How Will the Fed React to the Sequester: 5 Things to Know for the Week

Simon Zhen

Updated on Mon Mar 18, 2013

There’s no doubt that the automatic budget cuts, which went into effect earlier this month, are expected to leave a lasting effect on the U.S. economy. This week, eyes will be on Federal Reserve’s chairman Ben Bernanke and the central bank’s response.

 Gerald R. Ford School of Public Policy / Flickr |

Gerald R. Ford School of Public Policy / Flickr source

  • PerkStreet’s mobile banking application for iPhones is now available for download through the Apple App Store. It was announced nearly two weeks ago. At the time, the app was submitted and awaiting approval. The Android version of the app was released soon after the announcement.
  • A new quarter is just around the corner, which means that certain credit card users will be able to earn 5% bonus cash back in new shopping categories. Those with Citi Dividend, Chase Freedom and certain Discover cards can begin to enroll their cards in the new categories. And, anyone who still wants to take advantage of the current bonus categories should do so in the next two weeks.
  • The Federal Reserve will hold its next board meeting on Tuesday. There will likely be great emphasis placed on the central bank’s thoughts regarding the improving employment rate in February. Additionally, it is the first time that the Fed held a meeting since the sequestration cuts, which is expected to affect jobs numbers.
  • Lawmakers are considering a new rule that will peg rates of federal Stafford college loans to certain market indicators. It is a move that may stop political uncertainty from affecting student-loan interest rates. Proponents of the rules also believe that it’ll increase eligibility for this type of student loans.
  • Lenovo, a major manufacturer of personal computers, laptops and tablets, hinted at the possibility of new notebooks and tablet devices that support tap-to-pay functionality (i.e., paying for online purchases by tapping a credit card against the device). We could see these devices by the end of the year.

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