Economy News
Economic news covering Fed interest rate decisions, inflation data, jobs reports, GDP growth, and macroeconomic trends affecting the stock market.
Student Loan Defaults Surge to Record High, Credit Tightening Blamed
U.S. student-loan defaults have reached a record high, with over 9.5 million borrowers in default, highlighting a tightening credit environment rather than banking turmoil.
August SSI Payout on July 31 to Inject $5.4 Billion into Retail Sector
August's SSI payment arrives a day early on July 31, shifting $5.41 billion in benefits and potentially boosting retail sales for that day.
Consumer Sentiment Dips to 2023 Low, Yet Retail Sales Hold Steady
Economic pessimism among Americans reached 61% in July, the highest since December 2023, yet June retail sales grew 6.7% year-over-year, with consumer staples leading market gains.
Social Security COLA Forecast Steady at 3.8% Amid Easing Inflation
The Senior Citizens League keeps its 2027 COLA forecast at 3.8%, with June CPI-W inflation at 3.5%, potentially raising average monthly benefits by $73.62.
NJ Transit Secures $302M State Boost as Fare Revenue Stays Flat
NJ Transit approved a $3.5B operating budget with state direct aid rising 31% to $302M, while fare revenue holds at $980M, underscoring fiscal challenges.
Retirement Savings Target Drops to $1.2M as Plan Borrowing Surges 59%
Americans now target $1.2 million for retirement, down from $1.28 million, as 401(k) borrowing surges 59% and contribution rates fall, per Schroders.
Social Security COLA for 2027 Could Add Up to $63 Billion in Payments
Projected 2027 Social Security COLA of 3.6% to 3.8% adds $59.6-$63 billion to annual payments, with monthly checks rising $74-$75 on average.
Mortgage Rates Can Drop Without Fed Action, but Bond Math Shows Limits
U.S. mortgage rates can fall without a Fed cut, but bond market math shows the limits. The 30-year rate hit 6.65%, with purchase applications down 7.3%.
Illinois Lottery Sales Flat, Income Plunges 26% as Prize Costs Surge
Illinois Lottery sales dipped 0.3% in May, but operating income tumbled 26% as prize costs rose sharply, leaving a $124M June target.
June CPI Drop Lowers Odds for 3.8% Social Security COLA in 2027
June's CPI drop lowers the probability of a 3.8% Social Security COLA for 2027, with the current Q3 average pointing to a 3.1% increase. The gap represents an $11.6 billion annualized difference in federal spending.
