Monday, May 22, 2023

The Daily Money: How the debt limit battle can impact you

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The Daily Money

ALL THE MONEY NEWS YOU NEED TO KNOW

Mon May 22 2023

Charisse Jones | Economic Opportunity Reporter

Yeah, it's Monday. But Memorial Day weekend is just around the corner! It's Charisse Jones with the Daily Money headlines to keep you in the know as you start your week.

With all the talk about the debt ceiling and the brinkmanship going on in Washington, you may wonder what does all that have to do with you. Well as it turns out, if lawmakers don't raise the debt limit there can be a rippling economic impact that touches everything from interest rates to the stock market.

But there are some measures you can take to protect yourself financially , whether it's buying extra groceries if you rely on cash payments from the government, or taking a little money out of your stock investments if you know you will need that cash in the very near future.

What will the Fed do?

The Fed says it won't, but the markets say it will.

While it's likely the Fed will put the brakes on its steady stream of interest rate hikes, it's also hinted that it won't cut rates this year, even if the U.S. experiences a mild recession. But financial markets are forecasting that the Central Bank will lower interest rates by November and there's a 30% chance it will make such a move as soon as September.

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🍔 Today's Menu 🍔

There's a sweet treat waiting for the Class of 2023. Seniors graduating from high school or college can wear a class T-shirt, ring or even their cap and gown to a local Krispy Kreme and get a free dozen original glazed donuts on May 24th.

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.