Current Events in February 2023

Working remotely eliminates the daily commute to the office, and for those whose route took them through heavy traffic, there might be a health benefit from working at home. Canadian researchers have published a study showing that common levels of traffic pollution can impair human brain function in only a matter of hours.

The peer-reviewed findings, published in the journal Environmental Health, found that the damage can occur in as little as two hours when drivers are exposed to heavy diesel fumes in heavy stop-and-go traffic.

The researchers from the University of British Columbia (UBC) and the University of Victoria say their study is the first to show altered brain network connectivity induced by air pollution.

“For many decades, scientists thought the brain may be protected from the harmful effects of air pollution,” said senior study author Dr. Chris Carlsten, professor and head of respiratory medicine and the Canada Research Chair in occupational and environmental lung disease at UBC. “This study, which is the first of its kind in the world, provides fresh evidence supporting a connection between air pollution and cognition.”

Study details

The researchers briefly exposed 25 healthy adults to diesel exhaust and filtered air at different times in a laboratory setting. Brain activity was measured before and after each exposure using functional magnetic resonance imaging (fMRI).

Next, the scientists measured changes in the brain’s default mode network (DMN), a set of inter-connected brain regions that play an important role in memory and internal thought. The results showed that participants had reduced functional connectivity in several regions of the DMN after exposure to diesel exhaust, compared to filtered air.

The findings may take on added significance as more employers require employees to return to the office, a move that could contribute to heavier traffic during morning and afternoon commuting times. The researchers say there are steps commuters can take to reduce their risk.

“People may want to think twice the next time they’re stuck in traffic with the windows rolled down,” Carlsten said. “It’s important to ensure that your car’s air filter is in good working order, and if you’re walking or biking down a busy street, consider diverting to a less busy route.”

Airlines have been served notice that what happened with the great Southwest Night Before Christmas meltdown can’t happen again.

Senators Richard Blumenthal (D-CT) and Edward Markey (D-MA) have introduced two new bills – the Airline Passengers’ Bill of Rights and the Forbidding Airlines from Imposing Ridiculous (FAIR) Fees Act – imploring Congress to set things right once and for all.

“Airlines need to be given some incentives to do the right thing and consumers need protection,” said Blumenthal, calling the expenses and hardship from recent delays and cancellations, “just one example of what happens every day to many consumers across the country because they have no bill of rights right now.”

In Blumenthal's mind, this couldn’t be simpler – or more bipartisan. To him, this Bill of Rights provides practical, tangible guarantees that would ensure airlines provide passengers with fair compensation, refunds, and recourse in the event of airline-caused flight delays and cancellations. 

“If Southwest faced these kinds of potential penalties and consumer class action, it might have updated its IT system," Blumenthal said. "It might have revised its point-to-point travel system. And it would have done the right thing voluntarily rather than incur these humongous disruptions and expenses to its consumer. There’s nothing Republican or Democrat about being stranded in an airport.”

The latest winter storm showed that airlines are being more responsive already

As anyone who's observed part of this week’s news cycle knows, winter storm Mara that blasted the South, canceling thousands of flights and sending airlines that fly Southern U.S. routes into we-can't-let-what-happened-to-Southwest-happen-to-us mode. 

Southwest to its credit responded quickly issuing weather waivers that allowed passengers to reschedule their flights at no cost. American did the same.

New expert suggestions on what stranded passengers can do

Mother Nature doesn’t always broadcast her intentions, but it’s evident she hasn’t been happy lately. According to new numbers from the Bureau of Transportation Statistics, 20.12% (144,515) of all flights in the U.S. were delayed in 2022, up from 16% (86,307) in 2021 – a huge swing that impacted more than 60,000 flights and all the travelers who planned to be on board those flights.

United Airlines' CEO has already sent up a flare, warning that more disruptions are ahead. Until all of this is resolved, however, travelers don't have that many good options.  

For any hesitant traveler, the standard issue rules of the road (er, sky) still apply – fly nonstop and use only carry-on bags. ConsumerAffairs found a couple of additional new tricks that might help travelers out if a cancellation happens to them.

Clint Henderson at ThePointsGuy recommends that those who have to check bags should use Apple AirTags in their luggage. However, AirTags only work with Apple iPhones, leaving Android users out in the cold – to a degree.

Android users could always use something like PingTag which would allow airlines (or other kind souls) to scan a QR code sticker on a bag and send a message directly to the flier. 

Henderson also recommends that before heading out, check your credit card benefits.

“Your credit card may cover any extra expenses you incur during long delays or cancellations,” he said.

Blake Walsh, travel expert at Travel Lens added that because getting through to an airline’s customer service department can take forever, stranded travelers should use social media to their advantage.

“Sadly, not all customer service teams are as helpful as they should be and getting in touch with them via a phone call isn’t always easy,” he told ConsumerAffairs.

“Airlines value their reputation on social media and platforms like Twitter are a great way to get in contact with an employee. If you do use Twitter to reach out, then it’s important to remain polite and calm as this will work in your favor.”

The Federal Reserve Open Market Committee (OMC) concluded its latest meeting by raising its federal funds rate by another 0.25%. It was the eighth straight increase as the Fed tries to rein in inflation.

While Wall Street expected the quarter-point increase it was hoping the policymakers would signal they are getting close to ending their rate hikes. They didn’t. In a statement, the Fed signaled there are probably more rate increases to come.

“The Committee anticipates that ongoing increases in the target range will be appropriate in order to attain a stance of monetary policy that is sufficiently restrictive to return inflation to 2% over time,” the OMC said in its statement.

Translated, that means the Fed isn’t happy that unemployment remains low, even though it acknowledges that inflation has eased a bit. Therefore, the federal funds rate will float between 4.5% and 4.75% and could go even higher after the Fed meets in March and May.

“Today, according to the CME’s FedWatch Tool, the probability of a 25-basis point rate increase at the next Fed meeting in March is 85%,” Robert R. Johnson, PhD, CFA, CAIA, a business professor at Creighton University,” told ConsumerAffairs. “And, there is a 37% chance of an additional 25 basis point hike in May. Having said that, this Fed is very data-dependent and the data will determine the Fed’s actions.”

What it could mean for you

If you borrow money or invest in the stock market, it’s not good news. The Fed controls the rate that banks pay when they borrow money. Each time it hikes rates, it costs more to finance a car or truck, and the interest rates on credit cards, already among the highest rates there are, go even higher.

“Credit card interest rates are already as high as they’ve been in decades,” said Matt Schulz of LendingTree. “While the Fed is taking its foot off the gas a bit when it comes to raising rates, credit card APRs almost certainly will keep climbing for at least the next few months, so it is important that cardholders continue to focus on knocking down their debt.”

Higher rates also tend to reduce stock valuations. While the stock market enjoyed a strong rally in January, February could prove to be a different story.

Investors often try to anticipate events and lately, traders have convinced themselves that the Fed was about finished with its rate tightening and might even cut rates in the second half of the year.

That said, after plunging when the Fed announced its decision Wednesday, stocks continued to rally on what were perceived as less-hawkish comments from Fed Chairman Jerome Powell during a news conference.

Santiago Guzman, co-founder and CEO at Cap8, says the current inflation is different from the past. He suggests things are not as dire as the Fed thinks.

“The drop in price increases will be faster than what the Fed expects, even without a significant increase in unemployment,” he told us. “This does not mean that the market does not believe the Fed, but rather that it bets it will change its mind once the downward path is confirmed, and the risk of being wrong twice comes from an over-tightening perspective.”

While tax season requires taxpayers to get all of their documents in order and ready for filing, it’s also important to be aware of tax withholdings for the 2023 tax year. 

The Internal Revenue Service (IRS) explained that any number of factors can affect how much taxpayers owe in a given year – changing filing status, changing living situation, having a child, changing jobs, etc. However, to avoid penalties and having to make additional tax payments, it’s important for taxpayers to know just how much they’re withholding this year. 

Estimated payments can help taxpayers avoid penalties

Taxpayers have two primary options when it comes to paying taxes: withholding taxes from paychecks, pensions, or government payments like Social Security, or by making estimated tax payments. 

For taxpayers who have experienced a major life change within the last year – changing their filing status (single to married or vice versa), having a child, moving, changing jobs – or for those who are self-employed or work in the gig economy, taxes are likely to look different. The IRS encourages taxpayers to look at their current withholdings and think about how to best approach their taxes for the new year. 

For those who don’t choose to either withhold more taxes or make estimated tax payments, the result is likely going to be a rather large tax bill when it comes time to file. To avoid this, the IRS encourages taxpayers to consider estimated tax payments or increasing withholdings. 

The Tax Withholding Estimator can help taxpayers get a better idea of whether or not they need to up their withholdings or think about incorporating estimated tax payments. 

Utilizing the adoption tax credit

When it comes time to file 2022 taxes this year, taxpayers who have adopted children should be mindful of the adoption tax credit. The maximum credit for 2022 is $14,980 per child, and it is valid for U.S. taxpayers regardless of whether or not the adoption was domestic or foreign. 

Expenses that can be deducted under the credit include: 

• Court costs and attorney fees

• Traveling expenses (including meals and lodging away from home)

• Reasonable and necessary adoption fees

• Other expenses related to the principal purpose of the legal adoption of an eligible child 

More information on income limits, timing rules, and claiming the credit is available here. 

After a nice decline in December that gave motorists a much-needed break, gasoline prices rose sharply in January.

The national average price of regular gas is around $3.48 a gallon. A month ago, motorists paid only $3.21 a gallon. The rise has led to fears that fuel prices would resume their march to the all-time highs recorded in June.

But one industry expert says the increase may be over, at least for the moment. Posting on Twitter, Patrick DeHaan, head of Petroleum Analysis at GasBuddy, says the increases have slowed.

“The national average (is) now 1.1 cents higher than a week ago at $3.48/gal,” DeHaan wrote. “With oil, gasoline and distillate values sagging, we may soon see week-on-week drops in average prices.”

Hawaii has the most expensive gasoline in the U.S., with its average price of regular at $4.93 a gallon. However, that’s down from a month ago when the average price was over $5 a gallon.

California still has the second-most-expensive regular gas, with a statewide average of $4.57 a gallon. Its price is also higher than a month ago, the opposite of the nationwide trend.

Texas has the cheapest prices

Texas has the cheapest gasoline this week. The statewide average price of regular is $3.12 a gallon. That’s 27 cents higher than a month ago. While the increase in fuel prices may be slowing, the effects may be temporary. 

“January’s weather was relatively mild in much of the nation, which led to more drivers hitting the road. However, a return of wintery conditions in February may see a revival of seasonal driving patterns,” said Andrew Gross, AAA spokesperson. “But with the cost of oil stubbornly hovering around $80 per barrel, drivers probably won’t catch a big break at the pump over the next week or two.”

Late winter and early spring are typically the time when refineries begin maintenance, which reduces fuel production. Assuming demand remains consistent, that can prevent prices from falling and even send them higher.

Spring is also the time when refineries begin producing summer blends of gasoline, which are more expensive – a fact that will probably confront consumers at the gas pump.

Each year, thousands of people go to emergency departments with burn injuries related to flammable liquids.

Among the more egregious incidents occurred this past Christmas night in Mullica Township, N.J.

A 25-year-old man, James Davis, was seriously burned when a gas can exploded in his backyard, according to People magazine.

Mullica Township police chief Brian Zeck said the explosion occurred when Davis tried tried to use gas to reignite a fading bonfie.

Davis, who was burned over 90% of his bodied, died of his injuries four days later.

Incidents like this have led the U.S. Consumer Product Safety Commission (CPSC) to say "enough is enough."

To cut down on these injuries, the agency is requiring flame mitigation devices on gas cans and other fuel containers starting in July 2023.

What these devices do

Flame arrestors protect against flame jetting, a phenomenon where an external ignition source -- such as an open flame -- causes a sudden ignition of fuel within a container and forcefully expels burning vapor and liquid from the mouth of the container, resulting in a blowtorch-like effect.

These mitigation devices will be required on new gas cans and other containers that are sold empty, such as for kerosene and diesel

Also included are new containers sold pre-filled with fuels such as charcoal lighter fluid, liquid fireplace fuels and pre-mixed gasoline and engine fuel.

Most fuel containers already have the safety device.

The agency is required to act under the Portable Fuel Container Safety Act (PFCSA), which Congress enacted in 2020.

CSPS also voted to update child resistance requirements for closures on portable gas cans, and diesel and kerosene containers, making them effective on December 22, 2022.

The revisions also apply requirements to aftermarket products such as pour spouts.