The ROAD to Housing Act received bipartisan support

By Mark Huffman of ConsumerAffairs

• The Senate Banking Committee unanimously approved the ROAD to Housing Act, a bipartisan effort to increase housing supply and reduce regulatory hurdles.

• The bill includes provisions to streamline environmental reviews, promote construction in Opportunity Zones, and expand financial counseling programs.

• The American Bankers Association voiced strong support, highlighting measures that would boost affordable housing investments and improve access to small-dollar mortgages.

In a rare show of bipartisan unity, the Senate Banking Committee voted unanimously to advance the ROAD to Housing Act, a major housing reform package aimed at increasing the nations housing supply crisis.

Supported by Chairman Tim Scott (R-S.C.) and Ranking Member Elizabeth Warren (D-Mass.), the legislation blends proposals from both sides of the aisle to address housing affordability through deregulation, expanded investment incentives, and community-level support.

The bill would reward communities that actively build new housing, reduce barriers to development such as lengthy environmental reviews, and rethink federal rules that stifle lending for smaller mortgages. It also includes tenant protections and programs to expand access to financial literacy and housing counseling.

For far too long, Congress believed this problem was too big to solve, Scott said. Today, were taking not a step but were taking a leap in the right direction in a bipartisan fashion.

Housing shortage

Since the housing market crash in 2009, home building has not kept up with housing demand, leading to a shortage and higher prices. Rock-bottom mortgage rates during the pandemic pushed home prices even higher. Now that rate have returned to normal, millions of people are priced out of the housing market.

By combining deregulatory reforms with expanded public support mechanisms, the bill attempts to strike a balance between supply-side growth and consumer protection.

The American Bankers Association has endorsed key provisions of the bill, including a provision enabling banks to channel more funding into affordable housing and community development projects.

The measure now goes to the full Senate where, with bipartisan support, approval is expected.

The Consumer Confidence Index rose despite inflation worries

By Mark Huffman of ConsumerAffairs

• The Conference Board Consumer Confidence Index increased to 97.2 in July, up from a revised 95.2 in June.

• The Present Situation Index declined slightly to 131.5, reflecting continued concerns about current job conditions.

• The Expectations Index rose to 74.4, but remained below the recession-indicative threshold of 80 for a sixth straight month.

Consumer confidence edged up in July, signaling cautious optimism about the short-term economic outlook, even though there are lingering concerns about the labor market and inflation.

According to The Conference Boards latest release, the Consumer Confidence Index rose by 2.0 points to reach 97.2 (1985=100), reflecting improved expectations across most age and income groups.

"Consumer confidence has stabilized since May, rebounding from April's plunge," said Stephanie Guichard, senior economist at The Conference Board. Though optimism remains below last year's highs, Julys improvement suggests consumers are regaining some confidence in future conditions, particularly regarding business prospects, employment, and personal income.

Recession worries persist

Despite a small lift in overall confidence, consumer perceptions of current economic conditions were mixed. The Present Situation Index dropped slightly to 131.5, driven largely by weakening sentiment around job availability.

While more consumers (30.2%) said jobs were "plentiful" in July compared to June (29.4%), a growing share 18.9% reported jobs were "hard to get," the highest percentage since March 2021. This figure is up significantly from 14.5% in January.

At the same time, the Expectations Index rose 4.5 points to 74.4, a sign that consumers are growing less pessimistic about the coming months. Even so, the index has remained under the 80-point mark, historically associated with recession risks, for half a year, indicating continued economic uncertainty.

Inflation concerns

Write-in survey responses revealed that consumers remain concerned about inflation, tariffs, and recent legislative developments. Despite a slight drop in 12-month inflation expectations, concerns over rising prices persisted. Tariffs were a top concern, especially in terms of their potential to drive costs higher.

Some respondents referenced the recent budget reconciliation bill passed by Congress, dubbed the Big Beautiful Bill, with opinions divided: some praised its economic potential while others voiced skepticism. However, the legislation did not dominate consumer concerns in July.

Consumer spending intentions painted a mixed picture. Plans to purchase cars and homes declined in July, though they remained relatively stable when viewed on a six-month average basis. Big-ticket items like appliances saw uneven demand, while interest in electronics crept upward.

In services, spending intentions weakened for the second month in a row, with dining out, travel, and lodging all seeing declines. Domestic vacation plans fell overall, while a slightly larger share of consumers expressed interest in traveling abroad.

Health officials urging vaccinations as infections mount

Sometimes known as "legal morphine at the gas station," it's potentially addictive

By Truman Lewis of ConsumerAffairs

• Federal health officials plan action against 7-OH, a powerful kratom-derived compound in tablets and drinkable shots.

• The FDA says 7-OH products may pose risks including sedation, respiratory issues, and addiction.

• Industry divides over safety and regulation, with some calling the substance legal morphine at the gas station.

Federal health officials are preparing to announce new enforcement measures aimed at curbing the rise of a potent and controversial compound found in popular kratom-derived products sold in convenience stores and gas stations across the U.S.

The Department of Health and Human Services (HHS) said it is focusing on 7-hydroxymitragynine, or 7-OH, a highly concentrated substance synthesized from a compound in the kratom leaf, the Washington Post reported. While the natural plantnative to Southeast Asiais used in teas and powders and is touted by advocates as a mild stimulant and opioid alternative, 7-OH products are far more potent and have raised alarm among regulators, researchers, and even some kratom industry groups.

These arent plant extractstheyre essentially legal morphine being sold over the counter, said Christopher McCurdy, a professor of medicinal chemistry at the University of Florida.

The Food and Drug Administration (FDA) recently sent warning letters to seven companies it accuses of illegally marketing 7-OH products as dietary supplements or unapproved drugs. These companies allegedly promoted the substances as treatments for pain or anxiety without the necessary safety approvals.

The FDA has warned that use of 7-OH can lead to side effects including nausea, sedation, breathing problems, and addiction.

A press conference scheduled for Tuesday will include remarks from HHS Secretary Robert F. Kennedy Jr. and kratom advocate Melody Woolf. The inclusion of a plant-product proponent suggests the crackdown may target only the synthetic or enhanced forms of kratomnot the natural leaf or tea preparations.

What it is

Kratom (Mitragyna speciosa) is a tropical evergreen tree in the coffee family. It is native to Southeast Asia and has been used for centuries for its stimulant and pain-relieving properties. The trees leaves contain alkaloid compounds, primarily mitragynine and 7-hydroxymitragynine (7-OH), which interact with opioid receptors in the brain to produce a range of effects depending on the dose.

• At low doses, kratom typically acts as a stimulant, increasing energy, alertness, and sociability.

• At higher doses, it can have sedative and analgesic (pain-relieving) effects, mimicking those of opioids, though generally with less potency.

Itis indigenous to Southeast Asia, where it has a long cultural history as a natural remedy. It has become increasingly popular in the U.S. as an alternative to prescription opioids, to manage opioid withdrawal symptoms and for relieffrom anxiety, depression, or chronic pain.

Supporters argue it is a safer, natural alternative to opioids. But critics and regulators warn about the risks of dependence, unregulated products, and the emergence of potent semi-synthetic kratom derivatives, such as 7-OH extracts, which can be far more dangerous than the natural plant.

Mounting concerns

Kratom has long been a point of contention in Americas drug policy landscape. While some praise its use in easing chronic pain or managing opioid withdrawal, others warn of its psychoactive effects and potential for abuse.

The American Kratom Association (AKA), a trade group representing plant-based kratom producers, has distanced itself from companies selling concentrated 7-OH products. The group accuses 7-OH sellers of distorting kratoms public image by promoting chemically manipulated versions of the plant.

But others in the industry argue that 7-OH offers a safer and more effective alternative to opioids. Jeff Smith of the Holistic Alternative Recovery Trust dismissed the criticism as part of an intra-industry turf war, and said the group supports reasonable safeguards like third-party lab testing, warning labels, and age restrictions.