On The Money — Stock Market Tanks As Interest Rates Rise

Don’t check your 401(k) for a while. We will also look at the shutdown snag and sanctions easing of Senate Majority Leader Charles Schumer (DN.Y.) to promote Internet access in Iran.

But first, Tom Brady can be state gym teacher of Florida.

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On rising fears of recession at the lowest level since 2020

Markets are falling as they process the latest interest rate hike from the Federal Reserve to fight 40 years of high inflation.

  • The Dow Jones Industrial Average fell nearly 500 points in the market on Friday to 29,590 — its lowest point in nearly two years. Since the Fed began raising interest rates in March, the index has lost more than 13 percent of its value and is down more than 19 percent year on year.

Other indices have also followed suit.

  • The S&P 500 closed 65 points lower on Friday at 3,693, down more than 15 percent from March and nearly 23 percent in the year.
  • The technology-heavy Nasdaq fell nearly 200 points, or 1.8 percent, to 10,867, up nearly 20 percent since March.

background: The Fed raised its baseline interest rate range by 3.25 percentage points from a level of nearly zero in March. Consumer inflation eased slightly in the summer, falling to 8.3 per cent in August, from 8.5 per cent in July and 9.1 per cent in June.

But little done by the Fed in fighting inflation comes at the cost of slowing the economy and potentially pushing it into recession, a tradeoff that some market commentators don’t think is worth it.

Hill’s Tobias Burns here is more,

lead the day

Schumer seeks out-of-the-box approach on Munchkin deal

Senate Majority Leader Charles Schumer (D.N.Y.) is looking for a way to avoid a government shutdown next week, while Sen. Joe Manchin (DW.Va.) is fulfilling his promise to pass permitting reform before October.

  • Most Senate Republicans say they would vote against the government funding measure if it included Manchin’s permitting reform bill, and a group of Democrats are pressing Schumer to set aside the continuing proposal and allow reform.
  • That means Schumer is likely to fall short of the 60 votes needed to clear the filibuster expected for a short-term government funding resolution that also includes Manchin’s permitting reform provisions, which would change the federal approval process for energy projects. Will give

But Schumer has promised Manchin that he will include allowing reforms in the stopgap funding measure, which must pass by September 30 to avoid a government shutdown.

Alexander Bolton of the Hill here is the latest,

easing of restrictions

Biden administration eases sanctions to boost Internet access for Iranians

The Treasury Department on Friday announced exceptions to Iranian sanctions to allow companies to provide more online services in the country, as Iran’s government shut down Internet access in much of the country amid protests.

The department said in an announcement that the guidance authorized tech companies to provide the Iranian people with more options for secure, external platforms and services.

  • The update seeks to modernize existing approval exemptions for companies providing Internet access by adding exceptions to social media platforms, video conferencing services and cloud-based services.
  • The sanctions eased after the Iranian government cut off the internet for most of its citizens following a violent crackdown on peaceful protests in the country. The protests followed the death of 22-year-old woman Mehsa Amini in police custody.

Hill’s Rebecca Cleary more details here,

historical first

California first state to ban natural gas heaters and furnaces

A new resolution passed by the California Air Resources Board (CARB) makes the state the first to ban natural gas heaters and furnaces. nice to know

The decision, which was passed unanimously, aims to end the sale of space heaters and water heater equipment by 2030.

  • The commitment is part of a broad range of environmental efforts passed by the board this week to meet the federal 70 parts per billion, 8-hour ozone standard in the next 15 years.
  • According to the originally proposed plan released in August 2022, the combustion of natural gas in residential and commercial buildings in California accounts for about five percent of the state’s total nitrogen oxide emissions. In addition, space and water heating make up about 90 percent of all. Natural gas demand related to construction.

read more here From Gianna Melillo of The Hill.

nice to know

The US Army’s Office of Innovation is Start Attempts to assess cryptocurrency threats to national security and law enforcement, assisting authorities in preventing illegal use of digital assets.

“The ongoing program here involves mapping the cryptocurrency universe in some detail,” said Mark Flood, DARPA Program Manager.

Here’s what else we have our eye on:

  • America and Pfizer will decrease The number of global vaccine donations in response to “low demand”, although the company says it is still committed to supplying the roughly 1 billion doses that the US has committed to providing.
  • The largest online platform of the “Incel” movement growth has been observed In a call for violence, according to a new report released on Friday.

that’s it for today. The Hills. thanks for reading and watching finance page For the latest news and coverage. We will see you next week.

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