Markets post losses. The Covid-19 relief bill progresses but can't include a $15/hr minimum wage. Plus, why your credit score might be going up. Here's how the headlines could affect your money.
All three major indexes posted losses Thursday as traders worried about rising interest rates. The Nasdaq had its worst single day since October, dropping 3.5%. The Dow sank 1.8%, and the S&P 500 lost 2.5%.
Markets were mixed midday Friday.
The House is set to pass President Joe Biden's $1.9 trillion relief package on Friday. The proposal includes $1,400 stimulus checks, $400 per week unemployment insurance supplements, and a tax credit of up to $3,600 per child.
However, a Senate official declared Thursday that a $15/hr minimum wage cannot be included in the next Covid-19 relief package. The Senate must now revise the bill to remove the minimum wage hike, and once passed, send the bill back to the House to be reapproved.
In July, the national average credit score hit a record high of 711, because consumers are paying down debt and saving more than they have in decades. Economists attribute these behaviors to federal relief such as stimulus checks, unemployment benefits, and an extended pause on student loan payments.
Making a list of your debts, including balances and interest rates, can help you figure out the most effective method of paying them down.
Video by Ian Wolsten
One strategy for paying down debt is the avalanche method, in which you pay off the loans with the highest interest rates first.
Although the daily news can have an impact on your wallet, remember to take a long-term outlook when it comes to decisions on spending, saving, and investing.
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