USA finance and payments live updates: mortgage rates, Bitcoin prices, S.S. disability, unemployment benefits. – AS USA

USA finance and payments live updates: mortgage rates, Bitcoin prices, S.S. disability, unemployment benefits. – AS USA

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US finance: latest updates

Headlines: 30 June 2022

Bitcoin drops again on Thursday dipping below $19,000, with no thaw in crypto winter in sight.

– Fed chair Jerome Powell says economy possibly permanently changed after covid-19

California and several other states are sending stimulus checks to help residents combat inflation

– Concerns over the housing market grow as a more financial experts predict a recession is on the horizon. 

Tesla shutters Autopilot office and fires 200 hourly workers contrary to what Elon Musk previously stated to cut costs

Average US gas price $4.86 on Thursdaywhere in the country is it most expensive?

– 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:

How much do hourly workers make in the US?


The BLS has released compensation data from March 2022 showing that “private industry workers [earned on average] $38.61 per hour worked.” Wages and salaries made up the largest chuck of this figure, around $27.19, “while benefit costs averaged $11.42 and accounted for 29.6 percent of employer costs.

Sectors with the highest wages included utilities, information, and financial activities. 

Those with the lowest included leisure and hospitality and retail trade. 

Tesla’s poor market performance could be an investment opportunity

Tesla, like many other companies, has seen the value of its shares take a beating as investors fret about high inflation and how agressively the Federal Reserve will respond to bring it under control. Since the beginning of the year the largest electric car maker as seen its stock market value drop by over 40 percent, helping wipe around a third of Elon Musk’s net worth off the books.

However, for brave investors it may be an opportunity to pick up shares of Tesla while the price is devalued with its popular electric cars as demand for EVs is hitting record levels with gas prices sky-high.

Musk and the engineers working on the Autopilot system will need to work out some kinks though with the National Highway Traffic Safety Administration looking into accidents that happened while the driver-assistant software was activated which could lead to a recall of the program. Likewise, Tesla isn’t the only game in town with a number of established car manufacturers rolling out their own EVs, but its fans are extremely passionate about the brand and loyal.

Consumer spending dropped in May

Fast rising food and fuel prices dampened consumer spending in May according to data released Thursday by the Commerce Department.

While personal consumption expenditures (PCE) rose 0.2 percent in May, those gains dropped to negative 0.4 percent when adjusted for inflation. Likewise, inflation reduced a personal income growth of 0.5 percent to negative 0.1 percent once inflation was accounted for.

The year-on-year inflation rate in May was 6.3 percent, in line with April’s. However, once volatile food and energy prices were taken out the annual increase in the PCE fell to 4.7 percent in May, the third month straight that it has declined.

Is the housing market going to crash? Here are some predictions from the experts for 2022

HOUSING NEWS

Is the housing market going to crash? Here are some predictions from the experts for 2022

In early June around 5.8 percent of households in the US were behind on their mortgage or rent. Compared to this time last year, this rate has fallen by around 0.4 percent from 6.2 percent.

Over the past year, the federal government has tracked an eighteen percent increase in housing prices. This is the quickest price increase seen in the market since 1991. Between 2004 and 2006, housing prices increased around ten percent of each year. However, none are seeing a collapse in the housing market on the horizon. The conditions in the market are driven by very different factors, compared to those seen in 2006-2008.

Where is the market going?

Fed Chair willing to run the risk of recession to bring down inflation

Federal Reserve Chairman Jerome Powell joined European Central Bank President Christine Lagarde and Bank of England Governor Andrew Bailey to exchange views on current policy issues and discuss the longer-term perspective at the ECB Forum on Central Banking Forum in Sintra, Portugal on Wednesday. He told the panel that “The economy is being driven by very different forces.” Adding “What we don’t know is whether we’ll be going back to something that looks like, or a little bit like, what we had before.”

Powell said that the Fed’s role of securing price stability and maximum employment in light of pandemic-related supply chain disruptions and inflation pressures arising from Russia’s invasion of Ukraine is a different ball game than that of the past quarter century.

As the Fed moves aggressively to bring down inflation not seen in four decades by raising rates, the latest was the sharpest increase since 1994, there are worries that policymakers may cause a recession. However, Powell said that allowing inflation to run rampant would be worse.

“Is there a risk that we would go too far? Certainly there’s a risk, but I wouldn’t agree that that is the biggest risk to the economy. The bigger mistake to make would be to fail to restore price stability,” Powell said.

Woes grow for Three Arrows Capital crypto hedge fund

The “crypto winter”, which has seen around two thirds of market cap disappear, or roughly $2 trillion, claimed a new victim.

Three Arrow Capital, also known as 3AC, one of the most prominent cryptocurrency hedge funds, was plunged into liquidation on Wednesday after reportedly becoming insolvent in mid-June.

There are fears of contagion in the market to other companies that could be exposed to the unwinding of 3AC like Voyager Digital which failed to meet loan obligation on Monday, causing a further rout in crypto assets.

Now the Monetary Authority of Singapore, the city-state’s central bank, has reprimanded 3AC for misleading it with false information. The financial authorities accuse the embattled hedge fund of failing to disclose ownership information and exceeded the threshold set for assets under management.

Where are home prices expected to drop in the US over the next year?

US NEWS

Where are home prices expected to drop in the US over the next year?

Housing prices could come down by as much as ten percent in some markets that are overvalued reports Fortune according to Moody’s Analytics. Mark Zandi, the chief economist at Moody’s Analytics, told NPR that he expects prices to come down in some of the “most juiced-up markets.”

And, if “prices are 5, 10, 15% below where they are today where they’re peaking,” in two years’ time “I’d say that sounds about right to me,” he said. However, he doesn’t see a housing collapse because home prices will be bolstered by a couple fundamentals, supply and improved lending practices.

Read more

Could Tesla layoff of Autopilot staff signal doom ahead for white collar workers

Tesla CEO Elon Musk said earlier this month that he had a “super bad feeling” about the economy and that it would be necessary to cut costs. Part of that belt tightening would be to cut staff by around 10 percent.

The head of the electric carmaker clarified that the cuts would be from salaried positions and not hourly workers, which he expected to increase. So it came as a double surprise to around 200 hourly workers whose office in San Mateo was shuttered, and instead of being transfered to another office in Palo Alto as they had been told were given a pink slip. 

“It was definitely kind of numbing,” one of the laid-off workers told Reuters. “Yeah, we’re definitely shocked; we’re definitely blindsided.”

Musk in an interview this month said that “both Berlin and Austin factories are gigantic money furnaces right now.”

Michael Burry, famed investor depicted in The Big Short who predicted and profited from the housing market collapse of 2008, says that Tesla is the canary in the coal mine and the US labor market is about to be sliced in half. 

While blue-collar workers should weather the coming storm being highly sought after, a glut of white-collar workers could see their wages fall if they aren’t laid off.

Electric vehicle prices going up due to increased costs and high demand

A record number of electric vehicles were sold last year and expectations are that 2022 will be see even more car shoppers opting for EVs. The high cost of gas, topping $5 per gallon on average nationally, has been helping to drive demand.

However, the car industry has been struggling with disrupted supply chains and a semiconductor chip shortage due to the ongoing covid-19 pandemic. This has meant low production numbers of all vehicles and higher costs.

To offset this carmakers are raising prices on all their vehicles, but even more for EVs. This is due to the cost of materials needed to make the batteries, such as lithium, cobalt and nickle, have doubled in price since the pandemic. Likewise, with demand so high manufacturers are looking to cash in on consumers keen on adopting the new technology.

What are gas prices in the US and each state? Today 30 June 2022

US NEWS

What are gas prices in the US and each state? Today 30 June 2022

The Fourth of July holiday weekend kicks off on Friday when an expected 42 million people will hit the road to travel to festivities. Despite gas prices being two dollars higher on average than they were before the pandemic, more Americans are choosing to drive to their destination than in 2019.

“Earlier this year, we started seeing the demand for travel increase and it’s not tapering off,” said Paula Twidale, senior vice president, AAA Travel. “People are ready for a break and despite things costing more, they are finding ways to still take that much needed vacation.”

Here’s what price you can expect at the pump today.

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