The Daily Money

ALL THE MONEY NEWS YOU NEED TO KNOW

Tue Aug 8 2023

Charisse Jones | Economic Opportunity Reporter

Happy Tuesday everyone. It's Charisse Jones and I hope it's drier - and cooler - for you than it is in the muggy northeast. Here are the Daily Money headlines to keep you in the know.

Americans plunged deeper into debt in June, but more because of car financing and other loans than their doubling down on credit card spending, according to data from the Federal Reserve.

Credit debt overall rose $17.8 billion to $4.977 trillion, according to the Fed, surpassing economists' average prediction of a $13 billion increase. Consumer credit, meanwhile, grew by $18.5 billion to $3.735 trillion but that was primarily the result of an increase in nonrevolving credit, which reflects borrowing to buy a home, car or to pay college tuition, rather than charging purchases to a credit card.

Credit card and other short-term debt actually declined by $600 million in June to $1.262 trillion, the first drop since April 2021, signalizing the streak of interest rate hikes implemented by the Fed is having an impact on some spending.

The choice: eating or keeping cool

During what was the earth's hottest month on record, a growing number of Americans had to make a wrenching decision: buy food or pay steep air conditioning bills.

Utility shutoffs have risen by 15% as compared to last summer, according to a poll of 2,581 food stamp recipients taken between July 1 - July 14, and released last week by Propel, which builds technology focused on helping low-income Americans. The shutoffs impacted Black households disproportionately, with 14% of those homes experiencing their utilities being shut off in the last 30 days vs. 10% and 11% of their white and Latino peers, the survey found.

"My sense is that we will have record cooling costs this summer," said Mark Wolfe, executive director of the National Energy Assistance Directors Association (NEADA), which supports programs that help low-income families pay utilities. Those costs are "not as a result of prices but as a result of increased demand to address high temperatures."

President Joe Biden declared the first-ever Hazard Alert for heat in July, boosting safeguards for people who have to work outside and allocating millions to improve weather forecasting and infrastructure to resist drought.

45. Campbell Soup >Founding date: 1869 >Revenues: $9.05 billion >Number of Employees: 14,500

traveler1116 / iStock Unreleased via Getty Images

Chrysler recalls some vehicles

Chrysler is recalling roughly 45,000 Jeep Wagoneer and Grand Wagoneer vehicles because of a potential flaw that could hinder the deployment of air bags, according to the U.S. National Highway Traffic Safety Administration.

The issue involves the vehicle's upper B-pillar interior trim which may not be firmly in place.

"A compromised deployment of the SABIC can reduce occupant protection in the event of a crash, increasing the risk of injury," the NHTSA said.

Chrysler will notify owners by Sept. 22 and vehicle owners can bring their Wagoneers to a company dealership to have them checked.

🍔 Today's Menu 🍔

Campbell Soup Company is adding a premium line of pasta sauces to its menu, buying Sovos Brands Inc ., the company that produces products under the Rao's brand.

The deal will cost Campbells $23 per share.

📰 More stories you shouldn't miss 📰

Tyson to shutter plants: The food processing company will close four more facilities to cut costs

Dining out: Whether diners are grabbing a table or ordering takeout, spending at restaurants is up across the U.S.

Get ready for "weird" Barbie: Mattel will release a limited edition Barbie based on the quirky character in the megahit film.

Each weekday, The Daily Money delivers the best consumer news from USA TODAY. We break down financial news and provide the TLDR version: how decisions by the Federal Reserve, government and companies impact you.