promoearn: The Daily Money: The economic impact of overturning Roe v. Wade

Friday, June 24, 2022

The Daily Money: The economic impact of overturning Roe v. Wade

ALL THE MONEY NEWS YOU NEED TO KNOW

Friday, June 24

Hello, Daily Money readers. It's Jayme Deerwester with you on this Friday, which saw the U.S. Supreme Court reverse Roe v. Wade, ending 50 years of federal protection of abortion.

So what happens now?

There will be many more stories to come but USA TODAY has already examined the myriad ways the decision could impact women in a country without paid family leave or child care, the ability to buy Plan B (also known as the morning-after pill), and privacy issues. We have also considered the travel implications of reversing Roe, as women in states where abortion is effectively banned may pursue having the procedure done in states or countries where it is legal, and whether more companies will subsidize travel expenses for those who do.

Let's get on to the rest of today's consumer news.

Is it too late to prevent a recession?

The Federal Reserve has promised to do "whatever it takes" in its fight against soaring inflation. That may even include allowing the economy to fall into a recession, which is when the U.S. gross domestic product declines for at least two consecutive quarters.

"It's certainly a possibility," Federal Reserve Chairman Jerome Powell said Wednesday. More

The main thing now spooking the market is anxiety surrounding more, and potentially bigger, rate hikes like last week's 75-basis-point increase. And because the Fed is still behind, it says it expects to raise rates by another 50 to 75 basis points in July, and to keep raising rates with a goal of ending this year near 3.4% and 3.8% next year.

It's those faster and bigger rate hikes that economists fear could bring spending to a screeching halt. A sharp stop instead of a slow, rolling taper could lead to a recession, they said.

"With the Fed scrambling to raise rates and financial markets reeling, a recession beginning this year or next is increasingly likely," said Moody's Analytics chief economist Mark Zandi, who puts the odds of a recession over the next 12 months at 40%, and evenly split over the next 24 months.

Why did the FDA ban Juul products?

The Food and Drug Administration on Thursday banned the sale of Juul Labs vaping products in the U.S., saying "there is insufficient evidence to assess the potential toxicological risks" of using their products.

The FDA ordered Juul to stop selling and distributing its products and said "those currently on the U.S. market must be removed, or risk enforcement action."

The decision comes as a blow to the giant that has been scrutinized over concerns that its marketing campaign targeted youth. The Juul ban follows a two-year review of the company's applications to continue selling its e-cigarette device and menthol and tobacco pre-filled cartridges.

The FDA in September banned the sale of hundreds of thousands of vaping and e-cigarette products. The agency recommended Juul users or cigarette smokers that want to switch to e-cigarettes consider authorized products.

🎵 Mood music 🎵

After this week's steamy weather, this Lovin' Spoonful classic seems fitting:

"Hot town, summer in the city. Back of my neck getting dirty and gritty. Been down, isn't it a pity. Doesn't seem to be a shadow in the city."

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. It even comes with its own Spotify playlist a listen. It features every song quoted here.

Follow Jayme Deerwester on Twitter – or Instagram, if you prefer puppy pictures. (Why? Because everybody loves puppies!)