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The stock market may be closely watching the chance of an official economic recession, but many Americans across the country are already feeling the squeeze as they contend with higher prices and borrowing costs than they saw a year ago.

While Evelyn Canela, 31, a senior program director at a nonprofit based in Harlem, said she thinks she has a “well-paying job,” which paid in the $100,000-range when she first started, she also said she’s been feeling the pressure to save, particularly as various industries have seen more layoffs in recent months. 

In a poll released by Morning Consult last month, almost half of respondents believed the nation was already in a recession.

The poll also found that about 41 percent of Americans surveyed had begun taking precautions and steps to beef up savings, but a closer look at the data revealed disparities by income. 

Adults in households with annual earnings above $100,000 were more likely than others to say they were beginning to prepare for an economic downturn or recession, with 52 percent saying they’d taken to stockpiling goods or food, cut back on spending or other steps.

By contrast, the poll found that those in households that earned under $50,000 annually were more likely to say they had not yet begun to make preparations “but wish they could.”

The poll comes as recent months have seen more Americans are feeling poorer and pessimistic about the nation’s economic forecast at a time that rising price stickers are putting a squeeze on pockets across the spectrum. Job seekers line up outside the New Hampshire Works employment security job center in Manchester, N.H.(AP Photo/Mary Schwalm, File)

At the same time, data shows credit card debt is also on the rise; a March study from Wallethub found “credit card debt increased by $85.8 billion during Q4 2022 – the highest quarterly increase ever recorded.” Job losses are cutting into spending power, even for six-figure earners

Recent months have also seen big layoffs, particularly in the tech industry as high-profile companies like Google, Apple and Amazon have announced plans to cut jobs. Other businesses like Goldman Sachs have also unveiled plans for thousands of layoffs this year.

“I’ve always been saving, but I’ve been way more aggressive more recently. I’m not in the tech field, but I’ve seen these massive layoffs,” Canela said. “It’s a very scary thing when people in your close circle have lost their jobs.”

Research has shown more consumers making more than $100,000 annually say they’re living paycheck to paycheck.

A survey conducted by PYMNTS and LendingClub found that more than half of consumers in the income bracket reported the same in December 2022 Social program cutbacks and inflation are squeezing Americans

At the same time, experts say the most vulnerable populations are bearing the brunt of the financial pain in current conditions.

Kyle Waide, president and CEO of the Atlanta Community Food Bank, said in a recent interview that the organization is seeing “40 percent more people today than we did at the beginning of 2022.”

“We are distributing essentially the same volume of food as we did during the height of the pandemic,” he said. “And we know that that increase in demand in the community relates to increased costs associated with inflation, along with the discontinuation of various pandemic-era stimulus programs.”

Waide said he’s referring to the expiration of the temporary expansion to the Child Tax Credit that millions received during the pandemic, as well as discontinuation of the emergency Supplemental Nutrition Assistance Program (SNAP) allocations, among other pandemic-era programs that have begun to unwind.

Anti-hunger advocates have said it’s also been getting tougher for some food banks to meet demand in the face of higher food prices. 

“We’re operating on a deficit budget right now,” said Valerie Stone Hawthorne, director of government relations at the North Texas Food Bank. “We are currently working on a budget of $66 million, but we’re only forecasting $45 million in public support.”

“We’ve planned for that to operate in this deficit budget, but it’s not sustainable,” she said, adding, “I don’t see how removing benefits that people need is going to solve the hunger problem.” El Pasoans Fighting Hunger volunteers distribute food at a center in El Paso, Texas. (Lonnie Valencia/El Pasoans Fighting Hunger via AP) More homelessness and food insecurity looks likely

Hawthorne’s comments come amid increased concern over what proposed cuts to non-defense spending on Capitol Hill could mean for efforts to combat food insecurity and homelessness amid a looming battle over the debt limit. 

In recent months, House Republicans have ramped up calls for significant fiscal reform and spending cuts to be made as part of a larger deal later this year to act on the debt limit, which caps how much money the Treasury can owe to cover the nation’s bills.

The Treasury first began implementing what it called “extraordinary measures” in January to buy time until the nation reaches the so-called “X Date,” when it could risk a national default. 

Among the proposals that have gained in the House GOP conference in recent months includes pitches for tougher work requirements for welfare programs, as well as cap limits for discretionary spending for non-defense programs at dollar levels not seen since 2022 amid a larger push by the party to combat inflation.

“What we’re ultimately talking about is cutting staff benefits with one of the most cruel policies that there is,” Christina Wong, director of public policy and advocacy for the Northwest Harvest food justice group, said of proposed changes to work requirements for SNAP.

“Lots of evidence that shows that work requirements don’t actually get people work because it’s not a lack of willingness to find work, but we’re talking about a population with deep structural barriers to finding employment,” she said. 

Carl Gershenson, a lab director at Eviction Lab, said such moves would be “felt immediately,” as housing advocates and officials sound alarm over how federal efforts like the Housing Choice Voucher Program would fare with such cuts. 

“That’s families losing access to the support when they need it most and increasing the wait time for people who have already been waiting in some cases up to a decade,” Gershenson said.  Staying in your home is becoming more difficult

In a 2022 report, the left-leaning Center on Budget and Policy Priorities found that only about 25 percent of households eligible for federal rental assistance receive it due to “funding limitations” — shutting out more than 16 million households. 

“Unlike some other kinds of programs, like Social Security, where everybody’s eligible to help for the housing programs that the federal government has, there’s a lot of people who are eligible who don’t get to help just because it’s discretionary funding program,” Steve Berg, chief policy officer at National Alliance to End Homelessness, said in an interview.

“Congress puts as much money on the table as sort of fits in with the other needs they have that year,” Berg said, adding “people get help get help and the people that don’t get help are homeless.”

House GOP leadership has signaled the conference will move on its own with a debt ceiling bill if Democrats don’t come to the bargaining table, vowing fiscal discipline as the national debt teeters around $31.4 trillion.  

But they face a significant challenge in unifying behind a plan that can win the support of their slim majority in the lower chamber as well as the public — recent polling shows Americans agree little on areas to draw down spending. 

“The very first thing they need to do is to walk in their constituents’ shoes,” said Barbara Jackson, a retired database administrator based in Atlanta. Lawmakers should “take about six months to have to balance the budget with what [their constituents are] making,” Jackson added. 

“The far majority of politicians today are at the upper echelon of the income. So, they can’t relate to the everyday John and Joe,” Jackson said.  Homeless men stand by their tents along the street across from Los Angeles City Hall on Oct. 22, 2022. Inflation isn’t falling fast enough to help most Americans

Inflation may be slowing some, but Americans say they aren’t feeling much relief as they contend with higher prices than they saw a year ago.

And some are fearful the worst is yet to come.

“I think we’re moving towards a recession,” Canela said. “At least that’s what it feels like.”

Earlier this month, the Labor Department reported that annual consumer inflation in March reached its lowest point in nearly two years, as the Federal Reserve has continued to hike interest rates in a bid to counter rising prices. 

A key driver behind the decline was the slowdown in grocery prices: Annual food costs saw a 1.5 percent drop from February and an overall 5 percent decrease from the high watermark seen in August.

But despite the drop, some can’t help but notice the price stickers are much more north of where they used to be. 

Jackson, 74, said she sees “more aspects of high inflation everyday.“

“One of the first things I noticed, probably like millions of others, is the cost of food,” she said. “Not too long ago, you could buy three pounds of onion for a couple of dollars. Now, it’s five bucks.”

While Jackson, who recalled the era of the 2008 financial crisis, said there’s “definitely a difference” between current conditions and a recession, she also said there is still some pressure.

“It’s almost like this is a mist as opposed to a fire and that it’s insidious,” Jackson said. “It’s just everywhere and little by little you begin to notice it.” It’s not technically a recession, but it sure feels like one for many

There is consensus among experts that the country is not currently experiencing a recession, but that doesn’t mean there isn’t a downturn on the horizon.

U.S. central bankers broached the issue of a potential recession following the collapses of two prominent banks last month, minutes of the Federal Open Market Committee meeting show. 

“Given their assessment of the potential economic effects of the recent banking-sector developments, the staff’s projection at the time of the March meeting included a mild recession starting later this year,” the minutes stated.  SpaceX giant rocket explodes minutes after launch from Texas Yellen calls for better relations with China amid tensions

Officials also expect to hike interest rates one more time this year, which can lead to higher mortgages and credit card payments, as the Fed seeks to make it more expensive to borrow to tackle inflation.

Even so, Fed officials are torn over whether to do so at the bank’s next policy meeting in May.

Sylvan Lane contributed.

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Joe Biden allows Ukraine to begin firing US rockets deep into Russia – as politician warns it ‘risks World War Three’

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Joe Biden allows Ukraine to begin firing US rockets deep into Russia - as politician warns it 'risks World War Three'

Joe Biden has authorised Ukraine to begin firing US-supplied rockets deep into Russia – as Sir Keir Starmer prepares to push for “further support” for Kyiv at the G20 summit.

Mr Biden’s policy shift means Kyiv will now be able to use Army Tactical Missile Systems (ATACMS) for long-range attacks, two American officials have told Sky News’ US partner network NBC News.

Follow latest: Ukraine war live updates

Ukraine plans to conduct its first such attacks in the coming days, the sources said, without revealing details due to operational security concerns.

The US has eased restrictions on the use of ATACMS, which have a range of up to 190 miles, after Russia began deploying North Korean ground troops to supplement its own forces in the conflict.

Kremlin spokesman Dmitry Peskov said such a move would deepen America’s involvement in the war.

“It is obvious that the outgoing administration in Washington intends to… continue adding fuel to the fire and provoking further escalation of tensions around this conflict,” Peskov said.

President Joe Biden meets with Ukrainian President Volodymyr Zelenskyy in the Oval Office in September last year. Pic: AP
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Joe Biden meets with Volodymyr Zelenskyy in the Oval Office in September last year. Pic: AP

The development was also condemned by Biden officials as a possible expansion of the war.

A Russian politician and the son of President-elect Donald Trump have both likened the move to risking a third world war.

Maria Butina told the Reuters news agency: “These guys, Biden’s administration, is trying to escalate the situation to the maximum while they still have power and are still in office.

“I have a great hope that Trump will overcome this decision if this has been made because they are seriously risking the start of World War Three which is not in anybody’s interest.”

Meanwhile, Donald Trump Jr wrote on X: “The Military Industrial Complex seems to want to make sure they get World War 3 going before my father has a chance to create peace and save lives… Imbeciles!”

The outgoing Biden administration’s move comes as there are concerns about the level of support the Trump White House may be willing to give Ukraine.

Mr Trump has previously vowed to limit US support for Ukraine and end its war with Russia.

In an evening address after Kyiv was given permission to fire deep into Russia, Ukrainian President Volodymyr Zelenskyy said: “Today, there’s a lot of talk in the media about us receiving permission for respective actions. But strikes are not carried out with words. Such things are not announced. Missiles will speak for themselves. They certainly will.”

Back in September, Russian President Vladimir Putin said if the US were to lift the ban on long-range missile use it would be seen as NATO’s “direct participation” in the war.

He added: “This, of course, will significantly change the very essence, the very nature of the conflict.”

The US military tests an early version of an Army Tactical Missile System in 2021. Pic: AP
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The US military tests an early version of an Army Tactical Missile System in 2021. Pic: AP

Meanwhile, the UK prime minister has said he has “no plans” to speak with the Russian president as world leaders gather for the G20 summit in Rio de Janeiro.

Mr Putin will not be attending the two-day summit which starts on Monday after saying in October that his presence would “disrupt the normal work of this forum”. Russia’s foreign minister Sergei Lavrov will be attending instead.

It will take place days after German Chancellor Olaf Scholz spoke to Mr Putin on what was the Russian leader’s first publicly announced conversation with the sitting head of a major Western power in nearly two years.

Asked if he had any plans to make a similar call, Sir Keir said: “It’s a matter for Chancellor Scholz who he speaks to. I have no plans to speak to Putin.”

Read more:
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Firefighters work at the site of a residential area hit by a Russian missile strike in the Lviv region of Ukraine. Pic: Reuters
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Firefighters work at the site of a residential area hit by a Russian missile strike in the Lviv region of Ukraine. Pic: Reuters

Speaking to reporters while on his way to the summit, he added: “We are coming up to the 1,000th day of this conflict on Tuesday.

“That’s 1,000 days of Russian aggression, 1,000 days of huge impact and sacrifice in relation to the Ukrainian people and recently we’ve seen the addition of North Korean troops working with Russians which does have serious implications.

“I think on one hand it shows the desperation of Russia, but it’s got serious implications for European security […] and for Indo-Pacific security and that’s why I think we need to double down on shoring up our support for Ukraine and that’s top of my agenda for the G20.

“There’s got to be full support as long as it takes and that certainly is top of my agenda, shoring up that further support for Ukraine.”

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One of Russia’s ‘largest air attacks’

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The latest developments come after Russia launched a large-scale attack on Ukraine on Sunday, with Mr Zelenskyy claiming Moscow had launched a total of 120 missiles and 90 drones.

Two major strikes, which left a total of 18 people dead, hit a residential building in the northeastern city of Sumy as well as energy infrastructure across Ukraine, prompting emergency power cuts.

Hours later, Moscow mayor Sergei Sobyanin said Russia’s air defence units had destroyed a drone heading towards the city.

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It’s a stunning shift in US policy – but Biden’s announcement will trigger fury and fresh threats from Moscow

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It's a stunning shift in US policy - but Biden's announcement will trigger fury and fresh threats from Moscow

Joe Biden’s belated decision to allow Ukraine to use US-supplied, long-range missiles inside Russia will be cheered by Kyiv and will almost certainly prompt the UK to follow suit.

But the stunning shift in US policy – just weeks before Donald Trump takes over as US president – will also trigger fury and fresh threats from Moscow at a time of increasing uncertainty about the future course of its war.

President Vladimir Putin has warned the West they would be playing with fire if they allowed Ukrainian forces to launch Western-supplied cruise and ballistic missiles at Russia, saying it could even trigger a global conflict.

British and US officials, though, have repeatedly advised their respective capitals not to be intimidated by Moscow’s sabre rattling.

Ukraine war latest: Biden lifts ban on Russia strikes

Yet there has been hesitancy, particularly in Washington, over the unleashing of US Army Tactical Missile System (ATACMS) ballistic missiles beyond the borders of Ukraine.

However, it seems that a move by North Korea to send thousands of its troops to fight with Russia has changed US calculations.

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Joe Biden is in Brazil for a G20 summit. Pic: Reuters
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Joe Biden delivered his remarks in Brazil. Pic: Reuters

The New York Times, which was among the US media organisations to break news of the Biden administration’s decision on long-range missiles, reported that the first time the American weapons will be used inside Russia will likely be against Russian and North Korean troops battling a Ukrainian incursion in the Russian region of Kursk.

While a significant step up in support for Ukraine, the ability to use American long-range missiles inside Russia is not a war-winning development.

But it does expand Kyiv’s capacity to hit important military targets deliberately positioned by Russian commanders far back from the frontline. This includes stockpiles of missiles, drones and other ammunition used to strike Ukraine.

Just as important as the military impact, though, is the political signal that the US decision sends to the Kremlin about Washington’s willingness to defy Russian warnings about dire consequences should Mr Biden dare to grant Ukraine the permission it’s so long been seeking.

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‘The missiles will speak for themselves’

The dramatic move by the US comes after months of lobbying by Ukraine’s leader, Volodymyr Zelenskyy.

A key thing to watch now will be how Mr Putin reacts the first time an American missile kills Russian soldiers on Russian soil.

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Moscow does not want a direct war with the United States and NATO – nuclear-armed forces with far greater combined firepower – but the Kremlin could well ramp up an already heightened campaign of sabotage and other forms of hybrid warfare across Europe.

Another important reaction to track will be how Mr Trump responds to Mr Biden’s move and whether he continues to allow Ukraine this permission once he takes over as the US commander-in-chief.

The president-elect has vowed to end Russia’s war in Ukraine quickly but he has not said how. Yet he has voiced fierce opposition to the continued gifting of vast quantities of American weapons to the Ukrainian military.

It is a reason perhaps for Ukraine to make use of its new freedoms with US missiles as quickly as possible.

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Vladimir Shklyarov: Russian ballet star dies aged 39 after ‘fall from building’

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Vladimir Shklyarov: Russian ballet star dies aged 39 after 'fall from building'

An acclaimed Russian ballet dancer has died aged 39 after reportedly falling off a balcony.

Vladimir Shklyarov, one of the world’s top male ballet stars, died on Saturday night, according to the Mariinsky Theatre, where he was a principal dancer.

The St Petersburg theatre said: “It is with profound sadness that the Mariinsky Theatre announces the untimely passing of principal dancer Vladimir Shklyarov.

“Shklyarov, a beloved artist and audience favourite, died tragically on 16 November.

“His loss is deeply felt by the entire Mariinsky family and the wider ballet world.”

The Mariinsky Theatre told Sky News Shklyarov had a back injury at the time, and was due to have “complicated spinal surgery” on Monday 18 November. He was “taking serious pain medication”.

A spokesperson for the theatre was reported in Russian media at the weekend as saying he had fallen from the fifth floor of a building.

Vladimir Shklyarov performing in London in 2009.
Pic: Reuters
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Vladimir Shklyarov performing in London in 2009, with fellow dancer Alina Somova. Pic: Reuters

Dancers have been paying tribute to Shklyarov, who was married to fellow company dancer Maria Shklyarov, with whom he had two children.

Former ballerina Irina Bartnovskaya said Shklyarov had been at home, on pain relief, preparing for foot surgery at the time of his death.

In a post on Telegram, she continued: “He went out onto the balcony to get some air and smoke, lost his balance (a very narrow balcony) and fell down (from the 5th floor).

“Stupid, unbearable accident.”

Read more from Sky News:
US allows Kyiv to fire rockets deep into Russia
UK will double aid to Sudan
Police force ends use of strip searches

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Diana Vishneva, a ballerina at the Mariinsky Theatre, was also among those paying tribute.

She said: “This tragedy brings only tears and sadness.”

According to state-run news group RIA Novosti, an investigation has been launched into the death.

The outlet also said that the preliminary cause of death was believed to be an accident.

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