USA finance and payments news summary | 21 May 2022
US Finance: Live Updates
Headlines: 20 May 2020
- All major Wall Street indicators show markets down 2-3 percent compared to the week prior.
- Walmart and Target stocks began to slide after quarterly profits report show losses
- Cryptocurrency USA: what do Luna and TerraUSD have in common?
- With summer just around the the corner, gas prices continue to rise, influencing vacation plans.
Helpful info & links
- California State Disability Insurance (SDI) program: what you need to know
- What is the maximum unemployment benefit in New York?
New York home loan forgiveness program:how to apply and what are the requirements?
Are worries about US recession and inflationary disaster overhyped?
Looking at the current ecnomic outlook, one could be forgiven for feeling gloomy about what the future holds. On the bright side unemployment is at near record lows and companies are still investing in new technology and more secure supply chains.
Christopher Smart opines that there may be a temporary shock but that economic balance will in time be restored.
Today I signed the Access to Baby Formula Act of 2022. This allows for certain program requirements in the Special Supplemental Nutrition Program for Women, Infants, and Children to be waived so people can more easily access the infant formula that they need.
First shipment of Operation Fly Formula due to arrive Sunday
The first shipment as part of the "Operation Fly Formula" announced by the White House will be landing in Indiana on Sunday. It will contain 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 will include 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.
California, for the purpose of the State Disability Insurance (SDI) program, defines “disability” differently than that of the Social Security program. Workers who are prevented from carrying out the regular and customary requirements of their job due to a medical condition may be eligible to claim benefits.
This can include a non-work-related illness or injury, whether it be physical or mental, along with pregnancy and childbirth or even elective surgery, among other medical conditions. The program provides financial support to all eligible California workers who are unable to work or losing wages because of the condition.
Warren Buffet, skills, unlike currency, are inflation-proof
Warren Buffet repeated his long-held advice when speaking at the 2022 Berkshire Hathaway annual shareholders meeting, be the top of your field to protect against inflation. One of the most followed investors, he says the best investment that you can make is in yourself.
“Whatever abilities you have can’t be taken away from you. They can’t actually be inflated away from you," he said. Adding "and it’s not taxed at all.”
Some of the biggest retailers in the United States have recorded severely disappointing figures for the first quarter of 2022, causing a slump in their stock market valuations. Target and Walmart both had their worst day on the stock exchange this week in 35 years.
Subprime borrowers falling behind on loans
According to Equifax, the rate of borrowers with subprime ratings that are more than 60 days late on payments of personal loans and credit cards is rising faster than normal. This could be expalined by inflation rising and no more government pandemic stimulus programs to help fill in the gaps between expenses and income. This leaves people with the decision of whether to pay for necessities or pay off their debts.
Renewable energies remain competitive as energy prices surge
The International Energy Agency has reported that through 2022 and 2023, the prices of wind and solar energy are expected to remain high. However, dude to crude oil and gasoline supply shortages, renewables are still expected to remain competitive.
The prices of non-rewnable sources of energy like petroulum and natural gas are expected to increase at much faster rates as the supply chain and logistical problems impact their margins more directly.
New price records have been set across the US for fuel since the outbreak of the war in Ukraine. Most recently a new barrier has been smashed - the price of a gallon gasoline is at least $4 in every state in the US.
Prices have been rising since the turn of the year. According to the AAA, the average price for a gallon of fuel was $3.28 in January. While it had been rising after the lows of the pandemic, the Russian war in Ukraine has caused a huge surge in prices.
Food insecurity in households with children has risen 12 percent since CTC payments stopped
Since the federal government has stopped making the monthly Child Tax Credit payments, food insecurity has risen twelve percent by February. As food costs have increased families have struggled to keep up.
Negotiations over the Child Tax Credit have basically collapsed with few on Capitol Hill calling on action to support families, those with and without children. Seniors have also struggled as many live on a fixed income which can be easily impacted by rapid increases in costs. The Senior Citizens League, an organization that represents the rights of seniors, reported hearing that many on Social Security had began to cut out meals and forgo picking up perscriptions because their benefits were not able to get them through the month.
The age at which a worker can retire and receive their maximum Social Security benefit amount depends on the year they were born. At sixty-two, Social Security benefits can be claimed, but it is not until almost a decade later that the maximum benefit becomes available. Working later can increase your benefit amount. Read our full coverage for more coverage.
President Biden releases video on further plans to end the baby shortage formula
Supple chain pressures and a major product recall have combined to create a dangerous shortage of infant formula in the United States. President Biden is looking to increase the supply and make parents aware when new products become available near them. There have been reports of baby formula products being resold online at a huge mark-up as parents are desperate to stock up on the essentials.
What percent of Starbucks' union elections have succeeded?
Over the last few months eight-eight Starbucks locations have voted on whether they would like to unionize. Of those, eighty-eight percent, or seventy seven locations, have voted yes.
The People's Policy Project crunched the numbers and found that the union would cover, so far, around 2,000 workers. This number could increase significantly as there are more than 150 locations planning to hold an election.
Which ciites saw the greatest decrease in the unemployment?
During the past 12 months nonfarm payroll employment increased in 147 metropolitan areas. The remaining 242 areas were essentially unchanged. The largest percentage employment gains from March 2021 to 2022 occurred in:
1. Atlantic City, New Jersey (+12.3 percent)
2. Las Vegas, Nevada (+12.1 percent)
3. Flagstaff, Arizona (+10.2 percent)
Americans across the country are back to work at a historic level. Right now, workers in Alabama, Alaska, Arizona, Georgia, Idaho, Indiana, Kansas, Kentucky, Minnesota, Mississippi, Montana, Nebraska, South Dakota, Tennessee, Utah, West Virginia, and Wisconsin are less likely to be unemployed than in any other time on record. The unemployment rate did not increase in any of our 50 states.
Hello and welcome to AS USA's Financial News live blog for Saturday, 21 May 2022.
We will be bringing you all the investment and monetary news you need.
Curious about whether or not Congress will take up the issue of the child tax credit? We will bring you the latest on this and other issues, like the baby formula shortage.
Cryptocurrency is seeing one of its largest decreases in years, with many long-term investors exiting the market, what does this mean for Bitcoin?
Gas prices are up around the country, a sign that while inflation began to slow in April, numbers could spike again in May.