USA finance and payments summary news: 27 june
US finance: latest updates
Headlines: 27 June 2022
- Wall Street looks set to start week building on strong gains Friday despite recession worries
- Average US gas price just under $4.90 on Monday - where in the country is it most expensive?
- The likes of Netflix, Meta, Apple and Nike will provide travel expenses for employees' abortion costs
- High price of gasoline could cause issues ahead of record-breaking 4th July weekend of travel
- President Biden pushes Congress to pass a three-month federal gas tax holiday
- Energy expert warns of "apocalyptic" gas prices if hurricane season affects US oil refineries
- Biden administration agrees to cancel $6bn in studen loan debt for 200,000 borrowers
Helpful links & Information
- What is 'shrinkflation'?
- Strategies for investing in cryptocurrency
- When will mortgage interest rates go down again?
- How does the COLA affect my Social Security retirement benefits?
Check out some of AS USA's related news articles:
EU & US announce natural gas partnership
We are also partnering to diversify energy supplies to Europe. While Russia has cut supplies of natural gas to several EU Member States, the United States and other producers have stepped up. Since March, global LNG exports to Europe have risen by 75 percent compared to 2021, while U.S. LNG exports to Europe have nearly tripled. To facilitate these efforts, the European Commission and Member States, in line with a mandate given by the European Council in March 2022, established the EU Energy Platform to coordinate measures to secure reliable and diversified energy supplies for the EU, including through the voluntary common purchase of pipeline gas, LNG, and hydrogen
Despite being a central pledge of his election campaign in 2020, Joe Biden has done little to cut the trillion dollar debt students in the US are under. He campaigned on forgiveness for all with some in his party calling for up to $50,000 per student, but there has yet to be an announcement of these plans.
In April, the administration said an announcement was “weeks away,” but it is now believed that it will not be until August that plans would be discussed with the public. This would coincide with the ending of the debt repayment pause which is scheduled to end at the same time.
President Biden urged Congress to take legislative action to lower the price of gasoline and diesel by suspending the federal gas tax for three months. Additionally, he has asked that states, that haven’t already, to take actions that can give relief to Americans burdened by record high fuel prices by dropping state gas taxes or other measures.
Should it get through Congress and states follow suit, it could give drivers some instant relief at the pump beyond the national average coming down slightly after topping $5 dollars per gallon. However, economists warn that the move could be counterproductive.
Investors played big role in driving housing prices during pandemic boom
Looking over recent data published by Redfin, Freddie Mac, and the Harvard Joint Center for Housing Studies, Fortune has concluded that investors, both large and small, flooding the US housing market played a major role in accelerating the housing pandemic boom and driving up US home prices.
Investors made up a record 28 percent of single-family home sales, according to a report published last week by the Harvard Joint Center for Housing Studies in the first quarter of 2022. That was an almost 20 percent increase from the year before and far above the 16 percent between 2017 and 2019.
Markets gains on indications of slower growth, less aggressive Fed rate hikes
Wall Street looks set to start Monday building on solid gains posted last week. Investors fears of the Federal Reserve jacking interest rates by another three-quarters of a percentage were calmed by dropping commodity prices.
The lower prices for raw materials like copper and crude oil could signal that inflation will finally be coming down, thus reducing pressure on the central bank to aggressively tighten monetary policy.
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The Social Security Administration (SSA) oversees the two main financial relief programs on offer to disabled Americans, both of which place limits on the recipient’s income.
Social Security disability insurance benefits (SSDI) is allocated along with the rest of the Social Security benefits for retired Americans. Supplemental Security Income (SSI), provides support for disabled people in the United States and recorded a total of 7.6 million monthly recipients in April 2022.
Each program is designed to support slightly different groups and has its own terms for eligibility...
Democratic California Gov. Gavin Newsom and legislative leaders have agreed to provide as much as $1,050 to millions of California families to help with inflation and rising gas prices.
The three-tier program, supported by both Newsom and state legislative leaders, would benefit around 23 million California taxpayers, handing out rebates to taxpayers making under $250,000.
Polling suggests more and more Americans unhappy with economy
A new CBS News-YouGov poll suggests a large majority of Americans are worried about the economy.
The percentage of Americans who view the economy as fairly bad or worse has grown for each of the past two months, rising from 63 percent in April to 75 percent in the latest poll.
And it should be no surprise. Inflation has been persistently high all year, especially in terms of energy. With many of these prices controlled by the ongoing war in Ukraine, there is little the US government can do about it.
Inflation affecting nearly everything
The US economy has made enormous progress in the past year as businesses were able to return to full operations after the vast majority of covid-19 restrictions were removed last year. The reopening of businesses and return to pre-pandemic condition is part of the reason for the current high rate of inflation, with fresh cash pouring into the market.
Excessive interest rate hike could slow economic growth to such an extent that the US actually slips into a recession, when the inflation rate drops below zero. The Federal Reserve will have to maintain a careful balance to stabilise the economy at the time when it remains vulnerable to changing circumstances.
Could diesel costs be the factor that pushes up inflation?
The price of gasoline has caused major headaches for Americans in recent months, adding to the cost of day-to-day living and forcing some households to limit the number of essential journeys they are able to make. But while its less of an immediate pressure on consumers' pockets, experts are warning that rises to the price of diesel could have the biggest effect on the US economy.
“No one really notices diesel prices in the U.S. because it’s really only used by industries,” warned Damien Courvalin, head of energy research at Goldman Sachs. “But that diesel represents a piece of your plane ticket, a piece of that box of cereal… that price is folded into aggregate inflation.”
Last week, President Biden called on Congress to implement a three-month federal gas tax holiday, in a bid to ease the financial burden on American drivers with the price of gasoline almost two dollars above last year. “President Biden understands that a gas tax holiday alone will not, on its own, relieve the run up in costs that we’ve seen,” a White House statement said. “But the President believes that at this unique moment when the war in Ukraine is imposing costs on American families, Congress should do what it can to provide working families breathing room.”
However much such a measure would help ordinary Americans, it is very unlikely to come before an expected record-breaking numbers of Americans take to the road next week for Fourth of July celebrations. The price of gasoline has come down slightly around the United States after topping $5 on average nationally. But even at $4.40 per gallon, as it is in Georgia, the state with the lowest average price, travelling long distances will cost a pretty penny.
Here's what you can expect to see when you fill up today.
The US major indexes have entered bear market territory as inflation soars and the Federal Reserve aggressively raises interest rates to stomp it down. The drop in valuations has hit the cryptocurrency market especially hard as investors flee to the safety of less volatile assets.
After peaking at $2.9 trillion in November 2021, the global cryptocurrency market hemorrhaged $1 trillion in value in the last two months alone.
As investors grapple with falling markets, what do the experts say about investing in cryptocurrency?
What is the current price of Bitcoin in USD?
The cryptocurrency markets enjoyed a period of almost unchecked growth during the first 18 months of the pandemic, reaching an all-time high of $68,000 in November 2021. However since that point the coin's prospects have changed dramatically and investors have been stung by extreme dips in value. Last week the price dropped to $18,000, the lowest figure since the start of the pandemic.
However there are now signs of a tentative resurgence that could bring investors flooding back into cryptocurrency markets.
After the Supreme Court overturned Roe v Wade, abortion is expected to be banned or become increasingly restricted in as many as 26 states in the coming months. Women can get the procedure in states where it is still legal, but the cost associated with interstate travel will make it prohibitively expensive for some.
This means that many women from poorer background may have little choice but to carry the pregnancy to term, even if they don't feel equipped to look after the child. Numerous studies have shown that reduced access to abortion typically increases a woman's risk of going into debt, entering bankruptcy and suffering financial hardship in general.
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