Savings Drop As Inflation Outpaces Paychecks; UFC Erects White House Cage. What You Need to Know

Added: 2026-06-01

[00:00:04]This is what you need to know. Economic anxiety growing as Americans see their [music] savings drop and inflation starts outpacing paychecks.

[00:00:13]>> Oh my god, he's having a stroke.

[00:00:15]>> Former first lady Jill Biden [music] speaking out about the health concern she had after seeing her husband's debate performance in 2024. Plus the star NFL running back arrested in domestic violence case with strangulation among the charges.

[00:00:30]The new construction project underway at the White [music] House for the upcoming UFC fight. And Pope Leo getting behind the wheel of Ferrari's new all-electric model. We've got much more what you need to know.

[00:00:44]I'm Jay O'Brien from ABC News. This is what you need to know. Let's get right into our big story. Americans are saving less of their income than they have in 4 years. It's at its lowest point as higher prices continue to squeeze [music] household budgets. Our Elizabeth Schulze explained what the latest numbers say about inflation, wages, >> [music] >> and spending pressure.

[00:01:03]>> Jay, higher prices are taking a toll.

[00:01:05]New government data shows that Americans are [music] saving less of their income than at any other time in the last 4 years. The personal savings rate dropped sharply to 2.6% in April. 1 year ago, it was twice as high and typically in a healthy economy, that savings rate is around 6%. So this could suggest that people are dipping into their savings to help pay for essentials like gas and groceries >> [music] >> as those prices spike.

[00:01:30]We also saw new data this week showing that food insecurity in the US is now worse than during the height of the COVID pandemic. One in 10 households nationwide are now missing meals because of a lack of food. That's up from 4% in 2020 and nearly one in six are now relying on food donations. So we see that overall right now, prices in the economy are going up at the fastest pace in 3 years. [music] The inflation rate is 3.8% and importantly, Americans' paychecks >> [music] >> are not keeping up with inflation average wages are up 3.6% in the past year consumer spending has been resilient but we are seeing major retailers warn [music] of signs of stress Costco for example just reported record-breaking sales of gas as shoppers try to look for lower prices.

[00:02:17]>> Overseas Kenya is now suspending a plan by the Trump administration to build an Ebola treatment center for Americans in that country. [music] The administration argues it's better to keep any Americans exposed there in Africa but a Kenyan judge now wants to hold a hearing on that issue. Medical experts have criticized the Trump administration's plan. Former first lady Joe Biden says that she was frightened by President Biden's 2024 debate performance. She told CBS News [music] she thought her husband was having a stroke. Biden had a halting performance remember stumbling through much of that debate. He later dropped out of the race a month later.

[00:02:52]>> I had never ever seen Joe like that before or since.

[00:03:00]Never.

[00:03:01]>> Or since? [music] >> Yes. I don't know what happened. I mean when I as I watched it I thought oh my God he's having a stroke.

[00:03:07]And it scared me to death.

[00:03:10]>> Meanwhile former President Biden is suing the Justice Department. He's trying to block the release of transcripts and audio recordings from interviews with the ghost writer of his 2017 memoir. The documents were obtained as part of the DOJ's investigation into Biden's handling of classified documents during his vice presidency.

[00:03:30]And here's what to watch a night out ends in tragedy after 19-year-old Kenneka Jenkins vanishes without a trace in Denver Colorado. Now 2020 reveals how investigators finally exposed the man responsible. Watch Evil at the Door streaming right now right here on Disney Plus and Hulu.

[00:03:48]And the final trailer for Toy Story 5 dropped this week. The movie features the whole gang, Woody, Buzz, Sheriff, Jessie as they reunite on a mission to confront [music] Lilypad, a new smart tablet with her own ideas about how to help Bonnie make friends.

[00:04:04]>> First we were playing, then the world started changing.

[00:04:07]>> No.

[00:04:08]Are we getting donated?

[00:04:10]>> Donut.

[00:04:11]>> No, sweetie. Donated.

[00:04:13]>> Bonnie doesn't want [music] to play with toys anymore. She needs me.

[00:04:17]>> Jessie, you know Bonnie better [music] than anyone. What does your gut say?

[00:04:21]>> Bonnie still needs us. Our time ain't over yet. [music] >> We're going to need backup.

[00:04:30]>> Oh, I'm excited. There are new toys joining the group, too. Conan O'Brien will play a character named Smarty Pants, >> [music] >> and Grammy winning superstar Bad Bunny will parent play a character named Pizza with Sunglasses. The movie hits theaters on June 19th.

[00:04:45]And we've got much more what you need to know.

[00:04:58]Now to take three, the stories that you'll be talking about this weekend.

[00:05:01]Number three, the fantasy sports company Underdog Sports has requested a cease and desist letter over a mock board game from Thunder star Shai Gilgeous-Alexander. That's according to The Athletic. The game called Unethical Hoops would buzz for a foul anytime a cartoon version of the player was touched. The letter demands the games be destroyed for Underdog to not use use SGA's name, image, or likeness without permission. The MVP winner is facing accusations from critics of intentionally falling to get foul calls.

[00:05:34]He says the criticism does not discourage him. Number two, a rare albino buffalo in Bangladesh has been spared from ritual sacrifice after the government intervened. The viral 1,000 lb animal has a distinctive blonde tuft that has been earned the nickname Donald Trump and worldwide fame has come with it. It's now been moved to a national zoo.

[00:05:57]And number one, despite how it may look, Pope Leo is not getting a new Popemobile. The pontiff was actually just getting an up-close look at Ferrari's first all-electric car, the Luce. The Pope sat in the driver's seat, but never got to really test-drive the $640,000 car. That price tag may explain why Ferrari gifted the Pope just its steering wheel, not the full car.

[00:06:23]Now to some quick hits. Other stories we're following for you at ABC News.

[00:06:27]Matthew Perry's live-in assistant, Kenneth Iwamasa, has been sentenced to 3 years and 5 months in prison for playing a central role in the actor's descent into [music] ketamine addiction, injecting him with a fatal dose of the drug. Iwamasa was the last person sentenced of the five who pled guilty in that investigation.

[00:06:47]Josh Jacobs of the Green Bay Packers now facing five domestic violence charges, including felony strangulation. The star running back turned himself in to police in Wisconsin after police [music] were called to an alleged incident last weekend. Jacobs was released pending further investigation. His attorney said Jacobs vehemently denies the allegations.

[00:07:08]And Meta is rolling out new subscription plans for Facebook, Instagram, and WhatsApp. Each plan would cost $3 or $4 and grants access to extra features, including profile customization and story insights. The company plans to offer AI-focused plans >> [music] >> in the near future, too. Meta recently laid off 1,400 employees in Washington state. At the same time, a massive superyacht reportedly linked to Mark Zuckerberg is drawing attention after it docked in Seattle. One critic calling Zuckerberg a quote tech bro who can't read the room, end quote.

[00:07:45]And now, one more thing before you go.

[00:07:46]The latest construction project at the White House, this time for the upcoming UFC fights [music] there. The metal framework has already been erected on the South Lawn. It will flank [music] an octagon cage, and 4,000 seats are going to be added. A rendering shows what it will look like. The fight night is June 14th, President Trump's birthday. And that is what you need to know. For breaking news and live updates throughout the day, check out ABC News, streaming right here on Disney Plus.

[00:08:20]>> New episodes daily on Disney Plus.