The Money Section | Overdraft fees could soon be a thing of the past

͏Also, could strong retail sales delay rate cuts? ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ [The Charlotte Observer]( January 18, 2024 • Issue #68 [The Money Section] This week, we’re looking at why bank overdraft fees could soon be a thing of the past, why the CEO of a top financial services firm is sounding the alarm over a “very ugly” real estate market in the next two years, and how nearly 270 millionaires and billionaires are calling on world leaders to… tax their wealth? Overdraft fees could soon be a thing of the past [Fees]( Money; Getty Images The Consumer Financial Protection Bureau (CFPB) is proposing to overhaul overdraft fees from big banks, aiming to save Americans an estimated $3.5 billion annually. The CFPB argues that the current overdraft loophole allows large banks to rely on overdraft fees as a core part of their business model, turning overdraft services into a “massive profit machine.” [Read more.]( 💰 Retail sales in December were way better than expected. U.S. retail sales for December exceeded expectations, increasing by 0.6%, with clothing and accessory stores and online nonstore businesses driving the boost. These numbers could influence the Fed’s stance on rate cuts, which might see this as a potential momentum in the economy. [Here’s what you need to know.]( ⏳ It might take a bit longer for rate cuts. The likelihood of a March rate cut in the U.S. has diminished after better-than-expected retail sales data. However, the market still expects rate cuts later in the year–projecting up to 6 in total. While Federal Reserve Board member Christopher Waller emphasizes a measured approach, the market remains dovish, potentially indicating [concerns about financial stability.]( Tax season is looming, but it should be less of a headache [Tax Season]( Money; Getty Images The IRS will begin accepting and processing 2023 tax returns from January 29, with plans to handle more than 128 million returns by the April 15 deadline. Thanks to increased funding from the Inflation Reduction Act, the IRS aims to enhance customer service during the 2024 filing season, with shorter wait times for helpline calls and [improved paperless processing.]( 🏠 U.S. mortgage demand jumps 10% as rates fall. U.S. mortgage applications spiked as interest rates fell, particularly with the 30-year mortgage rate reaching a three-week low. The Mortgage Bankers Association reported a 10.4% increase in the overall market composite index for the week ending January 12, driven by higher demand for both home purchases and refinancing. [Here’s what you need to know.]( 💲 Will the US real estate market get ugly in 2025? Cantor Fitzgerald CEO Howard Lutnick is warning of a “very ugly” real estate market over the next 18 months to two years, anticipating a “generational” shift. Lutnick predicts massive defaults in the range of $700 billion to $1 trillion in commercial loans, with high rates leading to [significant challenges in real estate equity.]( ID theft is delaying taxpayer refunds [Theft]( Money; Getty Images The Internal Revenue Service (IRS) is facing significant delays in handling identity theft cases, causing prolonged waiting times for taxpayers awaiting refunds. Scammers filing a high volume of returns in others’ names contribute to the challenges, with victims of identity theft waiting over a year and a half, on average, for resolution. [Here’s what you need to know.]( 😮 The elite actually… want to be taxed? Nearly 270 millionaires and billionaires have called on world leaders at the World Economic Forum to tax their wealth to address rising economic inequality. In a letter, they emphasized the urgent need for action, stating that taxing the wealthy would not fundamentally alter their standard of living but could contribute to a common democratic future. [Read more.]( 😁 Americans are pretty happy with their finances. Despite gloomy views in some subsets of the country and consumer sentiment polls reflecting economic concerns, the Axios Vibes survey by The Harris Poll found that 63% of Americans actually rate their current financial situation as “good.” [See the numbers that back it up.]( Smart Money Move Protect your new furry family member with pet insurance [Dog] [Dog] Did you become a pet parent over the holidays? Congrats! We’re super excited for you (and a little jealous). Take note, though–veterinary costs are skyrocketing, and accidents do happen. Pet insurance can help you focus on enjoying your cute new companion instead of worrying about not-so-cute vet bills. [View our best pet insurance list to find companies with up to 90% reimbursement options and coverage starting at just $10 per month.]( Stories we're reading this week - [Verizon To Take $5.8 Billion Hit In Fourth Quarter]( - [Early Student Loan Forgiveness Applies to More Borrowers Than Originally Expected]( - [Apple Bills Epic Games $73 Million In Legal Costs]( - [How High Could Home Insurance Rates Jump This Year? Here’s What Experts Predict]( - [Google Lays Off “Hundreds” More As Ad Division Switches To AI-Powered Sales]( - [Health Insurance and Medical Costs Are Set to Surge Again in 2024]( - [Japan’s Market Roars Back to Life—With Old-Timers Leading the Way]( The Money Section is written in partnership with Money Research Collective This email was sent to {EMAIL} because you are signed up to receive marketing emails or newsletters from The Charlotte Observer. If you no longer wish to receive emails of this type, you may [unsubscribe]( or [update your email preferences](. 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