The Daily Money: Are forecasters too optimistic about the US economy?

Forecasters have become so confident of a soft landing for the U.S. economy, they're unbuckling their seatbelts. But signs of turbulence remain.

Advertisement Read in browser The Daily Money ALL THE MONEY NEWS YOU NEED TO KNOW Tue Jan 16 2024 Daniel de Visé | Personal Finance Reporter Good morning! It's Daniel de Visé with your Daily Money. Forecasters have become so confident of a soft landing for the U.S. economy, they're already unbuckling their seatbelts. But reports in the past week or two, combined with other red flags, are revealing signs of turbulence , Paul Davidson reports. For their safety and comfort, economists – not to mention consumers and financial markets – might at least want to keep their seatbelts loosely fastened. In plainer English, the Federal Reserve may well notch a rare soft landing, with its sharp interest rate hikes  since early 2022 slowing the economy enough to bring down inflation without triggering a recession. But there's still a real risk of a downturn, and the final approach may be bumpy. Rising house values have helped push average household net worth past $1 million for older Americans Matt Rourke, AP The average US 50-something is now a millionaire Sometime around age 50, the average American can now expect a household net worth exceeding $1 million. How did so many fifty-somethings become millionaires? Household wealth swelled at a record pace  during the pandemic. Between 2019 and 2022, the median net worth of American families jumped 37% to $192,900, after adjusting for inflation. It's the largest rise ever recorded by the federal Survey of Consumer Finances, released last fall. Surging home values and rising stock ownership fed the surge. Some of the new numbers are startling. Average household net worth now tops $500,000 for Americans in their late 30s. For late-forty-somethings, it exceeds $750,000. For fifty-somethings, it reaches seven figures. If you're a fifty-something and you're not worth a cool $1 million, do not despair. Those numbers are averages, and the super-rich drive them wa-a-ay up. The "median" American household – picture the middle number in a long list of numbers – achieves a net worth of around $300,000 in the 50-to-59 age range, a far cry from $1 million. 📰 More stories you shouldn't miss 📰 Sorry, retirees: These 12 states still tax Social Security. Is yours one of them? More tax news: Do you need to file a state income tax return for 2023? Maybe. What does FICA mean? Here's how much you contribute to federal payroll taxes. What is so special about Stanley cups? The psychology behind the year's thirstiest obsession 🍔 Today's Menu 🍔 One in 10 U.S. restaurants serves Mexican cuisine, according to recent findings from the Pew Research Center.  This trend reflects an expanding Mexican American population, with 37.2 million people, or 11.2% of the U.S. population, tracing their ancestry back to Mexico. In the 2010s, the U.S. Hispanic population grew by 23%, a rate that outpaced the nation's overall population growth of 7%, according to the Census Bureau . Of the Hispanic population living in the U.S., nearly 60% identify as Mexican American. Pew Research Center reported that 85% of counties in the U.S. have at least one Mexican restaurant. The other 15% of counties, without any Mexican cuisine, tend to be smaller populations, representing 1% of the entire U.S. population. The data analyzed by Pew Research Center comes from SafeGraph , which collects information on millions of places of interest around the world, as well as the review site Yelp. About The Daily Money 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. Forecasters feel good about the economy. Are they too confident? Recession signals still worry economists despite growing confidence in a soft landing in 2024. For example, hiring in manufacturing fell last month. READ MORE Advertisement The average 50-something is now a millionaire. How'd that happen? Sometime around age 50, the average American can now expect a net worth exceeding $1 million. How did so many 50-somethings become millionaires? READ MORE A dozen states still tax Social Security. Do you live in one of them? Which states tax Social Security? Most states don't tax Social Security but some do. Here's which ones they are, and how they might do it. READ MORE States that do and don't require a tax return and other things to know Most states require you file a tax return if you're a resident of the state or earned income there. Here's what you need to know. 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FICA stands for Federal Insurance Contributions Act; you may have seen it taken out of your paycheck. Here's how much is taken out and where it goes. READ MORE 'I don't feel silly having a million': Why people love Stanley cups FOMO and social media have added fuel to an age-old marketing practice: creating buzz and fads, experts say. READ MORE Advertisement Sign up for the news you want Exclusive newsletters are part of your subscription, don't miss out! We're always working to add benefits for subscribers like you. SEE ALL NEWSLETTERS ➔ Newsletters   |    eNewspaper   |   Crosswords Follow Us Problem viewing email? View in browser Unsubscribe  •  Manage Newsletters  •  Terms of Service  •  Privacy Policy/Your California Privacy Rights  •   Privacy Notice  •  Do Not Sell My Info/Cookie Policy  •  Feedback