As fears of recession loom, the consumer price index up 6.5 percent and inflation at historic highs, funds that Americans saved during the COVID-19 pandemic are nearing depletion.
During the height of the pandemic, Americans were able to save more than $2.7 trillion as businesses shuttered. Investment bank Goldman Sachs estimated that 35 percent of COVID-19 relief funds have already been spent and by the end of 2023, that number will be up to 65 percent.
Lower income households have seen their savings diminish first. Folks that make under $50,000 annually saw their savings slashed by 36 percent compared to people who make between $100,000 and 15,000 who lost just 14 percent of their savings.
The use of credit has surged during this time as well, pushing the credit card debt to a new record of more than $930 billion at the end of 2022. It's a jump of 18 percent from the previous year.
Meanwhile, Treasury Secretary Janet Yellen rejected concerns that the U.S. isn't headed for a recession and believes that inflation can be eased.
"You don't have a recession when you have 500,000 jobs and the lowest unemployment rate in more than 50 years. What I see is a path in which inflation is declining significantly, and the economy is remaining strong," she said in an interview with ABC's Good Morning America.
If you have some older comic books stashed away in your attic, basement or closet, make sure to check their condition as they could be traded for serious cash. Cheddar News' Michelle Castillo at New Yor Comic Con spoke with Chris D'Lando, event manager with NYCC for Reedpop; Andy Mourat, co-founder and president of MetaZoo; and Julian Montoya, senior vice president of The Noble Collection, to get their thoughts.
Eliott Wellenbach, vice president and institutional ETF strategist with Direxion, joined Cheddar News to explain how investors are bracing for interest rate hikes after last week's inflation report and ahead of the Fed's upcoming meeting. Wellenbach also discussed how traders are taking advantage of volatility as earnings season continues and amid geopolitical conflicts.
One of the most difficult parts of a job search is writing resumes. Cheddar News' docuseries Ready 4 Work explores the pitfalls of that and helps job seekers stand out from all those other applicants.
They are playfully called the “forgotten five”: A handful of toys — the pogo stick, the Fisher-Price Corn Popper, My Little Pony, PEZ dispensers, and Transformers — that regularly approach toybox royalty as finalists for the National Toy Hall of Fame, only to be tossed back on the pile.
Rite Aid’s plan to close more stores as part of its bankruptcy process could hurt access to medicine and care, particularly in some majority Black and Hispanic neighborhoods and in rural areas, experts say.
