Trump says: ‘I’m ready to sign a big, beautiful provocation’ – but many Americans aren’t banking on it

President Donald Trump is set to sign a “big, beautiful provocation”, he said, including suspicions in the Republican-controlled Senate at Town Hall on Thursday night and earlier this month, when he said he was negotiating. Said during.

Trump’s will may be a ray of hope for Americans in need of money, but a new poll shows that many are not waiting for more government assistance before getting their financial affairs in order.

People appear to be paying off the debt, and save money for another rainy day. According to a study published this week by the Federal Reserve Bank of New York, economic impact payments distributed in March were mostly used to raise savings accounts and pay off debt.

And if there is a second stimulation check? “Respondents expect to spend an average of 14% on essential goods and an average of 7% on non-essential items,” the Fed said. “Our survey results indicate that households are also expected to consume potential second-round small shares of incentive payments, while they expect to use a higher share to pay off their debt.”

‘While it may seem counterintuitive that more people are planning ahead during such volatile times, it may be the uncertainty of the present moment that makes planning so compelling.’

– Author of the US Financial Health Pulse 2020 Trends Report

“These findings indicate that economic impact payments, by increasing both household income and debt payments, contributed significantly to the sharp increase in the overall savings rate during the early months of the epidemic,” it said.

A separate survey released earlier this week advised people to plan with or without new incentive checks. According to an annual survey by the Financial Health Network, nearly two-thirds (64%) of Americans plan ahead financially, compared to 59% doing so a year ago and 60% doing so in 2018. The benefit organization focuses on consumer health and resilience.

The Democratic-controlled House of Representatives passed a $ 2.2 trillion coronavirus relief bill earlier this month. The White House instead proposed a $ 1.8 trillion package, which was rejected by House Speaker Nancy Pelosi as too low and Republicans as $ 1.8 trillion.

Researchers wrote, “While it may seem that during such volatile times more people are planning ahead, it may be precisely the uncertainty of the moment that makes the plan so attractive.” ”

“Without knowing when the next round of stimulus and relief measures would arrive, many continued to keep their expenses down, even as states began to reopen their economies.”

The survey looked at and reacted to transactional data from around 6,500 people in late July and early August. This is around the time that the $ 600 trillion CARS Act supplemental $ 600 weekly unemployment payments expired and many economic impact payments were already disbursed.

See it all: ‘I don’t want anyone in need of cash’: How the economic slap on spending and savings affects the permanent ‘mark’

A man on a Texas grocery story ahead of Hurricane Laura in late August. A new report said that those who had not received their incentive payments by August were six percentage points higher.

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Also on Friday, Americans expressed more concern about coronovirus and slow hiring in early October, as millions await a second stimulus package, but optimism that the economy will get better next year and Consumer perception will be pushed. Initial readings of the Consumer Sentiment Index ranged from 80.4 in September this month to 81.2 at the University of Michigan. This is the highest level since March, when the epidemic hit the United States.

The latest survey by the Financial Health Network suggests that the CARES Act had immediate benefits for many households. At the same time, the data indicates that some Americans are producing much better than others. In addition, the benefits may only be “temporary due to one-time policies, interventions and incidents”, the researchers said.

One-third of survey participants were financially healthy, up from 29% a year earlier. Financial income depends on factors such as spending less than their income, maintaining manageable debt and having sufficient savings.

The report showed that the highest earners had the biggest jump. Those making economically healthy people above $ 100,000 per year increased from 52% to 61% in 2020, while the percentage of people between $ 30,000 and $ 59,999 per year increased from 20% to 24%.

While 39% of White and Asian-American participants were financially healthy, only 15% of Black participants and 24% of Latino participants fell into the same category.

Read: Tax code increases racial wealth gap in 3 ways

“Building on the foundation of a strong pre-pandemic economy, it appears that an array of stimulus policies, debt-relief measures, economic shutdowns and changes in consumer behavior have temporarily caused the worst effects of the economic crisis for many. Has influenced, ”the authors said.

The findings were based on people’s experiences until summer time, and much has happened since.

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For example, the data indicated that some people were cutting back on groceries by the end of August. Meanwhile an eviction crisis is potentially low for an estimated 40 million tenants, which is at a halt after the Centers for Disease Control and Prevention’s moratorium. (The moratorium does not automatically apply to everyone.)

Survey hints at the problems some people are already facing without stimulation assistance. Researchers said those who were still waiting for incentive payments were six percent more likely to worry about running out of food in the coming three months.

Those who had not yet received unemployment insurance were 12 percent more likely to worry about paying their rent or mortgage, he said.


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