Home sales are dropping off a slope as rising interest rates, persistent inflation and declining home construction impact the market. We’ll also look at ways to prepare for a recession and hope for a bipartisan cannabis breakthrough.
📄 but firstFind out why President Biden and the National Archives are suing JFK Assassination records.
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The US saw a record drop in home sales in September
Home sales fell by the most on record in September as mortgage rates rose and drove potential buyers out of the previously hot housing market, according to a new report.
A report from real estate firm Redfin showed that the number of homes sold was down 25 percent, and new listings fell 22 percent last month, the largest ever decline in both categories — excluding numbers at the start of the coronavirus pandemic in April and April. May 2020.
Adam Barnes in the hill Details here.
This decline was driven by high mortgage rates and a cold economy. Several pieces of new data released Wednesday reveal the extent to which the Federal Reserve has changed interest rates in the housing market:
How to prepare for a possible recession in 2023
Many market watchers anticipate a recession in 2023 as the Fed continues to raise interest rates in its battle against high inflation for 40 years.
Given the constantly hot labor market, a recession is not a sure fate, but the economy has already contracted for two consecutive quarters, and the lull after a sharp recovery from pandemic lockdowns only makes sense, some analysts say.
Here are some ways to get in good financial shape for a recession:
- Take advantage of the hectic labor market as long as it lasts: At least one economic forecast put the probability of a recession over the next 12 months at 100%, but there is no consensus on when or even if a recession will occur. The main driver of this uncertainty is the labor market, which shows a high demand for workers, which means continued growth in the economy.
- Watch the housing market: In the United States, the housing market is another major driver of inflation, with rents and mortgage rates rising amid a national housing shortage of millions of homes, according to various business studies and estimates.
- Adjusting personal finances: As the Fed raises interest rates, paying for goods and services with finance will get more expensive. So now deferring major purchases and paying debts is a good way to save money with interest rates rising to 4.6% in 2023, according to the Federal Reserve’s latest median estimate, experts say.
Tobias Burns in Hill More tips here.
Biden’s request adds momentum to bipartisan marijuana bill
President Biden’s move to reassess the legal status of marijuana and pardon federal weed convictions has reinvigorated momentum for Congress’s move to boost the faltering cannabis industry.
Lawmakers see the lame-duck hearing as their best chance yet to pass the SAFE Banking Act, a bipartisan measure that would enable cannabis companies to more easily access banking and loans.
- Ed Perlmutter (D-Colo Democrat), who first introduced the bill in 2019, told The Hill this week that there was “significant activity” around the legislation, which he said some senators referred to as “SAFE Banking Plus” amid negotiations slave-woman.
- The bill — which would be a boon to cash-only dispensaries that have been plagued by thefts and exorbitant bank fees — has already passed the House six times in recent years. But it paused in the Senate amid concerns from top Democrats who said it was not doing enough to support communities disproportionately affected by the country’s drug laws.
Karl and Ares Dig more into this here.
Supreme Court urges halt to Biden’s student loan forgiveness plan
A group of Wisconsin taxpayers on Wednesday asked the Supreme Court to block the Biden administration’s student loan forgiveness program while an appeal is being made in a lower court.
The emergency order, filed with Judge Amy Connie Barrett, who handles emergencies arising from Wisconsin, comes shortly after the administration began accepting program requests.
- Challengers, the Brown County Taxpayers Association, urged the court to rule that the president’s nationwide debt cancellation plan illegally infringes on Congress’ exclusive spending power.
- In a filing Wednesday, rivals urged the Supreme Court to find that a policy of canceling Biden’s debt would have significant political and economic consequences, despite a clear mandate from Congress — a violation of what the court recently called the “principal questions principle.”
Hill John Crozell break it here.
good to know
The IRS on Tuesday announced changes to the rules Inflation account to
2023 tax year including shifts for tax brackets and standard deduction.
The IRS releases inflation adjustments annually, but this year’s announcement comes amid growing economic concerns about rising inflation and a possible recession.
Here are the other things we’re watching:
- The Treasury Department imposed sanctions on a Russian citizen and two of his companies on Wednesday for allegedly moving a sensitive US-based website. Russia’s military technology.
- Politician law firm It was created to support President Biden’s agenda on Wednesday and issued an ad promoting the administration’s Student Loan Relief Program.
- House Speaker Nancy Pelosi (D-CA) said in a new interview that Democrats need better Inflation messageswhich was a top priority for voters ahead of next month’s midterm elections.
That’s enough for today. Thank you for reading and checking out The Hill’s Finance page For the latest news and coverage. OK see you tomorrow.