Inflation numbers came in higher than expected and the market tumbled in response, the threat of train strike wreaked havoc this week with train travel but seems to have been averted, and NGPF was in the news! Read about all that and more in this week’s list.

Economics

• August CPI was released this week, and inflation is proving to be persistent. Energy prices are lower, but just about everything else is higher. The cost of housing is a key driver, and food continues to rise. (AP) The disappointing CPI sent markets reeling. (CNBC)
• Jeanna Smialek pulls together economists’ reactions to the inflation data, expectations for the outcome of the Fed’s meeting next week, and changing views on potential recession. (NYT)
• Two of the three months of CPI that are used to determine the Social Security COLA are in the books now. How much bigger will the 2023 COLA increase be? 2022 was 5.9%, (Yahoo Finance)
• PI was up but the Producer Price Index (PPI) actually fell for the second consecutive month in August. (Reuters)
• A potentially devastating rail strike seems to have been averted (Reuters) (ap), but there are still issues impacting the supply chain. (Wired)
• Pandemic aid in 2021 put a big dent in the number of people living in poverty. The number of children living in poverty dropped in half. (NY Times)
• Was FedEx’s announcement of decreasing volumes and cost-cutting measures a signal about the economy? (CNBC)

Behavioral Economics/Budgeting

• Read about many of the pilot programs across the country offering qualifying individuals guaranteed income (universal basic income). The goal is to break the cycle of poverty. This article provides divergent opinions of these programs. (NY Times)

Housing Market

• Mortgage demand drops 29% from last year, as mortgage rates top 6%. (CNBC) (NY Times0

Cyrptocurrency

• Ethereum’s energy saving “Merge” is explained. (Reuters)

Paying for College

• Apparently, millions of student loan borrowers who made payments during the Covid pause will receive refunds under the loan forgiveness plan. (Forbes)

Labor Force

• A group of women at the St. Louis Fed examined the progress of women in STEAM fields and discuss how more progress can be made.

Financial Literacy/NGPF in the news

• ICYMI-There was some very exciting news news this week at NGPF. A very generous grant from Michael Jordan and Jordan Brand will bring personal finance education to almost 500,000 high school students to be implemented by NGPF. Read (PRNewswire) for all the details!

Philanthropy

• Patagonia founder transfers all of his family’s ownership in the company to a trust to help fight climate change. (Yahoo Finance)

About the Author

Beth Tallman

Beth Tallman entered the working world armed with an MBA in finance and thoroughly enjoyed her first career working in manufacturing and telecommunications, including a stint overseas. She took advantage of an involuntary separation to try teaching high school math, something she had always dreamed of doing. When fate stepped in once again, Beth jumped on the opportunity to combine her passion for numbers, money, and education to develop curriculum and teach personal finance at Oberlin College. Beth now spends her time writing on personal finance and financial education, conducts student workshops, and develops finance curricula and educational content. She is also the Treasurer of Ohio Jump$tart Coalition for Personal Financial Literacy.