Wednesday, September 20, 2023

The Daily Money: Fed expected to hold interest rates steady today

The Federal Reserve today will decide whether to push up interest rates past the current range of 5.25% to 5.5% or keep them steady.

Advertisement
Read in browser
 

The Daily Money

ALL THE MONEY NEWS YOU NEED TO KNOW

Wed Sep 20 2023
 

Bailey Schulz | Money Reporter

@bailey_schulz

Happy Wednesday, Daily Money readers. It's Bailey Schulz here to bring you the day's top headlines.

It's Fed Day, which means the central bank will decide whether to push up interest rates past the current range of 5.25% to 5.5% – the highest level in 22 years – or keep them steady. 

If the Federal Reserve holds its key interest rate as expected, it would be only the second time in 18 months it declined to hike interest rates. The previous raises were made to tame inflation but have also made it harder for consumers to afford loans and pay off credit cards .  

But the Fed may not be done with rate hikes yet. It has kept the door open for at least one more hike before the end of the year.  

Follow USA TODAY's live blog on the Fed meeting for the latest. 
Ap Federal Reserve Minutes

File - The flag of the Federal Reserve hangs between American flags at a news conference following a Federal Open Market Committee meeting on July 26, 2023 in Washington.

Nathan Howard, AP

An election conspiracy theory is spreading unchecked online

There's a rising conspiracy that as COVID-19 rates climb this year, the Biden administration will reinstate pandemic restrictions and push mail-in ballots to influence the next election. 

It's false. But some social media platforms are allowing it to spread openly, according to a new study from Advance Democracy, a nonpartisan research agency.

Though the claims originated in stories that have already been debunked, social platforms flagged or removed almost none of them during a surge in such posts in the last month, according to the study, which was provided exclusively to USA TODAY.

"COVID denialism has proven to be a very powerful uniting force among certain political movements," said Brian Hughes, associate director of the Polarization and Extremism Research and Innovation Lab at American University. "So, it makes sense that, at a time when our political leadership is being selected, these other mobilizing concepts are going to be thrown into the mix as well."

📰 More stories you shouldn't miss 📰

Minnesota woman made $117,000 running illegal Facebook lottery, police say

🍔 Today's Menu 🍔

Today's menu includes cheese … and lots of it.

Mexican restaurant chain QDOBA is offering a larger portion of their 3-Cheese Queso side in honor of National Queso Day. Guests visiting any participating QDOBA locations in the U.S. and Canada on Wednesday will get more cheese with the purchase of any entrée.

Guests can use code "DRIP" to access their free large side of queso with the purchase of any entrée at the store, on the app or on the website.

About The Daily Money

Each weekday, The Daily Money delivers the best consumer news from USA TODAY. We break down financial news and provide the TLDR version: how decisions by the Federal Reserve, government and companies impact you.
Concerns about inflation have increased in recent months, as stimulus payments from the federal government increased the ability of consumers to spend more than they had since well before the COVID-19-driven recession. This was compounded by difficulties low-paying industries had attracting workers, which made them raise the wages of hundreds of thousands of workers. But just as the pandemic caused prices of some items to soar, it caused prices of other items to plunge. The price of "food at employee sites and schools" fell the most, most likely because many people are now working from home and schools are not at full capacity yet. On the flip side, the price of this household item is soaring . Consumer spending is not the only reason inflation fear has been rekindled for the first time since before The Great Recession. Fuel prices have risen over the course of the year, with a sharp increase in the price of oil. Housing prices have risen at an unprecedented pace, to some extent because of low mortgage rates. Can the government use traditional measures to keep down the prices of many items that make up the consumer price index, even after their recent increase? The Federal Reserve has set interest rates relatively low since the Great Recession to help stimulate the economy. But with the recent COVID-19 recession and inflation creeping up, the Fed may be running out of ways to influence rising prices. If the Fed raises rates to combat inflation, for example, it could put a damper on the already pandemic-stricken economy. Once a month, the Bureau of Labor Statistics provides the consumer price index, the most carefully followed set of data about monthly prices movement. The numbers are broken into dozens of individual categories. The most recent release was for August . Figures are compared to the immediately previous month and to the same month a year ago. In August, the CPI for Urban Consumers rose by 5.3% from the same month last year. The price of some items rose by double digits. Among them "beef and veal" rose 12.2%, fuel oil rose 28.6%, women's clothing jumped 11.9%, and used car prices rose 31.9%. The price of education has also been increasing, and not just during the pandemic. This is the cost of college the year you were born . Even as inflation has become a part of the economic landscape this year, the prices of some items fell in August, and several fell very sharply. A review of the list indicates that price decreases have been partially due to the pandemic. Food at employee sites and schools fell 42.5%. This may be due to a drop in students' attendance because of the virus and summer vacation. Food prices at employee sites were likely affected because of the working-from-home mandate in most companies. The price of telephone hardware and calculators, both often used in offices, dropped 15%. The price of sewing machines and fabric fell 10.8%.

The Fed is expected to leave its key interest rate unchanged as parts of the economy, from jobs to housing continue to weaken.

Advertisement
Former President Donald Trump throws a football to the crowd during a visit to the Alpha Gamma Rho, agricultural fraternity, at Iowa State University before an NCAA college football game between Iowa State and Iowa, Saturday, Sept. 9, 2023, in Ames, Iowa. (AP Photo/Charlie Neibergall)
 

Why lies about COVID election rigging are spreading on social media

New study says false claims of a Biden plot to reinstate COVID restrictions and steal the election are spreading unchecked on Facebook, X and TikTok.
Customers give their orders at Qdoba in the Student Union at the University of Tennessee in Knoxville, Tenn., on Monday, Sept. 22, 2020.
 

QDOBA offers larger 3-Cheese serving in honor of National Queso Day

Guests visiting any participating QDOBA locations in the U.S. and Canada on Wednesday, National Queso Day, will get more cheese with the purchase of any entrée.
The sunrise casts shadows of travelers moving past gate information screens at Detroit Metropolitan Airport on Labor Day, Monday, Sept. 4, 2023, in Detroit. (AP Photo/David Goldman)
 

Find out how your hometown airport stacks up in J.D. Power study

Overall, passengers are happier with their airport experiences this year than they were last year, but some airfields are better than others.
Elon Musk floated the idea of charging users to pay a monthly fee for X, formerly Twitter in an interview with Israeli Prime Minister Benjamin Netanyahu.
 

Elon Musk debating to charge all X users a monthly fee

Elon Musk said users on X, formerly Twitter, could be charged a 'small amount' each month to 'combat vast armies of bots' proliferating the website.
Social Security card and hundred-dollar bills.
 

Minnesota woman used Facebook group to run illegal lottery, police say

Authorities said a 39-year-old, Minnesota woman who used the name 'Razz Queen,' set up a private Facebook group to secretly conduct raffles.
A patron, who did not want to give his name, uses the lottery ticket vending kiosk at a Smoker Friendly store to purchase tickets for the Mega Millions lottery drawing, Friday, Jan. 22, 2021, in Cranberry Township, Pa. The jackpot for the Mega Millions lottery game has grown to $1 billion ahead of Friday night's drawing after more than four months without a winner. (AP Photo/Keith Srakocic) ORG XMIT: PAKS101
 

Mega Millions jackpot grows to $183 million. See winning numbers for Sept. 19.

The Mega Millions jackpot has reached $183 million ahead of Tuesday's drawing. See winning numbers for Sept. 19.
How to use new 'check in' feature
 

How to Check In on iPhone

Apple's new iOS 17 software has made it easier for you to tell someone when you've reached your destination.
UAW members Dan Schlieman, with flag, and Brad Geer work the picket line during a strike Tuesday, Sept. 19, 2023, at the Stellantis Toledo Assembly Complex where Jeeps are made in Toledo, Ohio. (Jeremy Wadsworth/The Blade via AP) ORG XMIT: OHTOL207
 

Why Biden's emphatic support for UAW strike is a no-brainer before 2024

President Joe Biden emphatically put his support behind UAW's demands amid its strike. Ahead of the 2024 election, he didn't really have a choice.
Approximately 83,800 cases of individually-wrapped Kraft Singles American processed cheese slices are part of a recall from Kraft Heinz after it was found that a thin strip of film may remain on the slice after the wrapper is removed.
 

Recall: Kraft American cheese singles could cause gagging, choking hazard

The recall comes as a precaution after a "temporary issues" with one of its wrapping machines, Kraft Heinz said.

Advertisement
 

Sign up for the news you want

Exclusive newsletters are part of your subscription, don't miss out! We're always working to add benefits for subscribers like you.
SEE ALL NEWSLETTERS ➔

Newsletters   |    eNewspaper   |   Crosswords

Follow Us

Problem viewing email? View in browser
at

No comments:

Post a Comment

Subscribe to: Post Comments (Atom)

⭐ Ridiculously Easy Desserts (Dangerously Delicious)

#3 is sinfully delicious!  ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏...