The Daily Money

ALL THE MONEY NEWS YOU NEED TO KNOW

Mon Oct 28 2024

Daniel de Visé | Personal Finance Reporter

Good morning! It's Daniel de Visé with your Daily Money.

Today, we offer competing views of how the economy is faring on election eve.

With fewer than 10 days remaining before the election, the economy has continued to line up in Vice President Kamala Harris' favor, Paul Davidson reports.

Gas prices and mortgage rates are down. Inflation-adjusted incomes are up. Consumer confidence is tepid, but well above the threshold that historically has signaled a recession.

In past presidential races, those kinds of economic vital signs have reliably foreshadowed victory for the incumbent party in the White House.

Yet, this is anything but a normal election.

On the other hand. . .

Putting "fun" back into low- and middle-income Americans' budgets could be years away, Medora Lee reports, because of the cumulative effect of inflation.

Even with annual inflation cooling to the lowest level since February 2021 and wages rising faster, low- and middle-income Americans are barely covering their essentials, economists say.

When inflation slows, it only means prices aren't rising as quickly, not that prices are declining. So, Americans continue to pay higher prices for everyday needs.

And about those credit cards. . .

Interest rates are coming down, but credit card rates remain stubbornly high.

The average credit card rate is 20.51%, Bankrate reports. That's a hair below the all-time record, 20.79%, set in August.

Card rates are so high, in part, because of the Federal Reserve. The central bank raised rates dramatically in 2022 and 2023 to fight surging inflation. But that's not the only reason.

📰 More stories you shouldn't miss 📰

•	New refund rules take effect for air travel
•	Parts of Disney World are closing
•	How to deal with endless fundraisers
•	Index funds to buy and hold
•	Is Social Security income taxed?

About The Daily Money

Each weekday, The Daily Money delivers the best consumer and financial news from USA TODAY, breaking down complex events, providing the TLDR version, and explaining how everything from Fed rate changes to bankruptcies impacts you.

Daniel de Visé covers personal finance for USA Today.

Will solid economy aid Harris? Or will voters' dour views lift Trump?

US Vice President and Democratic presidential candidate Kamala Harris (R) shakes hands with former US President and Republican presidential candidate Donald Trump during a presidential debate at the National Constitution Center in Philadelphia, Pennsylvania, on September 10, 2024.

Key economy measures like gas prices and mortgage rates give Harris an edge in the election, computer says. But inflation may make this time different

READ MORE