The rules do not change the basic idea of investing. People can still buy shares, sell shares, collect dividends and hold stocks for the long term. But the “plumbing” behind the market — how trades settle, how prices are quoted, how short selling is reported and how stock lending is tracked — is being updated.

    For local investors, the most important change is already here: the move to T+1 settlement. In simple terms, when a person sells a stock, the trade now generally settles one business day after the transaction date, instead of two. That means if an investor sells shares on Monday, the money is usually available after settlement on Tuesday, rather than Wednesday.

    This may sound like a small technical change, but it matters. Faster settlement reduces the amount of time between a trade being made and the trade becoming final. Regulators say this lowers risk in the system because money and shares are exchanged sooner. It can also make cash available faster for investors who sell stock and need the proceeds.

    However, faster settlement also gives investors and financial firms less time to fix mistakes. If an investor sells a security and plans to use the money quickly, they need to understand when the cash is truly settled. Moving too fast without understanding settlement rules can create problems, especially in cash accounts.

    Another major change involves the way stock prices are quoted. The Securities and Exchange Commission adopted changes to parts of Regulation NMS, the system that helps govern modern U.S. stock trading. One key piece involves “tick sizes,” which are the minimum price increments used when stocks are quoted. For many years, most stocks were quoted in pennies. Under the new structure, some stocks may be quoted in smaller increments, allowing tighter pricing.

    For everyday readers, this means the difference between the buy price and sell price — known as the spread — could become smaller for certain stocks. A smaller spread can reduce trading costs, especially for heavily traded stocks. At the same time, smaller increments can also make the market more complex, particularly for brokers, exchanges and professional traders.

    The SEC also moved to reduce certain exchange access fees. These are fees charged when traders access quotes on exchanges. While most everyday investors never see these fees directly, they can influence how orders are routed and how brokers compete for execution quality. Regulators say the goal is to make pricing more transparent and reduce conflicts that may affect where orders are sent.

    There is also a growing debate over one of the most important rules in the stock market: the order protection rule, sometimes called the trade-through rule. This rule was designed to prevent trades from being executed at worse prices when a better price is available on another exchange. In plain English, it was meant to help protect investors from getting an inferior price simply because their order went to the wrong trading venue.

    In June 2026, the SEC proposed eliminating that rule. Supporters of repeal argue that the market has changed since the rule was created in 2005. Trading is faster, technology is stronger, and brokers already have a duty to seek good execution for customers. Critics worry that removing the rule could weaken investor protections and make it harder for ordinary traders to know whether they received the best available price.

    This proposal is not yet final, but it shows the direction of the current debate: regulators are asking whether older rules still make sense in a market dominated by high-speed trading, off-exchange market makers, dark pools and commission-free trading apps.

    Short selling is another area facing new transparency requirements. Short selling happens when an investor borrows shares and sells them, hoping to buy them back later at a lower price. It is legal, but controversial, because short sellers profit when stock prices fall. Regulators have adopted rules requiring certain large investment managers to report short positions on Form SHO when they meet specific thresholds.

    The goal is not to ban short selling. Instead, regulators want more visibility into large short positions and short-sale activity. After the meme-stock events of 2021, many retail investors became suspicious of short sellers and hedge funds. New reporting rules are intended to give regulators and the public better information, though some compliance dates have been delayed.

    Securities lending is also being brought into the spotlight. When shares are lent out — often so another investor can short the stock — the transaction has historically been difficult for the public to see clearly. New securities lending rules are designed to create a reporting system through FINRA called SLATE, short for Securities Lending and Transparency Engine.

    Once fully implemented, this system is expected to provide more information about stock loans, lending rates and market activity. For ordinary investors, this could eventually make it easier to understand when a stock is heavily borrowed and how expensive it is to borrow. That information can be important because high borrowing costs sometimes signal heavy short interest or limited share availability.

    Another important change involves large investors who buy significant stakes in public companies. Updated beneficial ownership rules shortened some filing deadlines for investors who cross major ownership thresholds. The purpose is to give the market faster notice when a large investor has built a meaningful position in a company.

    This matters because large ownership stakes can influence stock prices. If an activist investor, hedge fund or major institution quietly builds a large position, other shareholders may want to know. Faster reporting gives the market more timely information.

    For local readers, the biggest lesson is simple: the market is becoming faster, more transparent and more complicated at the same time. Faster settlement may help investors get access to money sooner. Smaller tick sizes may reduce some trading costs. Short-sale and securities-lending reporting may improve transparency. But these changes do not remove risk.

    Stocks can still fall. Companies can still disappoint investors. Fast trading does not guarantee smart trading. Commission-free apps have made investing easier, but they have also made it easier for people to trade too often, chase hype or misunderstand the rules.

    Investors should know the difference between settled cash and unsettled cash, understand whether they are using a margin account or cash account, and avoid making trades based only on social media excitement. The new rules may improve the market’s structure, but they do not replace patience, research and risk management.

    The stock market is no longer just a place for Wall Street professionals. Millions of working Americans now own stocks through retirement accounts, brokerage apps and employer plans. That makes these rule changes important beyond New York or Washington, D.C.

    The new era of stock market regulation is not about one single rule. It is about a broader shift toward faster settlement, tighter pricing, more disclosure and a debate over how much protection investors need in a technology-driven market. For the average investor, the message is clear: the market may be moving faster, but understanding the rules matters more than ever.

    Sources: U.S. Securities and Exchange Commission, FINRA, Reuters and federal securities rule releases.

The post New Stock Market Rules Are Changing How Americans Trade, Settle and Understand Wall Street appeared first on The Hemet & San Jacinto Chronicle.

At their core, prediction markets allow participants to buy and sell contracts based on whether they believe a specific event will occur. The price of these contracts fluctuates as traders place bets on what they think is most likely to happen.

For example, a prediction market might ask, “Will a particular candidate win an upcoming election?” A contract tied to a “Yes” outcome may trade for 65 cents. In simple terms, the market is suggesting there is roughly a 65% chance of that event occurring. If the event ultimately happens, the contract settles at $1. If it does not occur, the contract becomes worthless.

Supporters of prediction markets argue that they can provide valuable insights because participants have financial incentives to make accurate forecasts. Unlike opinion polls, which simply ask respondents what they think, prediction markets require traders to put money behind their beliefs.

These markets have been used to forecast political races, economic trends, corporate earnings reports, and even the likelihood of certain legislative actions. Some researchers believe that prediction markets can sometimes be more accurate than traditional forecasting methods because they aggregate information from many different participants.

However, prediction markets are not without controversy. Critics argue that market prices can be influenced by speculation, misinformation, or sudden news events that may temporarily distort public expectations. Additionally, regulatory questions have emerged regarding whether certain prediction markets resemble gambling or financial derivatives.

For individual participants, prediction markets can be both educational and risky. Traders who correctly anticipate outcomes may earn profits, while those who make incorrect predictions can lose money. As with any form of speculation, participants should understand the rules, fees, and risks before investing funds.

Several online platforms now offer prediction market contracts on a variety of topics. Depending on the platform and jurisdiction, users may be able to trade contracts tied to elections, economic indicators, sports outcomes, entertainment awards, and other real-world events.

As technology continues to evolve, prediction markets are attracting increasing attention from investors, academics, policymakers, and everyday consumers interested in measuring collective expectations about the future. Whether viewed as a forecasting tool, an investment opportunity, or a form of speculation, prediction markets represent a growing intersection of finance, data, and public opinion.

How Prediction Markets Work at a Glance

1. A question is created about a future event.
2. Traders buy “Yes” or “No” contracts.
3. Contract prices move based on market demand.
4. Prices often reflect the market’s estimated probability of an outcome.
5. When the event is resolved, winning contracts pay out while losing contracts expire.

Important Reminder

Prediction markets involve risk. Participants should only use money they can afford to lose and should carefully review the rules and regulations governing any platform before trading.

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The post Understanding Prediction Markets: Betting on Future Events or Measuring Public Expectations? appeared first on The Hemet & San Jacinto Chronicle.

Trump said in a post on Truth Social that his January executive order on digital assets would create a stockpile of currencies including bitcoin , ether , XRP , solana and cardano . The names had not previously been announced.

More than an hour later, Trump added: “And, obviously, BTC and ETH, as other valuable Cryptocurrencies, will be at the heart of the Reserve.”

Bitcoin, the world’s largest cryptocurrency by market value, was up more than 11% at $94,164 Sunday afternoon. Ether, the second-largest cryptocurrency, was up about 13% at $2,516.

The total cryptocurrency market has risen about 10%, or more than $300 billion, in the hours since Trump’s announcement, according to CoinGecko, a cryptocurrency data and analysis company.

XRP is cryptocurrency company Ripple Labs’ token. Ripple backed a so-called super PAC to influence congressional elections in November in favor of the crypto industry, Reuters reported.

“This move signals a shift toward active participation in the crypto economy by the U.S. government,” said Federico Brokate, head of U.S. business at 21Shares, a digital assets investment management firm. “It has the potential to accelerate institutional adoption, provide greater regulatory clarity, and strengthen the U.S.’s leadership in digital asset innovation.”

James Butterfill, head of research at asset manager CoinShares, said he was surprised to see digital assets other than bitcoin included in the reserve.

“Unlike bitcoin…these assets are more akin to tech investments,” Butterfill said. “The announcement suggests a more patriotic stance toward the broader crypto technology space, with little regard for the fundamental qualities of these assets.”

Trump won support from the crypto industry in his 2024 election bid, and he has quickly moved to back their policy priorities. He is hosting the first White House Crypto Summit on Friday, and his family has also launched its own coins.

Under his Democratic predecessor, Joe Biden, regulators cracked down on the industry in a bid to protect Americans from fraud and money laundering.

Under Trump, the Securities and Exchange Commission has withdrawn investigations into several crypto companies and dropped a lawsuit against Coinbase (COIN.O), opens new tab, the largest crypto exchange in the U.S.

But in recent weeks cryptocurrency prices are down sharply, with some of the biggest digital currencies erasing nearly all of the gains made after Trump’s election win triggered a wave of excitement across the industry.

Analysts say the market needs a reason to move higher, such as signs that the U.S. Federal Reserve plans to cut interest rates or a clear pro-crypto regulatory framework from the Trump administration.

Reuters has reported that Geoff Kendrick, an analyst at Standard Chartered, is targeting bitcoin to hit $500,000, against a record high of $109,071, before Trump leaves office.

Regulatory filings in the U.S. showed that while hedge funds remain the dominant crypto buyers, banks and sovereign wealth funds are buying too.

Quarterly filings showed that asset managers boosted allocations to U.S. ETFs tied to the price of spot bitcoin in the fourth quarter of 2024.

Analysts and legal experts are divided on whether an act of Congress will be necessary to set up the reserve. Some have argued the reserve could be created via the U.S. Treasury’s Exchange Stabilization Fund, which can be used to purchase or sell foreign currencies.

Trump’s crypto group had planned to look at potentially creating the stockpile with cryptocurrencies seized in law enforcement actions.

The post Trump names cryptocurrencies in strategic reserve, sending prices up appeared first on The Hemet & San Jacinto Chronicle.

The president said his administration is considering a concept to send 20 percent of the savings produced by DOGE’s cost-cutting efforts back to Americans, and another 20 percent to paying down the national debt.

DOGE advisor and Azoria Investment Firm CEO James Fishback pitched the idea of a “DOGE Dividend” on X.com (formerly Twitter), based on the department’s anticipated $2 trillion in savings.

Musk wrote on his social media platform Tuesday that he “will check with the President.”

Despite what the president may want to do in terms of the money, Congressional approval is still required for any and all initiatives to redistribute federal savings. And as Forbes noted, there are “significant obstacles” related to a potential DOGE dividend, including understanding the economic impact it would have and legal challenges.

Speaking at an investment conference in Miami on Wednesday, Trump said the potential for dividend payments would incentivize people to report wasteful spending.

“They’ll be reporting it themselves,” Trump said. “They participate in the process of saving us money.”

These efforts to shrink the federal government and slash spending have lead to massive layoffs and budget cuts across a number of agencies.

Fishback later told NewsNation’s Chris Cuomo that the dividend program is “totally reasonable,” and checks would be dispersed in 2026 after DOGE hit its target.

“This isn’t a handout. This was taxpayers’ money that was sent to D.C. in the first place,” Fishback told Cuomo. “It wasn’t sent to D.C. to then be quickly sent to Myanmar for a DEI musical or Colombia for a transgender opera.”

Some financial experts criticized the idea, saying it would drive prices even higher. Preston Brashers, a research fellow for tax policy at the Heritage Foundation, said it was a “bad idea” to send dividend checks out.

“The dividend we get from slashing spending is that it brings inflation into check,” he said in a social media post. “But if the government sends out stimmy checks, inflation will come back with a vengeance.”

Fishback pushed back on inflation concerns, saying that tax-paying households would be more likely to save that payment.

The initiative would also require approval from Congress to redistribute the savings.

The post Will CA Residents See DOGE Stimulus Payments? What To Know appeared first on The Hemet & San Jacinto Chronicle.

With longevity shifts, periods of heightened inflation and market volatility, traditional financial planning strategies could cause many to potentially outlive their savings.

Between asset management, navigating tax liabilities, mitigating risk and planning for unexpected expenses, complex high-net-worth portfolios could often require careful planning, execution and constant optimization.

Consulting a fiduciary financial advisor can be a great first step to getting the specialized guidance that could be necessary to help ensure you’re on track to meeting your financial goals, and helping secure your legacy for the next generation.

Click here to take SmartAsset’s free quiz to get matched with up to three vetted financial advisors in just a few minutes, each obligated to work in your best interest.

Research suggests people who work with a financial advisor could end up with about 15% more money to spend in retirement.¹

A 2022 Northwestern Mutual study found that 62% of U.S. adults admit their financial planning needs improvement. However, only 35% of Americans work with a financial advisor.²

Seeking guidance in the following areas could potentially help reduce stress and help ensure you’re not at risk of outliving your savings and may be more likely to enjoy the retirement lifestyle you’ve been planning.

7 Reasons the Wealthy May Outlive Their Savings

1. Lifestyle Preservation

Maintaining an affluent lifestyle throughout retirement could become a significant challenge.

High-net-worth individuals often may have higher living expenses, including luxury homes, travel, and leisure activities.

Ensuring these lifestyle choices are sustainable for decades could require careful planning and regular adjustments to spending habits.

2. Longevity Risk

Longevity risk is the possibility of outliving your financial resources.

According to the Social Security Administration, a 65-year-old man today can expect to live to about 84, while a woman can expect to live to 86.5, with one in four 65-year-olds living past 90.³

This increased life expectancy means even substantial wealth could potentially be stretched thin over a lengthy retirement, reducing the amount that could be passed on, if any assets remain.

3. Market Volatility

Economic downturns may disproportionately impact larger portfolios. While high-net-worth individuals may have diversified investments, market volatility could still pose a potential threat.

Sudden declines in the stock market or real estate values could potentially erase wealth quickly, making it important to consider developing a robust risk management strategy.

The 2008 financial crisis and 2020 COVID-19 pandemic demonstrated how suddenly well-planned investment performance can be impacted with no guarantee of certain recovery.

4. Tax Implications

High-net-worth individuals may often face complex tax situations, including higher income taxes, estate taxes and capital gains taxes. Staying ahead of tax law changes and employing strategic tax planning could potentially help preserve wealth and mitigate loss.

Implementing strategies such as tax-loss harvesting or utilizing trusts could potentially help reduce taxable income and preserve wealth. The current federal estate tax exemption is $13.61 million per individual, but future changes could lower this threshold, which may increase tax liabilities for high-net-worth estates.⁴

5. Healthcare Costs

Fidelity Investments estimates that a 65-year-old couple retiring today could need $315,000 to cover healthcare costs in retirement.⁵

Long-term care, specialized treatments, and rising medical expenses may quickly deplete savings, even with comprehensive insurance. Proactively planning for these potential costs could be important to help ensure healthcare needs do not compromise financial stability.

6. Inflation Impact

Inflation could also potentially impact high-cost lifestyles in retirement. The cost of goods and services tend to rise over time, eroding purchasing power.

It can be important for high-net-worth individuals to consider inflation in their financial planning to help ensure their wealth potentially retains its value and could support their lifestyle in the future.

The Federal Reserve aims for a long-term inflation rate of around 2%, but recent years have seen inflation rates exceeding this target, further impacting purchasing power.⁶

7. Regulatory Changes

Changes in laws could potentially have significant implications for retirement planning and wealth preservation.

It can be important for high-net-worth individuals to stay informed about retirement account rules, estate laws, and other regulations and adjust their strategies to comply with new regulations and optimize their financial position.

How to Get Help Ensuring You Don’t Outlive Your Savings

High-net-worth individuals may face complex issues when planning for retirement, and many factors outside of investment management could potentially make a significant impact on how long assets could last.

That’s where afiduciary financial advisor can be invaluable.

Fiduciaries may be able to help you understand your options when it comes to developing strategies to preserve assets, minimize tax liability and seamlessly pass on wealth to the next generation. Additionally, any conflicts of interest must be disclosed, and fiduciaries are obligated to work in your best interest.

Finding a fiduciary shouldn’t be that hard. Thankfully, now it isn’t.

SmartAsset’s free matching quiz can match you with up to three fiduciary advisors who serve your area. From there, you can compare and decide which advisor to work with. All advisors on the matching platform have been vetted through our proprietary due diligence process.

The quiz takes just a few minutes, and in many cases, you can be connected instantly with an advisor to have an introductory call.

——

The information contained in this article is general and not specific to any individual’s situation. The SmartAsset quiz matches you with up to 3 financial advisors to which you can compare and decide which to work with.

This is not an offer to buy or sell any security or interest. All investing involves risk, including loss of principal. Working with an adviser may come with potential downsides such as payment of fees (which will reduce returns). There are no guarantees that working with an adviser will yield positive returns. The existence of a fiduciary duty does not prevent the rise of potential conflicts of interest.

SmartAsset Advisors, LLC (“SmartAsset”), a wholly owned subsidiary of Financial Insight Technology, is registered with the U.S. Securities and Exchange Commission as an investment adviser. SmartAsset’s services are limited to referring users to third party advisers registered or chartered as fiduciaries (“Adviser(s)”) with a regulatory body in the United States that have elected to participate in our matching platform based on information gathered from users through our online questionnaire. SmartAsset receives compensation from Advisers for our services. SmartAsset does not review the ongoing performance of any Adviser, participate in the management of any user’s account by an Adviser or provide advice regarding specific investments. We do not manage client funds or hold custody of assets, we help users connect with relevant financial advisors.

SmartAsset.com is not intended to provide legal advice, tax advice, accounting advice or financial advice (Other than referring users to third party advisers registered or chartered as fiduciaries (“Adviser(s)”) with a regulatory body in the United States). SmartAsset is not a financial planner, broker or tax adviser. The Service is intended only to assist you in your understanding of financial organization and decision-making and is broad in scope. Your personal financial situation is unique, and any information and investing strategies obtained through SmartAsset.com may not be appropriate for your situation. Accordingly, before making any final decisions or implementing any financial strategy, you should consider obtaining additional information and advice from your accountant or other financial advisers who are fully aware of your individual circumstances.

The post 7 Reasons Even the Wealthy May Outlive Their Savings appeared first on The Hemet & San Jacinto Chronicle.

A top retail stock to own this year has undoubtedly been Costco Wholesale (COST 0.92%). Its shares are up more than 35% since January as it has been hitting new all-time highs along the way. Not only is it a stable investment given its extremely popular warehouses, but the company has also continually found ways to grow its business.

You might think that with the stock now trading at more than 50 times earnings and the economy potentially heading for a slowdown, shares of Costco Wholesale may be approaching a peak, finally. But there’s reason to remain bullish on the stock not just this year but for the long haul, as one area of its business has been booming for a while.

E-commerce sales are a huge opportunity for Costco

When you think of buying something online, odds are you’re going to go to either Amazon or Walmart. But Costco has the potential to be a big player in that arena as well. The company doesn’t separate its e-commerce sales when reporting quarterly numbers, but it does highlight the growth rate.

And on a monthly basis, the company has consistently been growing online sales by double digits. Below is a table of Costco’s comparable sales growth rates this year, by month, looking at both the total company sales and just e-commerce.

In every single month thus far this year, Costco’s online business has generated comparable year-over-year revenue growth of around 15% or better. And it has routinely been a top-performing part of the business. The company’s logistics business has been a key piece of that puzzle as the company reported that in its most recent quarter, which ended on May 12, deliveries through Costco Logistics increased by 28%.

The company remains a growth machine

Costco has demonstrated its versatility time and again over the years. During the early stages of the pandemic, its warehouses were crucial for consumers looking to load up on essentials. And it has done well amid rising inflation, as buying in large quantities helped customers keep their costs down on a per-item basis. Meanwhile, in the long run, a huge opportunity looks to be emerging in e-commerce.

And with the company’s business generating a lot of cash flow, it has plenty of resources it can put into its e-commerce operations and logistics business. In the trailing 12 months, Costco’s free cash flow totaled $7.4 billion. While it has been expanding into new markets and launching additional warehouses, e-commerce can provide Costco with yet another catalyst to exploit.

Is Costco Wholesale stock a good buy right now?

Costco’s stock may appear as though it’s running out of room to rise higher. But given how well the business has been performing of late, it wouldn’t be surprising if the company posts another solid quarter when it reports fiscal fourth-quarter results later this month. Consumers continue to see a lot of value from the retailer, and there’s still much more revenue growth on the horizon.

The stock does trade at a hefty premium to earnings, which implies a lot of future growth is already priced into its valuation, and that could limit its gains in the short term. If you’re not prepared to hang on for at least a couple of years, you may be better off investing in other, cheaper growth stocks. But with its business generating solid single-digit growth and many opportunities still out there for the company, it’s certainly not too late for long-term investors to load up on Costco’s stock.

The post This Unstoppable Trend Suggests Costco Wholesale Stock Can Still Soar Higher appeared first on The Hemet & San Jacinto Chronicle.

Designed to help individuals and families recover, applicants must reside in an evacuation zone and meet Altura’s credit qualification criteria. The Wildfire Emergency Loan offers:

• 0% APR: No interest will be charged on these loans
• 90 Day Payment Grace Period: No Payments for the First 90 Days
• Loan Amount: Up to $1,500
• Term: 18 months

” We understand the hardships faced by individuals and families displaced or impacted by the wildfires,” said Jennifer Binkley-Heiting, President and CEO at Altura Credit Union. “By offering our Wildfire Emergency Loan, we can directly assist our members and the local community, providing some relief and support during this difficult time.”

To apply for a Wildfire Emergency Loan or learn more, please visit https://www.alturacu.com/EmergencyLoan or contact Altura Credit Union at 866-787-8634. We encourage you to share this information with anyone in an evacuation zone who might need assistance.

The Altura Credit Union team continues to look for ways to provide more one-of-a-kind experiences for their Members and for people living in Riverside County. Through sponsorships and community-based events, Altura hopes to strengthen its relationship with local communities and bring to life its mission of Enriching Lives and Empowering Dreams.

Altura has been a trusted partner to over 198,000 Members since 1957, offering all the services expected from a full-service financial institution, such as checking and savings accounts; auto loans; and home and personal loans.

For more information on Altura Credit Union, visit www.AlturaCU.com, or call 1-888-883-7228.

Visit us on Social Media: Facebook, Instagram, youtube, and twitter.

About Altura Credit Union: Since 1957, Altura Credit Union has been dedicated to serving the communities of Riverside County. With over 198,000 Members and twenty-three branches, we are committed to enriching the lives and empowering the dreams of our Members, communities, and employees. When you choose to be a Member, you’re choosing to be effective in your own backyard. We know how important it is to be there when it matters most, and we collectively choose to make every decision with the purpose of bettering the lives around us. Altura is so much more than a financial institution; we’re an institution that bridges community, care, people, and finances. To us, you’re more than a number; you’re our family, our friend, and our neighbor. Altura Membership is open to anyone who lives, works, worships, or attends school in Riverside and San Diego counties; select cities in San Bernardino and Orange counties; as well as U.S. Military, U.S. Government and Civilian employees working at March Air Reserve Base in Riverside County; and retirees of the United States Armed Forces. For more information on Altura, http://www.AlturaCU.com, or call 1-888-883-7228.

The post Altura Credit Union Offers Emergency Loans to Southern California Residents Impacted by Wildfires appeared first on The Hemet & San Jacinto Chronicle.

California’s state website highlights what it describes as the “California Dream,” defined as “the idea that every person can achieve a better life, regardless of where they start out.”

But it’s becoming increasingly hard for California residents to afford the state’s high costs.

According to a recent study by the nonpartisan Transparency Foundation, a family earning $130,000 per year faces an estimated “Cost of California” penalty of $26,478 compared to if they paid the national average for different cost-of-living categories.

The $130,000 in annual earnings is defined in the study as California’s middle class. For those earning less, it’s not just the cost-of-living penalty residents have to worry about — it’s whether they can afford to live in California at all. A piece from the Los Angeles Times highlights one example.

Nathan Sheets, director of the homelessness services organization The Center in Hollywood, has been served his second eviction notice in three years.

Citing an affordability crisis and lack of housing security, Sheets is giving up California for good, taking his family back to lower-cost Indiana and leaving his job helping the homeless in California.

Sheets notes the irony, writing, “If we can’t afford to live here ourselves, we can’t help the unhoused population we want to serve.”

California’s reputation as a high-cost-of-living state has been bolstered lately, with gas prices now at $5.32 per gallon compared to the $3.59 national average, according to AAA, and a recent bump in the minimum wage to $20 per hour for fast food workers.

Rising costs are also impacting utility bills. After the California Public Utilities Commission approved another rate hike, California-based utility company PG&E Corp. (NYSE:PCG) will again raise prices for residents’ electricity and gas bills after increasing them just a few months ago.

Customers who have an average residential utility bill of $254 in 2023 are now set to pay new monthly bills of around $292.

The high cost of living pushing the California dream out of reach for residents is not a new phenomenon. For the fourth straight year, California topped the nation with the largest amount of net outbound movers, according to data from U-Haul.

The post Newsom’s ‘California Dream’ Faces $26K ‘Cost-of-living Penalty,’ Homelessness Director Flees High-Cost State After Another Eviction appeared first on The Hemet & San Jacinto Chronicle.

The agency’s bimonthly report, which covers northwestern Riverside County as well as the cities of Ontario and San Bernardino, indicated that the metro area’s Consumer Price Index shifted to an upward trajectory compared to the start of the year, when a mix of increases and offsetting decreases left the CPI flat.

BLS officials said the energy sector was the primary driver of pocketbook pressure from the beginning of February to the end of March. Gasoline prices jumped 8.8%, while electricity costs rose 3.2%, and natural gas prices notched up .6%, figures showed.

Property rents also went up, reflected in the index’s “shelter costs,” which increased .9% over the two-month period.

Longer term, the regional CPI was 4.3% higher over the previous 12 months, with rents leading the advance at 7.4%, according to data.

Energy prices were up 3.1%, led by electricity costs, which leapt 10% year-over-year. The BLS said food prices rose 2.6% during the period, and health care expenses were 5.5% higher.

Price tags on some items fell over the last 12 months, including those for household furnishings, which rated a 4.4% drop, and costs on motor vehicles, which declined 3.4%, according to the index.

The report showed inflation was up .4% nationwide in March, and 3.8% from March 2023 to March 2024.

The current rate of inflation reflects the elevated price trajectory impacting most sectors of the economy.

Accelerating consumer price hikes have been blamed by the Biden administration on the war in Ukraine and consequent energy supply disruptions, but critics have pointed to what they call the administration’s restrictive domestic energy policies, as well as excessive spending, including the flood of dollars contained in relief packages, as root causes.

The national debt is at $34.6 trillion, after passing $33 trillion just seven months ago, according to the U.S. Treasury Department. Estimated annualized interest rate payments on the country’s debt passed the $1 trillion mark in November, according to Bloomberg News. That same month, Moody’s Investors Service lowered its outlook on the U.S. credit rating from “stable” to “negative.”

The Federal Reserve’s Open Market Committee started gradually increasing its benchmark, or target, lending rate in spring 2022, though the FOMC suspended hikes beginning last summer, leaving the rate at roughly 5.5% on the belief that the pace of inflation had slowed satisfactorily.

The hikes were an attempt to soak up excess liquidity and slow spending. The upturn in inflationary pressure reflected in the latest BLS report for the nation might push FOMC decision-makers to reconsider earlier announcements regarding expectations for rate cuts, according to financial analysts.

The post Inflation On The Rise Across Riverside County appeared first on The Hemet & San Jacinto Chronicle.

WASHINGTON (AP) — A majority of the nation’s business economists expect a U.S. recession to begin later this year than they had previously forecast, after a series of reports have pointed to a surprisingly resilient economy despite steadily higher interest rates.

Fifty-eight percent of 48 economists who responded to a survey by the National Association for Business Economics envision a recession sometime this year, the same proportion who said so in the NABE’s survey in December. But only a quarter think a recession will have begun by the end of March, only half the proportion who had thought so in December.

The findings, reflecting a survey of economists from businesses, trade associations and academia, were released Monday.

A third of the economists who responded to the survey now expect a recession to begin in the April-June quarter. One-fifth think it will start in the July-September quarter.

The delay in the economists’ expectations of when a downturn will begin follows a series of government reports that have pointed to a still-robust economy even after the Federal Reserve has raised interest rates eight times in a strenuous effort to slow growth and curb high inflation.

In January, employers added more than a half-million jobs, and the unemployment rate reached 3.4%, the lowest level since 1969.

And sales at retail stores and restaurants jumped 3% in January, the sharpest monthly gain in nearly two years. That suggested that consumers as a whole, who drive most of the economy’s growth, still feel financially healthy and willing to spend.

At the same time, several government releases also showed that inflation shot back up in January after weakening for several months, fanning fears that the Fed will raise its benchmark rate even higher than was previously expected. When the Fed lifts its key rate, it typically leads to more expensive mortgages, auto loans and credit card borrowing. Interest rates on business loans also rise.

Tighter credit can then weaken the economy and even cause a recession. Economic research released Friday found that the Fed has never managed to reduce inflation from the high levels it has recently reached without causing a recession.

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