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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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Democrat senator Chris Van Hollen who met wrongly deported man Kilmar Abrego Garcia says photos of pair with margaritas are staged

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Democrat senator Chris Van Hollen who met wrongly deported man Kilmar Abrego Garcia says photos of pair with margaritas are staged

The Democrat senator who flew to meet the man wrongly deported to El Salvador has said photos of them with margaritas were staged by officials working for the country’s president.

Chris Van Hollen added that Kilmar Abrego Garcia, who was deported from the US last month, told him he has been moved from a notorious high-security prison in El Salvador to a detention centre with better conditions.

The deportation of Mr Garcia has become a flashpoint in the US, with Democrats casting it as a cruel consequence of Donald Trump’s disregard for the courts, while Republicans have criticised Democrats for defending him and argued his deportation is part of a larger effort to reduce crime.

Mr Garcia, a Salvadoran citizen who was living in Maryland, is being detained in the Central American country despite the US Supreme Court calling on the White House to facilitate his return home.

Trump officials have said Mr Garcia has ties to the violent MS-13 gang. However, Mr Garcia’s attorneys say the government has provided no evidence, and he has never been charged with any crime related to such activity.

Mr Van Hollen flew to El Salvador and met with Mr Garcia this week in an effort to help secure his return to America.

Chris Van Hollen and Kilmar Abrego Garcia, seen in a photo shared by El Salvador's president. Pic: Nayib Bukele on X
Image:
Chris Van Hollen and Kilmar Abrego Garcia, seen in a photo shared by El Salvador’s president. Pic: Nayib Bukele on X

Chris Van Hollen (R) speaks with Kilmar Abrego Garcia (L). Pic: Press Office Senator Van Hollen/AP
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Van Hollen (right) says margaritas were later brought to the table. Pic: Press Office Senator Van Hollen/AP

Speaking to reporters at Washington Dulles International airport after returning to the US on Friday, Mr Van Hollen said: “As the federal courts have said, we need to bring Mr Abrego Garcia home to protect his constitutional rights to due process. And it’s also important that people understand this case is not just about one man.

“It’s about protecting the constitutional rights of everybody who resides in the United States of America.”

Mr Van Hollen added the Trump administration is “asserting a right to stash away residents of this country” in foreign prisons “without the semblance of due process that is the foundation of our constitutional order”.

Don’t let the PR battle cloud the real human story

What began as the plight of a Salvadoran man wrongly deported from the US to a notorious high-security prison in El Salvador has become a much broader debate.

The case of Kilmar Abrego Garcia now ranges from the extremely serious – questions over the rule of law, due process and a potential constitutional crisis – to the more curious matter of tequila-based cocktails.

There is a public relations battle going on over the images which emerged of Mr Abrego Garcia meeting Maryland Senator Chris van Hollen at a hotel in San Salvador.

In the first photos which were made public, on the social media account of El Salvador’s President Nayib Bukele, an ally of Donald Trump, the two men had cocktail glasses in front of them which he said were margaritas.

But when Senator van Hollen posted his account of the meeting, those glasses had vanished. So what’s this all about, and why does it matter?

The senator has now given his version of events, saying the glasses were placed there by an El Salvador government official to mock concerns about the conditions in the country’s prison – a photo op aimed at shifting the narrative around Mr Abrego Garcia’s detention in El Salvador.

Mr van Hollen also revealed El Salvador officials initially wanted the meeting to take place next to a swimming pool, to give an even more tropical backdrop to the encounter.

But at the end of the day, it’s not just about images, it’s not about public relations, it’s not even about margaritas. It’s about a 29-year-old father of three, detained in El Salvador, despite having never gone through due process in the US.

The senator also revealed Mr Garcia was brought from a detention centre to his hotel after initial requests to meet or speak with him were denied.

Mr Van Hollen said Mr Garcia told him he was “traumatised” after being detained at El Salvador’s notorious CECOT prison, but he had been moved to a “different facility” with better conditions nine days ago.

The senator said Mr Garcia told him he was worried about his family and that thinking about them was giving him “the strength to persevere” and to “keep going” under awful circumstances.

Mr Garcia’s wife, Jennifer, was at the news conference and wiped away tears as Mr Van Hollen spoke of her husband’s desire to speak to her.

Earlier, Mr Van Hollen had posted photos of himself meeting with Mr Garcia.

Chris Van Hollen speaks at Washington Dulles International Airport. Pic: AP
Image:
Chris Van Hollen speaks at Washington Dulles International Airport. Pic: AP

It came before El Salvador’s President Nayib Bukele shared his own images of the meeting, which he claimed showed the pair “sipping margaritas” in the “tropical paradise of El Salvador”.

In an apparent sarcastic remark, Mr Bukele wrote that Mr Garcia had “miraculously risen” from the “death camps”.

Giving an account of what he says happened when the photos were taken, Mr Van Hollen said: “We just had glasses of water on the table. I think maybe some coffee.

And as we were talking, one of the government people came over and deposited two other glasses on the table with ice. And I don’t know if it was salt or sugar round the top, but they looked like margaritas.

“If you look at the one they put in front of Kilmer, it actually had a little less liquid than the one in me in front of me to try to make it look, I assume like he drank out of it.

“Let me just be very clear. Neither of us touched the drinks that were in front of us.”

He added that people can tell he is telling the truth because if someone had sipped from one of the glass there would be a “gap” where the “salt or sugar” had disappeared.

Mr Van Hollen said the image shows the “lengths” the El Salvadorian president will go to “deceive people about what’s going on”.

“It also shows the lengths that the Trump administration and [President Trump] will go to, because when he was asked by a reporter about this, he just went along for the ride.”

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UK

Funeral delays: Bereaved family faces ‘stressful’ time after eight-week wait

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Funeral delays: Bereaved family faces 'stressful' time after eight-week wait

Changes to how death certificates are issued in England and Wales have made the grieving process more “stressful”, according to bereaved families.

Anne Short died on New Year’s Eve, only a few months after she was diagnosed with cancer.

Her son Elliot, 30, from Newport, South Wales, says the grieving process was made harder after having to wait eight weeks to hold her funeral.

“Quite frankly, it’s ridiculous, when you’re already going through all this pain and suffering as a family,” he told Sky News.

“You can’t move on, you can’t do anything, you can’t arrange anything, you can’t feel that they’re at peace, you can’t put yourself at peace, because of a process that’s been put in that nobody seems to know anything about at the moment.”

That process has been introduced by the government to address “concerns” about how causes of death were previously scrutinised, following high-profile criminal cases such as those of Harold Shipman and Lucy Letby.

Up until last September, causes of death could be signed off by a GP, but now they have to be independently scrutinised by a medical examiner, before a death certificate can be issued.

Anne Short
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Anne Short

‘I felt helpless’

Mr Short said he was ringing “twice a day” for a progress update, but that it was “going through too many sets of hands”.

Until the death certificate was issued, Ms Short’s body could not be released into the care of the funeral director.

“The main stress for me was knowing that she was up there [at the hospital] and I couldn’t move her, so I felt helpless, powerless,” he said.

“I felt like I’d let her down in a lot of ways. I know now, looking back, that there’s nothing that we could have done, but at the time it was adding a lot of stress. I just wanted her out of there.”

Anne Short
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Elliot Short had to wait eight weeks to hold his mother’s funeral

‘Something has to be done’

Mr Short fears there’s a risk the new process might defeat its purpose.

“There’s other people that I know that have lost since, where it’s been in a care home or something like that, where they haven’t been happy with the care they’ve had, but they haven’t raised that because you’re in this bubble of grief and you just want to get it done,” he said.

“Something has to be done about that because I think it just drags on the grief and there’s obviously a danger then of it being against the reasons why they’re trying to do it.”

Arrangements after the death of his father less than two years ago was a “much easier process”, according to Mr Short.

“I lost my father as well 15 months before, so we went through the process prior to this coming in and we had the death certificate, he died at home, but we had it within three days,” he added.

Elliot Short, 30
Image:
Elliot Short

‘State of limbo’

James Tovey is the sixth generation of his family running Tovey Bros, a funeral director in Newport.

He told Sky News that the delays were having a “huge impact” on the business and that the families they serve were being “left in a state of limbo” for weeks after their bereavement.

“I would say that most funerals will take place perhaps two to four weeks after the person’s passed away, whereas now it’s much more like four to six weeks, so it is quite a significant difference,” he said.

“It’s one thing on top of an already distressing time for them and we’re frustrated and upset for [the families] as much as anybody else and it’s just annoying that we can’t do anything about it.”

James Tovey is the sixth generation of his family to run Tovey Bros funeral directors in Newport, South Wales
Image:
James Tovey

Mr Tovey said that the reform was “very useful” and he remained supportive of it.

“It’s just the delays. I’m sure they can do something about that over time, but it’s just waiting for that to happen, and I wish that could be addressed sooner rather than later,” he added.

“It does put pressure on other people, it’s not just ourselves, it’s pressure on the hospitals, on crematoria, on the registrar service and everyone else involved in our profession.

“But of course all of us we’re there to serve the families, and we’re just upset for them and wish we could do more to help.”

James Tovey
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The organisation representing funeral directors has called for “urgent action”

The National Association of Funeral Directors said some areas of England and Wales are experiencing much shorter delays than others, but has called for “urgent action”.

Rachel Bradburne, its director of external affairs, said the system was “introduced for all the right reasons” but that it was “not working as well as we need it to”.

“Funeral directors are relaying stories of delays, frustration, and bottlenecks on a daily basis, and urgent action is required to review and recalibrate the new system,” she added.

‘Unintended consequences’

Dr Roger Greene is the deputy chief executive of bereavement charity AtALoss.

He told Sky News that the delays were “one of the unintended consequences of what’s a well-intended reform of a system”.

“What has actually happened is that the number of deaths now requiring independent scrutiny has trebled,” he said.

“So in England and Wales in 2023, the last full year of data, there were nearly 200,000 deaths reported to a coroner, whereas there were 600,000 deaths.

“Now, what is the change in the process is that all deaths now need to be reported for independent scrutiny.”

Dr Roger Greene
Image:
Dr Roger Greene

Dr Greene said there may be ways the system could be “tweaked a little bit”, such as giving medical examiners the ability to issue an interim death certificate.

“We believe that people can process grief well if they’re given the opportunity and they’ve got a proper understanding,” he added.

“But the systems that we have in the country need to be able to work as well with that diversity of faith and culture.”

‘Vital improvements’

Jason Shannon, lead medical examiner for Wales, told Sky News he recognised “the importance of a seamless, accurate and timely death certification process”.

“Medical examiners are one part of the wider death certification process and were introduced to give additional independent safeguards as well as to give bereaved people a voice, which they hadn’t had before,” he added.

“Medical examiners have no role in determining where the body of a family’s relative is cared for and except in a minority of deaths where a coroner needs to be involved, that decision should be one that a family is fully empowered to make in a way that is best for them.”

A Welsh government spokesperson said they “would like to apologise to any families who have experienced delays in receiving death certificates”.

The government said it was working with the lead medical examiner and the NHS in Wales “to understand where the delays are” and how to provide bereaved families with “additional support”.

Read more from Sky News:
Families feel impact of spiralling funeral costs
Calls for funeral sector to be regulated

A spokesperson for the Department of Health and Social Care said it recognised there were “some regional variations in how long it takes to register a death”.

They added that the changes to the death certification process “support vital improvements to patient safety and aim to provide comfort and clarity to the bereaved”.

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‘Andrew Tate phenomena’ surges in schools – with boys refusing to talk to female teacher

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'Andrew Tate phenomena' surges in schools - with boys refusing to talk to female teacher

Social media influencers are fuelling a rise in misogyny and sexism in the UK’s classrooms, according to teachers.

More than 5,800 teachers were polled as part of the survey by the NASUWT teaching union, and nearly three in five (59%) of teachers said they believe social media use has contributed to a deterioration in pupils’ behaviour.

The findings have been published during the union’s annual conference, which is taking place in Liverpool this weekend.

One motion that is set to be debated at the conference calls on the union’s executive to work with teachers “to assess the risk that far-right and populist movements pose to young people”.

Andrew Tate was referenced by a number of teachers who took part in the survey, who said he had negative influence on male pupils.

One teacher said she’d had 10-year-old boys “refuse to speak to [her]…because [she is] a woman”.

Another teacher said “the Andrew Tate phenomena had a huge impact on how [pupils at an all-boys school] interacted with females and males they did not see as ‘masculine'”.

While another respondent to the survey said their school had experienced some incidents of “derogatory language towards female staff…as a direct result of Andrew Tate videos”.

Last month, Prime Minister Sir Keir Starmer hosted a discussion in Downing Street on how to prevent young boys from being dragged into a “whirlpool of hatred and misogyny”.

The talks were with the creators of Netflix drama Adolescence, which explored so-called incel culture.

Read more from Sky News:
Former Rochdale footballer dies aged 36
Two Britons among four killed in cable car crash

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Starmer meets Adolescence creators

‘An urgent need for action’

Patrick Roach, the union’s general secretary, said “misogyny, racism and other forms of prejudice and hatred…are not a recent phenomenon”.

He said teachers “cannot be left alone to deal with these problems” and that a “multi-agency response” was needed.

“There is an urgent need for concerted action involving schools, colleges and other agencies to safeguard all children and young people from the dangerous influence of far-right populists and extremists,” Mr Roach added.

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A spokesperson for the Department for Education (DfE) said: “Education can be the antidote to hate, and the classroom should be a safe environment for sensitive topics to be discussed and where critical thinking is encouraged.

“That’s why we provide a range of resources to support teachers to navigate these challenging issues, and why our curriculum review will look at the skills children need to thrive in a fast-changing online world.”

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