The White House – On Tuesday, the White House will highlight new initiatives to assist Individuals in reducing their everyday spending.
The White House’s efforts come as the latest Consumer Price Index report is set to be released.
While widespread economic concerns and the possibility of a recession remain, the extra measures aim to cut out-of-pocket costs.
The new measures, according to a White House official, are meant to cut the costs of the following:
- Health care
- Home heating
- Broadband access
According to the White House representative, the programs will assist tens of millions of families, the elderly, and children on a monthly basis.
The extra measures are the consequence of President Joe Biden’s signature on significant legislative efforts since entering office.
According to a White House official, the Federal Communications Commission will give funding to the Affordable Connectivity Initiative this week.
The program is part of the infrastructure bill, which is nonpartisan.
It provides qualified households with one of two options:
- A $30 monthly credit against their internet service plan’s cost
- A $75 monthly credit for Tribal land residents
The effort contributes to the availability of low-cost broadband to around 16 million homes.
The Department of Health and Human Services is distributing roughly $500 million in Low Income Home Energy Assistance Program funds to states, which will cover American households’ home heating costs.
The Biden administration announced in November that the initiative will provide $4.5 billion in government assistance to cut people’s heating costs.
As part of the infrastructure package, it also received an additional $500 million in funding.
According to a White House official, the effort had a huge impact, supporting around 5.3 million houses with heating and cooling expenditures as well as weatherization services during the previous year.
The Department of Health and Human Services will also identify which Medicare Part B drugs had their prices grow faster than inflation following the implementation of the Inflation Reduction Act.
In the event of significant price increases, pharmaceuticals will be subject to inflation reimbursements.
According to a White House official, certain beneficiaries will also benefit from lower copays beginning next month.
The Department of Health and Human Services will also provide new statistics on how many seniors and people with disabilities are expected to have begun receiving free recommended vaccines as a consequence of an Inflation Reduction Act provision that went into effect in January.
The announcement on the Biden administration’s next steps comes ahead of the release of CPI statistics on Tuesday morning.
Inflation hit a three-month high in January, according to February CPI statistics, with a 0.5% gain.
Despite this, inflation has fallen to around 6.4% year on year.
Yet, concerns about the deterioration of the American economy continue.
Concerns were recently heightened by the publication of a stronger-than-expected employment report and the second-largest demise of a banking institution in American history.
The Federal Reserve hiked interest rates during 2022 in order to reduce demand and manage runaway inflation.
The net job growth in February exceeded forecasts for a mild month, signaling resistance to the Fed’s interest rate increases.
Silicon Valley Bank collapse
The Federal Reserve’s work has been scrutinized as a result of the demise of Silicon Valley Bank.
About half of all venture-backed tech, health care, and cryptocurrency firms in the United States were funded by SVB.
The rate increases contributed to the bank’s downfall in two ways:
- Increasing borrowing costs shocked the US economy’s weak spots, notably the technology sector.
- The rise in interest rates undermined the value of Treasury bonds, which are typically used as a main source of capital by banks.
Prior to the crisis, investors expected the Fed to raise interest rates by half a percentage point at its next week’s meeting.
Yet, because of the bank’s collapse, former Federal Deposit Insurance Corporation chief Sheila Bair feels a hefty increase is unnecessary.
Goldman Sachs advised customers late Sunday that the bank does not expect the Fed to hike interest rates next week.
President Biden attempted to allay anxieties on Monday by emphasizing his administration’s efforts to protect small businesses and employees in the aftermath of the bank’s shutdown.
Among the activities include backstopping depositors’ funds at Signature Bank and SVB, refusing to aid SVB investors, and holding those involved accountable.
“Americans can rest assured that our banking system is safe. Your deposits are safe,” said Biden.
“Let me also assure you we will not stop at this. We will do whatever is needed on top of all this.”
Image source: TMJ4