Don’t check your 401 (k) for a while. We will also look at the inconvenience of shutting down Senate Majority Leader Charles Schumer (DN.Y.) and easing sanctions to increase Internet access in Iran.
But first, Tom Brady could become Florida’s state gymnastics teacher.
Welcome to On The Money, your overnight guide to everything related to bills, bank accounts and profits. For The Hill we are Sylvan Lane, Aris Folley and Karl Evers-Hillstrom. Anyone forward this newsletter to you? Sign up here.
Dow at a 2020 low as recession fears grow
Markets are plummeting as they process the Federal Reserve’s latest interest rate hikes in its battle to fight 40-year high inflation.
- The Dow Jones Industrial average fell nearly 500 points to reach 29,590 at the close of the market on Friday, the lowest point in nearly two years. Since the Fed began raising interest rates in March, the index has lost more than 13% of its value and has fallen more than 19% year-on-year.
Other indices followed suit.
- The S&P 500 fell 65 points to close at 3,693 on Friday, down more than 15% since March and nearly 23% year-on-year.
- The high-tech Nasdaq fell nearly 200 points, or 1.8%, to close at 10,867, down nearly 20% since March.
Background: The Fed raised the range of base interest rates by 3.25 percentage points from near zero levels in March. Consumer price inflation fell slightly during the summer, dropping to 8.3% in August from 8.5% in July and 9.1% in June.
But the small progress made by the Fed in fighting inflation comes with the price of slowing the economy and potentially even driving it into recession, a trade-off that some market commentators don’t think is worth it.
The Hill’s Tobias Burns has more here.
Schumer seeks a way out of the Manchin deal
Senate Majority Leader Charles Schumer (DN.Y.) is looking for a way to avoid government shutdown next week, while also delivering on his promise to the Senator. Joe Manchin (DW.Va.) to approve the permit reform before October.
- Most Senate Republicans say they will vote against the government funding measure if it includes the Manchin permit bill, and a group of Democrats are lobbying Schumer to separate continued resolution and reform clearance.
- This means that Schumer is likely not to achieve the 60 votes he needs to overcome an expected obstruction to a short-term government funding resolution that also includes Manchin’s permit reform provisions, which would alter the federal approval process. for energy projects.
But Schumer has promised Manchin that he will include the permit reform in the interim funding measure, which will have to go through by September. 30 to avoid the closure of the government.
Hill’s Alexander Bolton has the latest news here.
TRAINING OF PENALTIES
Biden administration eases sanctions to increase Iranian people’s internet access
The Treasury Department announced exceptions to Iranian sanctions on Friday to allow companies to provide more online services to the country after the Iranian government shut down internet access for most of the country amid protests.
The guide authorized tech companies to offer Iranians more options for secure external platforms and services, the department said in an announcement.
- The update aims to modernize existing penalty exemptions for companies providing internet access by adding exceptions for social media platforms, video conferencing and cloud-based services.
- The lifting of sanctions comes after the Iranian government cut the internet for most of its citizens following the violent crackdown on peaceful protests in the country. The protests were sparked by the death of Mahsa Amini, a 22-year-old woman in police custody.
Rebecca Klar of The Hill has more details here.
The first state of California to ban natural gas stoves and ovens
A new proposal approved by the California Air Resources Board (CARB) consolidates the state as the first to ban natural gas heaters and ovens. Good to know
The decision, which was passed unanimously, aims to phase out sales of space heaters and water by 2030.
- The commitment is part of a broader range of environmental efforts approved by the council this week to meet the federal standard of 70 parts per billion and 8 hours of ozone over the next 15 years.
- Residential and commercial buildings in California account for about five percent of the state’s total nitric oxide emissions from burning natural gas, according to the originally proposed plan, released in August 2022. In addition, space and water heating it accounts for nearly 90 percent of all natural gas demand for buildings.
Read more here by Gianna Melillo of The Hill.
Good to know
The US military’s office of innovation is introducing an effort to assess cryptocurrency threats to national security and law enforcement, helping authorities prevent illegal uses of digital assets.
“The ongoing program here involves mapping the cryptocurrency universe in detail,” said DARPA program manager Mark Flood.
Here’s what else we have an eye on:
- The United States and Pfizer will reduce the number of global vaccine donations in response to “reduced demand,” although the company says it is still committed to providing the approximately 1 billion doses that the United States has pledged to provide.
- The largest online forum of the “incel” movement has seen an increase in calls for violence, according to a new report released on Friday.
That’s all for today. Thanks for reading and checking The Hill’s financial page for the latest news and coverage. I’ll see you next week.
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