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☆ Americans have $1.13 trillion in credit card debt. Here are some expert tips to help pay yours off
▼ + stars: | 2024-02-12 | by ( Jessica Dickler | ) www.cnbc.com time to read: +2 min

Collectively, Americans now owe $1.13 trillion on their cards, and the average balance per consumer is up to $6,360, both historic highs. More from Personal Finance:Average credit card balances jump 10% to a record $6,360Credit card debt hits a 'staggering' $1.13 trillionAmericans can't pay an unexpected $1,000 expense Already, credit cards are one of the most expensive ways to borrow money. The average credit card charges a record high 20.74%, according to Bankrate. Try a 0% balance transfer credit card "My favorite tip is to sign up for a 0% balance transfer credit card," said Ted Rossman, senior industry analyst at Bankrate. Those offers are "just about the best tool you have against credit card debt," added Matt Schulz, chief credit analyst at LendingTree.

Persons: Achilles, Tomas Philipson, Philipson, Ted Rossman, Matt Schulz Organizations: University of Chicago, White House Council, Economic Advisers, Finance

☆ Mortgage rate tipping point: Homeowners say roughly 5% is the magic number to move
▼ + stars: | 2023-09-05 | by ( Jessica Dickler | ) www.cnbc.com time to read: +4 min

Higher interest rates created a 'golden handcuff' effectSince it's unlikely rates will drop anytime soon, this has created a so-called golden handcuff effect. Similar to the financial incentives employers may offer to discourage employees from leaving a company, homeowners are now bound by their low mortgage rate. They don't want to move now and give up that low rate to buy at a higher rate. Between 1978 and 1981, mortgage rates similarly doubled from around 9% to more than 18%, compelling more homeowners to hold on to their homes. However, "mortgage rates weren't at record lows in the late 70s before they started to skyrocket in the early 80s, nor did home prices increase as rapidly," Channel said.

Persons: Nicole Bachaud, Bachaud, John Burns, Tomas Philipson, Bob, Terri Wood, Bob Wood Bob Wood, Terri, It's, Wood, he'd, Greg McBride, Jacob Channel Organizations: Finance, John Burns Research & Consulting, University of Chicago, White House Council, Economic Advisers, CNBC Locations: Mobile , Alabama, Tennessee, LendingTree

☆ As recession fears fade, we may be experiencing a 'richcession' instead — here’s what that means for you
▼ + stars: | 2023-08-16 | by ( Jessica Dickler | ) www.cnbc.com time to read: +2 min

"Although we are not in an overall recession yet, the demand for and wages of lower-income groups are outpacing higher-income groups." But there still aren't enough workers to fill open positions in the service industry and the unemployment rate remains near a 50-year low at just 3.5%. What a 'richcession' means for consumers"Recession is a loaded term," said Jacob Channel, senior economist at LendingTree. "White-collar jobs might not be as plentiful as they were last year, but they're still around." "On the contrary, most current data indicates that despite numerous headwinds, the broader economy is doing remarkably well, all things considered," he added.

Persons: Tomas Philipson, Jacob Channel Organizations: University of Chicago, White House Council, Economic Advisers, Digitalvision, Challenger

☆ Why so many Americans feel trapped in their homes by their low-rate mortgages
▼ + stars: | 2023-08-01 | by ( Jessica Dickler | ) www.cnbc.com time to read: +4 min

Saul Loeb | AFP | Getty ImagesThe recent spike in mortgage rates has created a so-called golden handcuff effect. For homeowners, a low mortgage rate is similar. Nearly 82% of home shoppers said they felt "locked-in" by their existing low-rate mortgage, according to a recent survey by Realtor.com. Between 1978 and 1981, mortgage rates similarly doubled from around 9% to more than 18%, compelling more homeowners to hold on to their homes. Mortgage rates may not return to sub-3% levels again anytime soon — if ever.

Persons: Bob, Terri Wood, Bob Wood Bob Wood, Terri, It's, Wood, Tomas Philipson, Philipson, Saul Loeb, he'd, Zillow, Greg McBride, Sam Khater, Freddie Mac's, Jacob Channel Organizations: University of Chicago, White House Council, Economic Advisers, AFP, Getty, Jacob Channel Locations: Mobile , Alabama, Tennessee, Arlington , Virginia, Bankrate.com, LendingTree

☆ Two economic experts discuss the Fed's path forward following June's cooler-than-expected CPI print
▼ + stars: | 2023-07-13 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailTwo economic experts discuss the Fed's path forward following June's cooler-than-expected CPI printSarah House, Senior Economist at Wells Fargo, and Tomas Philipson, Former Acting CEA Chairman, discuss what's next to the Federal Reserve following cooler-than-expected June inflation data.

Persons: Sarah, Tomas Philipson Organizations: Federal Locations: Wells Fargo

☆ FDA approves Alzheimer’s drug Leqembi, paving way for broader Medicare coverage
▼ + stars: | 2023-07-06 | by ( Spencer Kimball | ) www.cnbc.com time to read: +8 min

Leqembi is the first Alzheimer's antibody treatment to receive full FDA approval. The antibody, administered twice monthly through intravenous infusion, targets a protein called amyloid that is associated with Alzheimer's disease. Medicare coverage is a crucial step to help older Americans with early Alzheimer's disease pay for the treatment. Costs may vary depending on whether the patient has supplemental Medicare coverage or other secondary insurance, according to the agency. Philipson and his colleagues at the University of Chicago estimated that delaying Medicare coverage of Alzheimer's antibody treatments by one year would result in $6.8 billion in increased spending.

Persons: Joanna Pike, Leqembi, Pike, David Knopman, Knopman, Anna Eshoo of, Nanette Barragan, There's, Tomas Philipson, Bush, Philipson, Sen, Bernie Sanders, Xavier Becerra, Sanders, Eisai Organizations: Drug Administration, Medicare, FDA, Alzheimer's Association, Mayo Clinic, Services, Health, University of Chicago, Senate Health, Human Services, Clinical Locations: U.S, Minnesota, Anna Eshoo of California

☆ Nearly half of startups backed by some of the UK and Europe's top VC funds have zero women on the board, trailing bigger firms
▼ + stars: | 2023-06-28 | by ( Tasmin Lockwood | Riddhi Kanetkar | ) www.businessinsider.com time to read: +3 min

Almost half of startups backed by top UK and European VC firms lack female board members, data shows. It means startups trail the 350 biggest listed UK firms, which hit 40% female board representation. Startups, though often promising to disrupt the status quo, are well behind larger firms when it comes to female leadership. Nearly half of startups currently backed by top UK and European venture capital firms lack any women on the board, new figures show. The data comes from 16 VC firms in the UK and Europe and covers 450 companies in their portfolios.

Persons: ESG_VC, Henry Philipson, Philipson, Michelle You, there's Organizations: European, Molten Ventures, Beringea, MMC, British Private Equity, Venture Capital Association, Investors Locations: Highland, Europe

watch nowWhat the federal funds rate means for youWage growth hasn't been able to keep pace with higher prices for many Americans. Sarah Silbiger | ReutersThe federal funds rate, which is set by the central bank, is the interest rate at which banks borrow and lend to one another overnight. Here's a breakdown of how that affects consumers:Credit cardsSince most credit cards have a variable rate, there's a direct connection to the Fed's benchmark. As the federal funds rate rose, the prime rate did, as well, and credit card rates followed suit. Today's credit card rates are likely as high as they've been in decades.

Persons: Philipson, Sarah Silbiger, that's, Matt Schulz, they're, Freddie Mac, Sam Khater, Freddie Mac's Organizations: Eccles Federal Reserve, Washington , D.C, Reuters, LendingTree, Treasury, Istock, Getty, U.S . Department of Education Locations: Washington ,

☆ Who does inflation hit hardest? Experts weigh in on how higher prices impact households
▼ + stars: | 2023-06-01 | by ( Jessica Dickler | ) www.cnbc.com time to read: +4 min

Fizkes | Istock | Getty ImagesStubborn inflation has driven households near the breaking point, but the pain of high prices has not been shared equally. The lowest-paid workers spend more of their income on necessities such as food, rent and gas, categories that also experienced higher-than-average inflation spikes. Because higher-income households spend relatively more on services, which notched smaller price increases compared with goods, they came out ahead. Middle-income households see slower wage growthBy other measures, Americans in the middle class are getting especially squeezed. watch nowEconomists' definitions of middle class vary.

Persons: Laurence Kotlikoff, Tomas Philipson, Brian Albrecht, Albrecht, Philipson, Aron Levine, Boston University's Organizations: Istock, Getty, Boston University ., White House Council, Economic, University of Pennsylvania's Wharton, Finance, International Center for Law, Economics, Congressional, Office, Pew Research Center, Bank of America Institute, Bank of, Boston, Consumer Financial, Bureau

☆ Here's how the Federal Reserve's latest quarter-point interest rate hike impacts your money
▼ + stars: | 2023-05-03 | by ( Jessica Dickler | ) www.cnbc.com time to read: +5 min

The Federal Reserve Bank building Kevin Lamarque | ReutersWhat the federal funds rate means to youThe federal funds rate, which is set by the U.S. central bank, is the interest rate at which banks borrow and lend to one another overnight. On the flip side, higher interest rates also mean savers will earn more money on their deposits. As the federal funds rate rises, the prime rate does, as well, and your credit card rate follows suit within one or two billing cycles. With this rate increase, consumers with credit card debt will spend an additional $1.7 billion on interest, according to an analysis by WalletHub. Interest rates for the upcoming school year will be based on an auction of 10-year Treasury notes later this month.

☆ 73% of millennials are living paycheck to paycheck, new report finds
▼ + stars: | 2023-04-28 | by ( Jessica Dickler | ) www.cnbc.com time to read: +2 min

In this article LC Follow your favorite stocks CREATE FREE ACCOUNTwatch nowSome good news: Overall, fewer Americans are living paycheck to paycheck. Nearly three-quarters, or 73%, of adults ages 27 to 42 are living paycheck to paycheck, LendingClub found. "It's no wonder that almost three quarters of them are living paycheck to paycheck." As of March, 66% of Gen Zers were living paycheck to paycheck — up from 58% a year ago, according to LendingClub. "Generation Z are more apt to face financially life-altering events such as job loss, making them more financially vulnerable than any other generation," Nayar said.

☆ Negative real wage growth likely to continue: University of Chicago's Tomas Philipson
▼ + stars: | 2023-04-21 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailNegative real wage growth likely to continue: University of Chicago's Tomas PhilipsonTomas Philipson, professor at the University of Chicago, joins 'Closing Bell: Overtime' to discuss the debt ceiling, the Fed and inflation.

☆ Here's where to expect job growth in coming months: Univ. of Michigan professor
▼ + stars: | 2023-04-04 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailHere's where to expect job growth in coming months: Univ. of Michigan professorBetsey Stevenson, former chief economist at the Labor Department, and Tomas Philipson, former CEA acting chair and Univ. of Chicago professor, joins 'Squawk Box' to discuss the interplay between sectors that overhired and those with labor shortages, why the labor market data is skewed and more.

☆ Will the banking crisis cause a recession? It may depend on the 'wealth effect,' economist says
▼ + stars: | 2023-03-23 | by ( Jessica Dickler | ) www.cnbc.com time to read: +1 min

watch nowwatch nowThat leaves consumers with less access to cash to cover the rising cost of food, housing and other expenses. As households feel increasingly squeezed, that weighs on their confidence in the overall economic picture. What it takes to feel financially secureAmericans now say they would need an average net worth of $774,000 to feel "financially comfortable," but more than $2 million to feel "wealthy," according to Charles Schwab's annual Modern Wealth Survey. The University of Michigan's closely watched index of consumer sentiment recently fell for the first time in months. The Conference Board's consumer confidence index is also down, according to the latest data.

☆ Should you be worried about your money, your bank or the U.S. banking system? Experts weigh in
▼ + stars: | 2023-03-14 | by ( Jessica Dickler | ) www.cnbc.com time to read: +4 min

However, the unexpected shutdowns of Silicon Valley Bank and Signature Bank have many consumers concerned about their deposits, their bank and the U.S. banking system. Here, experts answer what a bank run is, how FDIC insurance works and whether your deposits are still secure. andresr | E+ | Getty ImagesThe short answer is "possibly," according to Stacy Francis, a certified financial planner and president and CEO of Francis Financial in New York. "This is happening, in part, because of the Federal Reserve's sharp rise in interest rates," Francis said. Further, "many banks are seeing large withdrawals from cash depositors who are looking [for higher rates] to make more money," Francis added.

☆ What is a 'rolling recession' and how does it affect consumers? Economic experts explain
▼ + stars: | 2023-01-27 | by ( Jessica Dickler | ) www.cnbc.com time to read: +1 min

By most measures, the U.S. economy is in solid shape. Although the first half of 2022 started off with negative growth, a strong labor market and resilient consumer helped turn things around and give hope for the year ahead. Gross domestic product, which tracks the overall health of the economy, rose more than expected in the fourth quarter, and the Federal Reserve is widely expected to announce a more modest rate hike at next week's policy meeting as inflation starts to ease. "There's no scarcity of economists with strong opinions," said Tomas Philipson, a professor of public policy studies at the University of Chicago and former acting chair of the White House Council of Economic Advisers. "There's a lot of scarcity of economists with the right opinion."

☆ New York Attorney General Letitia James sues owners of Long Island nursing home
▼ + stars: | 2022-12-16 | by ( Laura Strickler | Laura Strickler Is A Senior Investigative Producer | Reporter For Nbc News. She Is Based In Washington. | ) www.nbcnews.com time to read: +2 min

New York Attorney General Letitia James is suing the owners of a Long Island nursing home who also have stakes of dozens of other facilities nationwide. It is the third suit she has filed in six weeks alleging financial fraud and abuse of nursing home residents. Among other allegations, the lawsuit states that one resident was at the facility for five months and received just three showers. One of the previous lawsuits targeted Fulton Commons Nursing Home in East Meadows, N.Y. The Villages of Orleans Health and Rehabilitation Center in Albion, N.Y., was sued by the attorney general at the end of November.

☆ The Inflation Reduction Act Comes for Medicare
▼ + stars: | 2022-11-23 | by ( Casey B. Mulligan | Tomas J. Philipson | ) www.wsj.com time to read: +1 min

President Biden has accused Republicans of scheming to cut Medicare. In fact it is his signature legislation, the Inflation Reduction Act, that will lead to benefit cuts and premium increases for seniors. In 2025, under the Inflation Reduction Act, both government subsidies and out-of-pocket payments by patients are scheduled to be cut sharply. But the statute inhibits this third revenue source, which is also subsidized, from increasing more than 6%. That’s hardly enough to cover inflation, let alone compensate for the other two revenue losses.

☆ Oil producers need to put their profits into production, says former Rep. Donna Edwards
▼ + stars: | 2022-11-02 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailOil producers need to put their profits into production, says former Rep. Donna EdwardsFormer acting CEA Chair Tomas Philipson and former U.S. Rep. Donna Edwards join CNBC's 'Squawk Box' to discuss the Biden administration's call for a potential windfall tax on major oil companies.

☆ An increase in Q3 real GDP will still not impact Fed monetary policies
▼ + stars: | 2022-10-27 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailAn increase in Q3 real GDP will still not impact the Fed's monetary policiesTomas Philipson, Former Acting Chairman of the Council of Economic Advisers, joins Worldwide Exchange to discuss his expectations for the latest GDP print.

☆ Democrats need an economic message for swing voters, says former Sen. Heitkamp
▼ + stars: | 2022-10-14 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailDemocrats need an economic message for swing voters, says former Sen. HeitkampFormer U.S. Sen. Heidi Heitkamp, Tomas Philipson, former acting CEA chair and a University of Chicago professor, and CNBC's Rick Santelli and Steve Liesman join 'Squawk Box' to react to September's retail sales data.

☆ More Companies Pause Deal-Making Amid Market Volatility, High Inflation
▼ + stars: | 2022-10-10 | by ( Kristin Broughton | ) www.wsj.com time to read: +7 min

Many companies are taking a pause on acquisitions as a cocktail of worrying economic factors, including high inflation, rising interest rates and market volatility, is sapping the confidence of buyers and sellers. Deal-making activity is expected to remain tepid overall during the fourth quarter compared with 2021, barring an improved economic outlook and lower inflation readings, M&A advisers said. For instance, spinoffs or divestitures could become more popular deal structures as companies review their business models, Refinitiv’s Mr. Toole said. Even a number of early M&A discussions, including about possible financing options, are drying up, M&A advisers said. During the latest quarter, Adobe acquired 5.1 million shares at a cost of $1.8 billion, it said.

☆ Another interest rate hike is coming from the Federal Reserve: Here's how it could affect you
▼ + stars: | 2022-09-19 | by ( Jessica Dickler | ) www.cnbc.com time to read: +6 min

The U.S. central bank has already raised interest rates four times this year, for a total of 2.25 percentage points. As the federal funds rate rises, the prime rate does as well, and credit card rates follow suit. Student loans The interest rate on federal student loans taken out for the 2022-2023 academic year already rose to 4.99%, up from 3.73% last year and 2.75% in 2020-2021. It won't budge until next summer: Congress sets the rate for federal student loans each May for the upcoming academic year based on the 10-year Treasury rate. Of course, anyone with existing education debt should check whether they are eligible for federal student loan forgiveness.

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