The Senate passed the Inflation Reduction Act on Sunday night. The bill, which is aimed at tackling climate change, the high cost of prescription drugs, and lowering the deficit, is causing a big stir over whether it will actually help fight inflation or not. Economists told Vox, “For the most part, this isn’t a bill about 2022. This is about 2023, 2024, [and] 2025. It’s about helping the Federal Reserve to fight against persistent inflation. It’s not gonna be bringing down the inflation rate in the month of September.” Investors are waiting for three inflation reports (PPI, CPI, and unit labor costs), which are expected to influence how the Fed will handle interest rate hikes in September. In other news, more people are so desperate for cash that they’re turning to pawn shops to help pay for their grocery and gas bills.
What could the Inflation Reduction Act mean for you?
The Senate on Sunday passed the Inflation Reduction Act — a bill meant to provide key funding for clean energy investments and measures to reduce prescription drug costs, after an hours-long vote-a-rama.
The marathon session that started Saturday continued into Sunday afternoon, with senators voting on a number of amendments to the 755-page legislation, including a failed provision offered by Sen. Raphael Warnock (D-GA) that would have capped the cost of insulin products at $35 per month for those with private insurance. Still, despite the bill’s fraught journey and many compromises, there are some victories that should have a tangible effect on the average American.
On Saturday, Vice President Kamala Harris cast the tie-breaking vote to launch a full day of debate over the bill — as well as several last-minute amendments Republican senators were floating. Senator Joe Manchin (D-WV) warned his colleagues in the Democratic Caucus not to fall for Republican senators’ “fake amendments,” since no Republican planned to vote for the IRA under any circumstance.
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Yahoo Finance/Alexandra Semenova
Inflation data, concerns about ‘a hard landing later’: What to know this week
A series of inflation reports due out this week could propel or break the market’s summer momentum.
Investors will get the latest gauge of how quickly prices are rising across the U.S. economy from three releases on tap in the coming days: PPI, CPI, and unit labor costs.
The readings are expected to influence how Federal Reserve officials proceed with the rate hiking cycle and will be closely monitored after Friday’s monster employment report suggested more aggressive increases may be warranted to slow the economy.
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Fox Business/Maureen Mackey
Amid inflation, people desperate for cash are turning to pawn shops
Rick Harrison, pawn shop owner and star of the TV show “Pawn Stars,” joined “Fox and Friends” on Monday morning to share what’s going on today amid inflation as Americans are struggling to get through to payday.
Some are pawning items they never planned to sell in order to get by.
“Most people don’t realize that 20% of the adult population do not have a bank account,” said Harrison. “They don’t have normal banking.”
He added, “So if they need a little extra money, this is what they have to do.”
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