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Market rallies; Fed may keep rates low until 2023: How today’s headlines could affect your money

The stock market rallied on Monday; the Fed may not hike interest rates until 2023; and Walmart launches Walmart+ program. Here’s how the headlines could affect your money.

Shoppers are seen wearing masks while shopping at a Walmart store in Bradford, Pennsylvania, July 20, 2020.
Brendan McDermid | Reuters

The market is seeing a recovery after last week and the Fed's not predicted to hike rates until 2023. Here's how the headlines could affect your money. 

Market recovering after last week's decline

After a rough week, the market rallied on Monday. The Dow was up 1.2%, while the S&P 500 rose 1.3% and the Nasdaq increased 1.9%. The market continued to build on those gains early Tuesday.

Fed unlikely to hike interest rates before 2023

The Federal Reserve is unlikely to hike interest rates until 2023, according to a new CNBC survey of money managers, strategists, and economists. That's good news for borrowers, who will continue to see low rates on mortgages and other debt. But it also means you're likely to see low rates on your savings account.

The outlook reflects the Fed's recent change of strategy. In August, Federal Reserve Chair Jerome Powell announced the Fed would allow inflation to run higher than usual "for some time." Typically, the Fed aims to keep inflation at about 2%. 

VIDEO2:2102:21
How the Fed's interest rate decisions impact you

Video by Stephen Parkhurst

Walmart+ launches

Walmart's membership program Walmart+ launched Tuesday. It costs $98/year or $12.95/month, with perks including unlimited free delivery on orders of $35 or more, fuel discounts of up to $0.05 per gallon, and access to an app that can help you skip store checkout lines. 

The program is mostly targeted at grocery shoppers, and many experts say it's an Amazon Prime competitor. Each program comes with its own perks, so make sure to compare before signing up for either.

Words you may have heard: COLA 

The Social Security cost of living adjustment, or COLA, is a regular adjustment to Social Security payments to counteract the effect of inflation. The COLA formula is based on the Consumer Price Index and adjusts every January. It's in the news because the Social Security Administration is set to announce the 2021 COLA soon. A new analysis forecasts it will be about a 1.3% increase.

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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