deposited each month on an Electronic Benefits Transfer (EBT) card that can be used at most grocery stores.
Read more in our full coverage.
Every month, the Social Security Administration (SSA) issues millions of payments to Social Security recipients, most of which are retired workers.
The data provided by the SSA from May will give insights into how much beneficiaries can expect to receive next month. In May, the SSA sent Social Security checks to 66 million people, of which 74 percent were retired workers. The average check was worth 1,836.06, with the maximum benefit amount for this year being $4,555.
Read our full coverage for details on the July payment schedule.
Under the bipartisan infrastructer bill passed by Congress in 2021, $42.45 billion were allocated to increase access to broadband internet across the country. All states are slated to receive funding for the Broadband Equity Access and Deployment (BEAD) program.
Read more on how much each state will receive in our full coverage.
US diesel Prices stabilize
U.S. ultra-low sulfur diesel front-month futures prices have declined each month since January 2023 and, as of May, averaged $0.50 per gallon (gal) lower than prices in February 2022, just before Russia’s full-scale invasion of Ukraine. For over a year, Russia’s full-scale invasion of Ukraine, and the reaction to it, has disrupted global crude oil and petroleum product markets.
Diesel is produced from crude oil, so crude oil prices are closely linked to diesel prices. Diesel prices in the United States and globally increased rapidly in the spring of 2022 because of concerns about global diesel supply. The possibility of less petroleum being exported from Russia pushed crude oil to the highest prices since 2014. U.S. diesel futures prices also rose, reaching an average of $4.30/gal in June 2022.
Each month, the Social Security Administration sends different payments: retirement benefits, survivor benefits, as well as disability benefits, including Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI).
What is the Supplemental Security Income (SSI) program?
According to the SSA website, the Supplemental Security Income (SSI) program provides monthly payments to adults and children with disabilities or blindness who meet income and resource requirements.
SSI payments are also provided to persons age 65 and older without disabilities who meet the financial requirements established by SSA. Read more.
Real wages rose 0.2 percent from May 2022 to May 2023
The Bureau of Labor Statistics reported earlier this month that from May 2022 to May 2023, the average private worker saw wages increase by 0.2 percent. However, not all industries saw increases, with workers in transportation and warehousing experiencing a pay cut in real terms as inflation continued to eat into household purchasing power.
The scale of a Walmart superstore is mindboggling, so too is the size of the company itself. That size results in the retail giant being a money machine.
Walmart is shuttering 21 “underperforming” stores across twelve states and the District of Columbia in 2023.
Here's when you can anticipate the loading of your EBT card this month as state agencies commence the distribution of SNAP benefits.
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The US Department of Justice has rewarded nearly $4 million as compensation to victims of a Walmart gift card scam.
According to Top Class Actions, the Walmart gift card scams allegedly began in 2015 when scammers instructed victims to purchase Walmart gift cards ranging from $500 to $1,000.
Between 2016 and 2017, Walmart froze balances on gift cards suspected of being part of the fraudulent scheme. Subsequently, the Department of Justice sought this frozen money so it could reimburse customers.
The Department of Justice filed a lawsuit for the forfeiture of the $4 million in gift card balances frozen by Walmart. This money will be available as compensation payments to affected customers.
DirecTV reached an agreement to pay some people who received unsolicited phone calls. Beneficiaries can receive up to $400.
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Each month, the Social Security Administration sends payments of up to $914 as Supplemental Security Income. The SSI program provides monthly payments to seniors, as well as people with disabilities, including children.
New York sees biggest stabilized-rent hike in decade
The New York City Rent Guidelines Board has voted to pass a rent hike for the roughly one million rent-stabilized apartments in the city.
The board agreed to a 3% raise on one-year leases and an increase in two-year leases in intervals of 2.75% the first year and 3.2% the second.
The changes will take effect on Oct. 1.
The decision marks the highest rent increase since mayor Michael Bloomberg was in office, when the board he appointed hiked rents up between 4% and 7.24% in 2013.
Mortgage rates drop slightly
Homebuyers have been closely watching mortgage rates that soared last year from historic lows. Both the 30-year and 15-year fixed mortgage average weekly rate dipped for the week ending 22 June. They sit at 6.67% and 6.03%, respectively, more than double where they were at the end of 2021.
Middle-class homebuyers face worst housing shortages
Middle-income homebuyers are hit hardest by the housing shortage.
Per Yahoo Finance, while 51% of earners in the US make $75,000 or less, only 23% of available home listings are affordable for these households, according to a report published by the National Association of Realtors and Realtor.com. The situation is even worse in cities like San Jose, California and New York, where only 5% and 13% of respective available listings are affordable for these families.
Higher-income people have more options in their income bracket. While only 7% of households make $250,000 or more, they can afford 85% of listings shown.
The covid-19 pandemic and the subsequent inflation that has come with the economic rebound placed put a lot of stress on household finances. For families that are struggling to make ends meet, they may be able to participate in the Supplemental Nutrition Assistance Program (SNAP), previously called Food Stamps.
The program is the largest food assistance program in the United States, with over 41 million people receiving benefits. That number is an increase of nearly 6 million since before the pandemic, when the program reached its lowest number of participants in 10 years in 2019.
Read more in our full coverage.
The Supplemental Nutrition Assistance Program, better known as SNAP, is a federal program to help low-income families and individuals to purchase food using Electronic Benefit Transfer (EBT) cards in authorized stores. The US Department of Agriculture (USDA), which manages the program, sent benefits to over forty million individuals in twenty-two million households in March.
Retirement is a phase of life when you stop earning a regular income from work. By preparing for it, you can build a financial cushion that will provide you with a secure and comfortable lifestyle during your retirement years.
Not many Americans are prepared for the expenses they will have to deal with in their golden years.
Hello and welcome to AS USA's live blog covering financial news
Federal Reserve Chair Jerome Powell testified in front of Congress last week to provide an update on where the US central bank stood in its fight against inflation. The Fed leader made clear that while no additional rate increases were implemented in June, rates would likely be hiked again starting this summer.
Last week initial unemployment claims rose to 264,000, up slightly from a week prior. The high numbers are an indicator that the labor market is softening, as figures like these have not been seen since early 2017.
Ongoning events in Russia could spell trouble for global economy.