USA finance and payments news summary | 23 May 2022
US Finance News: Live Updates
Headlines: 23 May 2022
- After posting gains on Monday, all three main indexes are down in pre-market trading
- Crude oil prices closed Monday just over $110, up sixty-six percent from this time last year.
- Target and Walmart profits drop and stocks plunge after posting financial reports
- Gas prices tick up as the war in Ukraine leads to further supply chain disruptions.
- Markets continue to wobble last week as gas prices continued to increase the cryptocurrency market continued its decline.
- Quit rates increased in eight states in April, as The Great Resignation continues in hot labor market.
Helpful info & links
- What is the California State Disability Insurance (SDI) program?
- Which states spend the most money on Medicaid?
- New York Unemployment Benefits: what is the maximum?
Minneapolis rolls out guaranteed basic income pilot program
Like many other cities and non-profits around the nation, Minneapolis will study the effects of boosting household incomes with monthly no-strings-attached cash payments. Over the next two years, 200 participants will receive $500 per month.
The eligibility requirements included living in one of nine Zip codes, having an annual income at or below 50% of the area median income for Minneapolis and experiencing a covid-related impact on their lives.
EV share of new car sales in March 2022 almost double from last year
Electric vehicles made up nearly seven percent of new car sales in March 2022, almost double its share last year. Interest in EVs has been growing slowly over the past five years, but spiked in March, just when the price of gas did too.
Although on average more expensive than combustion engine cars, the basic model of the new Ford F-150 Lightining is less than $46,000, the average price of a new car in 2022.
Bank of American to raise company's minimum wage to triple the national level
Bank of American announced on Monday that at the end of June, its lowest paid workers will get a boost to their hourly wage. A process that began in 2017, when the North Carolina-based company hiked its minimum wage to $15, will accelerate it US hourly minimum wage to $22, over three times the national minimum wage of $7.25 an hour.
The pay increase is equivalent to over $45,000 per year for a full-time worker. Bank of America plans to continue raise the minmum it pays employees to $25 an hour by 2025
US power grid regulator NERC is warning of rolling electricity blackouts in parts of the US as extreme temperatures and drought stress the power grid.
The California State Disability Insurance benefit is estimated at between 60 and 70 of wages earned prior to a non-work-related medical condition.
AS USA takes a look back at the three federal stimulus checks sent out to Americans during the coronavirus pandemic.
In March 2020, the rate of the obesity in the entire US was 41.9 percent, up from 19.8 percent at the turn of the millenium.
The worrying trend not only puts people’s personal health at risk, but also puts a greater strain on services and healthcare facilities. It is estimated that the medical cost of obesity in 2-19 was nearly $173 billion, while the medical costs for those with obesity are more than $1,800 greater than those with a healthy weight.
Our experts believe and the data shows that most of the price increases we’ve seen were expected and expected to be temporary. The reality is, you can’t flip the global economic light back on and not expect this to happen.
We will have several more months of rapid inflation, so I’m not saying that this is a one-month phenomenon.
This is going to be a haul. This is going to take some time.
[A recession] is not inevitable.
Problems approaching for Biden with inflation
Joe Biden has conceded that he beleives the fight against inflation will be a slog rather than a quick fix, but gave no indication on how long this could be.
In a bad CBS poll released Monday, 69 percent of the country thinks the economy is bad, and 77 percent saying they’re “pessimistic” about the cost of goods and services in the coming months. With elections coming up in near months, Biden will need a new strategy to win voters.
[Lack of big bills] gives them fewer weapons in the fight to retain the control of the House and Senate going into the midterms.
Between the Recovery Act and the bipartisan infrastructure bill, there are a lot of great policy wins in those bills. We just need to deconstruct it because most people don’t remember what was accomplished.
How much will the economy affect the Democrats in the midterm elections?
The White House considers the $1 trillion bipartisan infrastructure law passed last fall as a major legislative accomplishment.
But after promises of student loan cancellations, lowered costs of health and chilcasre, as well as the ending of the Child Tax Credit, is money towards some new roads going to energise the Democrat base? With inflation so high and the eocnomy in a muddle, the lack of much legislation passed could kill the Dems in the midterms.
The MIT Living Wage Lab reported that a “living wage” in New York City for an adult with no children was $25.42. For those with one children, the living wage jumps to $43.18, and for a parent with two children, the Lab calcuated that the living wage would be $53.00.
As of 31 December 2021, the minimum wage in New York City, Long Island, or Westchester County is $15 an hour. However, like many tipped workers around the country, those in New York City, can be paid a lower wage. For New York’s remaining residents, the lowest wage that can be paid is $13.50 an hour.
It’s great to be here to announce the more than $10 billion in new investment in American manufacturing. This new commitment of $5 billion for advanced automotive technology and $5.5 billion investment to open a new factory near Savannah, Georgia, is going to create more than 8,000 new American jobs.
The plan is to break ground as soon as January of 2023. And the new facility should be rolling out the latest electric vehicles and batteries to power them by 2025.
Biden highlights Hyundai's $5 billion invest to build EVs in the US
Electric vehicles are gaining traction, especially as gas prices stay sky-high nationwide. On Friday, Hyundai confirmed plans on Friday to build an assembly plant for that purpose near Savannah, Georgia. President Biden took advantage of his stop in Seoul to comment on the venture alongside Chung Eui-sun, chairman of the South Korean automotive giant.
"Electric vehicles are good for our climate goals, but they're also good for jobs and they're good for business," Biden said.
Hyundai intends to invest $5.54 billion and hire around 8,100 workers. Ground will be broken for the facility in 2023 with plans to roll 300,000 vehicles per year off the line by 2025. Additionally, the plant will build batteries to power the electric vehicles in an effort to establish a stable supply chain.
Gas prices have exceeded four dollars a gallon in many states around the country for the first time in history. Prices have not reached the levels they are currently holding at since the 2008 when the financial crisis was reeking havoc on economies all over the world.
As a major supplier of natural gas and petroleum, Russia’s invasion of Ukraine has negatively impacted energy markets. Many countries are trying to reduce their dependence on Russia, but they cannot fill the gaps as quickly as many would like.
Disruptions to the global economy caused by the Russian invasion of Ukraine could have serious impacts for the US
The stock market has struggled to remain at the levels seen throughout 2021 after Russia's decision to invade Ukraine has led to a crisis in the energy market. This week, Wall Street suffered its worse day in more than two years and more and more financial institutions see that a recession could be in the nation's future.
President Biden has said that his administration is "fighting a war on two fronts" and one of those fronts is inflation. Just when it seemed that things could not get worse, the baby formula shortage has made many low income households more vulnerable as prices surge as the product becomes harder to find.
Around the world, food prices are soaring as many grow worried that global grain and food oil shortages may be felt this fall. So far top grain producers, India, China, Russia, and Ukraine are all reporting shortages in production which could lead to increased hunger around the world. In China and India shortages are due to weather and climate change related issues that led to lower wheat yields than in previous years
Initial unemployment claims hit 218,000 last week
For the week ending on 14 May, initial unemployment claims hit 218,000 an increase of 21,000 from the previous week's revised level.
However, the overall insured unemployment rate decreased by 0.1 percent to 0.9 percent for the week ending on 7 May. Overall the number of total claims made for the same week fell to 1,317,000 "a decrease of 25,000 from the previous week's revised level."
Greatest Increase and Decreases in Unemployment Claims
The greatest increase in inital unemployment claims were seen in n California (+3,046), Ohio (+772), Texas (+452), Arkansas (+393), and Iowa (+337) for the week ending on 7 May. The states that saw the greatest decrease in intial claims were seen in New York (-9,899), Kentucky (-1,479), Indiana (-1,341), Florida (-746), and Massachusetts (-615).
A number of major retailers in the United States have imposed new purchasing restrictions on infant formula in response to a worrying supply shortage.
Last month CVS said it was limiting both in-store and online purchases of baby formula to three per order, following a similar cap introduced by Walgreens in March. Kroger has opted for a four-item limit per customer while Target has also placed restrictions on order size.
First delivery of "Operation Fly Formula" en route to USA
The first shipment as part of the "Operation Fly Formula" announced by the White House landed in Indiana on Sunday. It contained 132 pallets from Germany with three types of hypoallergenic formulas for children with cow’s milk protein allergies which are in short supply in the US.
The shipment included 1.5 million 8-ounce bottles of Alfamino Infant, Alfamino Junior and Gerber Good Start Extensive HA. From Indiana the formula will be shipped around the US to fill gaps in supply. As of 8 May there was a nationwide 43 percent out-of-stock rate, Iowa, North Dakota, South Dakota and Texas have all breached the 50 percent according to analysis from Datasembly.
Welcome and good morning to AS USA's live blog on financial news for Monday 23 May.
New reports show how important the Child Tax Credit was for low income families who are struggling to provide enough food as inflation cuts into the purchasing power of many households.
Millions have still to receive their tax refund from the IRS. We will be bringing you important information on how to check the status of your refund.
As gas prices begin to increase again various proposals are circulating on Capitol Hill. Some involve the sending of direct payments to residents living in areas where gas is over $4 a gallon. Slowly, this is starting to represent a greater share of the population than ever before. Republicans oppose this move over fears that it will contribute to the current inflationary trends in the market.