Business & Economy

On The Money — Inflation fight hits Black Americans particularly hard

Experts say Black Americans are bearing the brunt of the federal government’s efforts to stanch inflation. We’ll also look at how Democrats are seizing the rising costs on the campaign trail, why officials say Virginia is bound by a new California rule phasing out gas-powered cars, and more.

But first, Megan Thee Stallion has been tapped for a new role — and it’s out of this world. 

Welcome to On The Money, your nightly guide to everything affecting your bills, bank account and bottom line. For The Hill, we’re Sylvan Lane and Aris FolleySubscribe here.

Black Americans disproportionately hit by rate hikes

The federal government’s efforts to stanch inflation are disproportionately impacting Black Americans.

The Federal Reserve has hiked interest rates in the hopes of cooling off a red-hot economy, but its actions are hitting Black Americans — who have historically been squeezed out of home ownership and affordable loans — the hardest. 

“African Americans have the lowest homeownership rates among the four major racial groups in the country,” Romie Tribble, professor of economics at Spelman College and secretary of the National Economic Association, told The Hill.  

“It’s now going to be more difficult for them to acquire and to also keep a home,” Tribble said. 

We explain why here.

LEADING THE DAY

Democrats peg inflation to corporate greed on campaign trail 

Democrats are vowing to crack down on corporate greed and price gouging on the campaign trail as the party aims to quell voters’ concerns over decades-high inflation.

Economists widely view supply and demand as the driving force behind the cost of goods and services, not arbitrary price hikes. But Democrats point to the fact that big companies are profiting from surging inflation.   

Karl has more details here.

CALIFORNIA LOVE

Virginia AG says state bound by California rule phasing out new gas-powered cars 

California’s newly-announced rule barring the sale of new gas-powered cars in 2035 will apply to Virginia as well under the terms of a 2021 state law, Attorney General Jason Miyares’s (R) office confirmed to The Hill on Monday.  

In 2021, the state General Assembly, where Democrats then held majorities in both chambers, passed a law requiring the state to adopt the same automobile standards as those adopted by the California Air Resources Board (CARB). Although Democrats lost their majority in the state House of Delegates in 2021, efforts to repeal the legislation in this year’s legislative session were unsuccessful.

The Hill’s Zack Budryk has more info here

PRIVACY THREAT 

FTC alleges data broker exposes users to violent threats by selling location data

The Federal Trade Commission (FTC) alleges data broker Kochava exposes people to threats of stalking, discrimination and violence by selling geolocation data revealing visits to sensitive locations, including reproductive health clinics, according to a complaint filed Monday.

The FTC alleged that the sale of geolocation data puts consumers at risk by revealing information about visits to sensitive locations. In addition to reproductive health clinics, the agency said the data can be used to track visits to places of worship, homeless or domestic violence shelters and addiction recovery centers.  

The Hill’s Rebecca Klar has more here. 

Good to Know

Teachers in the U.S. have seen their salaries decline over the past decade, with some educators paid anywhere from 5 to 18 percent less than the national average wage.  

A new analysis dives into the average teacher salaries from the National Center for Educational Statistics and the Bureau of Labor Statistics, and it ranks the best and worst average teacher salaries in comparison to the average salary for all other occupations.  

These are some of the worst-paying states for teachers in the 2020-2021 academic year. 

Here’s what else we have our eye on: 

That’s it for today. Thanks for reading and check out The Hill’s Finance page for the latest news and coverage. We’ll see you tomorrow. 

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