US With inflation running at a 40-year high, 36% of U.S. adults tapped their savings to cover living expenses: Survey
Inflation could cost Biden and the Democrats greatly
There is a reason President Joe Biden has gone from describing inflation as “transitory” to listing it as his “top domestic priority.” The last time inflation, now running at a 41-year high, was this bad, rising consumer prices helped make the Democrat in the White House a one-term president. Republicans won the next three presidential elections. Biden would like to avoid this fate. It may be too late for the narrow Democratic congressional majorities, especially in the House. Already disfavored due to recent history and redistricting, inflation appears to be the issue most likely to fuel a red wave in November.
- By age group, Gen Xers have taken the most from savings for everyday expenses: an average of $644.
- During the first half of the year, the U.S. personal savings rate fell to 5.1% in June from 8.7% in December 2021, according to government data.
- This may a good time to scrutinize your spending if you haven't already done so, one expert says.
More than a third of U.S. adults are dipping into their savings accounts to help them afford higher prices, new research shows.
In the face of high inflation, 36% of people say they have withdrawn an average of $617 from their savings during the first six months of this year, according to New York Life's. In that same time period, the U.S. personal savings rate fell to 5.1% in June from 8.7% in December 2021, according to the from the Federal Reserve Bank of St. Louis.
High Inflation Rates Push Some California Residents to Mexico for Groceries
"If you are on a budget, you gotta take care of yourself," said David McCarty, who lives in Chula Vista, California, according to News Nation.Despite the dip in the inflation rate, prices are still increasing in the food and shelter categories. "Food at home" was up 13.1 percent year-over-year, following July's reading of 12.2 percent.
By age group, Gen Xers (people born from 1965 through 1980) have taken the most from savings for everyday expenses: an average of $644, according to the survey.
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High inflation has continued pinching consumers' budgets, although it may be easing somewhat. The July measurement — released Wednesday —from a year ago, but not as high as the 9.1% year-over-year increase posted in June.
Income, however, isn't keeping up: The latest reading of hourly wages showedin July from a year earlier, which means inflation has generally wiped out the boost in income.
House approves Democrats climate, health bill, handing Biden a legislative victory
“Today is a day of celebration, a day we take another giant step in our momentous agenda,” said House Speaker Nancy Pelosi, D-Calif. She said the measure “meets the moment, ensuring that our families thrive and that our planet survives.” Republicans solidly opposed the legislation, calling it a cornucopia of wasteful liberal daydreams that would raise taxes and families’ living costs. They did the same Sunday but Senate Democrats banded together and used Vice President Kamala Harris’ tiebreaking vote t o power the measure through that 50-50 chamber.
In an effort to combat high inflation, theraised its target interest rate by another 0.75 percentage points, marking the second consecutive increase in that amount. when the Fed's rate-setting committee meets again.
'Get down and dirty about what your expenses are'
If you're among those turning to savings to support day-to-day living, experts say it may be time to take a closer look at your income and spending.
The ideal solution is to boost your income, said certified financial planner Douglas Boneparth, president of Bone Fide Wealth in New York. "Optimizing the top line — how much you make — can really help," he said.
If that's not a viable option, you then have to really scrutinize your spending, Boneparth said.
"Get down and dirty about what your expenses are," Boneparth said.
Here’s what’s in the Inflation Reduction Act, the sweeping bill impacting health, climate and taxes
The House on Friday afternoon is expected to approve the Inflation Reduction Act, sending a top Democratic legislative priority to the White House in a significant victory for President Biden. The includes measures to address energy and climate as well as major changes to the tax code and to health care. Here’s a look at…The includes measures to address energy and climate as well as major changes to the tax code and to health care.
"A lot of people probably haven't done that exercise," he said. "Really go back and look at three or six months of your expenses and figure out what needs to stay and what needs to go."
While turning to savings to support your living expenses isn't ideal, it's better than taking on debt to do so, Boneparth said.
Nevertheless, many consumers are racking up credit card debt. Balances rose to ain the second quarter, and the largest yearly increase in more than 20 years, according to the Federal Reserve Bank of New York.
Flush with cash, Democrats back midterms 'inflation act' ad blitz .
Flush with cash, Democrats back midterms 'inflation act' ad blitzWASHINGTON (Reuters) - Buoyed by a string of legislative victories, Democrats and their allies are throwing money at key congressional races hoping to overcome President Joe Biden's poor approval ratings, high inflation and historical precedent in the November midterm elections.