USA finance and payment: summary news 30 april
US Finance and Payments: live updates
Headlines: 30 April, 2022
- Wall Street sees its worse performance in over a year with the Dow Jones (2.7 percent), NASDAQ (4.1 percent), and S&P 500 (3.6 percent) all closing the day down
- Amazon stock fell by fourteen percent, representing the worst day for the company in over eight years
- President Biden to announce decision on student debt cancellationin the coming weeks
- Maine begins to send $850 stimulus checks to residents as infant cuts into purchasing power
- Some states are offering higher SNAP benefit amounts as food prices increase
- Biden confirms that he will not be pushing for $50,000 of student debt forgiveness
- Where do the experts stand on renting vs buying in this new housing market
Helpful Information & links
- Looking for a status update on your tax refund? Use the IRS' Wheres My Refund? tool.
- Which states have the lowest prices for electricity?
- Medicare enrollment:what you need to know
- Chicago provides $150 gas cards: how to apply
Related News
In 2020 and 2021, eligible Americans received a total of up to $3,200 in federal stimulus checks, in addition to extra credits for households with qualifying dependents.
AS USA looks back over the three checks, officially known as Economic Impact Payments, distributed by the US government
Californians are currently suffering the worst of the gasoline price hikes, with the average price of a gallon of gas soaring to $5.70 in recent weeks. However state-imposed fuel taxes are making it even more expensive for California residents to fill up their tanks.
“It is clear now that the Legislature will not act in time to provide that immediate, limited relief, but we look forward to working with lawmakers on the Governor’s proposal for direct payments to Californians wrestling with rising prices,” said Alex Stack, Newsom's spokesman, in a statement.
What student loan forgiveness will Biden offer?
President Joe Biden has mooted the idea of widespread student loan forgiveness since running for the presidency in 2020, but during the first 15 months of his time in the White House he has focused on other priorities. But there is now renewed focus on the American student debt crisis, which currently comprises $1.75 trillion in outstanding loans.
The Washington Post's personal finances corresspondent Jeff Stein provides the scoop on what Biden is reportedly considering for borrowers...
When the pandemic first hit the United States in February 2020, the country experienced a severe recession. By April 2020, the unemployment rate rose to 14.7%, the highest since the Great Depression. Lower-income families suffered the most from the impact, and so the government enacted programs to help alleviate the economic hardships caused by the covid 19 pandemic and to stimulate the US economy.
As of March 2022, more than $1.5 trillion has been sent out to people across America through Economic Impact Payments (better known as stimulus checks), tax refunds, and advance Child Tax Credit payments.
Sen. Warnock pushes the Gas Price Relief Act
Numerous lawmakers has offered legislative solutions to the ongoing surge in the price of gasoline, which is hitting consumers at the pumps and preventing some low-income households from completing essential journeys. One of the proposals to have gained most traction is that of Sen. Raphael Warnock, whose Gas Prices Relief Act of 2022 aims to reduce the federal tax rate for fuel producers, bring the cost of the product down.
The legslation reads: "This bill provides for a temporary exemption through 2022 from the excise tax on gasoline (other than aviation gasoline) and from the Leaking Underground Storage Tank Trust Fund financing rate."
On Wednesday the Mortgage Bankers Association (MBA) released new datat suggesting that the average interest rate on a 30-year fixed-rate mortgage had risen to 5.37% for the week ending 22 April. This is the most popular type of home loan in the United States and it has risen to the highest level since the financial collapse in 2009.
However while the interest rates for some have risen sharply, many prospective home-owners are looking to reduce the initial monthly costs by opting for an alternative housing loan. Here's why so many people are looking into the prospect of an adjusted-rate mortgage...
GDP falls into the negative in latest data
On Thursday the Commerce Department announced that the United States' gross domestic product unexpectedly declined in the first quarter of 2022, at a 1.4% annualized pace. The economy coming off its best performance since 1984 in the previous year but new economic pressures appear to have hampered the progress.
The negative growth rate missed even the 1% gain estimated by Dow Jones for the quarter, which was the lowest estimate since the pandemic brought about a major recession in 2020.
GDP is the primary measure of tthe output of goods and services and is typically considered in these three-month periods. The rate of economic growth recorded in the first year of the Biden presidency was never going to be sustainable, but economists will be concerned that the drop-off has been so pronounced.
GDP figures for Q1 spark concern of a recession
For the past year the US economy has made solid recovery from the pandemic, with businesses able to reopen and the majority of those who lost their jobs now returned to the workplace. However the underlying numbers suggest that there could be problems on the horizon after some very underwhelming GDP figures for the first quarter of 2022.
Lawmakers pressure oil companies over soaring profits
One of the biggest financial concerns for Americans in 2022 has been the soaring cost of gasoline, which has risen to record levels and remains well above $4 per gallon. Much of the reason for the steep price increase was thought to be the sanctions levied on Russia for the invasion of Ukraine, which has strangled the global supply of crude oil.
However it has become increasingly apparent that American fuel companies have used the current situation to bolster their profits. Lawmakers, such as House Speaker Rep. Nancy Pelosi are calling for new measures to be introduced to curb the blatant profiteering.
Twitter has accepted Elon Musk's bid to take ownership of the platform. However, to fund the venture, Musk has opted to sell around $4 billion worth of Tesla stock.
Read more Last week, Elon Musk sold nearly 4.21 million shares, and since the sale, Tesla stock has decreased by more than nineteen percent in value compared to last month. The drop equates to a loss of around $35 billion in Tesla’s worth since his intentions to purchase Twitter was made public.
Read our full coverage for more on the response from investors.
Is a recession looming?
After markets took a tumble this week Deutsche Bank has predicted that the US will experience a "major recession." The bank's chief U.S. economist, Matthew Luzzetti, spoke with CBS as the financial institution has updated their prediction from a minor recession to one of a greater scale.
When asked if the negative GDP growth seen in the first quarter of 2021 will contribute to Luzzetti said no, and explained that the slowdown in the economy will be fueled by other factors.
Luzzetti mentioned that the bank is worried about inflationary pressures in the economy that they believe will land the US in a recession. The bank sees low unemployment and a tight labor market as contributing to price pressures. This theory has been refuted by many, who believe that as supply normalizes, inflation should begin to decrease. Additionally, some economists have noted that if increased employment and wages are creating recesison like conditions there is a strucural problem within the US economy. Workers receiving adequate compensation and entering the labor force should not threaten the economic health of the country.
What has Presidnet Biden said about student loan cancallation?
During a press conference on late last week, President Biden was asked what options he was considering when it came to student loan forgiveness. This comes after CBS reported that the President told some House members that he was thinking about cancelling up to $50,000 in debt for most borrowers.
However, his tune as since changed and during the press conference he said he "was not considering $50,000" but that he was taking "a hard look" at whether or not there will be additional debt forgiveness.
The President also touted his administration's efforts to help public servants see their debt forgiven. In the past many have complained that the program is bureaucratic and complicated, creating many barriers for those who qualify to access to the benefit.
IRS releases new video on how to check the status of one's tax refund
Millions are witing for their tax refund and the IRS has just the tool to help those people out. Where's My Refund? is an online platform that tracks the status of one's refund and even includes a date as to which the agency estimates the money will be sent. To use it you will need to provide your social security number, tax filing status, and refund amount --it is that easy!
Oil companies record "massive" profits as gas prices increase across the country
Oil executives in recent weeks have been on pa press tour noting their struggles to eep up with increased consumer demand. However, various companies including Chevron have related their profits from the first quarter of 2022 (January to March) and which showed companies raking in billions.
In just three months, Chevron made $6.3 billion "quadrupling its profit from the same period last year." Exxon Mobile also saw near record profits taking in $5.5 billion, "more than double last year’s first-quarter haul." Read more.
White House responds to questions over student debt cancellation
Q Hello, I have two questions about student loan forgiveness. First off, has the President concluded that he has the power to do this unilaterally?
And secondly, does he believe that means testing is the correct approach to student loan forgiveness?
MS. PSAKI: Well, there’s been no conclusion of any process internally yet. But you heard the President talk this morning about his ongoing consideration of how to provide additional relief to many Americans who are still — still have student loans, even though they have not paid a penny on federal student loans since he took office.
And what was the second part of your question?
Q Has he decided if he wants to do means testing?
MS. PSAKI: So, he has talked in the past about how, you know, he doesn’t believe that — that millionaires and billionaires, obviously, should benefit or even people from the highest income. So that’s certainly something he would be looking at.
Sanders blames corporate greed for continued high gas prices
Few would argue that there were not a confluence of factors that had brought about the sharp rise in gasoline prices in the past few months. Widespread inflation, economic conditions and the sanctions on Russian oil have undoubtedly influenced the situation, but there is a growing feeling that the gas companies are partly responsible too.
Sen. Bernie Sanders points to the blatant profiteering of some major fuel companies in recent months, arguing that an additional windfall tax is required to protect consumers.
The housing market has been thrown into chaos by the pandemic and many buyers are considering adjustable-rate mortgages.
Interest rates continue to rise across the country as the effects of sustained inflation are felt, sending the cost of mortgages soaring.
Data from the Mortgage Bankers Association (MBA) released on Wednesday found that the average contract rate on a 30-year fixed-rate mortgage rose to 5.37% for the week ending 22 April. This is the most popular type of home loan in the United States and it has risen to the highest level since June 2009.
Read our full coverage for more from experts on what buyers and renters should know in this new market.
President Biden speaks to the importance of investing in the nation's infrastructure
Build Back Better will not be passing anytime soon, raising concerns for some Democrats over how the failure will impact their standing after the 2022 Mid-Term election,
He did, however, sign into law a smaller, more targeted bipartisan package aimed at boosted investment in infrastructure. Speaking to reporters, Biden warned that the United States' position as a global leader is under threat if infrastructure issues at home are not resolved.
In a White House briefing released on Friday, President Biden confirmed that the Bipartisan Infrastructure Law aims to “invest public dollars efficiently, avoid waste, and focus on measurable outcomes for the American people.”
Worst day on Wall Street since 2008
Investors saw the worst day of trading on Wall Street since the 2008, with the Russian invasion of Ukraine creating high levels of economic uncertainty. All major market trackers, Dow Jones, NASDAQ, and the S&P500 are all down by more than ten percent compared to market levels seen this time last year.
Hello and welcome to AS USA's live blog covering financial news from Washington DC to Wall Street.
This week the US reported decreases in GDP growth and as the country grapples with high inflation some economists are concerned that a recession may be coming. Leaders on Capitol Hill are considering various bills that would provide relief for households as gas prices hover near historic levels.
With tax season over for the majority of those in the US, millions are waiting their refunds. Follow along for news on IRS return processing and for how to track your refund.