US financial news live updates: Social Security checks, stock market, interest rates, inflation
US Finance News: Latest Updates
Headlines: Monday, 19 June 2023
- Initial unemployment claims remained steady at 262,000 last week
- Retail sales unexpectedly rise 0.3% in May
- Federal Reserve held rates steady in June, but signaled two more rate hikes in 2023
- The Consumer Price Index tracks a 0.1 percent increase in prices in May
Read more from AS USA:
Having a credit card can be useful for making purchases when you don’t have the cash on hand to shell out for certain expenses. However, the trend among Americans is to increasingly use their credit cards no matter what.
Despite what you may have heard about using them to improve your credit score, carrying a credit card debt is not in your best interest.
This report tells us more about the best way to deal with credit card debt.
'Greedflation' driving up prices
Some large companies are raising prices to boost their own profits even as the Fed raised interest rates to control inflation, according to a new watchdog report.
“Higher interest rates haven’t stopped S&P companies, especially in the big food industry, from inflating consumer prices despite reporting billions in extra net earnings and over a trillion dollars in giveaways to wealthy investors,” said Liz Zelnick, the director of economic security and corporate power at the nonprofit Accountable.US.
Accountable.US found that companies like General Mills, Tyson Foods, and PepsiCo, have admitted to benefitting from raised pricing.
The findings strengthen the idea that corporate greed can be a driver of inflation, referred to by some as “greedflation.”
Inflation nationwide is slowing but still twice what the Fed would like, 2%. However, in parts of the US inflation remains more than four times that target.
The Federal Reserve wants to get inflation down to the 2 percent range, which has already happened in the Minneapolis-St Paul and Honolulu metro areas. However, places like Phoenix and Tampa are above 7 percent and Miami is at 9 percent.
Our coverage explains the factors that are pushing inflation in some metro areas to such high levels.
The price of pasta has been skyrocketing in Italy.
Last month, the Italian government called for a crisis meeting over the soaring prices of the country’s biggest staple. They went up by 17.5% in March and 16.5% in April compared to the same period last year. These percentages are twice the increase in the country’s consumer price index numbers, which were recently recorded at 8%. Some consumer advocates are proposing that people hold a pasta strike to protest the cost of the popular food item.
Will Italy's pasta predicament affect US consumers?
Record drop in egg prices
Some good news for egg lovers...
The price of this food item has just experienced its biggest monthly drop in more than 70 years.
Month-over-month the cost of a dozen eggs dropped 13.8%, the largest monthly decline since January 1951. As of May 2023, the cost of a dozen large grade-A eggs was $2.66, compared to $4.82 back in January of this year.
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.”
In an effort to ease financial burdens brought on by inflation and budget surpluses from the previous year, several states are issuing stimulus checks and tax refunds in June. To assist, we have provided a comprehensive list of states offering these payments, including instructions on how to request them and the corresponding amounts.
makes payments for Supplemental Security Income, in addition to distributing disability and survivor benefits.
The SSA is preparing to send out June benefits, and certain beneficiaries will receive a double payment next month. Here’s who’s eligible, the amounts, payment dates, and why sometimes two payments are made.
What is the circular economy? How does it work?
Unlike a linear economy, or even just recycling, a circular economy is a regenerative model that extends the life cycle of products in the production and consumption chain.
Instead of throwing things away or simply returning say an aluminum part to its raw state to be forged again, a circular economy keeps a product within the system through reusing, repairing, refurbishing and recycling existing materials and products as long as possible extending its life cycle and thus avoiding waste. It also involves sharing and leasing which means less products are needed and with it fewer raw materials.
The United States government has several nutrition programs. One of the largest is the Supplemental Nutrition Assistance Program (SNAP), formerly known as food stamps, which provides support to more than forty million people.
SNAP is a federal program that, in coordination with state governments, provides benefits to low-income families to buy food through an electronic benefits transfer card (EBT), which works like a debit card in certain establishments.
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The data, insights and consulting company, Kantar BrandZ, has shared the ranking of the 100 most valuable brands in the world this 2023. Technology brands dominate the ranking, and Apple remained as the brand most valuable, followed by Google and Microsoft. In fourth place is Amazon and and the top five is completed by McDonald’s.
Here more details of the five most valuable brands in the world.
The value of the five most valuable brands in the world
For the second consecutive year, Apple is the most valuable brand, according to data from the Kantar BrandZ ranking, based on market capitalisation and the value given by consumers themselves.
Apple maintains its crown in 2023, with a brand value of more than $880 billion dollars. However, it saw its value fall since in the 2022 ranking, it was $947 billion.
Many states are providing stimulus checks and tax refunds in June to help alleviate financial stress caused by inflation and budget surpluses from the previous year. Read our full coverage for a detailed list of the states offering these payments, along with instructions on how to request them and the corresponding amounts.
Supplemental Security Income amounts will increase for some recipients in June.
Here’s who will get an extra boost to their monthly payments.
The presence of Gen Z workers continues to grow as they come of age, currently almost 13% but forecast to hit 34% by 2031. The same year their income as a cohort is forecast to overtake millennials more than quintupling their 2020 economic power.
There are several initiatives to help reduce mankind’s footprint on Earth. One of those, the circular economy, gives an extended life to what we use.
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 Federal 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.