As the Economy begins to put the pandemic in the rear view mirror, we are still dealing with lingering problems that are impacting the labor market. It is hard to believe that today in America we have more job openings that exceed available workers by a large margin. Because of this, salary inflation is accelerating as companies “bid up” wages to attract labor to fill open positions. Add to this a reduction in fuel supplies that have now moved the price of gasoline from just under $3 per gallon a year ago to around $4.50 per gallon today and the cost of transportation skyrockets. The combination of high labor costs (including labor shortages) and high fuel costs results in significantly higher costs for goods and services. Year over year, the rate of inflation grew to 8.5% causing the Federal Reserve to begin aggressively raising short-term overnight rates. It is expected that this tightening will continue the rest of the year, or until it is clear that inflation is brought down. The trick of course is reducing inflation without causing the Economy to go in to a recession. Keep in mind that the definition of inflation is when you have “too many dollars chasing too few goods and services”. Given all the stimulus dollars pushed out in to the Economy over the past two years, many consumers and companies have strong cash positions and lower debt levels. As a result, many banks are sitting on large deposit balances that they are having trouble finding borrowers to loan the money to at profitable rates. This will make the Federal Reserve actions less effective because banks will not be able to raise deposit rates at anything close to the Fed Rate hikes. However, the national mortgage rates are the exception. They have moved from 2.75% a year ago for a 30-year fixed rate mortgage to 5.25% for that same mortgage today. This has significantly increased the cost of a new home mortgage. Move home prices up 15% year over year and the cost of the mortgage on a modest three bedroom home becomes much less affordable. This situation is beginning to cause a slowdown in home construction and sales on a national basis. If mortgage rates continue to rise, we can expect the housing market to drastically slow down and prices to flatten. Since new home construction has such a huge impact on the Economy, this could cause inflation to be reduced. Home construction is so impactful because every new home not only needs building materials, but also needs appliances, carpet, lighting and furniture. All of these industries slow down if home construction slows.
It will be interesting to see how things play out over the next several months. Expect volatility in the stock and bond markets and watch closely to see if the Federal Reserve over plays their hand and moves the Economy toward a recession. There are many moving parts right now including geopolitical issues in Ukraine and Taiwan.
As always, I want to thank you for your loyalty and invite you to contact us if you have any questions or concerns.
Mike
May Shred Days, Successful!
Each year NebraskaLand Bank collects literal tons of paper materials and documents with sensitive information to shred at our Community Shred Day. We offer this event to aid our community members in the prevention of identity theft and fraud.
North Platte worked with Lincoln County Law Enforcement Memorial volunteers. With NebraskaLand Bank’s $500 match, we raised $1,657 for their cause!
In Kearney, along with our $500 contribution, we were able to raise $871 for the UNK Football Team!
Are you getting the most out of your Mobile App?
Enhanced Insights
Our handy list of subscriptions and who has your card on file gives you a clear picture of where your money is going.
Easy-to-read graphs make understanding your spending habits simple, and details such as merchant names, logos, and contact information give you greater insight into your card transactions.
Greater Card Protection
Our card controls offer more protection than ever, allowing you to lock and unlock your cards and limit transactions by location, merchant, and transaction type.
You can report lost or stolen cards from the app, and setup alerts to stay informed about how your card is used.
Ultimate Convenience
Add cards to digital wallets, get cash without your card, easily set travel plans to ensure your card is not declined, and even access your new card before heading to a branch for an instant issue card or receiving it in the mail.
Plus, self-service options give you 24/7 assistance.
Simply tap “My Cards” to access all the exciting new card control features in one app!
Don’t have the app?
Download the NebraskaLand Bank App today!
Record number of NebraskaLand University Students in 2022
Forty-one students graduated from the NebraskaLand University Scholarship Program in April. The graduates, who completed the required attendance and coursework, were presented with certificates and $250 academic scholarships. Each student was required to complete all six classes in order to graduate and become eligible for the $250 scholarship. In addition, students were required to complete an essay that was judged by a Bank committee. The students with the highest scores were the recipients of a $1,000.00, $750.00, and $500.00 scholarships. The winners were:
1st Place $1,000, Breah Matuszczak
2nd Place $750, Thomas Ramsey
3rd Place $500, Myah Essman
“We are proud of what our students have accomplished, and we are confident that the financial skills and education they obtained at NebraskaLand University has given them the foundation they need to be financially successful later in life,” said Mike Jacobson, President and CEO of NebraskaLand Bank.
NebraskaLand University is a six course financial literacy program designed to educate students on budgeting, savings, credit, loans, career and wealth development, identity theft protection and more. The curriculum uses a combination of established financial literacy materials and unique lesson plans created and instructed by Senior and Executive Officers at NebraskaLand Bank.
In total, the Bank has awarded approximately $74,000.00 in academic scholarships since the program began in 2014-2015.
Zelle® What are P2P Payments?
Make Your Life Easier with P2P Payment Options
Sending money to friends and family is becoming a common necessity, whether you’re splitting the cost of a lunch tab, paying someone back for a shared birthday present, or even paying the babysitter. One of the fastest and easiest ways to do that is to send money digitally using peer-to-peer (or P2P) payments.
P2P payments enable you to send money to another person right from an app on your mobile device using a linked bank account, credit card or debit card. You can think of it as a digital replacement for cash or checks. Sending money this way is more convenient than writing checks or handling cash, and it has quickly become a popular way to send money across many age groups. In fact, nearly one in five Americans utilized P2P payments in 20201.
There are many P2P payment options available and it’s typically easy to enroll and start sending money. Apple Pay, CashApp, Google Pay, Venmo and Zelle® are a few services you may have heard or read about. Whichever option you choose, you can use your mobile device to enroll, then depending on the service, you can link your bank account, credit card, or debit card. Once you’re setup, you can start sending money to friends or family who are also enrolled with your platform of choice.
Sending and receiving money is usually just a few of clicks away. You choose who to send money to, the amount you want to send, add a message to indicate why you’re sending money, and send. Depending on which P2P payment option you use, the time it takes for the recipient to receive their money can range from a few seconds to a few days. One of the popular P2P payment options is Zelle®, and it’s available for free in the NebraskaLand Bank app. With millions of active Zelle® users, you can send and receive money even if your friend or family member doesn’t bank at NebraskaLand Bank2. Learn more about how Zelle® can help you send money to friends and family.
1Source: Logica Research, The Future of Money, 2020
2U.S. checking or savings account required to use Zelle®. Transactions between enrolled consumers typically occur in minutes and generally do not incur transaction fees.
Zelle® and the Zelle® marks are property of Early Warning Services, LLC and are used herein under license.
HOW TO SEND MONEY WITH ZELLE® SAFELY
Located conveniently in your NebraskaLand Bank app, Zelle® enables you to send and receive money with friends and family, wherever they bank in the U.S. Follow these easy tips to use Zelle® safely:
1. Only send money to those you know and trust
2. Beware of payment scams
3. Treat Zelle® like cash
continue reading "How to Send Money with Zelle® Safely"
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