25 February 2019
Question: According to MSN: Money, what are the five (5) expenses derailing American’s Retirement savings?
Abortion debate exposes deep divisions across US – Pg. 4
– On Friday the Trump administration issued a draft federal rule that would prohibit healthcare providers that receive federal funding from referring women elsewhere for abortions
– New York’s new law, which took effect last month, permits abortion after 24 weeks of pregnancy in the “absence of foetal viability” or cases where the procedure is necessary “to protect the patient’s life or health”, and decriminalizese the procedure
– New Mexico, Rhode Island and Vermont are following suit with bills that would codify abortion access in case the Supreme Court takes steps to overturn Roe v Wade, its 1973 ruling that established a legal right to abortion in the US. Virginia had been considering a measure that would have allowed late-term abortions in cases of danger to a woman’s “mental health”, but it failed at the committee stage
Tepid inflation sparks Federal Reserve rethink – Pg. 4
– …persistent soft inflation readings over recent years could damage the Fed’s ability to convince the general public it will hit its 2% goal. Central banks in other large economies are likely to face similar problems…
– Persistent shortfalls relative to the Fed’s 2% target have already helped prompt officials to shelve plans for further rate rises. But they are also thinking more broadly about the US central bank’s inflation mandate – a topic that will be up for discussion at the Fed conference in June
– When former Fed chair Janet Yellen began monetary tightening in 2015, her approach was rooted in economic orthodoxy. This dictates that a hotter labour market will fuel both wage and price growth. Late into 2018 the Fed’s leadership was still worrying about the risks of economic overheating
– Fed officials’ faith in the so-called Phillips curve linking unemployment and inflation is being shaken by persistently tepid price data…
– Having peaked at 10% after the crisis, unemployment is now only 4%. Wage growth has risen above 3%, but the measure of core inflation favoured by the Fed remained below 2% in November, as it has done for all but six months of the past decade
Answer: (1) Unexpected expenses or emergencies; (2) Quality-of-life activities; (3) Paying off credit card debt; (4) Monthly bills; (5) Children’s expenses